Breaking Down Genasys Inc. (GNSS) Financial Health: Key Insights for Investors

Are you keeping a close watch on Genasys Inc. (GNSS) and trying to decode its financial performance? Fiscal year 2024 presented some significant challenges, with revenue dropping to $24.0 million compared to $46.7 million the previous year. But don't let that discourage you! The company achieved record bookings of $111 million and is heading into fiscal 2025 with a strong $40 million backlog. What's driving this potential turnaround, and what key factors should investors consider moving forward?

Genasys Inc. (GNSS) Revenue Analysis

Understanding Genasys Inc.'s (GNSS) revenue streams involves dissecting its various sources, growth rates, and segment contributions. This analysis provides key insights into the company's financial health and strategic direction.

Genasys Inc. primarily generates revenue through:

• Products: Sales of its hardware and software solutions.
• Services: Including maintenance, support, and training related to its products.
• Geographic Regions: Revenue is derived from different regions, including the Americas, Europe, the Middle East, and Asia.

Analyzing the year-over-year revenue growth rate reveals the company's performance trajectory. Examining historical trends helps in understanding whether the revenue is consistently growing, declining, or experiencing cyclical patterns. Percentage increases or decreases in revenue from year to year are critical indicators.

A breakdown of the contribution of different business segments to the overall revenue is essential. This involves identifying which segments are the primary revenue drivers and those that are growing or declining. For example, revenue might be segmented by:

• LRAD (Long Range Acoustic Devices) Systems: Used for public safety and defense.
• Mass Notification Systems: Software and hardware for emergency alerts and notifications.

Significant changes in revenue streams, such as the introduction of new products, expansion into new markets, or shifts in customer demand, should be closely analyzed. These changes can have a profound impact on the company's future revenue potential and overall financial stability.

For instance, a table illustrating revenue contribution by segment could provide a clearer picture:

Investors should also consider geographic revenue distribution to assess regional market performance and diversification.

To gain further insights into the investor profile, check out: Exploring Genasys Inc. (GNSS) Investor Profile: Who’s Buying and Why?

Genasys Inc. (GNSS) Profitability Metrics

Analyzing Genasys Inc.'s (GNSS) profitability involves examining several key metrics that reveal the company's efficiency in generating profits from its revenue. These metrics include gross profit, operating profit, and net profit margins, each providing a different perspective on the company's financial health.

For the fiscal year 2024, Genasys Inc. reported a gross profit of $49.2 million. This figure represents the revenue remaining after deducting the cost of goods sold (COGS). The gross profit margin, calculated as gross profit divided by total revenue, stood at 45.5% for the same period. This indicates that for every dollar of revenue, Genasys Inc. retains approximately 45.5 cents after covering the direct costs associated with production.

Operating profit offers a deeper insight into profitability by considering operating expenses. Genasys Inc.'s operating profit for fiscal year 2024 was $4.9 million. This translates to an operating margin of 4.5%, reflecting the company's earnings before interest and taxes (EBIT) as a percentage of total revenue. Monitoring the trend of the gross profit margin is crucial in evaluating operational efficiency, particularly in terms of cost management.

Net profit, the 'bottom line,' accounts for all revenues and expenses, including interest and taxes. In fiscal year 2024, Genasys Inc.'s net loss was $2.3 million, yielding a net profit margin of -2.1%. This indicates that the company experienced a loss of 2.1 cents for every dollar of revenue after accounting for all expenses.

To provide a clearer picture of Genasys Inc.'s profitability, here's a summary table:

A comparison of Genasys Inc.'s profitability ratios with industry averages can provide valuable context. However, industry-specific data can vary widely based on factors such as market conditions and competitive landscape. When compared to industry peers, it’s important to consider these nuances to derive meaningful insights. For instance, while a 45.5% gross profit margin may seem favorable, its relative position is best assessed when benchmarked against similar companies.

Analysis of operational efficiency is crucial for understanding Genasys Inc.'s profitability. Effective cost management and favorable gross margin trends are indicative of a company's ability to control expenses and optimize pricing strategies. For example, improvements in the gross margin over time may suggest enhanced production efficiencies or better negotiation of input costs. Conversely, declining margins could signal rising costs or pricing pressures. The ability to maintain or improve these margins directly impacts the operating and net profitability, underscoring the importance of continuous monitoring and strategic adjustments.

Further insights into Genasys Inc.'s financial health can be found at: Breaking Down Genasys Inc. (GNSS) Financial Health: Key Insights for Investors

Genasys Inc. (GNSS) Debt vs. Equity Structure

Understanding how Genasys Inc. (GNSS) finances its operations and growth is crucial for investors. This involves analyzing the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. Let's delve into these key aspects.

Genasys Inc.'s financial health can be gauged by examining its debt structure. As of the fiscal year 2024, insights into Genasys Inc.'s debt levels are essential to understand its financial risk and stability. While specific figures for 2024 are not available, analyzing the trends from previous years can provide a perspective. Investors often look at both long-term and short-term debt to assess the company's obligations and its ability to meet them.

The debt-to-equity ratio is a critical metric for evaluating Genasys Inc.'s financial leverage. This ratio indicates the proportion of debt and equity the company uses to finance its assets. A high ratio suggests that the company relies more on debt, which could increase financial risk. The specific debt-to-equity ratio for Genasys Inc. in 2024 compared to industry standards would offer valuable insights into its financial positioning.

Recent activities such as debt issuances, credit ratings, or refinancing can significantly impact Genasys Inc.'s financial structure. Accessing the latest 10-K filings and financial news releases is crucial for staying informed about these changes.

Balancing debt and equity is a strategic decision for Genasys Inc. Here are some factors influencing this balance:

• Cost of Capital: Debt is often cheaper due to the tax deductibility of interest payments.
• Financial Flexibility: Relying too heavily on debt can limit financial flexibility, especially during economic downturns.
• Investor Expectations: Equity financing can dilute ownership but may be preferred by investors seeking growth.

Understanding Genasys Inc.'s approach to balancing debt and equity requires a thorough review of its financial statements and strategic decisions. For additional insights into the company's goals, refer to: Mission Statement, Vision, & Core Values of Genasys Inc. (GNSS).

Genasys Inc. (GNSS) Liquidity and Solvency

Assessing the liquidity and solvency of Genasys Inc. (GNSS) provides crucial insights into its financial health and ability to meet its short-term and long-term obligations. Here’s an overview of key liquidity and solvency indicators for Genasys Inc.:

Assessing Genasys Inc.'s Liquidity:

Liquidity ratios measure a company's ability to meet its short-term obligations using its most liquid assets. Here's how Genasys Inc. stands based on these ratios:

• Current Ratio: As of April 15, 2025, the current ratio for Genasys (GNSS) is 1.33. This indicates a -33.26% decrease from its 12-month average of 1.99. A current ratio of 1.33 implies that Genasys has $1.33 in current assets for every $1.00 in current liabilities.
• Quick Ratio: The quick ratio for the quarter that ended in December 2024 was 0.97. This ratio suggests that the company cannot currently fully pay back its current liabilities, as it has less than $1.00 in readily available assets to cover each dollar of current liabilities.

The historical quick ratio for Genasys has ranged from a minimum of 0.97 to a maximum of 14.14 over the past 13 years, with a median of 3.20.

Working Capital Trends:

Working capital is the difference between a company's current assets and current liabilities. It is a measure of a company's short-term operating liquidity. Effective working capital management is vital for maintaining smooth business operations and meeting financial obligations.

In the first fiscal quarter of 2024, Genasys experienced an increase in working capital of $1.5 million.

Cash Flow Statements Overview:

Analyzing cash flow statements provides insights into how Genasys Inc. generates and uses cash. Here’s a look at the trends in operating, investing, and financing cash flows:

• Operating Cash Flow: For the trailing twelve months (TTM) ending September 30, 2024, Genasys had an operating cash flow of -$12.778 million. The operating cash flow was -$19.454 million for the year ended September 30, 2023.
• Investing Cash Flow: The investing cash flow for the TTM ending September 30, 2024, was $3.081 million, compared to -$8.666 million for the year ended September 30, 2023.
• Financing Cash Flow: Genasys reported a financing cash flow of $13.425 million for the TTM ending September 30, 2024, and $23.873 million for the year ended September 30, 2023.

In February 2025, Genasys reported that cash, cash equivalents, and marketable securities totaled $13.9 million as of December 31, 2024, compared to $13.1 million as of September 30, 2024. This increase reflects operational results, changes in working capital, and the receipt of approximately $8.3 million for the deposit on the first group of dams in Puerto Rico.

Potential Liquidity Concerns and Strengths:

Based on the data, Genasys has several factors influencing its liquidity position:

• Strengths:
• The company's liquid assets exceed short-term obligations.
• Receipt of significant cash deposits, including over $10 million for the Puerto Rico project.
• Concerns:
• The quick ratio of 0.97 indicates potential difficulties in meeting short-term obligations with its most liquid assets.
• Negative operating cash flow indicates that the company is using cash rather than generating it from its core operations.

For additional insights into Genasys Inc.'s mission, vision, and core values, you can visit: Mission Statement, Vision, & Core Values of Genasys Inc. (GNSS).

Genasys Inc. (GNSS) Valuation Analysis

Assessing whether Genasys Inc. (GNSS) is overvalued or undervalued requires a look at several key financial metrics and market indicators. These include price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios, stock price trends, dividend yield, payout ratios (if applicable), and analyst consensus.

Currently, up-to-date, specific valuation ratios such as P/E, P/B, and EV/EBITDA for Genasys Inc. are not available as of my last update. For the most accurate valuation, consulting financial data providers such as Yahoo Finance, Bloomberg, or MarketWatch is recommended. These sources provide real-time data and in-depth financial analysis.

Analyzing Genasys Inc.'s stock price trends over the past 12 months offers insights into market sentiment and company performance. Recent data indicates a 1-year target estimate of $4.00. Stock performance can be influenced by factors such as earnings reports, contract wins, and broader market conditions.

Here’s a snapshot of analyst ratings and price targets:

• As of April 16, 2024, the consensus among analysts is to Hold Genasys Inc. stock.
• Price targets vary, with a high estimate of $4.00 and a low estimate of $3.00.

Given the available data, a comprehensive valuation picture requires real-time financial metrics and deeper analysis. Investors should utilize financial data platforms to assess Genasys Inc.'s current valuation ratios and analyst expectations.

Dive deeper into investor behavior: Exploring Genasys Inc. (GNSS) Investor Profile: Who’s Buying and Why?

Genasys Inc. (GNSS) Risk Factors

Genasys Inc. (GNSS) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions. Understanding these factors is crucial for investors assessing the company’s stability and growth potential. You can find more about the company profile here: Exploring Genasys Inc. (GNSS) Investor Profile: Who’s Buying and Why?

One of the primary risks stems from intense industry competition. Genasys operates in a sector characterized by rapid technological advancements and evolving customer needs. Competitors may introduce new products or services that could render Genasys' offerings obsolete or less attractive. Maintaining a competitive edge requires continuous innovation and investment in research and development. Failure to do so could result in a loss of market share and decreased revenue.

Regulatory changes also pose a significant risk. Genasys must comply with various regulations related to its products and services, which can vary by region and evolve over time. Changes in these regulations could increase compliance costs, restrict market access, or require modifications to existing products. For example, environmental regulations or safety standards could necessitate costly adjustments to manufacturing processes or product designs.

Market conditions, including economic downturns or shifts in customer demand, represent another key risk. Economic uncertainty can lead to reduced spending on Genasys' products and services, particularly in discretionary areas. Changes in customer preferences or technological disruptions could also impact demand. For instance, the adoption of alternative communication technologies could reduce the need for Genasys' traditional solutions.

Operational, financial, and strategic risks are frequently highlighted in Genasys' earnings reports and filings. These include:

• Supply Chain Disruptions: Dependence on specific suppliers for critical components can create vulnerabilities. Disruptions in the supply chain, whether due to natural disasters, geopolitical events, or other factors, can lead to production delays and increased costs.
• Cybersecurity Threats: As a technology company, Genasys is susceptible to cybersecurity threats that could compromise sensitive data, disrupt operations, or damage its reputation. Investing in robust cybersecurity measures is essential to mitigate this risk.
• Intellectual Property Protection: Protecting its intellectual property is crucial for maintaining a competitive advantage. Infringement on its patents or trademarks could result in financial losses and damage to its brand.
• Financial Risks: Including fluctuations in currency exchange rates, which can impact revenue and profitability, especially for companies with international operations. Prudent financial management is necessary to navigate these challenges.

Genasys employs various mitigation strategies to address these risks. These may include:

• Diversification: Diversifying its product and service offerings, as well as its geographic markets, can reduce its dependence on any single market or product.
• Strategic Partnerships: Forming alliances with other companies can provide access to new technologies, markets, or resources.
• Risk Management Programs: Implementing comprehensive risk management programs to identify, assess, and mitigate potential risks across the organization.
• Insurance Coverage: Maintaining adequate insurance coverage to protect against potential losses from various risks, such as property damage, liability claims, or business interruption.

Genasys Inc. (GNSS) Growth Opportunities

Genasys Inc. (GNSS) possesses several key growth drivers that investors should monitor. These include product innovations, strategic market expansions, and potential acquisitions that could significantly impact future performance.

Examining these areas provides a clearer picture of the company's potential trajectory. Genasys's growth prospects are intricately linked to its ability to innovate, penetrate new markets, and capitalize on strategic opportunities. A comprehensive understanding of these factors is crucial for assessing the company's long-term value and investment potential.

Key growth drivers for Genasys Inc. (GNSS) include:

• Product Innovations: Genasys's ongoing investment in research and development is expected to yield new products and enhancements to existing solutions. These innovations can address evolving customer needs and expand the company's market reach.
• Market Expansions: Identifying and penetrating new geographic markets and industry verticals is a critical growth strategy. Success in these expansions will depend on adapting products to local requirements and building strong distribution networks.
• Acquisitions: Strategic acquisitions can provide Genasys with access to new technologies, markets, and customer bases. The company's ability to successfully integrate acquired businesses will be crucial for realizing synergies and driving growth.

Future revenue growth projections and earnings estimates are essential for evaluating Genasys's financial outlook. While specific figures can fluctuate based on market conditions and company performance, understanding the underlying trends and assumptions is vital. Investors should carefully consider these projections in light of the company's historical performance, industry dynamics, and competitive landscape.

Strategic initiatives and partnerships are also pivotal in shaping Genasys's growth trajectory. Collaborations with other companies can provide access to new technologies, markets, and expertise, accelerating the company's expansion and innovation efforts.

Genasys Inc. (GNSS) possesses competitive advantages that position it favorably for future growth. These advantages may include:

• Technological Leadership: A strong track record of innovation and a portfolio of proprietary technologies can provide a significant edge over competitors.
• Strong Customer Relationships: Long-standing relationships with key customers can provide a stable revenue stream and a platform for expanding sales.
• Efficient Operations: Streamlined operations and effective cost management can enhance profitability and free up resources for investment in growth initiatives.

Here is a table summarizing potential future growth aspects for Genasys Inc. (GNSS):

For additional insights into the company's guiding principles, review the Mission Statement, Vision, & Core Values of Genasys Inc. (GNSS).