Geospace Technologies Corporation (NASDAQ: GEOS) (“the “Company”) today announced results for its third quarter ended June 30, 2025. For the three-months ended June 30, 2025, Geospace reported revenue of $24.8 million, compared to revenue of $25.8 million for the comparable year-ago quarter. Net income for the three-months ended June 30, 2025, was $0.8 million, or $0.06 per diluted share, compared to a net loss of ($2.1) million, or $(0.16) per diluted share, for the quarter ended June 30, 2024.
For the nine-months ended June 30, 2025, Geospace reported revenue of $80.1 million compared to revenue of $100.2 million for the comparable year-ago period. Net loss for the nine-months ended June 30, 2025, was ($0.7) million, or $(0.05) per diluted share, compared to net income of $6.3 million, or $0.47 per diluted share, for the nine-months ended June 30, 2024.
Management’s Comments
Richard “Rich” Kelley, Chief Executive Officer and President of Geospace Technologies, said, “Strategic accomplishments defined our third quarter laying the foundation to further our revenue and profitability goals. Our Energy Solutions team won a sizeable contract to supply nearly 500km of the OptoSeis® Permanent Reservoir Monitoring (PRM) system covering 140 sq km of seabed area of Mero, located off the coast of Rio de Janeiro, Brazil. Additionally, Energy Solutions achieved its first sale of the newly released Pioneer™, an ultralight land node for seismic surveys, to a global engineering and professional services firm based in Canada. The delivery of the Pioneer system will occur before the end of the fiscal year. Additionally, we recorded the sale of assets associated with our streamer recovery device product line to Seis Gear, Inc. in June.
Building off this success, we invested in the growth of our Intelligent Industrial segment this quarter with the recently announced acquisition of Heartbeat Detector®, a security technology developed by the United States Department of Energy’s Oak Ridge National Laboratory (ORNL). This advanced system is designed to detect the presence of concealed humans in vehicles of any size. We intend to offer the Heartbeat Detector® on a subscription basis, aligning with our strategy to grow recurring revenue streams. As we increase the emphasis on our security and defense product portfolio, we have engaged former U.S. Border Patrol Chief Carla Provost to educate fellow national and homeland security professionals and accelerate end-user adoption of our advanced analytics and sensing solutions for border and perimeter security applications.
We continue to generate strong organic growth in our Smart Water segment where our Hydroconn® universal AMI connectors remain a reliable revenue and profit center. This quarter, we received an enthusiastic response to our new corporate branding and integrated smart water management portfolio at the American Water Works Association international annual conference and exhibition.
Lastly, we completed the sale of idle property adjacent to our facility for $9.2 million in gross proceeds.”
Smart Water Segment
Third quarter revenue from the Company’s Smart Water segment totaled $10.5 million for the three months ended June 30, 2025. This compares to $9.9 million in revenue for the same period a year ago representing an increase of 6.1%. Revenue for the nine-month period ended June 30, 2025, is $27.3 million, an increase of 32.7% over the equivalent prior year period. This marks a record high level of nine-months of revenue for our Smart Water Segment.
Energy Solutions Segment
Revenue from the Company’s Energy Solutions segment totaled $8.1 million for the three-month period ended June 30, 2025. This compares to $9.4 million in revenue for the same period a year ago representing a decrease of 13.6%. Revenue for the nine-month period ended June 30, 2025, is $35.0 million, a decrease of 42.0% over the equivalent prior year period. The decrease in revenue for the three-month period and nine-month period was due to lower utilization and sales for our marine ocean bottom node rental fleet. The Company is encouraged by the first sale of the newly released ultralight land node known as Pioneer. This indicates the need for increased operational efficiency among geophysical survey companies, who benefit from the lighter weight for faster deployments with smaller crews.
Intelligent Industrial Segment
Revenue from the Company’s Intelligent Industrial segment totaled $6.1 million for the three-month period ended June 30, 2025. This compares with $6.5 million from the equivalent year ago period, representing a decrease of 5.4%. Revenue for the nine-month period ending June 30, 2025, was $17.6 million. This compares to the prior year-ago period of $19.1 million, a decrease of 7.6%. The decrease in revenue for both periods was primarily due to revenue recognized for the three and nine months ended June 30, 2024 on a government contract completed in the fourth quarter of fiscal year 2024 and lower demand for our imaging products. The decrease for both periods was partially offset by an increase in demand for our contract manufacturing services.
Balance Sheet and Liquidity
For the nine-month period ended June 30, 2025, the Company used $18.1 million in cash and cash equivalents from operating activities. The Company generated $35.4 million of cash from investing activities that included $28.4 million in proceeds from the sale of short-term investments and $8.7 million in proceeds from the sale of property, plant and equipment, and $5.1 million of proceeds from the sale of rental equipment, offset by $5.8 million for additions to property, plant and equipment as well as, $1.1 million in additions to the rental fleet.
As of June 30, 2025, the Company had $25.6 million in cash and short-term investments and maintained an additional borrowing availability of $15.0 million under its bank credit agreement with no borrowings outstanding. For the nine-month period ended June 30, 2025, the Company’s working capital is $74.5 million which includes $32.3 million of trade accounts and financing receivables. Additionally, the Company owns unencumbered property and real estate in both domestic and international locations.
Conference Call Information
Geospace Technologies will host a conference call to review its first quarter fiscal year 2025 financial results on August 8, 2025, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (800)274-8461 (US) or (203)518-9814 (International). Please reference the conference ID: GEOSQ325 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com.
Forward Looking Statements
This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include, among others, statements that we make regarding our expected operating results, the timing, adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, future demand for ocean bottom node rental equipment, sales or rentals for our Mariner™ or Mariner Deep® nodes, the adoption of Quantum’s SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10-Q, or in other period reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our ocean bottom nodes rental equipment, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations.
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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Products | $ | 23,227 | $ | 20,223 | $ | 74,580 | $ | 83,434 | ||||||||
| Rental | 1,616 | 5,635 | 5,509 | 16,726 | ||||||||||||
| Total revenue | 24,843 | 25,858 | 80,089 | 100,160 | ||||||||||||
| Cost of revenue: | ||||||||||||||||
| Products | 15,150 | 14,179 | 43,166 | 53,016 | ||||||||||||
| Rental | 2,154 | 3,153 | 7,487 | 10,501 | ||||||||||||
| Total cost of revenue | 17,304 | 17,332 | 50,653 | 63,517 | ||||||||||||
| Gross profit | 7,539 | 8,526 | 29,436 | 36,643 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 7,546 | 6,941 | 21,741 | 19,313 | ||||||||||||
| Research and development | 4,238 | 4,011 | 14,367 | 11,476 | ||||||||||||
| Provision for (recovery of) credit losses | 2 | (33 | ) | 21 | (84 | ) | ||||||||||
| Total operating expenses | 11,786 | 10,919 | 36,129 | 30,705 | ||||||||||||
| Gain on disposal of property | 4,616 | — | 4,616 | — | ||||||||||||
| Income (loss) from operations | 369 | (2,393 | ) | (2,077 | ) | 5,938 | ||||||||||
| Other income (expense): | ||||||||||||||||
| Interest expense | (44 | ) | (44 | ) | (131 | ) | (144 | ) | ||||||||
| Interest income | 537 | 472 | 1,975 | 954 | ||||||||||||
| Foreign currency transaction gains (losses), net | 4 | (70 | ) | (265 | ) | (253 | ) | |||||||||
| Other, net | (38 | ) | (37 | ) | (109 | ) | (104 | ) | ||||||||
| Total other income, net | 459 | 321 | 1,470 | 453 | ||||||||||||
| Income (loss) before income taxes | 828 | (2,072 | ) | (607 | ) | 6,391 | ||||||||||
| Income tax expense (benefit) | 68 | (2 | ) | 55 | 109 | |||||||||||
| Net income (loss) | $ | 760 | $ | (2,070 | ) | $ | (662 | ) | $ | 6,282 | ||||||
| Income (loss) per common share: | ||||||||||||||||
| Basic | $ | 0.06 | $ | (0.16 | ) | $ | (0.05 | ) | $ | 0.47 | ||||||
| Diluted | $ | 0.06 | $ | (0.16 | ) | $ | (0.05 | ) | $ | 0.47 | ||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 12,805,414 | 13,216,386 | 12,783,832 | 13,270,444 | ||||||||||||
| Diluted | 12,805,414 | 13,216,386 | 12,783,832 | 13,431,714 | ||||||||||||
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts) (unaudited)
| June 30, 2025 | September 30, 2024 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 23,559 | $ | 6,895 | ||||
| Short-term investments | 1,997 | 30,227 | ||||||
| Trade accounts and financing receivables, net | 32,308 | 21,868 | ||||||
| Inventories, net | 29,232 | 26,222 | ||||||
| Assets held for sale | — | 1,841 | ||||||
| Prepaid expenses and other current assets | 3,031 | 2,313 | ||||||
| Total current assets | 90,127 | 89,366 | ||||||
| Non-current inventories, net | 18,860 | 18,031 | ||||||
| Rental equipment, net | 10,321 | 14,186 | ||||||
| Property, plant and equipment, net | 22,189 | 21,083 | ||||||
| Non-current trade accounts and financing receivables | 5,570 | 6,375 | ||||||
| Operating right-of-use assets | 334 | 464 | ||||||
| Goodwill | 736 | 736 | ||||||
| Other intangible assets, net | 1,537 | 1,649 | ||||||
| Other non-current assets | 158 | 304 | ||||||
| Total assets | $ | 149,832 | $ | 152,194 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable trade | $ | 3,771 | $ | 8,003 | ||||
| Operating lease liabilities | 119 | 173 | ||||||
| Other current liabilities | 11,383 | 9,021 | ||||||
| Total current liabilities | 15,273 | 17,197 | ||||||
| Non-current operating lease liabilities | 249 | 339 | ||||||
| Deferred tax liabilities, net | 19 | 34 | ||||||
| Total liabilities | 15,541 | 17,570 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding | — | — | ||||||
| Common Stock, $.01 par value, 20,000,000 shares authorized; 14,365,212 and 14,206,082 shares issued, respectively; and 12,806,952 and 12,709,381 shares outstanding, respectively | 144 | 142 | ||||||
| Additional paid-in capital | 98,540 | 97,342 | ||||||
| Retained earnings | 54,620 | 55,282 | ||||||
| Accumulated other comprehensive loss | (4,513 | ) | (4,257 | ) | ||||
| Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively | (14,500 | ) | (13,885 | ) | ||||
| Total stockholders’ equity | 134,291 | 134,624 | ||||||
| Total liabilities and stockholders’ equity | $ | 149,832 | $ | 152,194 | ||||
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
| Nine Months Ended | ||||||||
| June 30, 2025 | June 30, 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income (loss) | $ | (662 | ) | $ | 6,282 | |||
| Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||||||||
| Deferred income tax expense (benefit) | (16 | ) | 10 | |||||
| Rental equipment depreciation | 4,830 | 8,534 | ||||||
| Property, plant and equipment depreciation | 2,716 | 2,595 | ||||||
| Amortization of intangible assets | 112 | 300 | ||||||
| Accretion of discounts on short-term investments | (169 | ) | (415 | ) | ||||
| Stock-based compensation expense | 1,200 | 1,029 | ||||||
| Provision for (recovery of) credit losses | 21 | (84 | ) | |||||
| Inventory obsolescence expense | 1,100 | 144 | ||||||
| Gross profit from sale of rental equipment | (16,297 | ) | (20,751 | ) | ||||
| (Gain) loss on disposal of property, plant and equipment | (4,708 | ) | 11 | |||||
| Realized gain on investments | (9 | ) | — | |||||
| Effects of changes in operating assets and liabilities: | ||||||||
| Trade accounts and financing receivables | 2,229 | 5,162 | ||||||
| Inventories | (5,617 | ) | (5,787 | ) | ||||
| Other assets | (591 | ) | (176 | ) | ||||
| Accounts payable trade | (4,232 | ) | (1,408 | ) | ||||
| Other liabilities | 1,968 | (2,973 | ) | |||||
| Net cash used in operating activities | (18,125 | ) | (7,527 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchase of property, plant and equipment | (5,841 | ) | (3,577 | ) | ||||
| Proceeds from the sale of property, plant and equipment | 8,663 | 2 | ||||||
| Investment in rental equipment | (1,083 | ) | (8,181 | ) | ||||
| Proceeds from the sale of rental equipment | 5,122 | 30,948 | ||||||
| Purchases of short-term investments | — | (24,033 | ) | |||||
| Proceeds from the sale of short-term investments | 28,408 | 8,750 | ||||||
| Payments received on note receivable related to sale of subsidiary | 137 | — | ||||||
| Net cash provided by investing activities | 35,406 | 3,909 | ||||||
| Cash flows from financing activities: | ||||||||
| Purchase of treasury stock | (615 | ) | (2,999 | ) | ||||
| Net cash used in financing activities | (615 | ) | (2,999 | ) | ||||
| Effect of exchange rate changes on cash | (2 | ) | 141 | |||||
| Increase (decrease) in cash and cash equivalents | 16,664 | (6,476 | ) | |||||
| Cash and cash equivalents, beginning of period | 6,895 | 18,803 | ||||||
| Cash and cash equivalents, end of period | $ | 23,559 | $ | 12,327 | ||||
| SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||
| Cash paid for income taxes | $ | 122 | $ | 185 | ||||
| Accounts and financing receivables related to sale of rental equipment | 11,975 | — | ||||||
| Inventory transferred to rental equipment | 2,498 | 5,765 | ||||||
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS)
(in thousands)
(unaudited)
| Three Months Ended | Nine Months Ended | |||||||||||||||
| June 30, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |||||||||||||
| Revenue: | ||||||||||||||||
| Smart Water | $ | 10,518 | $ | 9,913 | $ | 27,278 | $ | 20,558 | ||||||||
| Energy Solutions | 8,107 | 9,382 | 34,977 | 60,328 | ||||||||||||
| Intelligent Industrial | 6,136 | 6,489 | 17,596 | 19,051 | ||||||||||||
| Corporate | 82 | 74 | 238 | 223 | ||||||||||||
| Total | $ | 24,843 | $ | 25,858 | $ | 80,089 | $ | 100,160 | ||||||||
| Income (loss) from operations: | ||||||||||||||||
| Smart Water | $ | 2,233 | $ | 2,611 | $ | 4,023 | $ | 5,372 | ||||||||
| Energy Solutions | (1,234 | ) | (117 | ) | 5,380 | 13,003 | ||||||||||
| Intelligent Industrial | (1,041 | ) | (1,282 | ) | (3,268 | ) | (2,181 | ) | ||||||||
| Corporate | 411 | (3,605 | ) | (8,212 | ) | (10,256 | ) | |||||||||
| Total | $ | 369 | $ | (2,393 | ) | $ | (2,077 | ) | $ | 5,938 | ||||||
