Genasys Inc. Q3 FY26 Results

Fiscal third quarter results reflect timing rather than demand. Supply chain constraints delayed Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program deliveries, and work on the Puerto Rico Dams Early Warning System project was paced pending receipt of customer payments. The Company has now begun receiving those payments. Our people and equipment are on the island, the CROWS constraint has been resolved, and the underlying fundamentals of the business remain strong. Despite these headwinds, we took meaningful steps over the past few months to better position the Company. We closed a Third Amendment to our Term Loan Agreement, extending the maturity to July 2027 and replacing a single balloon payment with monthly amortization that better aligns our obligations with the timing of customer collections. We made targeted adjustments to headcount and operating expenses, streamlining our organization to improve our operating leverage as revenue scales. These actions position us to capitalize on the demand we see across the business. Our Protect software platform now reaches 15% of the U.S. population and 20% of the country by area, making it the nation's leading zone-based emergency alerting and evacuation management platform, while hardware demand continues to build with key wins across critical infrastructure and international customers. This is reflected in a backlog of more than $69 million heading into the fiscal fourth quarter. With the CROWS constraints resolved, Puerto Rico payment backlog having been reduced, and demand building across both hardware and software, we expect to deliver a strong fourth quarter. We remain on track to complete our planned scope this fiscal year and continue to expect a record year of revenue and profitability.