Geospace Technologies (GEOS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased to $19.7M, up 9.5% year-over-year, driven by Energy Solutions, but six-month revenue fell to $45.3M from $55.2M due to lower Smart Water and Energy Solutions sales.

• Net loss for Q2 2026 widened to $11.1M from $9.8M; six-month net loss was $20.8M, up from $1.4M prior year.

• Strategic transformation continues with new contract wins, recurring revenue from Heartbeat Detector®, and first revenue from the PRM project.

• Workforce reduction of 20% and cost-saving measures are expected to generate $12M in annualized savings.

• Gross profit for Q2 was $0.7M, down from $1.7M year-over-year; six-month gross profit dropped to $3.4M from $21.9M.

Financial highlights

• Q2 revenue was $19.7M, up from $18M year-over-year; net loss widened to $11.1M from $9.8M.

• Six-month revenue was $45.3M, down from $55.2M; six-month net loss was $20.8M, compared to $1.4M prior year.

• Operating expenses for Q2 were $12.1M, up 0.7% year-over-year; six-month operating expenses rose 2.9% to $25.1M.

• Inventory obsolescence expense increased to $1.3M for Q2 and $1.8M for six months.

• Cash and equivalents at quarter-end were $13.4M; working capital stood at $45M.

Outlook and guidance

• No specific revenue or earnings guidance provided.

• Smart Water segment expected to recover as customer inventory normalizes and Aquana products gain traction.

• Expects increased revenue recognition from the PRM contract, with a $35M installment by year-end and majority recognized by Q3 2027.

• Long-term growth expected in Smart Water due to AMI/AMR replacement cycles, water scarcity, and infrastructure modernization.

• Energy Solutions segment to remain significant, but with a diminishing share as other segments grow.