Genasys (GNSS) Q3: Deeper $6.5M Loss on $9.9M Revenue Reinforces Bearish Narratives

Genasys (GNSS) just posted its FY 2025 third quarter numbers, with revenue of about $9.9 million and a basic EPS loss of roughly $0.14, setting the stage for another closely watched update on its path toward profitability. The company has seen quarterly revenue move from about $5.7 million in Q2 FY 2024 to $6.7 million in Q4 FY 2024 and then to the current $9.9 million print in Q3 FY 2025. Over the same stretch, basic EPS has ranged from a $0.26 loss to the latest $0.14 loss, keeping margins in negative territory and investor attention squarely on how quickly those losses can narrow.

See our full analysis for Genasys.

With the headline numbers on the table, the next step is to line these results up against the key narratives around Genasys to see which stories the latest margins support and which ones the data starts to undermine.

Curious how numbers become stories that shape markets? Explore Community Narratives

Losses Stay Deep Despite $30.5 million LTM Revenue

• Over the last twelve months, Genasys brought in about $30.5 million of revenue but still recorded roughly $28.1 million in net losses, showing that even with a larger sales base, the business is not covering its costs yet.
• Bears point to the five year trend of earnings shrinking about 60.3 percent per year and argue this pattern, plus the recent net loss of $6.5 million in Q3 FY 2025 on $9.9 million of revenue, backs the view that the core model is still far from break even.
  • That argument is reinforced by the trailing twelve month net loss of about $28.1 million, which sits close to the prior year level of roughly $31.7 million and indicates that losses remain large on an annual basis.
  • What stands out, though, is that the quarterly net loss has moved from about $11.4 million in Q4 FY 2024 to $4.1 million in Q1 FY 2025 and then to $6.5 million in Q3 FY 2025, so the most recent numbers show big losses but not a simple straight line of deterioration.

Cash Runway Under One Year Ups the Stakes

• The risk summary flags that Genasys has less than one year of cash runway alongside ongoing losses, meaning that if operating performance does not change, management will likely need to find more funding or cut spending before long.
• Critics highlight that combining a sub one year cash runway with a trailing twelve month EPS loss of about $0.63 and net losses near $28.1 million leaves little room for missteps, especially when quarterly net income has stayed negative between roughly $4.1 million and $11.4 million across the last six reported quarters.
  • This view is supported by the fact that every quarter in the dataset, from Q2 FY 2024 through Q3 FY 2025, shows negative net income between about $6.1 million and $11.4 million, so there is no recent period of profitability to lean on.
  • At the same time, the climb in revenue from approximately $5.7 million in Q2 FY 2024 to $9.9 million in Q3 FY 2025 shows the top line is growing, which makes the short cash runway a much more pressing operational constraint than a demand problem.

Rich 3.2x P/S Versus Peers While Shares Trade Around $2.18

• The stock changes hands at about $2.18 per share, which equates to a trailing price to sales ratio of roughly 3.2 times, compared with about 2 times for the broader US communications industry and around 1 time for peers, so investors today are paying a premium for each dollar of Genasys revenue despite its loss making status.
• What is striking from a bearish perspective is that this above industry multiple sits next to a trailing twelve month EPS loss of roughly $0.63 and persistent net losses near $28.1 million, so skeptics argue the valuation already assumes better execution than the recent numbers show.
  • Against trailing revenue of about $30.5 million, the 3.2 times P/S suggests the market is assigning more value per sales dollar than to many comparable names even though the company has not yet demonstrated improving profitability over the last year.
  • When you line that up with five year annual earnings declines of roughly 60.3 percent, the premium multiple becomes a key risk factor, because any stumble on revenue growth or cost control would have to be absorbed by a business that is already loss making.

📊 Read the full Genasys Consensus Narrative.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Genasys's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

Genasys combines persistent losses, a short cash runway and a premium price to sales ratio, leaving investors exposed if growth or margins disappoint.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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