Genasys Inc. (NASDAQ: GNSS), a global leader in Protective Communications, announced preliminary financial results for its fiscal third quarter ended June 30, 2026. The company projects total revenue to range between $7.0 and $7.5 million for the period. This performance was primarily impacted by supply chain constraints associated with the Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program and a deliberate pause in execution of the Puerto Rico Dams Early Warning System (EWS) project pending customer payments. Despite these headwinds, Genasys maintains its expectation for a record year of revenue and profitability, citing strong underlying business fundamentals.

The revenue guidance reflects timing issues rather than a decline in demand. Supply chain constraints linked to the CROWS II program have been resolved, with the company expecting to complete the order in its fiscal fourth quarter. Additionally, Genasys began receiving payments for the Puerto Rico EWS project after the end of the fiscal third quarter, allowing it to remobilize on the island. Management expects work to accelerate throughout the fiscal fourth quarter, positioning the company to complete planned work for the fiscal year if payments continue at the current pace.

Preliminary Financial Metrics

The following table outlines the key preliminary financial figures for the fiscal third quarter ended June 30, 2026:

Complete financial results will be released after the market close on August 13, 2026. A conference call to discuss the results is scheduled for 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time on the same date.

Management Commentary

Richard Danforth, Chief Executive Officer of Genasys Inc., stated that the company successfully navigated headwinds stemming from factors largely outside its control during the past quarter. He emphasized that the underlying fundamentals remain strong and that the company continues to expect a record year of revenue and profitability. Danforth noted that the recently completed financing provides additional liquidity and flexibility to support execution against the backlog, enabling the company to pursue growth opportunities and close out the fiscal year from a position of strength.

What the Numbers Show

The divergence between the projected adjusted EBITDA loss of up to $3.3 million and the maintained gross margin range of 55% to 58% suggests that fixed costs or specific project-related expenses outweighed operating profits in this quarter. However, the resolution of the CROWS II supply chain constraints and the resumption of the Puerto Rico EWS project indicate that these negative impacts are temporary. With a backlog of approximately $69 million exiting the quarter, Genasys has significant contracted revenue visibility to support its forecast of a strong fiscal fourth quarter, which management describes as potentially the strongest in the company’s history.

Genasys Inc., the global leader in Protective Communications, has announced the closing of a Third Amendment to its Term Loan and Security Agreement, restructuring its debt repayment terms and extending the loan's maturity date. The amendment is designed to provide the Company with greater working capital flexibility as it manages its backlog and customer base.

Key Terms of the Third Amendment

Under the Third Amendment, the maturity date of the term loan has been extended to July 13, 2027. The loan carries an initial principal amount of $15.2 million, with the interest rate maintained at three-month SOFR plus 5%. The amendment also introduces a guaranteed minimum rate of return, structured as a Multiple on Invested Capital (MOIC) of 20%.

The following table summarizes the key parameters of the amended term loan:

Restructured Repayment Schedule

The amended structure replaces the previous arrangement of quarterly interest payments and a single balloon payment at maturity. Beginning October 1, 2026, the Company is required to make monthly payments of $1.0 million towards amortization of the term loan, with each such payment including the MOIC on the principal repaid. This scheduled repayment approach allows the Company to retire the debt gradually from operating cash flow while preserving liquidity throughout the term.

Management Commentary

Richard Danforth, Genasys' Chief Executive Officer, commented on the amendment: "The Third Amendment to our Term Loan Agreement provides the Company with the financial flexibility to fund growth and service our expanding customer base. We continue to see strong demand for both our hardware and software offerings, and the Third Amendment enables us to stay focused on serving existing customers while pursuing new ones without working capital constraints tied to the timing of customer payments. Our lender's continued partnership reflects confidence in Genasys' trajectory, backlog, and pipeline, and positions us to convert that momentum into long-term shareholder value – we thank them for their continued confidence."

Regulatory Filing

Full details of the loan and any additional terms have been filed with the U.S. Securities and Exchange Commission in a Form 8-K. The Company stated it is confident in its ability to satisfy the full obligations of the Term Loan Agreement over the next 12 months, backed by what it described as a strong backlog and growing pipeline.

About Genasys Inc.

Genasys provides a comprehensive portfolio of preparedness, response, and analytics software and hardware solutions. The company's product offerings include the Long Range Acoustic Device (LRAD) and the Protect Platform, which encompasses Genasys Protect and Genasys Evertel. The company covers more than 155 million people in all 50 states and in over 100 countries worldwide.