Geospace Technologies (GEOS) investor relations material

Executive summary

• Q2 2026 revenue was $19.7M, up 9.5% year-over-year, driven by Energy Solutions, but six-month revenue fell 18% to $45.3M due to lower Smart Water and Energy Solutions sales.

• Net loss for Q2 2026 widened to $11.1M ($0.86/share), compared to $9.8M ($0.77/share) last year; six-month net loss was $20.8M ($1.62/share) versus $1.4M ($0.11/share) 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 early retirement program target $12M in annualized savings.

Financial highlights

• Gross profit for Q2 2026 was $0.7M, down from $1.7M year-over-year; six-month gross profit was $3.4M, down from $21.9M.

• Operating expenses for Q2 2026 were $12.1M, up 0.7% year-over-year; six-month operating expenses rose 2.9% to $25.1M.

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

• No long-term debt outstanding; $25M revolving credit facility available.

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

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.

• Majority of PRM contract revenue to be recognized by Q3 2027, with a $35M installment anticipated by year-end.

• Cost reductions from workforce plan expected to yield $10M–$12M in annualized savings.