We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Geospace Stock Falls Post Q3 Earnings Despite Smart Water Growth
Read MoreHide Full Article
Shares of Geospace Technologies Corporation (GEOS - Free Report) have lost 21.9% since the company reported its earnings for the quarter ended June 30, 2025, against the S&P 500 Index’s 0.5% gain over the same period. Over the past month, however, the stock rebounded, gaining 24.4% compared with the S&P 500’s 2.1% rise.
GEOS’ Financial Performance Snapshot
For the third quarter of fiscal 2025, Geospace reported revenues of $24.8 million, down 3.9% from $25.9 million a year earlier. Net income stood at $0.8 million, or $0.06 per diluted share, against a net loss of $2.1 million, or $0.16 per share, in the prior-year quarter.
Segmentally, Smart Water revenue climbed 6.1% to $10.5 million from $9.9 million, driven by higher demand for Hydroconn connectors. Energy Solutions revenue fell 13.6% to $8.1 million from $9.4 million on lower utilization and sales of marine ocean bottom node rental fleet, while Intelligent Industrial revenue dipped 5.4% to $6.1 million from $6.5 million due to reduced demand for imaging products and the absence of a completed government contract that had benefited last year’s results.
For the nine months ended June 30, 2025, overall revenue dropped 20% to $80.1 million from $100.2 million, with a net loss of $0.7 million against a profit of $6.3 million in the year-ago period.
Geospace’s Other Key Business Metrics
Gross profit for the quarter was $7.5 million, down 11.6% from $8.5 million last year, as rental revenue slid significantly due to lower utilization of marine ocean bottom nodes. Operating expenses increased 7.9% year over year to $11.8 million from $10.9 million, driven by higher personnel and sales and marketing costs. The company recorded a $4.6 million gain on the sale of idle property adjacent to its facility, bolstering profitability.
Smart Water continued its upward trajectory, setting a nine-month revenue record of $27.3 million, up 32.7% from the comparable fiscal 2024 period, fueled by demand for Hydroconn connectors. Conversely, Energy Solutions’ nine-month revenue plunged 42% due to weak marine node demand, though it booked its first sale of the new Pioneer ultralight land node. Intelligent Industrial saw a 7.6% revenue drop over nine months, impacted by reduced defense and imaging product demand, partially offset by higher contract manufacturing activity.
Cash and short-term investments totaled $25.6 million at the quarter-end compared with $37.1 million as of Sept. 30, 2024, with no outstanding borrowings under its $15 million credit facility. Working capital stood at $74.5 million.
Geospace Technologies Corporation Price, Consensus and EPS Surprise
CEO Richard “Rich” Kelley highlighted strategic achievements, including winning a major contract to supply and install nearly 500 kilometers of the OptoSeis Permanent Reservoir Monitoring (PRM) system for Petrobras’ Mero Field in Brazil. This $80 million-plus equipment portion of the contract is expected to be fulfilled over 16–18 months, with revenue recognition beginning after milestone agreements are finalized. Kelley also noted the first sale of the Pioneer ultra-light land seismic node, the sale of the streamer recovery device product line, and continued strength in Smart Water driven by Hydroconn connectors.
Management underscored the Smart Water segment’s record nine-month revenue and its growth potential, especially with the launch of AquaLink, an IoT endpoint for multiunit water monitoring. The Energy Solutions team’s recent wins are expected to improve Houston facility utilization and operational efficiency.
Factors Influencing Geospace’s Headline Numbers
The quarter’s results reflected mixed segmental dynamics. Robust Smart Water growth was offset by pronounced declines in Energy Solutions and Intelligent Industrial revenues. The Petrobras PRM contract, while strategically significant, did not contribute to the current quarter’s numbers. Gains from asset sales, particularly the $9.2 million property disposal, provided a one-time lift to earnings. Operating cost pressures stemmed from workforce and marketing investments aimed at supporting new product launches and expanding market presence.
GEOS’ Guidance
Geospace did not provide specific revenue or earnings guidance for the remainder of fiscal 2025. Management expressed optimism about sustaining profitability through diversification, strategic acquisitions and backlog strength, but acknowledged ongoing headwinds in ocean bottom node markets and the timing uncertainties for certain government security projects.
Geospace’s Other Developments
During the quarter, Geospace sold its streamer recovery device product line to Seis Gear, divesting non-core assets to streamline operations. The acquisition of Heartbeat Detector from Oak Ridge National Laboratory marked a strategic expansion into the security technology market, with potential applications across borders and correctional facilities. Additionally, the company enhanced its Smart Water product portfolio with the launch of AquaLink, an IoT-enabled multi-device water monitoring solution targeting multiunit properties.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Geospace Stock Falls Post Q3 Earnings Despite Smart Water Growth
Shares of Geospace Technologies Corporation (GEOS - Free Report) have lost 21.9% since the company reported its earnings for the quarter ended June 30, 2025, against the S&P 500 Index’s 0.5% gain over the same period. Over the past month, however, the stock rebounded, gaining 24.4% compared with the S&P 500’s 2.1% rise.
GEOS’ Financial Performance Snapshot
For the third quarter of fiscal 2025, Geospace reported revenues of $24.8 million, down 3.9% from $25.9 million a year earlier. Net income stood at $0.8 million, or $0.06 per diluted share, against a net loss of $2.1 million, or $0.16 per share, in the prior-year quarter.
Segmentally, Smart Water revenue climbed 6.1% to $10.5 million from $9.9 million, driven by higher demand for Hydroconn connectors. Energy Solutions revenue fell 13.6% to $8.1 million from $9.4 million on lower utilization and sales of marine ocean bottom node rental fleet, while Intelligent Industrial revenue dipped 5.4% to $6.1 million from $6.5 million due to reduced demand for imaging products and the absence of a completed government contract that had benefited last year’s results.
For the nine months ended June 30, 2025, overall revenue dropped 20% to $80.1 million from $100.2 million, with a net loss of $0.7 million against a profit of $6.3 million in the year-ago period.
Geospace’s Other Key Business Metrics
Gross profit for the quarter was $7.5 million, down 11.6% from $8.5 million last year, as rental revenue slid significantly due to lower utilization of marine ocean bottom nodes. Operating expenses increased 7.9% year over year to $11.8 million from $10.9 million, driven by higher personnel and sales and marketing costs. The company recorded a $4.6 million gain on the sale of idle property adjacent to its facility, bolstering profitability.
Smart Water continued its upward trajectory, setting a nine-month revenue record of $27.3 million, up 32.7% from the comparable fiscal 2024 period, fueled by demand for Hydroconn connectors. Conversely, Energy Solutions’ nine-month revenue plunged 42% due to weak marine node demand, though it booked its first sale of the new Pioneer ultralight land node. Intelligent Industrial saw a 7.6% revenue drop over nine months, impacted by reduced defense and imaging product demand, partially offset by higher contract manufacturing activity.
Cash and short-term investments totaled $25.6 million at the quarter-end compared with $37.1 million as of Sept. 30, 2024, with no outstanding borrowings under its $15 million credit facility. Working capital stood at $74.5 million.
Geospace Technologies Corporation Price, Consensus and EPS Surprise
Geospace Technologies Corporation price-consensus-eps-surprise-chart | Geospace Technologies Corporation Quote
GEOS’ Management Commentary
CEO Richard “Rich” Kelley highlighted strategic achievements, including winning a major contract to supply and install nearly 500 kilometers of the OptoSeis Permanent Reservoir Monitoring (PRM) system for Petrobras’ Mero Field in Brazil. This $80 million-plus equipment portion of the contract is expected to be fulfilled over 16–18 months, with revenue recognition beginning after milestone agreements are finalized. Kelley also noted the first sale of the Pioneer ultra-light land seismic node, the sale of the streamer recovery device product line, and continued strength in Smart Water driven by Hydroconn connectors.
Management underscored the Smart Water segment’s record nine-month revenue and its growth potential, especially with the launch of AquaLink, an IoT endpoint for multiunit water monitoring. The Energy Solutions team’s recent wins are expected to improve Houston facility utilization and operational efficiency.
Factors Influencing Geospace’s Headline Numbers
The quarter’s results reflected mixed segmental dynamics. Robust Smart Water growth was offset by pronounced declines in Energy Solutions and Intelligent Industrial revenues. The Petrobras PRM contract, while strategically significant, did not contribute to the current quarter’s numbers. Gains from asset sales, particularly the $9.2 million property disposal, provided a one-time lift to earnings. Operating cost pressures stemmed from workforce and marketing investments aimed at supporting new product launches and expanding market presence.
GEOS’ Guidance
Geospace did not provide specific revenue or earnings guidance for the remainder of fiscal 2025. Management expressed optimism about sustaining profitability through diversification, strategic acquisitions and backlog strength, but acknowledged ongoing headwinds in ocean bottom node markets and the timing uncertainties for certain government security projects.
Geospace’s Other Developments
During the quarter, Geospace sold its streamer recovery device product line to Seis Gear, divesting non-core assets to streamline operations. The acquisition of Heartbeat Detector from Oak Ridge National Laboratory marked a strategic expansion into the security technology market, with potential applications across borders and correctional facilities. Additionally, the company enhanced its Smart Water product portfolio with the launch of AquaLink, an IoT-enabled multi-device water monitoring solution targeting multiunit properties.