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Geospace Technologies Corporation (NASDAQ: GEOS) reported second-quarter results for the three months ended March 31, 2026, with revenue rising to $19.7 million from $18.0 million in the year-ago quarter. Net loss for the quarter was $11.1 million, or $(0.86) per diluted share, compared with a net loss of $9.8 million, or $(0.77) per diluted share, for the three months ended March 31, 2025.
For the six months ended March 31, 2026, Geospace reported revenue of $45.3 million versus $55.2 million in the comparable prior-year period. Net loss for the six-month period was $20.8 million, or $(1.62) per diluted share, compared with a net loss of $1.4 million, or $(0.11) per diluted share, for the six months ended March 31, 2025.
Richard “Rich” Kelley, President and CEO, said the company’s transformation into a more diversified, technology-driven solutions provider is a long-term strategy, adding that near-term results reflect “some near-term pressures” while the diversification plan continues.
Management cited new contract wins and expanding opportunities beyond traditional oil and gas markets, including early revenue from the Heartbeat Detector subscription model and opportunities in smart water through contract manufacturing and white label product development and manufacturing.
Kelley also noted that despite lower utilization of the ocean bottom node fleet, interest has increased for the summer survey season. The company recognized its first revenue from the previously announced Permanent Reservoir Monitoring project as initial manufacturing activities began in Houston.
On costs, Geospace implemented a voluntary early retirement program and a workforce reduction initiative of approximately 20%. The company expects annualized cost savings of roughly $12 million and anticipates recording approximately $1.3 million in total restructuring charges during the second and third quarters of fiscal year 2026.
Smart Water segment revenue was $3.7 million for the three months ended March 31, 2026, down from $9.5 million for the same period a year ago, a decrease of 60.6%. For the six-month period, revenue was $9.5 million compared with $16.8 million in the prior-year period.
The company attributed the decline to lower demand for its Hydroconn connector product line. Management said prior-year orders were aligned with anticipated performance, resulting in elevated inventory levels entering the current year, and that recent demand reflects inventory normalization rather than reduced long-term requirements. Management expects a moderate uptick in orders in coming quarters tied to new and replacement smart meter implementations.
Energy Solutions segment revenue totaled $9.6 million for the three months ended March 31, 2026, compared with $2.6 million in the year-ago quarter, an increase of 272.1%.
For the six months ended March 31, 2026, Energy Solutions revenue was $24.3 million, down 9.7% from $26.9 million in the comparable prior-year period.
Management said the increase in the three-month period was driven by revenue recognized related to the PRM contract, final deliveries of the Pioneer land wireless product to Dawson Geophysical, and partially offset by lower demand for traditional seismic products. For the six-month period, the decline was attributed to lower utilization of the ocean bottom nodal rental fleet, offset by higher land wireless product demand and revenue recognized for the PRM contract.
Intelligent Industrial segment revenue was $6.3 million for the three months ended March 31, 2026, compared with $5.9 million in the year-ago period, an increase of 7.1%. For the six-month period ended March 31, 2026, revenue was $11.4 million versus $11.5 million in the comparable prior-year period.
Management said the three-month increase reflected higher demand for industrial sensors and contract manufacturing services. The quarter also included the first revenue contribution from the Heartbeat Detector product, with management noting active international and domestic interest levels and quoting activity.
For the six months ended March 31, 2026, Geospace used $16.7 million in cash and cash equivalents from operating activities. The company generated $4.0 million of cash from investing activities, including $6.9 million in proceeds from the sale of rental equipment, partially offset by $3.0 million for additions to property, plant and equipment.
As of March 31, 2026, Geospace had $13.4 million in cash and maintained additional borrowing availability of $25.0 million under its bank credit agreement, with no borrowings outstanding. Working capital for the six-month period ended March 31, 2026 was $45.4 million, including $19.3 million of trade accounts and financing receivables.
Geospace will host a conference call to review its second quarter fiscal year 2026 financial results on Friday, May 8, 2026, at 10:00 a.m. Eastern Time (9:00 a.m. Central). Participants can access the call at 833-316-1983 (US) or 785-838-9310 (International), using conference ID GEOSQ226. A replay will be available for approximately 60 days through the Investor Relations tab of the company’s website.
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