EX-99.1 2 ex_891466.htm EXHIBIT 99.1 ex_891466.htm

Exhibit 99.1

 

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NEWS RELEASE

 

GEOSPACE TECHNOLOGIES CORPORATION REPORTS FOURTH QUARTER

AND FISCAL YEAR 2025 RESULTS

 

Houston, Texas November 20, 2025 – Geospace Technologies Corporation (NASDAQ: GEOS) (“the “Company") today reported revenue for the fourth quarter ended September 30, 2025, of $30.7 million compared to revenue of $35.4 million for the comparable year-ago period. Net loss for the fourth quarter ended September 30, 2025 was $9.1 million, or $(0.71) per diluted share, compared to a net loss of $12.9 million, or $(1.00) per diluted share, for the comparable year-ago period.

 

For the twelve-month period ended September 30, 2025, Geospace Technologies reported revenue of $110.8 million for its fiscal year ended September 30, 2025. This compares to revenue of $135.6 million for the comparable year-ago period. Net loss for the fiscal year ended September 30, 2025 was $9.7 million, or $(0.76) per diluted share, compared to a net loss of $6.6 million, or $(0.50) per diluted share, for comparable year-ago period.

 

Managements Comments

Richard “Rich” Kelley, Chief Executive Officer and President of Geospace Technologies, said, “The mixed fiscal year performance across the market segments continues to reinforce our vision of diversification and innovation for the company.

 

Our Smart Water segment delivered another strong year, exceeding expectations with double digit revenue growth for the fourth sequential fiscal year. The Hydroconn® connector line continued to gain market share and drove significant revenue gains compared to last year. We are also seeing increased market acceptance of the Aquana products both domestically and in the Caribbean markets. We anticipate continued market demand for both the Hydroconn and Aquana solutions. For international markets, we will build upon the municipal water management model in the U.S. and address challenges of water scarcity, environmental changes and natural disaster mitigation.

 

Continued market uncertainty and volatility in oil prices resulted in lower revenue from Energy Solutions. We experienced another year of reduced offshore exploration, increased competition and consolidation. These factors have led to decreased utilization of our ocean-bottom node rental fleet that has negatively impacted segment revenue. Despite lower revenue, we achieved strategic wins in the segment. As previously announced, we were awarded a major Permanent Reservoir Monitoring (PRM) contract with Petrobras as well as released and completed a major sale of our ultra lightweight land node, Pioneer™ to several customers, including Dawson Geophysical, a long-time valued partner. We have a strong backlog going into the next fiscal year and while there are encouraging signs, the short-term exploration market remains uncertain due to continued pressure from low oil prices. However, long-term demand forecasts should drive more favorable market conditions in future periods.

 

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Our Intelligent Industrial segment continues to provide steady, predictable revenue from our industrial sensors and contract manufacturing solutions. As previously announced, to increase revenue from this segment, we acquired Geovox Security, Inc., the exclusive licensee of a human heartbeat detection algorithm developed by Oak Ridge National Lab. The Heartbeat Detector® complements our border and perimeter security solutions. It further serves to advance our strategy toward adding more solutions with annual recurring revenue. We also restructured our Exile product portfolio to increase revenues and improve margins. Both Heartbeat Detector and Exile have seen increased interest in their respective markets.

 

While Energy Solutions continues to play a key role in our overall strategy, we will continue to drive growth and profitability through diversification. We see incredible opportunities in our Smart Water and Intelligent Industrial segments to leverage our technology and manufacturing capabilities.

 

 

Smart Water Segment

Revenue from the Company’s Smart Water segment totaled $8.5 million for the three months ended September 30, 2025. This compares to $11.9 million in revenue for the same period a year ago a decrease of 28%. For the fiscal year, revenue from this segment totaled $35.8 million versus $32.4 million for the same prior year period for an increase of 10%. The decrease in revenue for the three-month period is due to decreased demand for our Hydroconn universal AMI connectors. Annually the Company expects a slight seasonal drop in demand for those products during the fall and winter months. The twelve-month increase in revenue is due to increased demand for Hydroconn connectors. Fiscal year 2025 marks the fourth annual year with double digit percentage revenue growth due for our connectors.

 

Energy Solutions Segment

For the three-month period ended September 30, 2025, revenue from the Company’s Energy Solutions segment totaled $15.7 million for a decrease of 11% when compared to $17.6 million from the same prior year period. Revenue from the twelve-month period was $50.7 million, a decrease of 35%, when compared to revenue from the same prior year period of $78.0 million. The decrease for the three-month period and 12-month period is due to lower utilization and sales for our marine ocean bottom node rental fleet, partially offset by sales of our newly released ultralight land node known as Pioneer. In the third quarter of this fiscal year the Company executed an eighteen-month PRM contract. Revenue will be recognized over the duration of the contract, which is anticipated to begin in our second fiscal quarter of 2026 and beyond.

 

Intelligent Industrial Segment

Revenue from the Company’s Intelligent Industrial segment totaled $6.4 million for the three-month period ended September 30, 2025. This compares with $5.8 million from the equivalent year ago period, representing an increase of 9%. Revenue for the twelve-month period ending September 30, 2025, was $24.0 million. This compares to the prior year-ago period of $24.9 million, a decrease of 4%. The increase in revenue for the three-month period was due to higher demand for our industrial sensors, and contract manufacturing services. The decrease in revenue for the twelve-month period was primarily due to revenue recognized for the three and twelve months ended September 30, 2024 on a government contract completed in the fourth quarter of fiscal year 2024 and lower demand for our imaging products, partially offset by an increase in demand for our industrial sensors and contract manufacturing services.

 

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Balance Sheet and Liquidity

For the twelve-month period ended September 30, 2025, the Company used $22.2 million in cash and cash equivalents from operating activities. The Company generated $42.7 million of cash from investing activities that included $30.4 million in proceeds from the sale of short-term investments, $14.2 million of proceeds from the sale of rental equipment, $8.7 million in proceeds from the sale of property, plant and equipment and, offset by $8.0 million for additions to property, plant and equipment, $1.1 million in additions to the rental fleet and, $1.8 million for the acquisition of the Heartbeat Detector product line.

 

As of September 30, 2025, the Company had $26.3 million in cash and maintained an additional borrowing availability of $8.0 million under its bank credit agreement with no borrowings outstanding. For the twelve-month period ended September 30, 2025, the Company’s working capital is $64.1 million which includes $28.0 million of trade accounts and financing receivables. Additionally, the Company owns unencumbered property and real estate in both domestic and international locations. The sale of excess land and facilities owned by Geospace positioned adjacent to our Houston facility was completed in the third quarter.

 

Conference Call Information

Geospace Technologies will host a conference call to review its fourth quarter and fiscal year 2025 financial results on November 21, 2025, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (800) 267-6316 (US) or (203) 518-9783 (International). Please reference the conference ID: GEOSQ425 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com.

 

About Geospace Technologies

Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 450 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS. For more information, visit www.geospace.com.

 

MEDIA CONTACT: Caroline Kempf, ckempf@geospace.com, 713.986.8710

 

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Forward Looking Statements

This news release contains “forward-looking” statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss our future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include, among others, statements that we make regarding our expected operating results, the timing, adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, continued demand growth of our Hydroconn universal AMI connectors, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, future demand for ocean bottom node rental equipment, sales or rentals for our Mariner™ or Mariner Deep® nodes,  the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10-Q, or in other period reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels,  the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our ocean bottom nodes rental equipment, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors and elsewhere in our most recent Annual Report on Form 10-K or in our other periodic reports could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise, except as required by applicable securities laws and regulations.

 

 

 

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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share amounts)

(unaudited)

 

   

Three Months Ended

   

Year Ended

 
   

September 30,

2025

   

September 30,

2024

   

September 30,

2025

   

September 30,

2024

 

Revenue:

                               

Products

  $ 29,624     $ 32,602     $ 104,204     $ 116,036  

Rental

    1,090       2,836       6,599       19,562  

Total revenue

    30,714       35,438       110,803       135,598  

Cost of revenue:

                               

Products

    24,913       16,302       68,079       69,318  

Rental

    2,340       3,206       9,827       13,707  

Total cost of revenue

    27,253       19,508       77,906       83,025  
                                 

Gross profit

    3,461       15,930       32,897       52,573  
                                 

Operating expenses:

                               

Selling, general and administrative

    8,074       7,241       29,815       26,554  

Research and development

    4,549       4,775       18,916       16,251  

Other intangible asset impairment

          2,761             2,761  

Provision for (recovery of) credit losses

    45       (26 )     66       (110 )

Total operating expenses

    12,668       14,751       48,797       45,456  
                                 

Gain on disposal of property

                4,616        
                                 

Income (loss) from operations

    (9,207 )     1,179       (11,284 )     7,117  
                                 

Other income (expense):

                               

Loss on sale of subsidiary

          (14,539 )           (14,539 )

Interest expense

    (38 )     (43 )     (169 )     (187 )

Interest income

    562       604       2,537       1,558  

Foreign currency transaction losses, net

    (10 )     (17 )     (275 )     (270 )

Other, net

    (376 )     (379 )     (145 )     (143 )

Total other income (expense), net

    478       (14,034 )     1,948       (13,581 )
                                 

Loss before income taxes

    (8,729 )     (12,855 )     (9,336 )     (6,464 )

Income tax expense

    333       5       388       114  

Net loss

  $ (9,062 )   $ (12,860 )   $ (9,724 )   $ (6,578 )
                                 

Loss per common share:

                               

Basic

  $ (0.71 )   $ (1.00 )   $ (0.76 )   $ (0.50 )

Diluted

  $ (0.71 )   $ (1.00 )   $ (0.76 )   $ (0.50 )
                                 

Weighted average common shares outstanding:

                               

Basic

    12,820,403       12,797,653       12,793,075       13,151,600  

Diluted

    12,820,403       12,797,653       12,793,075       13,151,600  

 

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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share amounts) (unaudited)

 

   

AS OF SEPTEMBER 30,

 
   

2025

   

2024

 

ASSETS

               

Current assets:

               

Cash and cash equivalents

  $ 26,338     $ 6,895  

Short-term investments

          30,227  

Trade accounts and financing receivables, net

    28,009       21,868  

Inventories, net

    30,901       26,222  

Assets held for sale

          1,841  

Prepaid expenses and other current assets

    3,252       2,313  

Total current assets

    88,500       89,366  
                 

Non-current inventories, net

    17,113       18,031  

Rental equipment, net

    8,120       14,186  

Property, plant and equipment, net

    23,244       21,083  

Non-current trade accounts and financing receivables, net

    8,190       6,375  

Operating right-of-use assets

    915       464  

Goodwill

    1,258       736  

Other intangible assets, net

    5,155       1,649  

Other non-current assets

    542       304  

Total assets

  $ 153,037     $ 152,194  
                 

LIABILITIES AND STOCKHOLDERS EQUITY

               

Current liabilities:

               

Accounts payable trade

  $ 10,369     $ 8,003  

Operating lease liabilities

    420       173  

Other current liabilities

    13,641       9,021  

Total current liabilities

    24,430       17,197  
                 

Contingent consideration

    2,540        

Non-current operating lease liabilities

    554       339  

Deferred tax liabilities, net

    4       34  

Total liabilities

    27,528       17,570  
                 

Commitments and contingencies

               
                 

Stockholders’ equity:

               

Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding

           

Common stock, $.01 par value, 20,000,000 shares authorized, 14,378,962 and 14,206,082 shares issued, respectively; and 12,820,702 and 12,709,381 shares outstanding, respectively

    144       142  

Additional paid-in capital

    98,845       97,342  

Retained earnings

    45,558       55,282  

Accumulated other comprehensive loss

    (4,538 )     (4,257 )

Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively

    (14,500 )     (13,885 )

Total stockholders’ equity

    125,509       134,624  

Total liabilities and stockholders’ equity

  $ 153,037     $ 152,194  

 

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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands) (unaudited)

 

   

YEAR ENDED SEPTEMBER 30,

 
   

2025

   

2024

 

Cash flows from operating activities:

               

Net loss

  $ (9,724 )   $ (6,578 )

Adjustments to reconcile net loss to net cash used in operating activities:

               

Deferred income tax expense (benefit)

    (31 )     18  

Rental equipment depreciation

    6,176       10,859  

Property, plant and equipment depreciation

    3,752       3,512  

Amortization of intangible assets

    218       395  

Intangible assets impairment expense

          2,761  

Accretion of discounts on short-term investments

    (171 )     (566 )

Stock-based compensation expense

    1,505       1,304  

Provision for (recovery of) credit losses

    66       (110 )

Inventory obsolescence expense

    3,071       589  

Loss on sale of subsidiary

          14,539  

Gross profit from sale of rental equipment

    (16,402 )     (30,998 )

(Gain) loss on disposal of property, plant and equipment

    (4,679 )     16  

Realized gain on investments

    (9 )      

Effects of changes in operating assets and liabilities:

               

Trade accounts and notes receivable

    (4,244 )     6,593  

Inventories

    (7,571 )     (10,985 )

Other assets

    (1,345 )     (199 )

Accounts payable trade

    2,353       2,746  

Other liabilities

    4,803       (2,979 )

Net cash used in operating activities

    (22,232 )     (9,083 )
                 

Cash flows from investing activities:

               

Purchase of property, plant and equipment

    (7,973 )     (3,857 )

Investment in rental equipment

    (1,091 )     (8,321 )

Proceeds from the sale of property, plant and equipment

    8,675       9  

Proceeds from the sale of rental equipment

    14,171       31,964  

Purchase of short-term investments

          (32,078 )

Proceeds from the sale of short-term investments

    30,407       17,338  

Payment for business acquisition

    (1,750 )      

Payments received on note receivable related to sale of subsidiary

    253        

Cash disposed from sale of subsidiary

          (1,231 )

Net cash provided by investing activities

    42,692       3,824  
                 

Cash flows from financing activities:

               

Debt issuance costs

    (398 )      

Purchase of treasury stock

    (615 )     (6,385 )

Net cash used in financing activities

    (1,013 )     (6,385 )
                 

Effect of exchange rate changes on cash

    (4 )     (264 )

Increase (decrease) in cash and cash equivalents

    19,443       (11,908 )

Cash and cash equivalents, beginning of fiscal year

    6,895       18,803  

Cash and cash equivalents, end of fiscal year

  $ 26,338     $ 6,895  

 

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GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS)

(in thousands)

(unaudited)

 

   

Three Months Ended

   

Year Ended

 
   

September 30,

2025

   

September 30,

2024

   

September 30,

2025

   

September 30,

2024

 

Revenue:

                               

Smart Water

  $ 8,538     $ 11,876     $ 35,816     $ 32,434  

Energy Solutions

    15,729       17,649       50,706       77,977  

Intelligent Industrial

    6,364       5,840       23,960       24,891  

Corporate

    83       73       321       296  

Total

  $ 30,714     $ 35,438     $ 110,803     $ 135,598  
                                 

Income (loss) from operations:

                               

Smart Water

  $ 1,640     $ 3,843     $ 5,663     $ 9,215  

Energy Solutions

    (4,992 )     5,567       388       18,570  

Intelligent Industrial

    (1,061 )     (4,510 )     (4,329 )     (6,691 )

Corporate

    (4,794 )     (3,721 )     (13,006 )     (13,977 )

Total

  $ (9,207 )   $ 1,179     $ (11,284 )   $ 7,117  

 

 

 

 

 

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