Genasys Inc. — Fiscal Year 2026 Earnings Summary

Financial Performance:

• Full fiscal year 2026 revenue is preliminarily expected to range between $60.5 million and $62.0 million.
• Fiscal fourth quarter 2026 revenue is preliminarily expected to range between $20.5 million and $22.0 million.
• Full fiscal year 2026 gross margin is preliminarily expected to range between 58% and 60%.
• Fiscal fourth quarter 2026 gross margin is preliminarily expected to range between 66% and 68%.
• Full fiscal year 2026 adjusted EBITDA is preliminarily expected to range between $7.2 million and $8.2 million.
• Fiscal fourth quarter 2026 adjusted EBITDA is preliminarily expected to range between $7.0 million and $8.0 million.
• Full fiscal year 2026 operating income is preliminarily expected to range between $3.4 million and $3.7 million.
• Fiscal fourth quarter 2026 operating income is preliminarily expected to range between $6.5 million and $6.8 million.
• The company is unable to provide an estimated range of net income (loss) due to the early state of the year-end tax review process.

Guidance and Future Outlook:

• Complete unaudited financial results for the fiscal fourth quarter and full fiscal year 2026 will be released after market close on December 15, 2026.
• A conference call to discuss results and the fiscal year 2027 outlook is scheduled for December 15, 2026, at 4:30 p.m. Eastern Time.
• Management anticipates entering fiscal 2027 with a strong backlog and a growing pipeline.
• The company expects continued growth in its software business as agencies migrate from legacy systems to Genasys Protect.

Business Segments and Product Lines:

• Activity for the Puerto Rico Dams Early Warning System (EWS) project ramped back up during the fourth quarter.
• The company delivered the scheduled Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program order.
• The software business continues to grow, driven by agencies moving away from legacy systems to Genasys Protect.
• Momentum is reported across both hardware and software businesses.

Management Commentary and Tone:

• CEO Richard Danforth described the year as a "record year" for Genasys.
• Management highlighted the strength of the business heading into the new fiscal year.
• The tone reflects pride in team accomplishments and confidence in the company's pipeline and backlog.

Risks and Challenges:

• The company navigated headwinds stemming from factors largely outside its control during the fiscal year.
• Forward-looking statements identify risks including continuous delays in receiving payment under the Puerto Rico project.
• Risks include regulatory uncertainties and disruptions in governmental support or funding for the Puerto Rico project.
• The company relies on a limited number of customers.
• Potential risks include the need for additional capital, information and security system breaches, geopolitical unrest, and changes in government spending timing.
• Risks also encompass component shortages, price increases, inability to realize acquisition benefits, and challenges in integrating acquired businesses.

Other Key Points:

• This is a voluntary disclosure of preliminary unaudited results; the company does not undertake an obligation to provide such preliminary results in future quarters or years.
• Fiscal year 2026 financial results are subject to audit by an independent registered public accounting firm, which has not yet concluded.
• Actual financial results may differ materially from the preliminary estimates provided.
• The company is the global leader in Protective Communications, covering over 155 million people in all 50 states and over 100 countries.
• Key products include the Long Range Acoustic Device (LRAD) and the Protect Platform (Genasys Protect and Genasys Evertel).