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Shares of Geospace Technologies Corporation GEOS have lost 5.2% since the company reported its earnings for the quarter ended March 31, 2025. This compares unfavorably to the S&P 500 Index’s 4.6% gain over the same time frame. Over the past month, however, GEOS shares have gained 1.3%, though they continue to lag the broader market, as the S&P 500 has advanced 8.8% during the same period.
Earnings Snapshot and Segmental Overview
For the second quarter of fiscal 2025, Geospace reported revenues of $18 million, marking a 25.7% year-over-year decline from $24.3 million. The quarter concluded with a net loss of $9.8 million, or $0.77 per diluted share, a deterioration from the $4.3 million net loss, or $0.32 per share, in the same period last year.
Segment-wise, Smart Water was the standout, generating $9.5 million in revenues, up 47.7% from $6.4 million in the prior-year quarter. Conversely, Energy Solutions saw its revenue plummet by 76.5% to $2.6 million, down from $11 million. The Intelligent Industrial segment reported revenues of $5.9 million, down 12.8% from $6.7 million.
Geospace Technologies Corporation Price, Consensus and EPS Surprise
Geospace Technologies Corporation price-consensus-eps-surprise-chart | Geospace Technologies Corporation Quote
Other Key Business Metrics
Gross profit for the quarter was $1.7 million, decreasing 70.3% from $5.9 million a year ago. Operating expenses rose 15.8% to $12 million from $10.4 million, primarily due to higher personnel, research and development, and sales and marketing costs. As a result, the company reported an operating loss of $10.3 million compared with a loss of $4.5 million in the same period last year.
Cash and short-term investments totaled $19.8 million as of March 31, 2025, compared with $22.1 million as of Dec. 31, 2024. The company had no debt and had access to $14.9 million in additional credit. Working capital stood at $71.4 million, bolstered by $36.3 million in trade accounts and financing receivables.
Management Commentary
CEO Richard Kelley acknowledged the mixed performance, noting record results in Smart Water driven by strong Hydroconn universal connector sales and growing traction for the Aquana smart valve product. Kelley attributed the underperformance in Energy Solutions to global trade tensions, lower oil prices and tariff headwinds, which delayed and canceled customer projects. He emphasized that despite the volatility, Geospace is well-positioned in its newer high-margin markets, underscored by a strong balance sheet and increasing inquiries in its Smart Water and Intelligent Industrial segments.