📊 GNSS Key Takeaways
Is Genasys Inc. (GNSS) a Good Investment?
Genasys demonstrates strong revenue growth (69.8% YoY) with healthy gross margins (55.3%), indicating product-market traction. However, the company faces critical liquidity challenges with a current ratio of 0.73x, negative operating cash flow of -$2.1M, and minimal cash reserves of $931K, creating near-term solvency risks that outweigh growth prospects. The inability to convert gross profit into positive operating cash flow despite revenue expansion suggests fundamental operational inefficiencies.
Fundamentals show strong top-line acceleration and improving loss profile with a solid 48% gross margin and positive operating cash flow, but liquidity is tight and the equity cushion is thin. Sustained operating profitability and better working capital health are needed to de-risk the balance sheet. Evidence of consistent cash generation not reliant on working capital will be key to upgrading the outlook.
Why Buy Genasys Inc. Stock? GNSS Key Strengths
- Strong revenue growth of 69.8% YoY demonstrates market demand
- Healthy gross margin of 55.3% indicates strong pricing power and cost of goods control
- Zero long-term debt eliminates refinancing and interest burden risks
- Improving loss trajectory with 42.9% YoY net loss improvement shows path toward profitability
- Rapid revenue growth (+69.8% YoY) with improving losses
- Solid 48% gross margin near breakeven operating income
- Debt-free with positive operating and free cash flow
GNSS Stock Risks: Genasys Inc. Investment Risks
- Critical liquidity crisis: current ratio of 0.73x indicates inability to meet short-term obligations
- Negative operating cash flow of -$2.1M reveals the business model is not generating cash despite revenue growth
- Minimal cash reserves of $931K create short runway at current burn rate of -$2.2M FCF
- Stockholders' equity of only $3.0M on $61.6M asset base creates severe solvency cushion
- Wide gap between 55.3% gross margin and 2.9% operating margin indicates operational inefficiencies requiring resolution
- Weak liquidity (current ratio 0.73x; quick ratio 0.59x)
- Thin equity base ($1.81M) and negative interest coverage
- Cash flow quality risk if working-capital-driven OCF proves non-recurring
Key Metrics to Watch
- Operating cash flow - must turn positive to validate sustainable business model
- Current and quick ratios - must improve above 1.0x to reduce immediate bankruptcy risk
- Operating expense ratio - critical to narrow the gap between gross and operating margins
- Cash burn rate and cash runway - key determinant of survival timeline
- Operating income leverage - monitor whether revenue growth begins to flow through to profitability
- Operating margin sustained above 0%
- Current ratio improvement toward >=1.0x
Genasys Inc. (GNSS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
GNSS Profit Margin, ROE & Profitability Analysis
GNSS vs Industrial Sector: How Genasys Inc. Compares
How Genasys Inc. compares to Industrial sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Genasys Inc. Stock Overvalued? GNSS Valuation Analysis 2026
Based on fundamental analysis, Genasys Inc. has mixed fundamental signals relative to the Industrial sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Genasys Inc. Balance Sheet: GNSS Debt, Cash & Liquidity
GNSS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Genasys Inc.'s revenue has declined by 13% over the 5-year period, indicating business contraction. The most recent EPS of $-0.72 indicates the company is currently unprofitable.
GNSS Revenue Growth, EPS Growth & YoY Performance
GNSS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $6.9M | -$94.0K | $0.00 |
| Q1 2026 | $6.9M | -$817.0K | $-0.02 |
| Q3 2025 | $7.2M | -$4.1M | $-0.14 |
| Q2 2025 | $5.7M | -$4.1M | $-0.14 |
| Q1 2025 | $4.4M | -$3.5M | $-0.09 |
| Q3 2024 | $7.2M | -$1.4M | $-0.04 |
| Q2 2024 | $5.7M | -$3.4M | $-0.09 |
| Q3 2023 | $14.2M | -$492.0K | $-0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Genasys Inc. Dividends, Buybacks & Capital Allocation
GNSS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Genasys Inc. (CIK: 0000924383)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GNSS
What is the AI rating for GNSS?
Genasys Inc. (GNSS) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GNSS's key strengths?
Claude: Strong revenue growth of 69.8% YoY demonstrates market demand. Healthy gross margin of 55.3% indicates strong pricing power and cost of goods control. ChatGPT: Rapid revenue growth (+69.8% YoY) with improving losses. Solid 48% gross margin near breakeven operating income.
What are the risks of investing in GNSS?
Claude: Critical liquidity crisis: current ratio of 0.73x indicates inability to meet short-term obligations. Negative operating cash flow of -$2.1M reveals the business model is not generating cash despite revenue growth. ChatGPT: Weak liquidity (current ratio 0.73x; quick ratio 0.59x). Thin equity base ($1.81M) and negative interest coverage.
What is GNSS's revenue and growth?
Genasys Inc. reported revenue of $32.6M.
Does GNSS pay dividends?
Genasys Inc. does not currently pay dividends.
Where can I find GNSS SEC filings?
Official SEC filings for Genasys Inc. (CIK: 0000924383) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GNSS's EPS?
Genasys Inc. has a diluted EPS of $0.00.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GNSS a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Genasys Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is GNSS stock overvalued or undervalued?
Valuation metrics for GNSS: ROE of -3.1% (sector avg: 15%), net margin of -0.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy GNSS stock in 2026?
Our dual AI analysis gives Genasys Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is GNSS's free cash flow?
Genasys Inc.'s operating cash flow is $-2.1M, with capital expenditures of $41.0K. FCF margin is -6.6%.
How does GNSS compare to other Industrial stocks?
Vs Industrial sector averages: Net margin -0.3% (avg: 10%), ROE -3.1% (avg: 15%), current ratio 0.73 (avg: 1.8).