Geospace Technologies' Q2 results show revenue shifts in smart water and energy segments

Marine seismic data specialist Geospace Technologies Corporation has published its results for the quarter ended June 30, 2025.

For the three-months ended June 30, 2025, Geospace reported revenue of US$24.8 million, compared to revenue of US$25.8 million for the comparable prior year quarter. Net income for the three-months ended June 30, 2025, was US$0.8 million, or US$0.06 per diluted share, compared to a net loss of US$2.1 million, or US$0.16 per diluted share, for the quarter ended June 30, 2024.

For the nine-months ended June 30, 2025, Geospace reported revenue of US$80.1 million compared to revenue of US$100.2 million for the comparable prior year period. Net loss for the nine-months ended June 30, 2025, was US$0.7 million, or US$0.05 per diluted share, compared to net income of US$6.3 million, or US$0.47 per diluted share, for the nine-months ended June 30, 2024.

Revenue from the company’s smart water segment totaled US$10.5 million for the three months ended June 30, 2025. This compares to US$9.9 million in revenue for the same period a year ago representing an increase of 6.1 per cent.

Revenue for the nine-month period ended June 30, 2025, is US$27.3 million, an increase of 32.7 per cent over the equivalent prior year period. This marks a record high level of nine-months of revenue for the smart water segment.

Revenue from the company’s energy solutions segment totaled US$8.1 million for the three-month period ended June 30, 2025. This compares to US$9.4 million in revenue for the same period a year ago representing a decrease of 13.6 per cent.

Revenue for the nine-month period ended June 30, 2025, is US$35 million, a decrease of 42 per cent over the equivalent prior year period. The decrease in revenue for the three-month period and nine-month period was due to lower utilisation and sales for the marine ocean bottom node rental fleet.

Geospace said it is encouraged by the first sale of the newly released ultralight land node. This indicates the need for increased operational efficiency among geophysical survey companies, who benefit from the lighter weight for faster deployments with smaller crews.

For the nine-month period ended June 30, 2025, the company used US$18.1 million in cash and cash equivalents from operating activities.

The company generated US$35.4 million of cash from investing activities that included US$28.4 million in proceeds from the sale of short-term investments and US$8.7 million in proceeds from the sale of property, plant and equipment, and US$5.1 million of proceeds from the sale of rental equipment, offset by US$5.8 million for additions to property, plant and equipment as well as, US$1.1 million in additions to the rental fleet.

As of June 30, 2025, Geospace had US$25.6 million in cash and short-term investments and maintained an additional borrowing availability of US$15 million under its bank credit agreement with no borrowings outstanding.

For the nine-month period ended June 30, 2025, the company’s working capital is US$74.5 million, which includes US$32.3 million of trade accounts and financing receivables. Additionally, the company owns unencumbered property and real estate in both domestic and international locations.

"Strategic accomplishments defined our third quarter laying the foundation to further our revenue and profitability goals," said Richard Kelley, Chief Executive Officer and President of Geospace Technologies.

Kelley explained that the energy solutions segment has secured a contract to supply nearly 500 kilometres of a permanent reservoir monitoring system covering 140 square kilometres of seabed area of Mero, located off the coast of Rio de Janeiro, Brazil. Additionally, the energy solutions segment achieved its first sale of a newly released ultralight land node for seismic surveys, to a global engineering and professional services firm based in Canada.

"We continue to generate strong organic growth in our smart water segment where our universal AMI connectors remain a reliable revenue and profit centre," added Kelley.