Firm provides update on $75 million emergency warning system for island dams
- The San Juan Daily Star
- 6 hours ago
- 2 min read
By The Star Staff
Genasys Inc., a leading provider of critical communications solutions, has issued an update on its contract with the Puerto Rico Electric Power Authority for an emergency warning system across 37 dams.
With full deposits secured for the third group of dams, construction is underway for nine out of 19 dams with approved designs. As of fiscal year 2025, the company has recognized $5.6 million in project-related revenue.
The update was shared during the company’s financial results presentation for the fiscal third quarter (Q3) ending June 30 of this year. Genasys reported a 38% year-over-year increase in revenue, with $9.9 million for Q3 2025 compared to $7.2 million for the same period last year. The growth was driven by a 50% surge in hardware revenue and a 7% increase in software revenue, while the annual recurring revenue reached $8.7 million.
Despite a decline in the gross profit margin from 52.8% in Q3 2024 to 26.3% in Q3 2025, the company remains confident in its strategic direction. The decrease in gross margin is primarily attributed to percentage-of-completion accounting related to the Puerto Rico project and underutilization of hardware revenue. Operating expenses dropped to $8.5 million, down from $9.1 million in the previous fiscal year’s third quarter.
Looking ahead, Genasys anticipates recognizing $15 million to $20 million in revenue tied to the Puerto Rico project in fiscal 2025, with an expected acceleration in revenue and profit recognition for fiscal 2026. To further support its growth strategy, the company plans to reduce operating expenses in its software business, targeting annual savings of some $2.5 million starting in the first fiscal quarter of 2026.
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