CPS Technologies Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
CPS Technologies (NASDAQ:CPSH) reported fiscal Q2 2026 revenue of $8.3 million, up from $8.1 million a year earlier, with gross margin at 14.8% versus 16.5% in Q2 2025. The company recorded an operating loss of $0.2 million compared to an operating profit of $0.1 million in the prior-year period, while SG&A expenses increased by about $0.3 million year over year.
CPS completed a secondary offering raising $9.6 million in gross proceeds to support growth initiatives and an upcoming facility move. Net income for the quarter was approximately $37,747, or $0.00 per diluted share. Cash and cash equivalents rose to $15.4 million at June 27, 2026, and total stockholders’ equity increased to $33.7 million. Funded development programs continue with the U.S. Army and U.S. Navy, and management reiterated plans to transition to a new operating facility in coming quarters.
Positive
- Revenue growth to $8.3M from $8.1M YoY in Q2 2026
- Secondary offering raised $9.6M gross proceeds for growth initiatives
- Cash and equivalents increased to $15.35M from $4.47M since year-end 2025
- Total stockholders’ equity rose to $33.66M from $24.64M at year-end 2025
- Funded defense programs continue with U.S. Army and U.S. Navy
- Gross margin improved 620 bps versus Q1 2026, per management
Negative
- Gross margin declined YoY to 14.8% from 16.5% in Q2 2025
- Operating result shifted to $0.19M loss from $0.14M profit YoY in Q2
- SG&A expenses increased about $0.3M year over year in Q2 2026
- Six-month net result was a $0.26M loss versus $0.20M profit in 2025
- Share count rose to 18.46M basic shares from 14.53M, indicating dilution
News Explained
The completed $9.6 million raise adds capital, while the release leaves its direct dilution of existing holders unquantified.
The completed CPS Technologies offering is reported alongside 19,605,017 issued and 19,387,942 outstanding common shares at
Issuing additional shares increases the total share count and reduces an existing holder’s percentage ownership absent offsetting changes.
Because the release gives the
The raise equals
Sources and calculations
- CPS Technologies Second Quarter 2026 Results (2026-08-04)
- Dilution definition (2026-07-17)
- CPS Technologies first-quarter 2026 financial data (2026Q1)
- Offering gross vs quarterly operating cash outflow, in days of cash use $9,600,000 / ($291,957 / 90) = [object Object]
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 04 | Q1 earnings report | Negative | -26.1% | Revenue, margin, and net loss results accompanied post-quarter order announcements. |
| Mar 02 | Q4 earnings report | Positive | -15.9% | Record sales, profitability, offering proceeds, and follow-on order accompanied negative reaction. |
| Oct 29 | Q3 earnings report | Positive | -1.8% | Record revenue, improved margins, profits, and government awards accompanied negative reaction. |
| Jul 30 | Q2 earnings report | Positive | +11.1% | Record revenue, improved profitability, and defense contract activity accompanied positive reaction. |
| Apr 30 | Q1 earnings report | Positive | +8.4% | Record revenue, restored profitability, and new Army contracts accompanied positive reaction. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -4.86% 24-hour reaction, with four of five events diverging from otherwise positive reported results.
Key Terms
metal matrix composites technical
hermetic packaging technical
sg&a financial
basis points financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Successful Capital Raise and Improved Company Outlook
NORTON, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corp. (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for its fiscal second quarter ended June 27, 2026.
Second Quarter Summary
- Revenue of
$8.3 million , versus$8.1 million in the prior-year period, reflecting strong overall product demand. - Gross margin of 14.8 percent versus 16.5 percent in the second quarter of 2025.
- Operating loss of
$(0.2) million for the quarter compared to an operating profit of$0.1 million in the prior-year period. - The Company successfully completed a secondary offering that raised gross proceeds of
$9.6 million , providing additional capital to support the Company’s growth initiatives. - Funded development work continues, including programs to develop a controlled fragmentation tungsten warhead for the U.S. Army and an initiative to reduce the weight of the Amphibious Combat Vehicle with funding from the U.S. Navy.
- CPS remains on course to build out and move to a new operating facility in the coming quarters, as previously announced.
“We continue to plan for a transition to an improved manufacturing location and are now finalizing the negotiations for the best available site to support our growth,” said Brian Mackey, President and CEO. “We’re seeing strong demand across our various product lines – reflected in our increased quarterly revenue relative to both the second quarter of 2025 and first quarter of 2026 – while gross margins recovered significantly, improving 620 basis points over Q1. In addition, with trends pointing to expanding opportunities going forward, we raised over
Results of Operations
CPS reported revenue of
Operating loss was
Conference Call
The Company will be hosting its second quarter 2026 earnings call tomorrow, August 5, 2026, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 255505
The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants.
About CPS
CPS is an advanced materials company that designs, manufactures, and sells high-performance material solutions to global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company specializes in proprietary metal matrix composites (MMCs), combining metals and ceramics to deliver superior strength, thermal management, and reliability for demanding applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure. CPS also produces hermetic packaging for high-reliability power and communications modules, supporting avionics, GPS, microprocessors, and specialized integrated circuits. Additionally, its lightweight HybridTech Armor® provides high strength-to-weight protection. CPS focuses on innovation, quality, and diversified high-growth markets to drive sustained, profitable growth. The Company’s Vision is ”to pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.”
Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.
CPS Technologies Corporation
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com
Investor Relations:
Chris Witty
646-438-9385
cwitty@darrowir.com
| CPS TECHNOLOGIES CORP. Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| June 27, | June 28, | June 27, | June 28, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Product sales | $ | 8,309,323 | $ | 8,078,657 | $ | 15,338,071 | $ | 15,584,578 | |||||||||
| Cost of product sales | 7,080,534 | 6,742,341 | 13,502,404 | 13,017,261 | |||||||||||||
| Gross profit | 1,228,789 | 1,336,316 | 1,835,667 | 2,567,317 | |||||||||||||
| Selling, general, and administrative expenses | 1,487,316 | 1,199,389 | 2,616,828 | 2,300,739 | |||||||||||||
| Income (loss) from operations | (185,566 | ) | 136,927 | (781,161 | ) | 266,578 | |||||||||||
| Other income, net | 146,168 | 19,025 | 292,373 | 69,501 | |||||||||||||
| Net income (loss) before income taxes | (39,398 | ) | 155,952 | (488,788 | ) | 336,079 | |||||||||||
| Income tax provision (benefit) | (150,106 | ) | 52,119 | (232,356 | ) | 136,284 | |||||||||||
| Net income (loss) | $ | 37,747 | $ | 103,833 | $ | (256,432 | ) | $ | 199,795 | ||||||||
| Other comprehensive income | |||||||||||||||||
| Net unrealized gains on available for sale securities | 1,398 | 8,169 | (3,359 | ) | 10,206 | ||||||||||||
| Reclassification adjustment for gains included in net income | - | - | - | (16,237 | ) | ||||||||||||
| Total other comprehensive income | 1,398 | 8,169 | (3,359 | ) | (6,031 | ) | |||||||||||
| Comprehensive income (loss) | 39,145 | 112,002 | (259,791 | ) | 193,764 | ||||||||||||
| Net income (loss) per basic common share | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | ||||||||
| Weighted average number of basic common shares outstanding | 18,460,574 | 14,525,960 | 18,116,660 | 14,525,960 | |||||||||||||
| Net income (loss) per diluted common share | $ | 0.00 | $ | 0.01 | $ | (0.01 | ) | $ | 0.01 | ||||||||
| Weighted average number of diluted common shares outstanding | 18,984,367 | 14,577,433 | 18,338,857 | 14,560,672 | |||||||||||||
| CPS TECHNOLOGIES CORP. Balance Sheets (Unaudited) | ||||||||
| June 27, 2026 | December 27, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 15,354,564 | $ | 4,466,198 | ||||
| Marketable securities, at fair value | 3,801,426 | 8,769,363 | ||||||
| Accounts receivable-trade | 4,932,226 | 5,235,307 | ||||||
| Accounts receivable-other | 141,338 | 380,948 | ||||||
| Inventories, net | 8,649,437 | 5,598,407 | ||||||
| Prepaid expenses and other current assets | 298,780 | 299,829 | ||||||
| Total current assets | 33,177,771 | 24,750,052 | ||||||
| Property and equipment: | ||||||||
| Production equipment | 10,966,327 | 10,647,170 | ||||||
| Furniture and office equipment | 910,310 | 910,310 | ||||||
| Leasehold improvements | 997,830 | 997,830 | ||||||
| Total cost | 12,874,467 | 12,555,310 | ||||||
| Accumulated depreciation and amortization | (10,897,944 | ) | (10,877,927 | ) | ||||
| Construction in progress | 498,656 | 459,671 | ||||||
| Net property and equipment | 2,475,180 | 2,137,054 | ||||||
| Net intangible assets | 19,354 | 21,778 | ||||||
| Right-of-use lease asset | 264,000 | 336,000 | ||||||
| Deferred taxes, net | 2,499,666 | 2,266,854 | ||||||
| Total Assets | $ | 38,435,971 | 29,511,738 | |||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 3,496,532 | 3,363,233 | ||||||
| Accrued expenses | 501,435 | 907,910 | ||||||
| Deferred revenue | 487,240 | 238,044 | ||||||
| Lease liability, current portion | 163,000 | 162,000 | ||||||
| Total current liabilities | 4,648,207 | 4,671,187 | ||||||
| Deferred revenue – long term | 31,277 | 31,277 | ||||||
| Long term lease liability | 101,000 | 174,000 | ||||||
| Total liabilities | 4,780,484 | 4,876,464 | ||||||
| Commitments & Contingencies | ||||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 196,043 | 181,320 | ||||||
| Preferred stock, no shares issued or outstanding | – | – | ||||||
| Additional paid-in capital | 60,122,967 | 50,295,019 | ||||||
| Accumulated other comprehensive income | (3,220 | ) | 139 | |||||
| Accumulated deficit | (25,726,323 | ) | (25,469,891 | ) | ||||
| Less cost of 217,075 and 144,133 common shares repurchased at each June 27, 2026 and December 27, 2025 | (933,980 | ) | (371,313 | ) | ||||
| Total stockholders’ equity | 33,655,487 | 24,635,274 | ||||||
| Total liabilities and stockholders’ equity | $ | 38,435,971 | $ | 29,511,738 | ||||
