CPS Technologies Announces Third Quarter 2026 Financial Results

Quarterly profitability improved, but nine-month earnings remained below the prior-year period as CPS prepared to expand production space.

Rhea-AI Summary

CPS Technologies (NASDAQ:CPSH) reported third-quarter fiscal 2026 revenue of $8.9 million, a quarterly record, alongside higher earnings and gross margin. For the quarter ended September 26, revenue compared with $8.8 million a year earlier. Gross margin reached 20.9%, versus 17.1%, and diluted earnings rose to $0.02 per share from $0.01. Operating profit increased to $357,747 from $276,082, despite higher selling, general and administrative expenses.

CPS signed a long-term lease for an 80,000-square-foot facility in Attleboro, approximately twice its current space. The company expects the full buildout to continue into the second half of 2027. It also received its first defense-contractor order for injection-molded tungsten alloy components and volume orders from its largest customer covering deliveries into fiscal 2027. Nine-month net income fell to $90,324 from $407,759.

10 points · 0 major

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0 major · 9 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter gross margin expanded to 20.9% from 17.1% a year earlier.
• Moderate pointThird-quarter operating profit rose to $357,747 from $276,082 a year earlier.
• Moderate pointThird-quarter net income increased to $346,757 from $207,964; diluted earnings rose to $0.02 from $0.01.
• Moderate point. Forward-looking: it has not happened yet and may not happen.80,000-square-foot leased facility will expand production space to approximately twice the current location's size.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Largest-customer volume orders support deliveries into fiscal 2027, at levels consistent with the prior-year period.

5 minor points

• Minor pointThird-quarter revenue increased to $8,900,433 from $8,803,695 a year earlier, setting a quarterly record.
• Minor pointFirst defense-contractor order secured for tungsten alloy components manufactured using CPS's QuickSet Injection Molding process.
• Minor pointOther income, net rose to $163,349 from $45,483 quarterly and $455,722 from $114,985 over nine months.
• Minor pointMarketable securities increased to $15,612,554 at September 26, 2026, from $8,769,363 at December 27, 2025.
• Minor pointStockholders' equity increased to $34,120,312 at September 26, 2026, from $24,635,274 at December 27, 2025.

Negative

• Moderate pointNine-month gross profit fell to $3,692,152 from $4,069,882 a year earlier.
• Moderate pointNine-month operating loss of $423,415 compared with operating income of $542,659 a year earlier.
• Moderate pointNine-month net income fell to $90,324 from $407,759; diluted earnings declined to $0.00 from $0.03.
• Moderate pointSelling, general and administrative expenses rose to $1,498,738 from $1,226,484 quarterly; nine-month expenses reached $4,115,567 versus $3,527,223.
• Moderate pointLong-term lease liabilities rose to $8,503,691 at September 26, 2026, from $174,000 at December 27, 2025.
• Moderate pointQuarterly weighted-average diluted shares increased to 19,757,374 from 14,674,384 a year earlier, expanding the earnings-per-share denominator.
• Moderate pointInventories increased to $10,320,406 at September 26, 2026, from $5,598,407 at December 27, 2025.

2 minor points

• Minor pointNine-month revenue declined to $24,238,504 from $24,388,272 in the prior-year period.
• Minor point. Forward-looking: it has not happened yet and may not happen.Facility buildout likely continues into the second half of 2027 because of complex production requirements.

News Explained

The September twenty-six balance sheet lists eight million five hundred three thousand six hundred ninety-one dollars in long-term lease liabilities.

CPS Technologies has reported its third-quarter results; outstanding shares were 19,425,442 at September 26, 2026, versus 17,988,634 at December 27, 2025, reducing the ownership percentage of holders whose shareholdings did not increase.

The balance sheet lists current lease liabilities of $163,000 and long-term lease liabilities of $8,503,691 at September 26, 2026, versus $162,000 and $174,000, respectively, at December 27, 2025.

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Details

Market move: CPSH +13.92% vs previous close. 3Q26 earnings report

$3.46 – $4.14 Day Range

$76.97M Mkt Cap at Last Price

On Nov 3, the day this news came out, the latest delayed price for CPSH is 13.92% above the previous close. Our momentum scanner has recorded 3 alerts for this stock so far that day. The latest delayed price is $3.97.

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Key Figures

Quarterly revenue: $8.9 million vs. $8.8 million Gross margin: 20.9% vs. 17.1% Operating profit: $0.4 million vs. $0.3 million +4 more

Quarterly revenue

$8.9 million vs. $8.8 million

Q3 fiscal 2026 vs. prior-year period

Gross margin

20.9% vs. 17.1%

Q3 fiscal 2026 vs. Q3 fiscal 2025

Operating profit

$0.4 million vs. $0.3 million

Q3 fiscal 2026 vs. prior-year period

Net income

$0.3 million vs. $0.2 million

Q3 fiscal 2026 vs. prior-year period

Diluted EPS

$0.02 vs. $0.01 per diluted share

Q3 fiscal 2026 vs. prior-year period

Nine-month product sales

$24,238,504 vs. $24,388,272

Nine months ended September 26, 2026 vs. September 27, 2025

Nine-month operating result

Loss of $423,415 vs. profit of $542,659

Nine months ended September 26, 2026 vs. September 27, 2025

Previous Earnings Reports

2 past events · Latest: Aug 04

Same Type 2 events

1. Aug 04

   Q2 earnings

   24h Move

   +2.2%

   Reported $8.3 million revenue, lower gross margin, and an operating loss versus prior-year quarter.

2. Oct 29

   Q3 earnings

   24h Move

   -1.8%

   Reported record $8.8 million revenue, 17.1% margin, and $0.3 million operating profit.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

sg&a, metal matrix composites, right-of-use lease assets

3 terms

sg&a financial

"SG&A expenses rose approximately $0.3 million year-over-year."

SG&A stands for Selling, General, and Administrative expenses. It includes the costs a company spends on selling products, running the business day-to-day, and managing staff, like advertising, rent, and salaries. These expenses matter because they affect how much profit a company can make from its sales.

metal matrix composites technical

"proprietary metal matrix composites (MMCs), combining metals and ceramics"

Metal matrix composites are engineered materials made by embedding stronger particles or fibers (like ceramic bits or carbon strands) inside a metal base, similar to how steel rebar reinforces concrete. They combine light weight, higher strength, better wear or heat resistance than the metal alone, so investors watch them because they can improve product performance, reduce weight or extend life in industries like aerospace, automotive, and electronics, potentially commanding premium pricing or new market share.

right-of-use lease assets financial

"Right-of-use lease assets | 8,578,856"

An asset a lessee records when a lease gives it the right to use an underlying item of property, plant or equipment for a specified period. It is recognized at lease commencement and initially measured as the present value of required lease payments plus certain initial direct costs and prepaid amounts, less any lease incentives; the right-of-use asset is presented alongside a corresponding lease liability and is depreciated (or amortized) over the lease term subject to impairment and any transfer/ownership provisions. The concept applies to lessees’ accounting under modern lease standards (for example IFRS 16 and ASC 842) and does not describe the lessor’s asset or ownership of the underlying property.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Margin Expansion and Record Quarterly Revenue as Company Finalizes Plans for New Facility

NORTON, Mass., Nov. 03, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corp. (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for its fiscal third quarter ended September 26, 2026.

Third Quarter Summary

• Revenue of $8.9 million, reflecting strong ongoing demand for the Company’s growing array of mission-critical products.         
• Gross margin of 20.9 percent and operating profit of $0.4 million.
• Announced that the Company had received its first order from a defense contractor for tungsten alloy components manufactured using the Company’s proprietary QuickSet Injection Molding^TM process.
• CPS also signed a long-term lease during the quarter for an 80,000-square-foot facility – approximately twice the size of its current location – in Attleboro, Massachusetts to expand production and increase efficiency.
• Received new volume orders from an existing customer and large semiconductor manufacturer establishing continued deliveries into fiscal 2027.
  
  

“We are pleased to report solid progress this quarter on a number of fronts,” said Brian Mackey, President and CEO. “Due to higher demand and increased production, our quarterly revenue rose to a new high for our company and gross margins expanded to 20.9% – a level not seen in more than three years. This proves the resilience of our product lines, interest in our broadening portfolio of offerings, and sound operating execution. We also recently announced the signing of a lease in nearby Attleboro that will allow CPS to further expand operations in support of increased top line growth and higher returns for our shareholders. Detailed planning is well underway with the support of Dacon Corporation, our construction management partner, as well as various engineers and contractors. While exploring ways to potentially initiate a partial move earlier in 2027, complex production requirements likely mean the full buildout will continue into the second half of next year. In the meantime, I’m also pleased to announce that, once again, we have secured significant volume orders for our high-performance products from the Company’s biggest customer, a semiconductor manufacturer, at levels consistent with the prior-year period. These components are integrated into systems supporting high-speed rail as well as energy and grid infrastructure. Given this backdrop, we believe the Company is in excellent shape for continued growth and higher financial results heading into fiscal 2027.”

Results of Operations
CPS reported revenue of $8.9 million for the third quarter of fiscal 2026 versus $8.8 million in the prior-year period. Gross profit was $1.9 million, or 20.9 percent of revenue, versus $1.5 million, or 17.1 percent of revenue, in the fiscal 2025 third quarter.

Operating profit was $0.4 million in the fiscal 2026 third quarter compared with $0.3 million in the prior-year period; SG&A expenses rose approximately $0.3 million year-over-year. Reported net income for the quarter was $0.3 million, or $0.02 per diluted share, versus $0.2 million, or $0.01 per diluted share, in the quarter ended September 27, 2025.

Conference Call
The Company will be hosting its third quarter 2026 earnings call tomorrow, November 4, 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: 258164

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 CORP. Statements of Operations and Other Comprehensive Income (Loss) (Unaudited)
	Three Months Ended								Nine Months Ended
	September 26, 2026				September 27, 2025				September 26, 2026				September 27, 2025
Product sales	$	8,900,433			$	8,803,695			$	24,238,504			$	24,388,272
Cost of product sales		7,043,948				7,301,129				20,546,352				20,318,390
Gross profit		1,856,485				1,502,566				3,692,152				4,069,882
Selling, general, and administrative expenses		1,498,738				1,226,484				4,115,567				3,527,223
Income (loss) from operations		357,747				276,082				(423,415	)			542,659
Other income, net		163,349				45,483				455,722				114,985
Net income before income taxes		521,096				321,565				32,307				657,644
Income tax provision (benefit)		174,339				113,601				(58,017	)			249,885
Net income	$	346,757			$	207,964			$	90,324			$	407,759
Other comprehensive income
Net unrealized gains (losses) on available for sale securities		17,132				(2,293	)			13,773				7,913
Reclassification adjustment for gains included in net income		-				-				-				(16,237	)
Total other comprehensive income (loss)		17,132				(2,293	)			13,773				(8,324	)
Comprehensive income		363,889				205,671				104,097				399,435
Net income (loss) per basic common share	$	0.02			$	0.01			$	0.00			$	0.03
Weighted average number of basic common shares outstanding		19,412,796				14,527,126				18,491,213				14,526,349
Net income (loss) per diluted common share	$	0.02			$	0.01			$	0.00			$	0.03
Weighted average number of diluted common shares outstanding		19,757,374				14,674,384				18,799,554				14,598,576

CPS TECHNOLOGIES CORP. Condensed Balance Sheets (Unaudited)
	September 26,				December 27,
	2026				2025
ASSETS
Current assets:
Cash and cash equivalents	$	2,791,195			$	4,466,198
Marketable securities, at fair value		15,612,554				8,769,363
Accounts receivable-trade		4,703,028				5,235,307
Accounts receivable-other		291,019				380,948
Inventories, net		10,320,406				5,598,407
Prepaid expenses and other current assets		281,682				299,829
Total current assets		33,999,884				24,750,052
Property and equipment:
Production equipment		11,111,154				10,647,170
Furniture and office equipment		910,310				910,310
Leasehold improvements		997,830				997,830
Total cost		13,019,294				12,555,310
Accumulated depreciation and amortization		(11,058,355	)			(10,877,927	)
Construction in progress		537,975				459,671
Net property and equipment		2,498,914				2,137,054
Net intangible assets		18,539				21,778
Restricted Cash		510,154				0
Right-of-use lease assets		8,578,856				336,000
Deferred taxes, net		2,325,327				2,266,854
Total assets	$	47,931,674			$	29,511,738
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		3,766,979				3,363,233
Accrued expenses		832,504				907,910
Deferred revenue		513,910				238,044
Lease liabilities, current portion		163,000				162,000
Total current liabilities		5,276,393				4,671,187
Deferred revenue – long term		31,277				31,277
Long term lease liabilities		8,503,691				174,000
Total liabilities		13,811,362				4,876,464
Commitments & Contingencies
Stockholders’ equity:
Common stock, $0.01 par value, authorized 25,000,000 and 20,000,000 shares; issued 19,642,517 and 18,132,767 shares; outstanding 19,425,442 and 17,988,634 shares at September 26, 2026 and December 27, 2025, respectively		196,417				181,320
Additional paid-in capital		60,223,530				50,295,019
Accumulated other comprehensive income		13,912				139
Accumulated deficit		(25,379,567	)			(25,469,891	)
Less cost of 217,075 and 144,133 common shares repurchased at September 26, 2026 and December 27, 2025, respectively		(933,980	)			(371,313	)
Total stockholders’ equity		34,120,312				24,635,274
Total liabilities and stockholders’ equity	$	47,931,674			$	29,511,738

CPS Technologies Corporation 
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com

Investor Relations:
Chris Witty
646-438-9385
cwitty@darrowir.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were CPSH's third-quarter fiscal 2026 earnings results?

CPS Technologies earned $346,757, or $0.02 per diluted share, in the quarter ended September 26, 2026, versus $207,964, or $0.01 per diluted share, a year earlier. Revenue increased to $8,900,433 from $8,803,695, while gross margin rose to 20.9% from 17.1%.

When does CPS Technologies expect to complete its new facility buildout?

CPS expects the full buildout of its 80,000-square-foot Attleboro facility to continue into the second half of 2027 because of complex production requirements. The company is exploring whether a partial move could begin earlier in 2027.