CSPi Achieves 21.8% Revenue Growth and Profitability for FY 2026 Second Quarter
Rhea-AI Summary
CSPi (NASDAQ:CSPI) reported 21.8% revenue growth and profitability for the fiscal Q2 ended March 31, 2026, with revenue of $16.0M and net income of $264,000 ($0.03 per share). Product revenue rose 30% to $11.1M, service revenue was $4.9M.
Gross margin was 27.9% for the quarter. Cash and cash equivalents totaled $23.1M. The board declared a quarterly dividend of $0.03 per share payable June 15, 2026.
Positive
- Revenue +21.8% to $16.0M in fiscal Q2
- Product revenue +30% to $11.1M
- Net income $264,000 (earnings $0.03 per share) in the quarter
- Cash balance $23.1M at March 31, 2026
- Quarterly dividend of $0.03 per share declared
Negative
- Gross margin declined to 27.9% from 32% year-ago quarter
- Six-month revenue down to $28.0M from $28.8M year-ago
News Market Reaction – CSPI
In the May 7 session, CSPI gained 1.41%, reflecting a mild positive market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 05 | Earnings date notice | Neutral | +3.9% | Announced timing and access details for fiscal Q2 2026 results call. |
| Apr 28 | Managed services deal | Positive | +1.3% | New Vital™ Managed IT Services engagement with Juniper Landscaping. |
| Apr 23 | AZT PROTECT deployment | Positive | +4.0% | Agreement to deploy AZT PROTECT at a major US cement producer. |
| Apr 09 | Partner award | Positive | +1.7% | Named Americas Regional Partner of the Year by Cato Networks. |
| Mar 31 | AI security deployment | Positive | +6.9% | Deployment of ADR and AZT PROTECT across an AI service provider. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent CSPI news items have generally been positive and have tended to coincide with modestly positive 1-day price reactions.
Over the last few months, CSPI has released a series of growth- and positioning-oriented updates. These include AZT PROTECT deployments for a major US cement producer on Apr 23, 2026, an AI infrastructure security deployment on Mar 31, 2026, and a managed IT services partnership with Juniper Landscaping on Apr 28, 2026. Recognition as Cato Networks’ Americas Regional Partner of the Year on Apr 9, 2026 and the earnings-date announcement on May 5, 2026 also saw positive price reactions, supporting a pattern of constructive responses to operational news.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Rising Initial AZT PROTECT Site Deployments Generating System-wide Opportunities to Support Longer Term Growth; Recent Q3 AZT PROTECT Engagements, Technology Solutions Momentum & Continued Services Growth Enhances Second Half Growth Potential
Conference Call Today at 10 a.m. ET
LOWELL, MA / ACCESS Newswire / May 7, 2026 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced
Recent Achievements and Operating Highlights
Key customer order fulfillment drove second quarter product revenue growth; similar opportunities are being pursued during the second half of the fiscal year.
In April, deployed AZT PROTECT to more than two dozen sites of global cement manufacturer; customer evaluating AZT PROTECT for sites outside the U.S.
Increased pace of Land and Expand single-site AZT PROTECT engagements creating expanded opportunities for customer deployments in the second half of the fiscal year.
"We had a solid quarter as revenue increased over
"We are generating positive trends with the AZT PROTECT offering and continue to execute an increasingly successful land and expand strategy to leverage the market opportunity for our unique cyber-security solutions. During the quarter we doubled the number of new initial site customers over the prior year period. At the beginning of the third quarter, we added a new customer who is deploying AZT at more than two dozen manufacturing sites around the U.S. We continue to work with our strategic partners and distributors on additional multi-site deployments across key markets, including steel, energy, manufacturing, water utilities, pharmaceutical, food, and telecommunications industries.
"Half-way through our fiscal year, we are where we expected to be and are on track to generate growth during the second half of the year. Our cloud and managed services business will remain the drivers of our growth, with AZT PROTECT positioned to make a growing contribution."
Fiscal 2026 Second Quarter Results
Revenue for the fiscal second quarter ended March 31, 2026, was
After recording a income tax benefit for the quarter of
The Company's balance sheet remained robust, and as of March 31, 2026, had cash and cash equivalents of
Fiscal Year 2026 Six Month Results
Revenue for the fiscal six months ended March 31, 2026, was
Conference Call Details
CSPi Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W. Levine will host a conference call at 10:00 a.m. (ET) today to review CSPi's financial results and provide a business update. To listen to a live webcast of the call, the event l https://www.webcaster5.com/Webcast/Page/2912/53998. Individuals also may listen to the call via telephone, by dialing 973-528-0016 or 877-545-0523 and use the Participant Access Code: 867325 when greeted by the live operator. A replay of the webcast will be available for approximately one year on the CSPi website.
About CSPi
CSPi (NASDAQ:CSPI) operates two divisions, each with unique expertise in designing and implementing technology solutions to help customers use technology to success. The High Performance Product division, including ARIA Cybersecurity Solutions, recognizes that better, stronger, more effective cybersecurity starts with a smarter approach. ARIA's solutions provide new ways for organizations to protect their most critical assets-they can shield their critical applications from cyberattack with the AZT solution, while monitoring internal traffic, device-level logs, and alert output with our ARIA ADR solution to substantially improve threat detection and surgically disrupt cyberattacks and data exfiltration. Rounding out the portfolio, Aria's AZT Gateway Software allows us to interrogate network packets at 100mbps line-rate to enforce forwarding and capture policies on the fly. Customers in a range of industries rely on our solutions to accelerate incident response, automate breach detection, and protect their most critical assets and applications-no matter where they are stored, used, or accessed.
CSPi's Technology Solutions division helps clients achieve their business goals and accelerate time to market through innovative IT solutions and professional services by partnering with best-in-class technology providers. For organizations that want the benefits of an IT department without the cost, we offer a robust catalog of Managed IT Services providing 24×365 proactive support. Our team of engineers have expertise across major industries supporting five key technology areas: Advanced Security; Communication and Collaboration; Data Center; Networking; and Wireless & Mobility.
Safe Harbor
The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include current trends, we believe we could achieve full year growth compared to fiscal 2025, we are where we expected to be and are on track to generate growth during the second half of the year and our cloud and managed services business will remain the drivers of our growth, with AZT PROTECT positioned to make making a growing contribution." Please refer to the section on forward-looking statements included in the Company's filings with the SEC.
CSP INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
March 31, 2026 | September 30, 2025 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 23,101 | $ | 27,418 | ||||
Accounts receivable, net | 13,550 | 12,000 | ||||||
Financing receivables, net | 7,730 | 8,939 | ||||||
Inventories | 1,546 | 1,442 | ||||||
Other current assets | 3,117 | 2,521 | ||||||
Total current assets | 49,044 | 52,320 | ||||||
Financing receivables due after one year, net | 8,631 | 5,965 | ||||||
Cash surrender value of life insurance | 5,988 | 5,845 | ||||||
Other assets | 6,654 | 7,033 | ||||||
Total assets | $ | 70,317 | $ | 71,163 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | $ | 18,560 | $ | 22,183 | ||||
Pension and retirement plans | 1,184 | 1,219 | ||||||
Other non-current liabilities | 5,554 | 3,210 | ||||||
Shareholders' equity | 45,019 | 44,551 | ||||||
Total liabilities and shareholders' equity | $ | 70,317 | $ | 71,163 | ||||
CSP INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
Three months ended | Six months ended | |||||||||||||||
March 31 | March 31 | March 31 | March 31 | |||||||||||||
2026 | 2025 | 2026 | 2025 | |||||||||||||
Sales: | ||||||||||||||||
Product | $ | 11,113 | $ | 8,552 | $ | 17,814 | $ | 19,567 | ||||||||
Services | 4,899 | 4,595 | 10,234 | 9,250 | ||||||||||||
Total sales | 16,012 | 13,147 | 28,048 | 28,817 | ||||||||||||
Cost of sales: | ||||||||||||||||
Product | 9,398 | 6,879 | 14,680 | 15,998 | ||||||||||||
Services | 2,142 | 2,061 | 4,161 | 4,048 | ||||||||||||
Total cost of sales | 11,540 | 8,940 | 18,841 | 20,046 | ||||||||||||
Gross profit | 4,472 | 4,207 | 9,207 | 8,771 | ||||||||||||
Operating expenses: | ||||||||||||||||
Engineering and development | 818 | 763 | 1,676 | 1,549 | ||||||||||||
Selling, general and administrative | 4,505 | 4,438 | 8,494 | 8,570 | ||||||||||||
Total operating expenses | 5,323 | 5,201 | 10,170 | 10,119 | ||||||||||||
Operating loss | (851 | ) | (994 | ) | (963 | ) | (1,348 | ) | ||||||||
Other income, net | 547 | 203 | 1,030 | 914 | ||||||||||||
(Loss) income before income taxes | (304 | ) | (791 | ) | 67 | (434 | ) | |||||||||
Income tax benefit | (568 | ) | (683 | ) | (288 | ) | (798 | ) | ||||||||
Net income (loss) | $ | 264 | $ | (108 | ) | $ | 355 | $ | 364 | |||||||
Net income (loss) attributable to common shareholders | $ | 255 | $ | (108 | ) | $ | 339 | $ | 341 | |||||||
Net income (loss) per common share - basic | $ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | 0.04 | |||||||
Weighted average shares outstanding - basic | 9,552 | 9,343 | 9,461 | 9,232 | ||||||||||||
Net income (loss) per common share - diluted | $ | 0.03 | $ | (0.01 | ) | $ | 0.04 | $ | 0.04 | |||||||
Weighted average shares outstanding net income - diluted | 9,713 | 9,343 | 9,662 | 9,614 | ||||||||||||
CONTACT:
CSP Inc.
Gary Levine, 978-954-5040
Chief Financial Officer
SOURCE: CSP Inc.
View the original press release on ACCESS Newswire