CSPi Delivers 11% Revenue Growth and Expands Gross Margin During Fiscal Year 2025 Fourth Quarter from Prior Fiscal Year Fourth Quarter; Enters Fiscal 2026 with New Customer Momentum Across Business Units

Rhea-AI Summary

CSPi (NASDAQ:CSPI) reported fiscal 2025 fourth quarter revenue of $14.5M, an 11% increase versus the prior-year quarter, and entered fiscal 2026 with new customer momentum across business units. Services revenue rose 63% and represented 44% of total revenue in Q4. Q4 gross margin expanded to 37% (up ~900 basis points year-over-year). Full-year revenue was $58.7M (+6% year-over-year) and full-year gross profit was $18.5M (32% of sales). The company reported a fiscal Q4 net loss of $191k and a fiscal year net loss of $91k. Cash and cash equivalents were $27.4M. Board declared a quarterly dividend of $0.03 per share payable January 15, 2026. AZT PROTECT customer engagements increased; new Embedded IIoT features and an integration with Acronis were announced.

Positive

• Q4 revenue +11% to $14.5M
• Services revenue +63%, now 44% of total
• Q4 gross margin +900 bps to 37%
• Cash balance $27.4M to fund AZT PROTECT growth
• Acronis integration announced for AZT PROTECT

Negative

• Fiscal year net loss $91k, company remains unprofitable
• Full-year gross profit down to $18.5M from $18.9M

Key Figures

Q4 2025 revenue $14.5 million Fiscal Q4 2025 vs $13.0 million in Q4 2024 (11% increase)

Services revenue growth 63% Fiscal 2025 Q4 services revenue increase; 44% of total revenue

Q4 2025 gross margin 37% Fiscal Q4 2025 vs 28% in prior-year quarter

Q4 2025 net loss $191 thousand Fiscal Q4 2025, or $0.02 loss per diluted share

Cash and equivalents $27.4 million Balance as of September 30, 2025, described as robust

Share repurchases 19,500 shares; $234 thousand Shares repurchased during fiscal Q4 2025

FY 2025 revenue $58.7 million Fiscal year 2025 vs $55.2 million in prior year (6% increase)

Quarterly dividend $0.03 per share Payable January 15, 2026 to holders of record December 26, 2025

Market Reality Check

$13.41 Last Close

Volume Volume 24,692 vs 20-day average 16,785 (relative volume 1.47x) indicates elevated interest ahead of this release. normal

Technical Price 14.96 is trading above the 200-day MA at 13.11, reflecting a pre-news uptrend.

Peers on Argus 1 Down

CSPI was up 3.96% pre-release while key peers like CTM (-4.55%), TDTH (-14.11%), NOTE (-7.95%), and TTEC (-2.33%) were mostly negative, pointing to stock-specific strength rather than a sector-wide move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 12	Earnings date notice	Neutral	-3.2%	Announced timing of fiscal Q4 and full-year results and conference call.
Nov 11	Industry recognition	Positive	-0.6%	TS segment ranked #5 cloud computing company in South Florida.
Oct 30	Product expansion	Positive	-2.4%	AZT PROTECT feature expansion targeting embedded IIoT OEM integrations.
Oct 23	Strategic partnership	Positive	+8.4%	Acronis partnership to integrate and resell AZT PROTECT in Cyber Protect.
Sep 11	Customer deployment	Positive	+5.8%	Managed AZT PROTECT deployment securing a Midwest manufacturer’s systems.

Pattern Detected

Recent CSPI news has often seen muted or contrary reactions, with several positive operational updates previously met by selling, while select cybersecurity partnerships and deployments attracted buying.

Recent Company History

Over the last six months, CSPI has issued a mix of operational and cybersecurity-focused updates. On Sep 11 and Oct 23, AZT PROTECT deployments and an Acronis partnership produced gains of 5.84% and 8.37%. However, other seemingly positive items, such as the Oct 30 embedded IIoT feature expansion and a Nov 11 cloud ranking, saw modest declines. An earnings-date announcement on Dec 12 also coincided with a -3.23% move. Against this backdrop, today’s revenue growth and margin expansion arrive after mixed reactions to prior good news.

Market Pulse Summary

The stock dropped -15.4% in the session following this news. A negative reaction despite revenue growth and margin expansion would fit prior instances where seemingly positive news preceded selling, such as the embedded IIoT update that saw a -2.4% move. The company still reported a Q4 net loss of $191 thousand, which could weigh on sentiment. Investors assessing the pullback would likely consider the FY revenue of $58.7 million, improving losses, and the durability of demand for AZT PROTECT and services.

Key Terms

embedded iiot technical

"New features added to AZT PROTECT enable entry into Embedded IIOT market."

Embedded IIoT describes tiny sensors, processors and software built directly into industrial equipment so machines can collect and share data and act autonomously. Think of it as a smart chip inside a factory tool or motor that measures performance, reports problems and can be remotely adjusted, like a fitness tracker for machines. Investors care because embedded IIoT can lower operating costs, extend equipment life, create new recurring services, and boost productivity — all of which can improve a company’s profitability and competitive position.

operational technology (ot) technical

"The integrated offering targets large-scale Operational Technology (OT) and ICS/DCS environments"

Operational technology (OT) is the hardware and software that directly monitors and controls physical equipment—like sensors, controllers, valves and machinery—in industrial settings such as factories, power plants or utility networks. Investors care because OT drives a company's ability to produce goods or deliver services; failures, upgrades or cybersecurity incidents can halt operations, require costly fixes or trigger regulatory action, much like a car’s engine determining whether a trip succeeds.

ransomware technical

"as a defense against malware, ransomware, supply-chain and nation-state techniques."

Ransomware is malicious software that locks or encrypts a company’s computer files and systems, then demands payment for their release — like a thief changing the locks on a business and asking for a ransom. It matters to investors because attacks can halt operations, trigger large cleanup costs, damage customer trust, lead to regulatory fines or legal claims, and reduce future revenue, all of which can hurt a company’s financial value.

AI-generated analysis. Not financial advice.

AZT PROTECT^TM Continues to Increase Customer Base; Brand Awareness Initiatives Raise Expectations for Higher Customer Adoption During Fiscal 2026

Conference Call Today at 10 a.m. ET

LOWELL, MASSACHUSETTS / ACCESS Newswire / December 16, 2025 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced results, including an 11% increase in total revenue for the fiscal fourth quarter ended September 30, 2025 compared to the same prior fiscal year quarter. The Company also announced that the Board of Directors has declared a quarterly dividend of $0.03 per share payable January 15, 2026, to shareholders of record at the close of business on December 26, 2025.

Recent Achievements and Operating Highlights

• Fiscal 2025 fourth quarter Services revenue increased 63% to 44% of total revenue from the same prior year quarter.

• Technology Solutions (TS) revenue grew 11% and 11% for the fiscal 2025 fourth quarter and full year compared to the same prior year periods, respectively, as managed services and cloud-based business expanded existing customer relationships as well as gained new customers.

• Fiscal 2025 fourth quarter total gross margin expanded more than 800 basis points to 37% from the same prior year quarter.

• AZT PROTECT^TM customer engagements significantly increased throughout the year, setting the stage for fiscal 2026 growth.

• New features added to AZT PROTECT enable entry into Embedded IIOT market.

• Acronis partnered with ARIA Cybersecurity to integrate AZT PROTECT^TM into its Acronis Cyber Protect Solution

• Board of Directors declares $0.03 per share quarterly dividend.

"We had a strong finish to fiscal 2025 and entered fiscal 2026 optimistic about our opportunity to deliver additional growth," commented Victor Dellovo, Chief Executive Officer. "Our Technology Solutions business continues to outperform and drive revenue while generating the resources required to build customer adoption of our highly differentiated AZT PROTECT cybersecurity offering. Our fiscal 2025 fourth quarter results, including 11% revenue growth from the same prior year quarter and significant gross margin expansion, enabled us to report top and bottom-line improvements for the full year."

"The TS business achieved near-record profitability for the fiscal 2025 year and we are in the process of expanding our sales team as we see opportunities to capture a larger share of the services market. Our AZT offering, while still in the start-up phase is benefitting from the relationships we have forged with Rockwell Automation and other niche market distributors. Led by Rockwell's efforts, we have experienced new customer gains across a wide variety of critically important industries. I believe many of these customers have significant potential to become multi-site installations during fiscal 2026 and beyond.

We are also excited about the announcement we made last month with Acronis selecting our solution to be integrated into their industry-leading backup and recovery solution and our largest AZT PROTECT customer, a global pharmaceutical company, renewed annual customer support from AZT PROTECT in a six figure contract in early 2025 which both demonstrates the value of the AZT PROTECT solution. We believe our approach to the market, combined with real-world use case studies give AZT PROTECT a firm platform to signing new customers and expand existing relationships during fiscal 2026."

Fiscal 2025 Fourth Quarter Results

Revenue for the fiscal 2025 fourth quarter ended September 30, 2025, increased 11% to $14.5 million compared to revenue of $13.0 million for the fiscal fourth quarter ended September 30, 2024, primarily due to a 63% increase in services revenue compared to the same year-ago period.

Gross profit for the three months ended September 30, 2025, was $5.3 million compared to $3.7 million for the same prior year quarter. Gross margin for the fiscal fourth quarter ended September 30, 2025, was 37% of sales, increasing 9% compared to 28% of sales for the year ago fiscal fourth quarter, due to the higher proportion of services revenue which has a higher gross margin percentage. The Company reported a net loss of $(191) thousand, or $(0.02) loss per diluted common share for the fiscal fourth quarter, compared to a net loss of $(1.7) million, or $(0.18) loss per diluted common share for the prior fiscal year fourth quarter.

The Company's balance sheet remained robust, and as of September 30, 2025, had cash and cash equivalents of $27.4 million, allowing the Company to implement growth strategies for the AZT PROTECT offering. During the fiscal fourth quarter, the Company repurchased approximately 19,500 shares for a total cost of $234 thousand.

Fiscal Year 2025 Full Year Results

Revenue for the full fiscal year ended September 30, 2025, was $58.7 million, a 6% increase compared with revenue of $55.2 million in the prior year period. Gross profit for the fiscal year ended September 30, 2025, was $18.5 million, or 32% of sales compared with $18.9 million, or 34% of sales. The Company reported a net loss of $(91) thousand, or $(0.01) loss per diluted common share in the fiscal year ended September 30, 2025, compared with a net loss of $(326) thousand or $(0.04) loss per diluted common share for the fiscal year ended September 30, 2024.

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 link is https://www.webcaster5.com/Webcast/Page/2912/53374. Individuals also may listen to the call via telephone, by dialing 973-528-0011or 888-506-0062 and use the Participant Access Code: 977008 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 wishes to take advantage of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995 with respect to statements that may be deemed to be forward-looking under the Act. Such forward-looking statements may include but are not limited to, projections or guidance concerning business performance, revenue, earnings, cash flow, the current economic environment, liquidity, strategic decisions and actions, and other financial and operational measures. Statements include Brand Awareness Initiatives Raise Expectations for Higher Customer Adoption During Fiscal 2026 AZT PROTECT, entered fiscal 2026 optimistic about our opportunity to deliver additional growth, and many customers have significant potential to become multi-site installations during fiscal 2026 and beyond.

The Company cautions that numerous factors could cause actual results to differ materially from forward-looking statements made by the Company. Such risks include general economic conditions, market factors, competitive factors and pricing pressures, and others described in the Company's filings with the Securities and Exchange Commission ("SEC"). 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)

		September 30, 2025				September 30, 2024
Assets
Current assets:
Cash and cash equivalents		$	27,418			$	30,585
Accounts receivable, net			12,000				14,494
Financing receivables, net			8,939				4,384
Inventories			1,442				2,293
Other current assets			2,521				3,093
Total current assets			52,320				54,849
Financing receivables due after one year, net			5,965				2,922
Cash surrender value of life insurance			5,845				5,589
Other assets			7,033				6,076
Total assets		$	71,163			$	69,436
Liabilities and Shareholders' Equity
Current liabilities		$	22,183			$	18,682
Pension and retirement plans			1,219				1,306
Other non-current liabilities			3,210				2,178
Shareholders' equity			44,551				47,270
Total liabilities and shareholders' equity		$	71,163			$	69,436

CSP INC. AND SUBSIDIARIES
CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)

		Three months ended								Year ended
		September 30,				September 30,				September 30,				September 30,
		2025				2024				2025				2024
Sales:
Product		$	8,032			$	9,083			$	37,749			$	36,793
Services			6,433				3,950				20,981				18,426
Total sales			14,465				13,033				58,730				55,219
Cost of sales:
Product			6,912				7,633				31,463				28,800
Services			2,266				1,700				8,756				7,564
Total cost of sales			9,178				9,333				40,219				36,364
Gross profit			5,287				3,700				18,511				18,855
Operating expenses:
Engineering and development			910				793				3,250				2,956
Selling, general and administrative			4,915				4,950				18,370				17,771
Total operating expenses			5,825				5,743				21,620				20,727
Operating loss			(538	)			(2,043	)			(3,109	)			(1,872	)
Other income, net			326				221				1,448				1,453
Loss before income taxes			(212	)			(1,822	)			(1,661	)			(419	)
Income tax benefit			(21	)			(166	)			(1,570	)			(93	)
Net loss		$	(191	)		$	(1,656	)		$	(91	)		$	(326	)
Net loss attributable to common shareholders		$	(191	)		$	(1,656	)		$	(91	)		$	(326	)
Net loss per common share - basic		$	(0.02	)		$	(0.18	)		$	(0.01	)		$	(0.04	)
Weighted average shares outstanding - basic			9,361				9,121				9,297				9,041
Net loss per common share - diluted		$	(0.02	)		$	(0.18	)		$	(0.01	)		$	(0.04	)
Weighted average shares outstanding net income - diluted			9,361				9,121				9,297				9,041

CONTACT:

CSP Inc.
Gary Levine, 978-954-5040
Chief Financial Officer

SOURCE: CSP Inc.

View the original press release on ACCESS Newswire

FAQ

What were CSPi (CSPI) fiscal 2025 Q4 results announced December 16, 2025?

CSPi reported Q4 revenue $14.5M (+11% YoY), gross margin 37%, and a net loss of $191k.

How did CSPi's services revenue change in fiscal Q4 2025 and why does it matter for CSPI?

Services revenue increased 63% and comprised 44% of total revenue, boosting overall gross margin and recurring services mix.

What is AZT PROTECT news for CSPi (CSPI) entering fiscal 2026?

AZT PROTECT saw increased customer engagements, added Embedded IIOT features and an Acronis integration, supporting expected adoption in fiscal 2026.

What dividend did CSPi (CSPI) declare and when is payment scheduled?

The board declared a quarterly dividend of $0.03 per share, payable January 15, 2026, to holders of record at close on December 26, 2025.

How strong is CSPi's liquidity after fiscal 2025 results?

CSPi reported $27.4M in cash and cash equivalents as of September 30, 2025.

Did CSPi (CSPI) buy back shares in Q4 2025 and what was the size?

Yes; the company repurchased about 19,500 shares during the fiscal fourth quarter for approximately $234k.