CSPi Reports FY2026 Third Quarter Results
Rhea-AI Summary
CSPi (NASDAQ: CSPI) reported fiscal Q3 2026 sales of $14.4 million, down from $15.4 million in Q3 2025, as Technology Solutions backlog remained elevated due to industry-wide equipment shortages. Gross margin improved to 30.1% from 28.8%.
The company posted a Q3 net loss of $846,000 ($0.09 per share), versus a $264,000 loss ($0.03 per share) a year earlier. For the first nine months of fiscal 2026, sales were $42.4 million vs. $44.3 million, with gross margin rising to 31.9% from 29.9%. Nine‑month net loss was $491,000 compared with net income of $100,000 in the prior-year period.
CSPi ended June 30, 2026 with $24.7 million in cash and equivalents and declared a $0.03 quarterly dividend payable September 15, 2026. Management highlighted a seven‑figure, six‑year managed services contract, growing TS backlog, 100% AZT PROTECT renewal rate, and recent integration with Acronis software.
Positive
- Q3 2026 gross margin 30.1% vs. 28.8% in Q3 2025
- Nine‑month 2026 gross margin 31.9% vs. 29.9% prior year period
- Cash and equivalents $24.7 million as of June 30, 2026
- Dividend declared $0.03 per share payable September 15, 2026
- New managed services contract seven‑figure, six‑year agreement with a professional sports organization
- AZT PROTECT reported 100% customer renewal rate and added new sites
Negative
- Q3 2026 sales $14.4 million vs. $15.4 million in Q3 2025
- Q3 2026 net loss $846,000 vs. $264,000 prior‑year quarter
- Nine‑month 2026 sales $42.4 million vs. $44.3 million prior year
- Nine‑month 2026 net result $491,000 loss vs. $100,000 income in 2025 period
- Q3 operating expenses $5.9 million vs. $5.7 million in Q3 2025
- Nine‑month operating expenses $16.0 million vs. $15.8 million prior year
News Explained
The fiscal third-quarter report adds a balance-sheet comparison: at
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Aug 11 | earnings date notice | Neutral | +3.7% | Scheduled fiscal third-quarter results release and 10:00 a.m. ET conference call. |
| Aug 10 | cybersecurity positioning | Positive | -0.6% | Highlighted AZT PROTECT against AI-driven attacks targeting critical infrastructure. |
| Jun 04 | industry recognition | Positive | +1.4% | Named to CRN's 2026 Tech Elite 250 for the sixth consecutive year. |
| May 07 | 2Q26 earnings report | Positive | +1.4% | Reported 21.8% revenue growth, profitability, and a $0.03 quarterly dividend. |
| May 05 | earnings date notice | Neutral | +3.9% | Scheduled fiscal second-quarter results release and a 10:00 a.m. ET call. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive company announcements showed mixed reactions, with two aligned gains and one negative reaction; neutral scheduling notices also preceded gains.
Key Terms
basis points financial
oems technical
financing receivables financial
packet capture technical
AI-generated analysis. How Rhea-AI works. Not financial advice.
AZT PROTECT Performance and High Customer Satisfaction Generates
Conference Call Today at 10 a.m. ET
LOWELL, Mass., Aug. 14, 2026 (GLOBE NEWSWIRE) -- 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 for the fiscal third quarter ended June 30, 2026. The Company also announced that the Board of Directors declared a quarterly dividend of
Recent Achievements and Operating Highlights
- Signed a seven-figure, six-year managed services agreement with a professional sports organization.
- CRN, a brand of The Channel Company, named CSPi to its 2026 Tech Elite 250 list for the sixth consecutive year.
- Initiated additional Land and Expand single-site AZT PROTECT engagements and completed product integration with Acronis software. Implemented sales organization modifications to advance Land and Expand and OEM customer opportunities.
“Our Technology Solutions (TS) business performed near our expectations during the fiscal third quarter, reflecting solid growth from the Cloud and Managed Services businesses, and despite continued vendor hardware supply issues extending customer delivery lead times,” commented Victor Dellovo, Chief Executive Officer. “While the prolonged across the board vendor hardware delivery delay is likely to continue through the current fiscal fourth quarter and into the first half of fiscal 2027, we believe our increased backlog will enhance our full year 2027 results. Our team is aggressively attacking the delivery date issue to convert orders to sales over the next several months. During the fiscal third quarter, we did generate meaningful progress and signed several new TS customers, including a six-year, seven-figure contract with a professional sports organization, expanding our profile in this lucrative market.
“The AZT PROTECT business continued to add new customers and expand sites within existing customers during the third quarter. In addition, we completed the integration of AZT PROTECT into the Acronis Software product offering as well as with several specialized distributors. We have established opportunities to secure larger seven figure agreements through direct sales efforts to OEMs and have modified our sales organization to aggressively address this emerging potential while increasing the effectiveness of our Land-And-Expand strategy. In addition, we have several targets nearing the end of the 18-24 month sales cycle and believe our evolved sales approach maximizes our ability to convert the opportunity into an order.
“The market for AZT PROTECT continues to expand as cyberattacks forcing operations to shut down for extended periods of time increase. We believe AZT PROTECT could have been the difference in preventing these shutdowns and its performance is the major driver behind our 100 percent customer renewal rate. Successful sales execution would provide us with a strong tailwind into the new fiscal year. Combined with the new multi-year cloud-based engagements signed during fiscal 2026 and conversion of TS backlog to revenue, we are positioned to enter fiscal 2027 with significant business momentum.”
Fiscal 2025 Third Quarter Results
Sales for the fiscal third quarter ended June 30, 2026, were
The Company continues to maintain a strong balance sheet, and as of June 30, 2026, had cash and cash equivalents of
Fiscal Year 2026 Nine Month Results
Sales for the fiscal nine months ended June 30, 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 link is https://www.webcaster5.com/Webcast/Page/2912/54426. Individuals also may listen to the call via telephone, by dialing 973-528-0011 or 888-506-0062 and use the Participant Access Code: 359648 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 general economic conditions, market factors, competitive factors and pricing pressures, and others hardware delivery delay is likely to continue through the current fiscal fourth quarter and into the first half of fiscal 2027, we believe our increased backlog will enhance our full year 2027 results 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.
Gary Levine
CFO
978-954-5040
| CSP INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amounts in thousands) | ||||||||
| June 30, 2026 | September 30, 2025 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 24,666 | $ | 27,418 | ||||
| Accounts receivable, net | 11,356 | 12,000 | ||||||
| Financing receivables, net | 8,314 | 8,939 | ||||||
| Inventories | 1,832 | 1,442 | ||||||
| Other current assets | 3,073 | 2,521 | ||||||
| Total current assets | 49,241 | 52,320 | ||||||
| Financing receivables due after one year, net | 8,229 | 5,965 | ||||||
| Cash surrender value of life insurance | 6,061 | 5,845 | ||||||
| Other assets | 7,250 | 7,033 | ||||||
| Total assets | $ | 70,781 | $ | 71,163 | ||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | $ | 20,476 | $ | 22,106 | ||||
| Pension and retirement plans | 1,169 | 1,296 | ||||||
| Other non-current liabilities | 4,873 | 3,210 | ||||||
| Shareholders’ equity | 44,263 | 44,551 | ||||||
| Total liabilities and shareholders’ equity | $ | 70,781 | $ | 71,163 | ||||
| CSP INC. AND SUBSIDIARIES | ||||||||||||||||
| CONDENSED UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Amounts in thousands, except per share data ) | ||||||||||||||||
| Three months ended | Nine months ended | |||||||||||||||
| June 30 | June 30 | June 30 | June 30 | |||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Sales: | ||||||||||||||||
| Product | $ | 9,943 | $ | 10,150 | $ | 27,757 | $ | 29,717 | ||||||||
| Services | 4,455 | 5,298 | 14,689 | 14,548 | ||||||||||||
| Total sales | 14,398 | 15,448 | 42,446 | 44,265 | ||||||||||||
| Cost of sales: | ||||||||||||||||
| Product | 7,890 | 8,553 | 22,570 | 24,551 | ||||||||||||
| Services | 2,175 | 2,442 | 6,336 | 6,490 | ||||||||||||
| Total cost of sales | 10,065 | 10,995 | 28,906 | 31,041 | ||||||||||||
| Gross profit | 4,333 | 4,453 | 13,540 | 13,224 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Engineering and development | 832 | 791 | 2,508 | 2,340 | ||||||||||||
| Selling, general and administrative | 5,043 | 4,885 | 13,537 | 13,455 | ||||||||||||
| Total operating expenses | 5,875 | 5,676 | 16,045 | 15,795 | ||||||||||||
| Operating loss | (1,542 | ) | (1,223 | ) | (2,505 | ) | (2,571 | ) | ||||||||
| Other income, net | 330 | 208 | 1,360 | 1,122 | ||||||||||||
| Loss before income taxes | (1,212 | ) | (1,015 | ) | (1,145 | ) | (1,449 | ) | ||||||||
| Income tax benefit | (366 | ) | (751 | ) | (654 | ) | (1,549 | ) | ||||||||
| Net (loss) income | $ | (846 | ) | $ | (264 | ) | $ | (491 | ) | $ | 100 | |||||
| Net (loss) income attributable to common | ||||||||||||||||
| shareholders | $ | (846 | ) | $ | (264 | ) | $ | (857 | ) | $ | 94 | |||||
| Net (loss) income per common share - basic | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | |||||
| Weighted average shares outstanding – basic | 9,560 | 9,362 | 9,494 | 9,275 | ||||||||||||
| Net (loss) income per common share - diluted | $ | (0.09 | ) | $ | (0.03 | ) | $ | (0.09 | ) | $ | 0.01 | |||||
| Weighted average shares outstanding net income - diluted | 9,560 | 9,362 | 9,494 | 9,611 | ||||||||||||
