CSPi (NASDAQ: CSPI) posts Q2 2026 profit and 21.8% revenue growth

Rhea-AI Filing Summary

CSP Inc. reported strong results for its fiscal 2026 second quarter, with revenue of $16.0 million, up from $13.1 million a year earlier, reflecting 21.8% growth and a return to profitability. Net income was $264,000, or $0.03 per share, compared with a net loss of $108,000, or $(0.01) per share, in the prior-year quarter.

Product revenue rose to $11.1 million, up 30%, while services revenue increased to $4.9 million, up 6.6%. Gross profit increased to $4.5 million, though gross margin declined to 27.9% from 32%, mainly due to a higher mix of product sales. Cash and cash equivalents were $23.1 million as of March 31, 2026.

The Board declared a quarterly dividend of $0.03 per share, payable June 15, 2026, to shareholders of record on May 21, 2026. Management highlighted growing adoption of the AZT PROTECT cybersecurity offering, continued momentum in the Technology Solutions business, and reiterated expectations for growth in the second half of fiscal 2026.

Positive

• Strong top-line rebound and profitability: Fiscal Q2 2026 revenue rose 21.8% year over year to $16.0 million, with product sales up 30%, and the company shifted from a $108,000 net loss to $264,000 in net income.
• Healthy liquidity and shareholder returns: CSPi ended March 31, 2026 with $23.1 million in cash and cash equivalents and declared a $0.03 per share quarterly dividend, signaling confidence in its financial position.

Negative

• None.

Insights

Equity Research Analyst

CSPi posts 21.8% Q2 revenue growth, returns to profit, maintains strong cash.

CSP Inc. delivered a solid fiscal Q2 2026, with revenue rising to $16.0 million, up 21.8% year over year. Product sales drove most of the increase, while services continued steady growth. The company moved from a small loss to net income of $264,000.

Gross margin compressed to 27.9% from 32% as product revenue, which typically carries lower margins than services, became a larger share of sales. Still, gross profit improved and operating losses narrowed, supported by higher volumes and controlled operating expenses.

The balance sheet shows $23.1 million in cash and cash equivalents as of March 31, 2026, alongside a quarterly dividend of $0.03 per share. Management points to growing AZT PROTECT deployments and momentum in cloud and managed services as drivers of expected second-half growth, though actual performance will depend on execution and customer demand.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, and exhibit attachments filed with this report.

Key Figures

Q2 2026 Revenue: $16.0 million Q2 2025 Revenue: $13.1 million Q2 2026 Net Income: $264,000 +5 more

8 metrics

Q2 2026 Revenue $16.0 million Fiscal second quarter ended March 31, 2026

Q2 2025 Revenue $13.1 million Fiscal second quarter ended March 31, 2025

Q2 2026 Net Income $264,000 Three months ended March 31, 2026

Q2 2026 Gross Margin 27.9% Fiscal second quarter 2026 gross margin as percent of sales

Cash and Cash Equivalents $23.1 million As of March 31, 2026

Quarterly Dividend $0.03 per share Declared for payment June 15, 2026

Six-Month 2026 Revenue $28.0 million Six months ended March 31, 2026

Six-Month 2026 Net Income $355,000 Six months ended March 31, 2026

Key Terms

AZT PROTECT, gross margin, Managed IT Services, income tax benefit, +1 more

5 terms

AZT PROTECT technical

"We are generating positive trends with the AZT PROTECT offering and continue to execute"

gross margin financial

"Gross margin for the fiscal second quarter ended March 31, 2026, was 27.9% of sales"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

Managed IT Services technical

"we offer a robust catalog of Managed IT Services providing 24×365 proactive support"

Managed IT services are when a business hires an external provider to run, monitor and support its computer systems, networks and cloud tools on an ongoing basis, including maintenance, security, backups and helpdesk support. For investors, this matters because it shifts one-off technology projects into steady, contract-based revenue, can lower the chance of outages or breaches, and signals predictable costs and scalable growth—similar to subscribing to a utility instead of owning complex equipment.

income tax benefit financial

"After recording a income tax benefit for the quarter of $568,000, the Company generated"

An income tax benefit is a reduction in a company’s tax bill that increases its reported profit or cash flow, arising from things like tax credits, loss carryforwards, or adjustments to deferred tax balances. For investors it matters because it can temporarily boost earnings or free up cash for dividends, debt repayment, or reinvestment — similar to getting a rebate that improves your household budget and changes how much you can spend or save.

forward-looking statements regulatory

"Please refer to the section on forward-looking statements included in the Company's filings"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Earnings Snapshot

Revenue: $16.0 million · Guidance included

Fiscal Q2 2026

Revenue $16.0 million +21.8% YoY

Net income $264,000 Improved from $(108,000) prior-year quarter

Gross margin 27.9% Down from 32.0% prior-year quarter

EPS (diluted) $0.03 Up from $(0.01) prior-year quarter

Guidance

Management stated it believes the company could achieve full-year growth compared to fiscal 2025 and is on track to generate growth during the second half of fiscal 2026, with cloud and managed services expected to remain key drivers.

Understanding 8-K Material Events →

0000356037false00003560372026-05-072026-05-07

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

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FORM 8-K

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Current Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

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Date of Report (Date of earliest event reported): May 7, 2026

CSP Inc.

(Exact name of the registrant as specified in its charter)

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Massachusetts

(State or other jurisdiction of incorporation)

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000-10843	04-2441294
(Commission File Number)	(IRS Employer Identification No.)

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175 Cabot Street - Suite 210, Lowell, MA	01854
(Address of principal executive offices)	(Zip Code)

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(978) 954-5038

(Registrant’s telephone number, including area code)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

​

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	CSPI	Nasdaq Global Market

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Item 2.02 Results of Operations and Financial Condition.

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On May 7, 2026 CSP Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of fiscal year 2026, which ended on March 31, 2026. A copy of the press release relating to such announcement is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

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The information set forth in this Form 8-K, including the exhibits attached hereto, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that Section. The information in this Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, except as shall be expressly set forth by specific reference in such filing.

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Item 9.01 Financial Statements and Exhibits

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(d)Exhibits

99.1Press Release Dated May 7, 2026

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SIGNATURE

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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CSP INC.

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Date: May 7, 2026

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By: /s/Gary W. Levine

Gary W. Levine

Chief Financial Officer

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Exhibit 99.1

CSPi Achieves 21.8% Revenue Growth and Profitability for FY 2026 Second Quarter

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, Mass., May 07, 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 21.8% revenue growth and profitability for the fiscal second quarter ended March 31, 2026. The Company also reported the Board of Directors declared a quarterly dividend of $0.03 per share payable June 15, 2026, to shareholders of record at the close of business on May 21, 2026.

Recent Achievements and Operating Highlights

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● 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.

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“We had a solid quarter as revenue increased over 21% lead by our U.S. Technology Solutions business, and we have carried this business momentum into the first month of our fiscal third quarter,” commented Victor Dellovo, Chief Executive Officer. “As a result of our second quarter, and current trends, we believe we could achieve full year growth compared to fiscal 2025. Our TS business continues to lead our progress, and a primary factor behind this market driver has been the growing complexity of the cloud and the unique and specific needs of each enterprise. At the same time, our services business continued to grow due to our best-in-class service and extremely high customer retention rate, which contributes to realizing higher gross margins within the service segment.

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“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.

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“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.”

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Fiscal 2026 Second Quarter Results

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Revenue for the fiscal second quarter ended March 31, 2026, was $16.0 million compared to revenue of $13.1 million for the fiscal second quarter ended March 31, 2025. Product revenue grew 30% to $11.1 million while service revenue grew 6.6% to $4.9 million. Gross profit for the three months ended March 31, 2026, increased slightly to $4.5 million compared to $4.2 million. Gross margin for the fiscal second quarter ended March 31, 2026, was 27.9% of sales compared to the year ago fiscal second quarter gross margin of 32%, due to the higher proportion of product revenue.

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Exhibit 99.1

After recording a income tax benefit for the quarter of $568,000, the Company generated net income of $264,000, or $0.03 per share. During the prior year quarter, the Company reported an income tax benefit of $683,000 and a net loss of $(108,000), or $(0.01) per share.

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The Company’s balance sheet remained robust, and as of March 31, 2026, had cash and cash equivalents of $23.1 million, after providing financing to several customers. The strong balance sheet continues to provide the Company with the necessary resources to execute its growth strategies for growing the managed services business and building AZT PROTECT deployments.

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Fiscal Year 2026 Six Month Results

Revenue for the fiscal six months ended March 31, 2026, was $28.0 million compared with revenue of $28.8 million in prior year period. Gross profit for the fiscal six months ended March 31, 2026, was $9.2 million, or 32.8% of sales compared with $8.8 million, or 30.4% of sales. The Company reported net income of $355,000, or $0.04 per share in the fiscal six months ended March 31, 2026, compared with net income of $364,000, or $0.04 per share for the fiscal six months ended March 31, 2025.

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Conference Call Details

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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.

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About CSPi

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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. 

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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.

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Safe Harbor

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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.

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Exhibit 99.1

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

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Exhibit 99.1

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

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Three months ended

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Six months ended

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​ ​ ​

March 31

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March 31

​ ​ ​

March 31

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March 31

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2026

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2025

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2026

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2025

Sales:

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​

​

​

​

​

​

​

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Product

​

$

11,113

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$

8,552

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$

17,814

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$

19,567

Services

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4,899

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4,595

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10,234

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9,250

Total sales

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16,012

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13,147

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28,048

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28,817

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​

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Cost of sales:

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​

​

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Product

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9,398

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6,879

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14,680

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15,998

Services

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2,142

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2,061

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4,161

​

4,048

Total cost of sales

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11,540

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8,940

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18,841

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20,046

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​

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​

​

​

​

​

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Gross profit

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4,472

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4,207

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9,207

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8,771

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​

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​

​

​

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​

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Operating expenses:

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​

​

​

​

​

​

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Engineering and development

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818

​

763

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1,676

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1,549

Selling, general and administrative

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4,505

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4,438

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8,494

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8,570

Total operating expenses

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5,323

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5,201

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10,170

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10,119

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​

​

​

​

​

​

​

​

​

​

Operating loss

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(851)

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(994)

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(963)

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(1,348)

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​

​

​

​

​

​

​

​

​

​

​

​

Other income, net

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547

​

203

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1,030

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914

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​

​

​

​

​

​

​

​

​

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​

​

(Loss) income before income taxes

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​

(304)

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(791)

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​

67

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(434)

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​

​

​

​

​

​

​

​

​

​

​

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Income tax benefit

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​

(568)

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(683)

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(288)

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(798)

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​

​

​

​

​

​

​

​

​

​

​

​

Net income (loss)

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$

264

​

$

(108)

​

$

355

​

$

364

Net income (loss) attributable to common shareholders

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$

255

​

$

(108)

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$

339

​

$

341

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​

​

​

​

​

​

​

​

​

​

​

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Net income (loss) per common share - basic

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$

0.03

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$

(0.01)

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$

0.04

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$

0.04

Weighted average shares outstanding – basic

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9,552

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9,343

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9,461

​

9,232

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​

​

​

​

​

​

​

​

​

​

​

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Net income (loss) per common share - diluted

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$

0.03

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$

(0.01)

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$

0.04

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$

0.04

Weighted average shares outstanding net income - diluted

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9,713

​

9,343

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9,662

​

9,614

​

​
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FAQ

How did CSPi (CSPI) perform in its fiscal Q2 2026?

CSPi delivered higher revenue and returned to profit in fiscal Q2 2026. Revenue rose to $16.0 million from $13.1 million, while net income reached $264,000 versus a $108,000 loss a year earlier, reflecting stronger product and services performance.

What were CSPi (CSPI) revenue and segment trends in Q2 2026?

CSPi’s Q2 2026 revenue reached $16.0 million, up 21.8% year over year. Product revenue grew 30% to $11.1 million, and services revenue increased 6.6% to $4.9 million, showing broad-based growth with a heavier mix of product sales.

Did CSPi (CSPI) report a profit in fiscal Q2 2026?

Yes. CSPi generated net income of $264,000, or $0.03 per share, in fiscal Q2 2026. This compares with a net loss of $108,000, or $(0.01) per share, in the same quarter of fiscal 2025, reflecting improved operating performance and higher gross profit.

What happened to CSPi (CSPI) gross margin in Q2 2026?

CSPi’s gross margin in Q2 2026 was 27.9% of sales, down from 32% a year earlier. The decline mainly reflects a higher proportion of product revenue, which generally carries lower margins than services, even though total gross profit increased to $4.5 million.

What is CSPi (CSPI) paying as a dividend after Q2 2026?

CSPi’s Board declared a quarterly dividend of $0.03 per share following Q2 2026 results. The dividend is payable on June 15, 2026 to shareholders of record at the close of business on May 21, 2026, providing ongoing cash returns to investors.

How strong is CSPi (CSPI) financially after Q2 2026?

CSPi reported cash and cash equivalents of $23.1 million as of March 31, 2026. Total assets were $70.3 million against shareholders’ equity of $45.0 million, giving the company resources to fund growth in managed services and AZT PROTECT deployments.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EX-99.1 175.2 KB

Other Documents

• EX-101 EX-101.SCH 3.3 KB
• EX-101 EX-101.DEF 2.7 KB
• EX-101 EX-101.LAB 16.9 KB
• EX-101 EX-101.PRE 11.1 KB