Revenue volatility remains a primary concern, as evidenced by the sharp decline in gross margins from 17.1% in 2025Q3 to 8.6% in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 32.12M | 32.6M | 21.12M | 27.55M | 26.59M | 22.45M | 20.87M | 21.47M | 21.58M | 14.58M | 15.35M | 21.76M | 23.14M | 21.41M | 14.05M | 19.81M | 21.4M | 12.98M | 14.81M | 12.45M | 11.91M | 7.16M | 6.84M | 3.99M | 4.49M | 4.46M | 5.05M | 4.8M | 5.53M | 4.59M | 2.01M |
| Revenue Growth % | 41.39% | 54.31% | -23.33% | 3.62% | 18.43% | 7.55% | -2.78% | -0.52% | 48.05% | -5.04% | -29.46% | -5.95% | 8.09% | 52.34% | -29.06% | -7.43% | 64.85% | -12.37% | 19.01% | 4.53% | 66.41% | 4.57% | 71.34% | -11.13% | 0.72% | -11.57% | 5.11% | -13.13% | 20.41% | 128.64% | 44.7% |
| Cost of Goods Sold | 27.45M | 27.31M | 21.24M | 20.73M | 19.29M | 17.66M | 16.7M | 18.93M | 18.67M | 12.92M | 13.2M | 17.1M | 17.67M | 16.05M | 13.8M | 16.85M | 17.38M | 10.73M | 10.83M | 9.35M | 8.63M | 5.4M | 4.58M | 3.15M | 3.96M | 3.9M | 4.01M | 3.6M | 3.04M | 2.48M | 1.69M |
| COGS % of Revenue | - | 83.77% | 100.56% | 75.23% | 72.54% | 78.66% | 80.02% | 88.17% | 86.5% | 88.63% | 85.96% | 78.56% | 76.36% | 74.97% | 98.18% | 85.08% | 81.23% | 82.69% | 73.1% | 75.09% | 72.51% | 75.51% | 66.87% | 78.78% | 88.07% | 87.36% | 79.58% | 75% | 54.97% | 53.94% | 84.01% |
| Gross Profit | 4.67M | 5.29M | -118.64K | 6.83M | 7.3M | 4.79M | 4.17M | 2.54M | 2.91M | 1.66M | 2.16M | 4.66M | 5.47M | 5.36M | 255.94K | 2.96M | 4.02M | 2.25M | 3.98M | 3.1M | 3.27M | 1.75M | 2.27M | 847.34K | 536.3K | 563.96K | 1.03M | 1.2M | 2.49M | 2.11M | 320.86K |
| Gross Margin % | 14.52% | 16.23% | -0.56% | 24.77% | 27.46% | 21.34% | 19.98% | 11.83% | 13.5% | 11.37% | 14.04% | 21.44% | 23.64% | 25.03% | 1.82% | 14.92% | 18.77% | 17.31% | 26.9% | 24.91% | 27.49% | 24.49% | 33.13% | 21.22% | 11.93% | 12.64% | 20.42% | 25% | 45.03% | 46.06% | 15.99% |
| Gross Profit Growth % | - | 4558.4% | -101.74% | -6.52% | 52.43% | 14.87% | 64.15% | -12.79% | 75.67% | -23.08% | -53.79% | -14.73% | 2.12% | 1993.12% | -91.34% | -26.4% | 78.69% | -43.6% | 28.52% | -5.29% | 86.83% | -22.7% | 167.52% | 58% | -4.9% | -45.25% | -14.16% | -51.77% | 17.7% | 558.79% | 229.08% |
| Operating Expenses | 4.87M | 4.85M | 4.26M | 5.13M | 5.07M | 4.28M | 3.26M | 3.14M | 3.81M | 3.61M | 3.34M | 4.05M | 4.25M | 3.9M | 3.06M | 3.29M | 2.96M | 2.1M | 2.6M | 2.15M | 1.75M | 1.43M | 1.2M | 828.83K | 1.28M | 1.04M | 1.32M | 1.1M | 684.66K | 517.36K | 515.35K |
| OpEx % of Revenue | - | 14.86% | 20.18% | 18.61% | 19.06% | 19.05% | 15.6% | 14.61% | 17.67% | 24.76% | 21.74% | 18.59% | 18.39% | 18.21% | 21.74% | 16.62% | 13.84% | 16.17% | 17.55% | 17.28% | 14.72% | 19.99% | 17.52% | 20.75% | 28.57% | 23.23% | 26.09% | 22.92% | 12.39% | 11.27% | 25.68% |
| Selling, General & Admin | 1.21B | 0 | 4.26M | 5.13M | 5.07M | 4.28M | 3.26M | 3.14M | 3.81M | 3.61M | 3.34M | 4.05M | 4.25M | 3.9M | 3.06M | 3.29M | 2.96M | 2.1M | 2.6M | 2.15M | 1.75M | 1.43M | 1.2M | 828.83K | 1.28M | 1.04M | 1M | 900K | 684.66K | 517.36K | 515.35K |
| SG&A % of Revenue | - | - | 20.18% | 18.61% | 19.06% | 19.05% | 15.6% | 14.61% | 17.67% | 24.76% | 21.74% | 18.59% | 18.39% | 18.21% | 21.74% | 16.62% | 13.84% | 16.17% | 17.55% | 17.28% | 14.72% | 19.99% | 17.52% | 20.75% | 28.57% | 23.23% | 19.85% | 18.75% | 12.39% | 11.27% | 25.68% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 34.97K | 156.22K | 259.08K | 509.87K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | 0.16% | 0.68% | 1.21% | 3.63% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -1000K | 4.85M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 314.71K | 200K | 0 | 0 | 0 |
| Operating Income | -208.31K | 443.97K | -4.38M | 1.7M | 2.23M | 512.97K | 914.24K | -597.2K | -900.56K | -1.95M | -1.18M | 619.16K | 1.22M | 1.46M | -2.8M | -335.83K | 1.05M | 149.1K | 1.38M | 950.31K | 1.52M | 321.97K | 1.07M | 18.51K | -747.5K | -472.65K | -286.13K | 100K | 1.8M | 1.6M | -194.49K |
| Operating Margin % | -0.65% | 1.36% | -20.74% | 6.17% | 8.4% | 2.28% | 4.38% | -2.78% | -4.17% | -13.39% | -7.69% | 2.85% | 5.25% | 6.82% | -19.92% | -1.7% | 4.92% | 1.15% | 9.35% | 7.64% | 12.77% | 4.5% | 15.61% | 0.46% | -16.63% | -10.59% | -5.67% | 2.08% | 32.64% | 34.79% | -9.69% |
| Operating Income Growth % | - | 110.13% | -357.8% | -23.95% | 335.59% | -43.89% | 253.09% | 33.69% | 53.85% | -65.21% | -290.76% | -49.08% | -16.69% | 152.14% | -733.5% | -131.87% | 606.64% | -89.23% | 45.68% | -37.49% | 372.16% | -69.85% | 5670.71% | 102.48% | -58.15% | -65.19% | -386.13% | -94.45% | 12.96% | 920.83% | 76.67% |
| EBITDA | 85.43K | 443.97K | -3.83M | 2.19M | 2.68M | 982.3K | 1.44M | -71.42K | -332.4K | -1.38M | -630.32K | 1.16M | 1.79M | 2.07M | -2.08M | 415.58K | 1.8M | 873.41K | 1.98M | 1.44M | 1.92M | 626.79K | 1.36M | 419.09K | -376.4K | -120.94K | 28.58K | 300K | 1.99M | 1.75M | -81.13K |
| EBITDA Margin % | 0.27% | 1.36% | -18.15% | 7.94% | 10.08% | 4.38% | 6.92% | -0.33% | -1.54% | -9.5% | -4.11% | 5.35% | 7.75% | 9.69% | -14.77% | 2.1% | 8.42% | 6.73% | 13.39% | 11.56% | 16.08% | 8.76% | 19.94% | 10.49% | -8.38% | -2.71% | 0.57% | 6.25% | 35.95% | 38.11% | -4.04% |
| EBITDA Growth % | 102.53% | 111.58% | -275.18% | -18.35% | 172.84% | -32% | 2122.87% | 78.52% | 75.99% | -119.64% | -154.11% | -35.02% | -13.6% | 199.94% | -599.55% | -76.94% | 106.37% | -55.97% | 37.82% | -24.85% | 205.56% | -54.05% | 225.51% | 211.34% | -211.23% | -523.1% | -90.47% | -84.9% | 13.56% | 2255.74% | 88.7% |
| D&A (Non-Cash Add-back) | 293.74K | 0 | 547.15K | 489.1K | 445.74K | 469.34K | 530.42K | 525.78K | 568.16K | 566.79K | 550.76K | 545.67K | 576.75K | 615.35K | 723.09K | 751.41K | 748.86K | 724.31K | 599.21K | 488.95K | 395.03K | 304.82K | 296.19K | 400.58K | 371.1K | 351.71K | 314.71K | 200K | 182.83K | 152.49K | 113.36K |
| EBIT | -162.83K | 443.97K | -4.38M | 1.7M | 2.23M | 512.97K | 914.24K | -597.2K | -900.56K | -1.94M | -1.18M | 619.16K | 1.22M | 1.46M | -2.8M | -335.83K | 1.05M | 149.1K | 1.38M | 950.31K | 1.52M | 321.97K | 1.07M | 18.51K | -747.5K | -472.65K | -286.13K | 105.86K | 1.8M | 1.6M | -194.49K |
| Net Interest Income | 0 | 0 | 285.32K | 225.76K | -7.95K | -34.89K | -114.82K | 0 | 0 | 0 | 0 | 0 | 5.08K | -30.33K | -28.59K | -32.67K | -32.42K | -38.91K | -44.46K | -62K | 0 | 0 | 0 | 0 | 0 | -2.41K | 52.49K | 0 | -90.75K | 0 | -248.5K |
| Interest Income | 0 | 0 | 285.32K | 230.85K | 0 | 0 | 0 | 0 | 0 | 11.48K | 51.32K | 5.69K | 5.08K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11.64K | 63.15K | 0 | 41.45K | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 5.1K | 7.95K | 34.89K | 114.82K | 0 | 0 | 11.48K | 51.32K | 5.69K | 0 | 30.33K | 28.59K | 32.67K | 32.42K | 38.91K | 44.46K | 62K | 0 | 0 | 0 | 0 | 0 | 14.06K | 10.66K | 0 | 132.2K | 0 | 248.5K |
| Other Income/Expense | 334.39K | 238.66K | 286.98K | 253.02K | 653.25K | -4.07K | -14.72K | -35.55K | -20.98K | 11.48K | 51.32K | 5.69K | 5.08K | -30.33K | -28.59K | -32.67K | -32.42K | -38.91K | -44.46K | -60.11K | -30.16K | -24.87K | -27.55K | -18.51K | 13.19K | -6.85K | 286.13K | 100K | 27 | -219.26K | 31.68K |
| Pretax Income | 126.08K | 682.64K | -4.09M | 1.95M | 2.89M | 508.9K | 899.52K | -632.75K | -921.55K | -1.94M | -1.13M | 624.85K | 1.22M | 1.43M | -2.83M | -368.5K | 1.02M | 110.19K | 1.34M | 890.2K | 1.49M | 297.1K | 1.04M | -19.03K | -734.31K | -479.51K | -193.91M | 200K | 1.8M | 1.61M | -162.81K |
| Pretax Margin % | 0.39% | 2.09% | -19.38% | 7.09% | 10.86% | 2.27% | 4.31% | -2.95% | -4.27% | -13.31% | -7.36% | 2.87% | 5.28% | 6.68% | -20.12% | -1.86% | 4.77% | 0.85% | 9.05% | 7.15% | 12.51% | 4.15% | 15.2% | -0.48% | -16.34% | -10.75% | -3843.58% | 4.17% | 32.64% | 35.12% | -8.11% |
| Income Tax | 95.87K | 262.28K | -958.5K | 582.09K | 756.27K | -2.71M | -8.55K | 5.46K | 2.78M | -222.03K | -676.14K | 174.23K | 218.15K | 462.71K | -1.31M | -322.77K | 310.97K | -452.22K | -134.42K | -58.4K | -288K | 10K | 0 | 0 | 0 | 0 | 0 | 0 | 130.88K | 0 | 0 |
| Effective Tax Rate % | 76.04% | 38.42% | 23.41% | 29.81% | 26.19% | -531.93% | -0.95% | -0.86% | -302.15% | 11.45% | 59.85% | 27.88% | 17.87% | 32.38% | 46.17% | 87.59% | 30.45% | -410.4% | -10.03% | -6.56% | -19.33% | 3.37% | 0% | 0% | 0% | 0% | 0% | 0% | 7.26% | 0% | 0% |
| Net Income | 30.21K | 420.35K | -3.14M | 1.37M | 2.13M | 3.22M | 908.06K | -638.2K | -3.71M | -1.72M | -453.62K | 450.62K | 1M | 966.46K | -1.52M | -45.73K | 710.19K | 562.41K | 1.47M | 948.6K | 1.78M | 287.1K | 1.04M | -19.03K | -734.31K | -479.51K | -193.91K | 200K | 1.67M | 1.38M | -411.31K |
| Net Margin % | 0.09% | 1.29% | -14.84% | 4.97% | 8.02% | 14.33% | 4.35% | -2.97% | -17.17% | -11.78% | -2.96% | 2.07% | 4.33% | 4.51% | -10.83% | -0.23% | 3.32% | 4.33% | 9.95% | 7.62% | 14.93% | 4.01% | 15.2% | -0.48% | -16.34% | -10.75% | -3.84% | 4.17% | 30.27% | 30.01% | -20.49% |
| Net Income Growth % | 101.04% | 113.41% | -328.82% | -35.71% | -33.72% | 254.15% | 242.28% | 82.78% | -115.75% | -278.67% | -200.67% | -55.06% | 3.76% | 163.5% | -3227.93% | -106.44% | 26.27% | -61.85% | 55.42% | -46.65% | 519.32% | -72.41% | 5567.61% | 97.41% | -53.14% | -147.28% | -196.96% | -88.04% | 21.44% | 434.82% | 62.86% |
| Net Income (Continuing) | 30.21K | 420.35K | -3.14M | 1.37M | 2.13M | 3.22M | 908.06K | -638.2K | -3.71M | -1.72M | -453.62K | 450.62K | 1M | 966.46K | -1.52M | -45.73K | 710.19K | 562.41K | 1.47M | 948.6K | 1.78M | 287.1K | 1.04M | -19.03K | -734.31K | -479.51K | -193.91K | 200K | 1.67M | 1.38M | -411.31K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.00 | 0.03 | -0.22 | 0.09 | 0.15 | 0.22 | 0.07 | -0.05 | -0.28 | -0.13 | -0.03 | 0.03 | 0.08 | 0.07 | -0.12 | -0.00 | 0.06 | 0.04 | 0.11 | 0.07 | 0.14 | 0.02 | 0.08 | -0.00 | -0.06 | -0.04 | -0.02 | 0.02 | 0.14 | 0.13 | -0.05 |
| EPS Growth % | 102.81% | 112.41% | -334.79% | -37.53% | -31.82% | 223.53% | 240.79% | 82.75% | -115.38% | -277.91% | -214.67% | -60.68% | 9% | 158.33% | - | -106% | 50% | -63.64% | 57.14% | -50% | 600% | -75% | - | 97.49% | -53.08% | -146.84% | -179% | -85.71% | 7.69% | 345.75% | 62.21% |
| EPS (Basic) | - | 0.03 | -0.22 | 0.09 | 0.15 | 0.23 | 0.07 | -0.05 | -0.28 | -0.13 | -0.03 | 0.03 | 0.08 | 0.07 | -0.12 | -0.00 | 0.06 | 0.04 | 0.12 | 0.08 | 0.14 | 0.02 | 0.08 | -0.00 | -0.06 | -0.04 | -0.02 | 0.02 | 0.16 | 0.18 | -0.05 |
| Diluted Shares Outstanding | 18M | 14.67M | 14.53M | 14.63M | 14.68M | 14.59M | 13.35M | 13.21M | 13.21M | 13.2M | 13.2M | 13.64M | 13.7M | 13.27M | 12.87M | 12.77M | 12.88M | 12.93M | 13.24M | 13.3M | 13.07M | 12.83M | 12.76M | 12.29M | 12.29M | 12.29M | 12.29M | 12.48M | 12.55M | 12.28M | 7.78M |
| Basic Shares Outstanding | 18M | 14.53M | 14.53M | 14.5M | 14.42M | 14.06M | 13.25M | 13.21M | 13.21M | 13.2M | 13.2M | 13.18M | 13.1M | 12.99M | 12.68M | 12.77M | 12.64M | 12.62M | 12.61M | 12.54M | 12.47M | 12.31M | 12.29M | 12.29M | 12.29M | 12.29M | 12.29M | 12.29M | 10.57M | 7.8M | 7.78M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Operating margin volatility
According to the provided quarterly data, CPSH experienced significant revenue fluctuations, with a notable 107.3% year-over-year growth in 2025Q3 followed by a 6.4% contraction in 2026Q1, suggesting that the company's project-based revenue model remains highly sensitive to the timing of specific industrial and defense procurement cycles.
The erratic top-line performance indicates that CPSH lacks a recurring revenue base, making quarterly comparisons difficult to interpret as a steady growth trajectory. Investors should monitor whether the recent contraction in 2026Q1 represents a temporary delay in contract fulfillment or a broader softening in demand for their specialized AlSiC components.
As reported in financial statements, CPSH's gross margin has struggled to maintain consistency, peaking at 17.1% in 2025Q3 before declining to 8.6% in 2026Q1, which highlights the company's vulnerability to input cost volatility and the challenges of scaling high-complexity manufacturing processes in a competitive hardware environment.
The inability to sustain gross margins above the 20% threshold suggests that CPSH may lack significant pricing power, forcing the company to absorb inflationary pressures in raw materials like aluminum and silicon carbide. This margin profile implies that the company is currently operating at a scale where fixed overhead costs disproportionately impact profitability during periods of lower production volume.
Based on reported figures, CPSH's operating income has failed to scale proportionally with revenue, as evidenced by the 2026Q1 operating margin of -7.4% despite previous periods of revenue expansion, indicating that the company has not yet achieved the necessary operational efficiency to convert top-line growth into sustainable profitability.
The persistent oscillation between positive and negative operating income suggests that the company's high fixed-cost structure is not being adequately leveraged during growth phases. This warrants further investigation into whether management's current SG&A spending is effectively supporting long-term production capacity or if it represents an unsustainable overhead burden for a firm of this size.
While the 54% revenue growth trend might attract interest, the income statement data reveals that CPSH's net income remains highly unstable, with a 2026Q1 net loss of $294.2K, suggesting that the company's current business model may be struggling to achieve the critical mass required for consistent bottom-line performance.
Short-sellers would likely focus on the discrepancy between the company's technological narrative and its inability to generate meaningful net margins. The reliance on non-recurring project revenue, combined with thin operating margins, implies that the company remains a high-risk entity that is susceptible to sudden earnings shocks if major production programs are delayed or canceled.
Quick answers to the most common questions about buying CPSH stock.
For fiscal year 2025, CPS Technologies Corporation (CPSH) reported total revenue of $32.6M. This represents a 1524.1% increase compared to $2.0M in 1996.
CPS Technologies Corporation (CPSH) is profitable, generating $0.4M in net income for the fiscal year ending 2025 with a net profit margin of 1.3%.
CPS Technologies Corporation (CPSH) reported an operating income of $0.4M, resulting in an operating profit margin of 1.4%. This margin reflects the operational efficiency of the business before interest and taxes.
CPS Technologies Corporation (CPSH) generated $5.3M in gross profit for the year, representing a gross profit margin of 16.2%. This demonstrates the company's core pricing power and production efficiency.