Free cash flow remains highly erratic, swinging from a $2.4 million inflow in 2024Q3 to a $3.3 million outflow in 2025Q3, largely driven by volatile working capital changes and project-based billing cycles.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Oct'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Aug'01 | Aug'00 | Aug'99 | Aug'98 | Aug'97 | Aug'96 |
|---|
| Cash from Operations | -4.79M | 2.27M | 4.21M | 3.91M | 2.67M | 1.9M | 244K | -3.33M | 3.02M | 2.66M | 5M | -2.34M | 1.12M | 227K | 6.31M | 1.54M | -1.93M | 3.37M | -280K | 9.4M | -2.08M | -101K | 1.9M | -2.56M | 1.5M | -1.86M | 2.68M | 2.1M | 4.3M | 2M | 800K |
| Operating CF Margin % | - | 3.86% | 7.63% | 6.04% | 4.92% | 3.87% | 0.39% | -4.21% | 4.14% | 2.39% | 4.84% | -2.62% | 1.33% | 0.26% | 7.44% | 2.1% | -2.03% | 4.04% | -0.36% | 10% | -3.01% | -0.18% | 3.59% | -7.86% | 5.32% | -4.43% | 4.32% | 4.06% | 6.77% | 10.26% | 4.85% |
| Operating CF Growth % | -404.38% | -46.17% | 7.83% | 46.06% | 40.57% | 679.92% | 107.33% | -210.34% | 13.46% | -46.86% | 313.85% | -308.37% | 394.71% | -96.4% | 308.68% | 179.91% | -157.38% | 1301.79% | -102.98% | 553.2% | -1954.46% | -105.32% | 174.23% | -270.92% | 180.52% | -169.38% | 27.52% | -51.16% | 115% | 150% | -76.47% |
| Net Income | -100K | -91K | -326K | 5.2M | 1.89M | 699K | -1.45M | -371K | -2.4M | 2.51M | 2.6M | -210K | 1.33M | 368K | 6.61M | 369K | 914K | -3.78M | -407K | 4.05M | 1.98M | 753K | 1.21M | -1.38M | -5.66M | -2.88M | 675K | 1.3M | 1.4M | -700K | 100K |
| Depreciation & Amortization | 452K | 702K | 794K | 931K | 935K | 388K | 452K | 416K | 625K | 673K | 699K | 646K | 634K | 520K | 460K | 483K | 512K | 579K | 567K | 655K | 578K | 596K | 575K | 755K | 837K | 964K | 1.39M | 1.2M | 1.5M | 1.7M | 1M |
| Stock-Based Compensation | 1.67M | 1.77M | 1.58M | 1.13M | 979K | 981K | 982K | 792K | 691K | 577K | 414K | 375K | 361K | 149K | 92K | 169K | 223K | 265K | 301K | 286K | 0 | -197K | -736K | 592K | 859K | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -866K | -1.82M | -387K | -2.35M | 0 | 1.15M | 797K | -209K | 173K | 262K | -18K | 2K | -98K | 600K | -2.85M | 179K | -360K | -964K | 140K | 1.66M | -1.34M | 183K | 412K | 291K | 2.67M | -318K | -387K | 400K | -900K | -500K | -200K |
| Other Non-Cash Items | 333K | 36K | 682K | 755K | -2.83M | -1.05M | 1.04M | 265K | 4.76M | 214K | 422K | 796K | -22K | -24K | 886K | -50K | -99K | 4.21M | 30K | -189K | 271K | 46K | 590K | -2.28M | -1.07M | 207K | -136K | 300K | 300K | -100K | 200K |
| Working Capital Changes | -6.28M | 1.68M | 1.87M | -1.76M | 1.71M | -263K | -1.58M | -4.22M | -832K | -1.57M | 883K | -3.95M | -1.09M | -1.39M | 1.11M | 393K | -3.12M | 3.06M | -911K | 2.94M | -3.55M | -1.48M | -154K | -530K | 3.86M | 174K | 1.14M | -1.1M | 2M | 1.3M | -300K |
| Change in Receivables | -9.57M | -5.19M | 2.48M | 3.9M | -4.26M | -5.38M | 1.75M | -2.13M | 5.19M | -8.1M | -8K | -8.23M | 647K | -1.14M | 825K | -1.15M | -4.91M | 3.86M | 53K | 57K | 0 | -129K | -137K | 213K | 790K | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | 428K | 669K | -95K | 1.56M | -517K | 1.26M | 2.1M | -777K | -2.56M | -660K | -471K | 78K | -1.04M | 1.44M | 496K | -938K | 58K | 2.17M | -2.06M | 1.49M | -3.6M | -138K | -1.55M | 533K | 1.86M | 481K | 12K | 500K | -100K | -200K | -300K |
| Change in Payables | 3.78M | 7.48M | 1.38M | -11.6M | 8.71M | 5.73M | -5.24M | 7.23M | -2.4M | 6.48M | -1.65M | 4.46M | -656K | -3.25M | 1.6M | 2.2M | -183K | -834K | 2.02M | 3.54M | 0 | 2.65M | 2.52M | 1.44M | 33K | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -493K | -428K | -256K | -341K | 20K | -166K | -345K | -976K | 13.64M | -508K | -896K | -917K | -1.25M | -1.04M | -694K | -482K | -607K | 4.47M | -338K | -5.59M | 374K | -300K | -3.42M | 1.44M | -542K | -564K | -1.94M | -1.8M | -4.8M | -8.6M | -900K |
| Capital Expenditures | -413K | -348K | -196K | -277K | -234K | -98K | -230K | -832K | -438K | -358K | -735K | -724K | -590K | -858K | -551K | -339K | -483K | -402K | -436K | -520K | -552K | -618K | -846K | -464K | -488K | -611K | -805K | -1.1M | -700K | -1.1M | -1.1M |
| CapEx % of Revenue | 0.71% | 0.59% | 0.36% | 0.43% | 0.43% | 0.2% | 0.37% | 1.05% | 0.6% | 0.32% | 0.71% | 0.81% | 0.7% | 0.98% | 0.65% | 0.46% | 0.51% | 0.48% | 0.57% | 0.55% | 0.8% | 1.07% | 1.6% | 1.43% | 1.74% | 1.46% | 1.3% | 2.13% | 1.1% | 5.64% | 6.67% |
| Acquisitions | 0 | 0 | 0 | 0 | 2K | 2K | 0 | 0 | 0 | 0 | 0 | 0 | -500K | 0 | 0 | 0 | 124K | 124K | -2.44M | 0 | 0 | 487K | 0 | -2.83M | -535K | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -80K | -80K | -60K | -64K | 252K | -70K | -115K | -144K | 14.23M | -301K | -161K | -193K | -170K | 17K | -143K | -143K | -124K | -124K | -149K | 448K | -124K | -133K | 3K | 2.15M | 535K | 3.1M | 0 | 18.4M | -100K | -8M | -100K |
| Cash from Financing | -1.13M | -5.04M | 1.38M | -2.4M | 1.33M | -954K | 832K | -2.25M | -1.74M | -1.51M | -1.41M | -1.4M | -1.38M | -1.27M | -847K | -596K | -269K | -2.25M | 1.3M | 402K | 221K | 493K | 102K | 26K | 44K | -250K | 29K | -100K | 0 | 200K | 0 |
| Debt Issued (Net) | 424K | -3.27M | 2.23M | -2.02M | 1.4M | -1.24M | 1.86M | -63K | -70K | 0 | 0 | 0 | 0 | 0 | 0 | -25K | 0 | -1.5M | 1.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -358K | -583K | 170K | 274K | 65K | 283K | -46K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -97K | -571K | -269K | -754K | -462K | 302K | 221K | 493K | 102K | 26K | 44K | -250K | 29K | -200K | 0 | 200K | -100K |
| Dividends Paid | -1.19M | -1.19M | -1.02M | -656K | -137K | 0 | -1.26M | -2.47M | -1.92M | -1.72M | -1.67M | -1.62M | -1.54M | -1.38M | -750K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -624K | -869K | -104K | -6K | -174K | 0 | -46K | -280K | 0 | 0 | 0 | 0 | 0 | 0 | -97K | -645K | -383K | -934K | -758K | -421K | -132K | -75K | 0 | -2K | 0 | -313K | -230K | -300K | 0 | 0 | -300K |
| Other Financing | 0 | 0 | 0 | 0 | 0 | 0 | 279K | 280K | 253K | 216K | 263K | 216K | 161K | 114K | 0 | 0 | 0 | 0 | 265K | 100K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100K | 0 | 0 | 100K |
| Net Change in Cash | -6.39M | -3.17M | 5.37M | 1.24M | 3.98M | 743K | 1.17M | -7.01M | 14.69M | 782K | 1.92M | -5.27M | -2.17M | -1.87M | 4.62M | 343K | -3.37M | 5.41M | -193K | 5M | -1.04M | -107K | -249K | -706K | 2M | -2.52M | 174K | -200K | -500K | -6.5M | -100K |
| Free Cash Flow | -5.23M | 1.89M | 4.02M | 3.63M | 2.44M | 1.8M | 14K | -4.16M | 2.58M | 2.3M | 4.27M | -3.06M | 533K | -631K | 5.75M | 1.2M | -2.41M | 2.96M | -716K | 8.88M | -2.63M | -719K | 1.05M | -3.02M | 1.01M | -2.47M | 1.87M | 1M | 3.6M | 900K | -300K |
| FCF Margin % | -9.03% | 3.22% | 7.27% | 5.62% | 4.49% | 3.67% | 0.02% | -5.26% | 3.54% | 2.06% | 4.13% | -3.43% | 0.63% | -0.72% | 6.79% | 1.63% | -2.54% | 3.55% | -0.93% | 9.45% | -3.81% | -1.25% | 1.99% | -9.29% | 3.59% | -5.89% | 3.02% | 1.93% | 5.67% | 4.62% | -1.82% |
| FCF Growth % | -218.34% | -52.85% | 10.66% | 48.71% | 35.24% | 12792.86% | 100.34% | -261.34% | 12.08% | -46.1% | 239.33% | -674.86% | 184.47% | -110.96% | 377.99% | 149.88% | -181.47% | 513.83% | -108.06% | 438.18% | -265.37% | -168.35% | 134.82% | -399.7% | 140.83% | -231.82% | 87.3% | -72.22% | 300% | 400% | -112.5% |
| FCF per Share | -0.55 | 0.20 | 0.44 | 0.41 | 0.29 | 0.43 | 0.00 | -1.01 | 0.66 | 0.60 | 1.14 | -0.86 | 0.15 | -0.18 | 1.69 | 0.35 | -0.68 | 0.83 | -0.19 | 2.26 | -0.69 | -0.19 | 0.28 | -0.85 | 0.29 | -0.70 | 0.51 | 0.27 | 0.79 | 0.22 | -0.07 |
| FCF Conversion (FCF/Net Income) | 52.33x | -24.92x | -12.92x | 0.75x | 1.42x | 2.72x | -0.17x | 8.97x | 0.21x | 1.06x | 1.92x | 11.14x | 0.84x | 0.62x | 0.95x | 4.18x | -2.11x | -0.89x | 0.69x | 2.32x | -1.05x | -0.13x | 1.57x | 1.85x | -0.26x | 0.64x | 3.97x | 1.62x | 3.07x | -2.86x | 8.00x |
| Interest Paid | 0 | 137K | 206K | 313K | 0 | 189K | 277K | 68K | 73K | 75K | 86K | 85K | 85K | 85K | 85K | 85K | 89K | 105K | 89K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 446K | 1.6M | 246K | 0 | 114K | 22K | 52K | 900K | 1.14M | 334K | 15K | 201K | 434K | 1.06M | 220K | 535K | 613K | 109K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Lumpy defense procurement cycles
According to the provided financial data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios swinging from -32.04 in 2026Q1 to 12.44 in 2025Q3, indicating that reported earnings provide little visibility into the company's actual cash-generating capacity.
The extreme volatility in the OCF/NI ratio suggests that accrual-based accounting adjustments and non-operating income significantly distort the company's true performance. Investors should monitor this divergence, as it implies that net income is an unreliable proxy for the underlying cash health of the business.
As reported in recent financial statements, CSPI's free cash flow trajectory remains inconsistent, oscillating between a peak of $2.4 million in 2024Q3 and a trough of -$3.3 million in 2025Q3, reflecting the inherent instability of the company's project-based revenue model and high operating overhead.
The inability to maintain positive free cash flow suggests that the company's current business model is not yet self-sustaining. This lack of a clear upward trend in FCF margins warrants further investigation into whether the pivot toward managed services will eventually stabilize cash generation.
Based on reported figures, working capital changes are the primary driver of quarterly cash flow fluctuations, with a significant $3.9 million outflow in 2026Q1 followed by a $1.6 million inflow in 2025Q4, highlighting the sensitivity of cash to timing differences in project-based billing cycles.
These large swings in working capital suggest that the company's cash position is highly vulnerable to the timing of large defense-related contracts. Such volatility may indicate that the company lacks the leverage to enforce favorable payment terms, forcing it to absorb the cash impact of project delays.
Data from recent filings reveals that stock-based compensation consistently offsets a portion of operating losses, with $390,000 in SBC recorded in 2026Q2 alone, which effectively obscures the true cash cost of maintaining the company's current human capital and R&D infrastructure.
By relying on equity-based compensation to manage cash outflows, the company may be understating the true economic cost of its operations. Analysts should consider adjusting operating cash flow figures to account for these non-cash expenses to better understand the company's actual burn rate.
Quick answers to the most common questions about buying CSPI stock.
CSP Inc. (CSPI) generated $2.3M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
CSP Inc. (CSPI) generated $1.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
CSP Inc. (CSPI) spent $0.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, CSP Inc. (CSPI) returned $1.2M to shareholders via cash dividends and spent $0.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.