Revenue growth remains inconsistent, oscillating between a 23.2% decline in 2026Q1 and a 21.8% increase in 2026Q2, while gross margins have failed to stabilize, fluctuating between a low of 26.6% and a high of 47.3%.
| 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 |
|---|
| Sales/Revenue | 57.96M | 58.73M | 55.22M | 64.65M | 54.36M | 49.21M | 61.79M | 79.06M | 72.92M | 111.48M | 103.37M | 89.31M | 84.62M | 87.62M | 84.81M | 73.64M | 95.02M | 83.36M | 76.78M | 94.04M | 68.94M | 57.49M | 52.82M | 32.52M | 28.11M | 41.92M | 62.02M | 51.7M | 63.5M | 19.5M | 16.5M |
| Revenue Growth % | 5.47% | 6.36% | -14.58% | 18.92% | 10.47% | -20.37% | -21.84% | 8.43% | -34.59% | 7.85% | 15.74% | 5.54% | -3.42% | 3.32% | 15.16% | -22.49% | 13.99% | 8.56% | -18.35% | 36.41% | 19.91% | 8.83% | 62.46% | 15.67% | -32.93% | -32.42% | 19.96% | -18.58% | 225.64% | 18.18% | -10.81% |
| Cost of Goods Sold | 39.01M | 40.22M | 36.36M | 42.73M | 35.53M | 33.06M | 44.63M | 61.03M | 54.52M | 85.99M | 78.33M | 70.12M | 63.8M | 69.04M | 64.39M | 57.28M | 77.83M | 68.41M | 62.78M | 70.68M | 54.11M | 43.03M | 37.72M | 23.3M | 19.78M | 32.02M | 43.11M | 30.9M | 41.3M | 8.8M | 5.7M |
| COGS % of Revenue | - | 68.48% | 65.85% | 66.09% | 65.37% | 67.18% | 72.22% | 77.2% | 74.77% | 77.14% | 75.77% | 78.52% | 75.39% | 78.79% | 75.92% | 77.77% | 81.91% | 82.06% | 81.77% | 75.16% | 78.49% | 74.85% | 71.41% | 71.67% | 70.36% | 76.38% | 69.51% | 59.77% | 65.04% | 45.13% | 34.55% |
| Gross Profit | 18.95M | 18.51M | 18.86M | 21.92M | 18.83M | 16.15M | 17.17M | 18.03M | 18.4M | 25.49M | 25.04M | 19.19M | 20.82M | 18.58M | 20.42M | 16.37M | 17.19M | 14.95M | 14M | 23.36M | 14.83M | 14.46M | 15.1M | 9.21M | 8.33M | 9.9M | 18.91M | 20.8M | 22.2M | 10.7M | 10.8M |
| Gross Margin % | 32.69% | 31.52% | 34.15% | 33.91% | 34.63% | 32.82% | 27.78% | 22.8% | 25.23% | 22.86% | 24.23% | 21.48% | 24.61% | 21.21% | 24.08% | 22.23% | 18.09% | 17.94% | 18.23% | 24.84% | 21.51% | 25.15% | 28.59% | 28.33% | 29.64% | 23.62% | 30.49% | 40.23% | 34.96% | 54.87% | 65.45% |
| Gross Profit Growth % | - | -1.82% | -13.98% | 16.43% | 16.58% | -5.93% | -4.77% | -2.03% | -27.82% | 1.79% | 30.51% | -7.85% | 12.04% | -9% | 24.75% | -4.78% | 14.98% | 6.8% | -40.06% | 57.47% | 2.59% | -4.28% | 63.98% | 10.52% | -15.84% | -47.64% | -9.09% | -6.31% | 107.48% | -0.93% | -2.7% |
| Operating Expenses | 21.67M | 21.62M | 20.73M | 20.05M | 18.87M | 17.51M | 18.59M | 18.85M | 20M | 21.72M | 21.24M | 18.96M | 19.6M | 17.88M | 17.57M | 15.56M | 16.05M | 15.94M | 15.45M | 16.8M | 14.41M | 13.4M | 13.49M | 11.9M | 11.66M | 12.73M | 17.74M | 18.5M | 19.8M | 12.6M | 11.5M |
| OpEx % of Revenue | - | 36.81% | 37.54% | 31.01% | 34.71% | 35.59% | 30.09% | 23.84% | 27.43% | 19.48% | 20.55% | 21.23% | 23.16% | 20.41% | 20.71% | 21.13% | 16.89% | 19.12% | 20.12% | 17.87% | 20.91% | 23.3% | 25.53% | 36.6% | 41.47% | 30.37% | 28.6% | 35.78% | 31.18% | 64.62% | 69.7% |
| Selling, General & Admin | 18.29M | 18.37M | 17.77M | 16.91M | 15.78M | 14.62M | 15.79M | 16.05M | 16.72M | 19.36M | 18.26M | 16.14M | 16.12M | 16.02M | 15.85M | 13.78M | 14.1M | 13.97M | 13.28M | 14.23M | 12.34M | 10.72M | 10.54M | 7.99M | 7.92M | 8.9M | 12.32M | 13.1M | 14.2M | 7M | 7.2M |
| SG&A % of Revenue | - | 31.28% | 32.18% | 26.16% | 29.03% | 29.72% | 25.56% | 20.3% | 22.93% | 17.36% | 17.66% | 18.07% | 19.05% | 18.29% | 18.69% | 18.7% | 14.84% | 16.76% | 17.29% | 15.13% | 17.9% | 18.66% | 19.96% | 24.58% | 28.18% | 21.24% | 19.86% | 25.34% | 22.36% | 35.9% | 43.64% |
| Research & Development | 3.38M | 3.25M | 2.96M | 3.14M | 3.08M | 2.89M | 2.8M | 2.8M | 3.28M | 2.36M | 2.98M | 2.83M | 3.48M | 1.86M | 1.72M | 1.78M | 1.95M | 1.97M | 2.17M | 2.57M | 2.07M | 2.67M | 2.95M | 3.54M | 3.74M | 3.82M | 4.03M | 4.2M | 4.1M | 3.9M | 3.3M |
| R&D % of Revenue | - | 5.53% | 5.35% | 4.86% | 5.67% | 5.87% | 4.53% | 3.54% | 4.49% | 2.12% | 2.89% | 3.16% | 4.12% | 2.12% | 2.03% | 2.42% | 2.06% | 2.36% | 2.83% | 2.74% | 3% | 4.65% | 5.58% | 10.9% | 13.29% | 9.12% | 6.5% | 8.12% | 6.46% | 20% | 20% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21K | -201K | 0 | 0 | -12K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4.23M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.72M | -3.11M | -1.87M | 1.87M | -40K | -1.36M | -1.42M | -826K | -1.6M | 3.77M | 3.8M | 226K | 1.68M | 701K | 4.97M | 809K | 1.14M | -4.93M | -1.45M | 6.55M | 418K | 1.06M | 1.61M | -3.01M | -3.72M | -2.91M | 1.17M | 2.3M | 2.4M | -1.9M | -700K |
| Operating Margin % | -4.7% | -5.29% | -3.39% | 2.89% | -0.07% | -2.77% | -2.3% | -1.04% | -2.2% | 3.38% | 3.68% | 0.25% | 1.99% | 0.8% | 5.86% | 1.1% | 1.2% | -5.91% | -1.89% | 6.97% | 0.61% | 1.85% | 3.06% | -9.25% | -13.23% | -6.95% | 1.89% | 4.45% | 3.78% | -9.74% | -4.24% |
| Operating Income Growth % | - | -66.08% | -200.11% | 4775% | 97.06% | 4.35% | -72.4% | 48.41% | -142.44% | -0.76% | 1581.86% | -86.57% | 140.09% | -85.89% | 514.22% | -29.16% | 123.17% | -239.7% | -122.15% | 1467.46% | -60.6% | -34.3% | 153.69% | 19.14% | -27.75% | -348.68% | -49.09% | -4.17% | 226.32% | -171.43% | -800% |
| EBITDA | -2.06M | -2.41M | -1.08M | 2.8M | 895K | -326K | -319K | -410K | -976K | 4.26M | 4.5M | 872K | 2.32M | 1.22M | 5.43M | 1.29M | 1.65M | -4.35M | -884K | 7.21M | 996K | 1.66M | 2.19M | -2.25M | -2.88M | -1.95M | 2.56M | 3.5M | 3.9M | -200K | 300K |
| EBITDA Margin % | -3.56% | -4.1% | -1.95% | 4.33% | 1.65% | -0.66% | -0.52% | -0.52% | -1.34% | 3.82% | 4.35% | 0.98% | 2.74% | 1.39% | 6.4% | 1.75% | 1.74% | -5.22% | -1.15% | 7.66% | 1.44% | 2.88% | 4.15% | -6.93% | -10.26% | -4.65% | 4.13% | 6.77% | 6.14% | -1.03% | 1.82% |
| EBITDA Growth % | 38.08% | -123.28% | -138.49% | 212.96% | 374.54% | -2.19% | 22.2% | 57.99% | -122.93% | -5.4% | 416.05% | -62.37% | 89.76% | -77.51% | 320.2% | -21.89% | 138.02% | -392.08% | -112.27% | 623.59% | -39.89% | -24.34% | 197.2% | 21.85% | -48% | -176.12% | -26.89% | -10.26% | 2050% | -166.67% | -66.67% |
| D&A (Non-Cash Add-back) | 659K | 702K | 794K | 931K | 935K | 1.04M | 1.1M | 416K | 625K | 485K | 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 |
| EBIT | -1.38M | -1.3M | -184K | 5M | 2.3M | 1.03M | -834K | -343K | -1.02M | 3.4M | 3.69M | 100K | 1.42M | 701K | 4.95M | 801K | 1.24M | -4.84M | -777K | 6.55M | 418K | 1.06M | 1.62M | -2.69M | -3.33M | -2.83M | 1.17M | 2.3M | 2.4M | -1.9M | -700K |
| Net Interest Income | 1.58M | 1.5M | 1.81M | 1.2M | 290K | 225K | 354K | 224K | -65K | -62K | -80K | -75K | -74K | -54K | -41K | -42K | -29K | 113K | 591K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 2.08M | 1.85M | 2.05M | 1.46M | 650K | 575K | 582K | 323K | 20K | 11K | 7K | 9K | 11K | 32K | 44K | 44K | 61K | 225K | 682K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 498K | 357K | 235K | 262K | 360K | 350K | 228K | 99K | 85K | 73K | 87K | 84K | 85K | 86K | 85K | 86K | 90K | 112K | 91K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 1.56M | 1.45M | 1.45M | 2.87M | 1.98M | 2.04M | 362K | 384K | 495K | 10K | -201K | -210K | -228K | -12K | -100K | -94K | 7K | -27K | 583K | 737K | 426K | 226K | 136K | 1.46M | 348K | 190K | 561K | 400K | 300K | 800K | 1M |
| Pretax Income | -1.16M | -1.66M | -419K | 4.74M | 1.94M | 678K | -1.06M | -442K | -1.11M | 3.79M | 3.6M | 16K | 1.46M | 689K | 4.87M | 715K | 1.15M | -4.96M | -868K | 7.29M | 884K | 1.29M | 1.75M | -1.55M | -3.37M | -2.72M | 1.67M | 2.7M | 2.7M | -1.1M | 300K |
| Pretax Margin % | -2% | -2.83% | -0.76% | 7.32% | 3.57% | 1.38% | -1.72% | -0.56% | -1.52% | 3.4% | 3.48% | 0.02% | 1.72% | 0.79% | 5.74% | 0.97% | 1.21% | -5.95% | -1.13% | 7.75% | 1.28% | 2.24% | 3.31% | -4.77% | -12% | -6.49% | 2.69% | 5.22% | 4.25% | -5.64% | 1.82% |
| Income Tax | -1.06M | -1.57M | -93K | -469K | 50K | 444K | 384K | -71K | 882K | 1.29M | 996K | 226K | 121K | 321K | -1.74M | 346K | 235K | -1.17M | -461K | 3.24M | -1.13M | 517K | 540K | -168K | 2.29M | 163K | 993K | 1.4M | 1.3M | -400K | 200K |
| Effective Tax Rate % | 91.38% | 94.52% | 22.2% | -9.9% | 2.58% | 65.49% | -36.16% | 16.06% | -79.75% | 33.93% | 27.67% | 1412.5% | 8.32% | 46.59% | -35.74% | 48.39% | 20.45% | 23.67% | 53.11% | 44.45% | -127.94% | 40.17% | 30.84% | 10.82% | -67.94% | -5.99% | 59.53% | 51.85% | 48.15% | 36.36% | 66.67% |
| Net Income | -100K | -91K | -326K | 5.2M | 1.89M | 699K | -1.45M | -371K | 14.44M | 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 |
| Net Margin % | -0.17% | -0.15% | -0.59% | 8.05% | 3.47% | 1.42% | -2.34% | -0.47% | 19.8% | 2.25% | 2.52% | -0.24% | 1.58% | 0.42% | 7.79% | 0.5% | 0.96% | -4.54% | -0.53% | 4.31% | 2.86% | 1.31% | 2.29% | -4.26% | -20.15% | -6.88% | 1.09% | 2.51% | 2.2% | -3.59% | 0.61% |
| Net Income Growth % | 93.23% | 72.09% | -106.26% | 175.49% | 170.24% | 148.34% | -289.76% | -102.57% | 476.22% | -3.76% | 1340% | -115.74% | 262.5% | -94.43% | 1691.06% | -59.63% | 124.16% | -829.48% | -110.05% | 105.01% | 162.28% | -37.82% | 187.5% | 75.56% | -96.29% | -527.41% | -48.08% | -7.14% | 300% | -800% | -75% |
| Net Income (Continuing) | -100K | -91K | -326K | 5.2M | 1.89M | 234K | -1.45M | -371K | -1.99M | 2.24M | 2.6M | -210K | 1.33M | 368K | 6.61M | 369K | 914K | -3.78M | -407K | 4.05M | 1.98M | 770K | 1.26M | -1.38M | -5.66M | -2.88M | 675K | 1.3M | 1.4M | -700K | 100K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 465K | 0 | 0 | 16.43M | 263K | 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) | -0.01 | -0.01 | -0.04 | 0.55 | 0.21 | 0.06 | -0.35 | -0.09 | 3.70 | 0.63 | 0.67 | -0.06 | 0.37 | 0.10 | 1.91 | 0.10 | 0.25 | -1.06 | -0.11 | 1.03 | 0.52 | 0.20 | 0.32 | -0.39 | -1.61 | -0.81 | 0.18 | 0.35 | 0.31 | -0.17 | 0.02 |
| EPS Growth % | 89.79% | 72.85% | -106.56% | 161.9% | 277.7% | 115.89% | -287.17% | -102.44% | 487.3% | -5.97% | 1231.76% | -116% | 270% | -94.76% | 1810% | -60% | 123.58% | -863.64% | -110.68% | 98.08% | 160% | -37.5% | 182.05% | 75.78% | -98.77% | -550% | -48.57% | 12.9% | 282.35% | -855.56% | -72.76% |
| EPS (Basic) | - | -0.01 | -0.04 | 0.56 | 0.21 | 0.06 | -0.36 | -0.09 | 3.78 | 0.64 | 0.69 | -0.06 | 0.37 | 0.11 | 1.93 | 0.11 | 0.26 | -1.06 | -0.11 | 1.07 | 0.54 | 0.21 | 0.34 | -0.39 | -1.61 | -0.81 | 0.19 | 0.35 | 0.31 | -0.17 | 0.02 |
| Diluted Shares Outstanding | 9.46M | 9.3M | 9.04M | 8.94M | 8.56M | 4.21M | 4.1M | 4.1M | 3.9M | 3.82M | 3.73M | 3.55M | 3.5M | 3.44M | 3.4M | 3.48M | 3.57M | 3.58M | 3.78M | 3.93M | 3.81M | 3.82M | 3.74M | 3.53M | 3.52M | 3.54M | 3.66M | 3.71M | 4.58M | 4.1M | 4.44M |
| Basic Shares Outstanding | 9.46M | 9.3M | 9.04M | 8.76M | 8.52M | 4.13M | 4.06M | 4M | 3.82M | 3.72M | 3.61M | 3.5M | 3.45M | 3.39M | 3.36M | 3.44M | 3.54M | 3.58M | 3.78M | 3.78M | 3.69M | 3.62M | 3.56M | 3.53M | 3.52M | 3.54M | 3.57M | 3.71M | 4.46M | 4.1M | 4.44M |
| Dividend Payout Ratio | - | - | - | 12.61% | 7.25% | - | - | - | 13.3% | 68.72% | 64.13% | - | 115.82% | 376.09% | 11.35% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Lumpy defense procurement cycles
As reported in recent financial filings, CSPI's revenue growth remains highly inconsistent, fluctuating between a 23.2% contraction in 2026Q1 and a 21.8% expansion in 2026Q2, reflecting the inherent lumpiness of project-based IT solutions and the unpredictable nature of defense-related procurement cycles within the High Performance Products segment.
The erratic top-line performance suggests that the company's transition toward recurring revenue models has yet to stabilize the quarterly revenue base. Investors should monitor whether the recent growth spike in 2026Q2 represents a sustainable shift or merely a timing anomaly related to large, non-recurring hardware deployments.
Based on the company's reported income statements, gross margins have struggled to maintain consistency, oscillating between a high of 47.3% in 2024Q2 and a low of 26.6% in 2024Q1, which highlights the company's ongoing difficulty in scaling higher-margin proprietary IP against its lower-margin value-added reseller activities.
The inability to sustain gross margins above the 30% threshold suggests that the Technology Solutions segment continues to dominate the revenue mix, exerting downward pressure on overall profitability. This margin profile appears to be a direct consequence of the competitive, commoditized nature of the hardware distribution business.
According to historical income statement data, CSPI has failed to achieve positive operating leverage, as evidenced by operating margins that remained negative in eight of the last ten quarters, despite periodic revenue growth that should theoretically allow for better absorption of fixed corporate and R&D expenses.
The persistent operating losses indicate that the company's current scale is insufficient to cover its fixed cost base, particularly given the ongoing investment in the ARIA cybersecurity platform. Without a significant shift in the revenue mix toward higher-margin software, operating profitability may remain elusive for the foreseeable future.
As indicated by the provided financial statements, net income figures are frequently decoupled from operating performance, with positive net income reported in 2026Q2 despite an operating loss of $851,000, suggesting that interest income and other non-operating items are masking the underlying weakness in core business operations.
The reliance on non-operating income to achieve bottom-line profitability warrants caution, as it obscures the true operational health of the firm. Analysts should focus on operating income as the primary metric for performance, as the current net income figures appear to be bolstered by the company's substantial cash position.
Based on reported figures, SG&A expenses have remained relatively sticky, often exceeding $4 million per quarter, which suggests that management has not yet implemented the necessary cost-cutting measures to align the company's overhead structure with its current, highly variable and often stagnant revenue generation capabilities.
The high fixed cost burden relative to gross profit generation indicates a lack of operational flexibility, which may be a strategic choice to maintain capacity for future defense contracts. However, this approach appears to be detrimental to short-term profitability and requires closer scrutiny regarding the efficiency of current R&D spending.
Quick answers to the most common questions about buying CSPI stock.
For fiscal year 2025, CSP Inc. (CSPI) reported total revenue of $58.7M. This represents a 255.9% increase compared to $16.5M in 1996.
CSP Inc. (CSPI) reported a net loss of $0.1M for the fiscal year ending 2025.
CSP Inc. (CSPI) reported an operating income of $-3.1M, resulting in an operating profit margin of -5.3%. This margin reflects the operational efficiency of the business before interest and taxes.
CSP Inc. (CSPI) generated $18.5M in gross profit for the year, representing a gross profit margin of 31.5%. This demonstrates the company's core pricing power and production efficiency.