CSP (CSPI) AI Stock Analysis

• Market Cap: $82.48M
• Dividend Yield: 0.95%
• Average Volume (3M): 19.49K
• Price to Earnings (P/E): 324.2
• Beta (1Y): 1.47
• Revenue Growth: 6.36%
• EPS Growth: 73.88%
• Country: US
• Employees: 111
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): <0.01
• Shares Outstanding: 9,913,027
• 10 Day Avg. Volume: 33,055
• 30 Day Avg. Volume: 19,494
• PEG Ratio: 16.20
• Price to Book (P/B): 2.41
• Price to Sales (P/S): 1.83
• P/FCF Ratio: 56.70
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 1.09
• Enterprise Value/Gross Profit: 3.22
• Enterprise Value/Ebitda: -105.73
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 47 Neutral
• Price Target: $8.00 ▼(-30.13% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is primarily held back by weak financial performance (TTM revenue decline, operating losses, and negative operating/free cash flow) and bearish technicals (price below key moving averages with negative MACD). The earnings call provides partial offset through improved margins, growing services momentum, and constructive FY2026 commentary, but execution and revenue volatility risks remain. Valuation is also constrained by the negative P/E despite a modest dividend yield.

Positive Factors

Strong liquidity and low leverage

Substantial cash reserves and limited near-term financing obligations provide a multi-quarter runway to fund the services transition, support R&D for AZT integrations, and absorb operating variability. This reduces refinancing risk and enables shareholder returns while execution risks are resolved.

Recurring services momentum and margin expansion

A shift toward higher-margin managed services is materially improving unit economics. Growing MRR and service wins create more predictable revenue and operating leverage as fixed costs spread, supporting sustainable margin improvement if Microsoft/Azure MSP and MSP client growth continues.

Product traction and strategic partnerships

AZT Protect’s multisite adoption and an OEM embedding with Acronis establish distribution scale and stickiness. Strategic partnerships shorten GTM cycles, enable upsell across sites, and increase odds that pipeline converts to multi-year, higher-value contracts supporting long-term recurring revenue growth.

Negative Factors

TTM revenue decline and operating losses

Sustained top-line weakness and recurring operating losses undermine durable profitability. Even with recent gross margin gains, the company has not consistently converted revenue into positive operating income, making the recovery dependent on execution risks and stable demand.

Deteriorated cash generation

A recent shift to negative operating and free cash flow strains internal funding for growth initiatives. Continued cash burn would force slower product rollouts, cutbacks in sales/marketing, or external financing, which could dilute returns or slow the services scaling needed for durable improvement.

Revenue concentration and timing risk

Dependence on occasional large product transactions creates quarter-to-quarter volatility that hampers predictable growth and operating leverage. Coupled with variable procurement and multisite deployment timing for AZT, this concentration risks delay durable conversion of pipeline into steady recurring revenue.

CSP Business Overview & Revenue Model

Company Description

CSP (CSPI) is a technology-driven company specializing in high-performance computing and advanced engineering solutions. The company operates primarily in two sectors: High-Performance Computing (HPC) and IT Services. CSP designs and manufactures a range of products, including servers, storage solutions, and networking equipment, while also providing tailored IT services that enhance computational efficiency and reliability for various industries, including government, healthcare, and education.

How the Company Makes Money

CSP generates revenue through multiple streams, primarily by selling its proprietary high-performance computing hardware and software solutions. The company also earns money from service contracts and consulting fees related to the deployment and maintenance of its computing systems. Key revenue streams include direct product sales, ongoing service agreements, and custom engineering projects for clients. CSP has established significant partnerships with technology providers and industry leaders, which enhance its market reach and contribute to revenue growth. Additionally, the company's focus on innovative solutions in HPC positions it to capitalize on the increasing demand for advanced computing capabilities across various sectors.

CSP Financial Statement Overview

Summary

Overall fundamentals are mixed: a solid balance sheet with low leverage is outweighed by weak recent operating performance and cash generation. Income statement trends show TTM revenue decline and operating losses, while cash flow is a key concern with negative operating and free cash flow versus prior years.

Income Statement

TTM (Trailing-Twelve-Months) results show revenue down (~6%) with continued operating losses (negative EBIT/EBITDA) and a small net loss, signaling weaker profitability versus prior years. Gross margin remains fairly steady in the low-to-mid 30% range, but the company has not been able to convert that into bottom-line profits recently. The multi-year picture is volatile: strong profitability in 2023 contrasts with losses in 2024, annual 2025, and TTM, which raises concern about earnings durability.

Balance Sheet

Leverage appears low with modest total debt (about $2.7M TTM) against a sizable equity base, suggesting balance-sheet risk is contained. Equity has also grown materially versus recent annual periods (TTM equity higher than annual 2024/2025 levels provided), supporting financial flexibility. The key weakness is returns: return on equity is negative in TTM and recent annual periods, reflecting that the balance sheet is strong but currently not producing attractive shareholder returns.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation deteriorated meaningfully, with negative operating cash flow and negative free cash flow, and a sharp drop in free-cash-flow growth versus the prior annual periods shown. This is a notable shift from 2024 and 2023, when the company produced solid positive operating and free cash flow. While the recent net loss is small, cash burn in TTM suggests working-capital or operating pressures that elevate near-term execution risk.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	55.10M	58.73M	55.22M	64.65M	54.36M	49.21M
Gross Profit	18.68M	18.51M	18.86M	21.92M	18.83M	16.15M
EBITDA	-569.00K	-602.00K	610.00K	5.93M	3.23M	2.06M
Net Income	-472.00K	-91.00K	-326.00K	5.20M	1.89M	699.00K
Balance Sheet
Total Assets	69.15M	71.16M	69.44M	65.90M	75.06M	62.97M
Cash, Cash Equivalents and Short-Term Investments	24.93M	27.42M	30.59M	25.22M	23.98M	20.01M
Total Debt	2.71M	2.58M	4.67M	2.95M	5.18M	4.01M
Total Liabilities	24.34M	26.61M	22.17M	19.76M	36.10M	28.93M
Stockholders Equity	44.81M	44.55M	47.27M	46.15M	38.96M	34.05M
Cash Flow
Free Cash Flow	-2.82M	1.89M	4.02M	3.63M	2.44M	1.80M
Operating Cash Flow	-2.39M	2.27M	4.21M	3.91M	2.67M	1.90M
Investing Cash Flow	-486.00K	-428.00K	-256.00K	-341.00K	20.00K	-166.00K
Financing Cash Flow	-2.92M	-5.04M	1.38M	-2.40M	1.33M	-954.00K

CSP Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Negative. The current price of 11.45 is above the 20-day moving average (MA) of 8.85, above the 50-day MA of 10.14, and below the 200-day MA of 11.48, indicating a bearish trend. The MACD of -0.43 indicates Negative momentum. The RSI at 34.50 is Neutral, neither overbought nor oversold. The STOCH value of 43.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CSPI.

CSP Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
III	66 Neutral	$186.41M	29.80	9.87%	3.03%	-5.74%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
TLS	55 Neutral	$298.35M	-5.71	-31.77%	―	17.44%	41.97%
TTEC	50 Neutral	$148.12M	-0.25	-85.51%	―	-5.70%	94.70%
CSPI	47 Neutral	$82.48M	324.24	-1.02%	0.95%	6.36%	73.88%
UIS	45 Neutral	$164.18M	2.63	126.78%	―	-4.93%	18.65%
CNDT	43 Neutral	$179.46M	-1.68	-20.84%	―	-12.45%	-142.77%

CSP Corporate Events

CSP Announces Leadership Transition and New Board Appointment

CSP Inc. announced leadership changes on March 10, 2026, as longtime finance executive Michael Newbanks resigned as vice president of finance and chief accounting officer, effective May 15, 2026, after serving in senior finance roles at the company and its Modcomp subsidiary since 2003. The company emphasized that his departure did not stem from any disagreement over operations or policies and expects him to remain through the transition and later provide consulting services.

To ensure continuity in its finance function and board governance, the board appointed Eric Sachs, a seasoned finance leader and CPA with experience at Trajector, Inc. and NASDAQ-listed Nicholas Financial, Inc., to assume the chief accounting officer role beginning May 15, 2026, with equity-based and performance-linked compensation. The board also filled a vacant directorship by electing cybersecurity specialist James J. LaBonty, who will sit on the nominating and compensation committees, potentially strengthening CSP Inc.’s financial oversight and cyber-focused strategic capabilities.

The most recent analyst rating on (CSPI) stock is a Hold with a $8.50 price target. To see the full list of analyst forecasts on CSP stock, see the CSPI Stock Forecast page.

CSP Shareholders Back Board, Executive Pay and Auditors

At CSP’s 2026 Annual Meeting held on February 10, 2026, shareholders representing 7,765,027 shares formed a quorum and elected four directors, Victor Dellovo, Ismail “Izzy” Azeri, Anthony Folger, and Stephen Webber, to serve until the 2027 Annual Meeting. Investors also approved on an advisory basis the compensation of the company’s named executive officers and ratified CBIZ US, LLP as CSP’s independent auditors for fiscal 2026, reinforcing continuity in both leadership and external financial oversight.

These voting outcomes indicate strong shareholder support for the existing board slate, executive pay practices, and audit arrangements, suggesting stability in CSP’s governance framework. Such continuity may provide stakeholders with confidence in the company’s strategic direction and financial reporting integrity as it moves through the 2026 fiscal year.

The most recent analyst rating on (CSPI) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on CSP stock, see the CSPI Stock Forecast page.