CSP Inc (CSPI)
NASDAQ:CSPI
Want to see CSPI full AI Analyst Report?
Top Page
CSP
(NASDAQ:CSPI)
Select Model
Select Model
Rating:52Neutral
Price Target:
$9.50
▼(-17.03% Downside)
Action:ReiteratedDate:05/09/26
CSPI scores as neutral: a strong, low-leverage balance sheet is offset by weak recent profitability and negative TTM operating/free cash flow. The earnings call adds moderate support via growth guidance and AZT Protect momentum, but valuation remains stretched (high P/E) and technicals are mixed without a clear uptrend.
Positive Factors
Balance sheet strength
Very low leverage (debt-to-equity ~0.03) provides durable financial flexibility. This lowers refinancing and insolvency risk, lets management fund R&D, OEM integrations and extended customer terms, and supports dividends/buybacks without immediate liquidity stress across quarters.
Negative Factors
Negative cash generation
Operating and free cash flow turning negative on a TTM basis is a material concern. Persistent negative cash generation constrains reinvestment in R&D and go-to-market, forces use of cash reserves or financing, and reduces flexibility to sustain multi-quarter growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Very low leverage (debt-to-equity ~0.03) provides durable financial flexibility. This lowers refinancing and insolvency risk, lets management fund R&D, OEM integrations and extended customer terms, and supports dividends/buybacks without immediate liquidity stress across quarters.
Read all positive factors
CSP (CSPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$92.36M
Dividend Yield0.95%
Average Volume (3M)19.49K
Price to Earnings (P/E)82.5
Beta (1Y)1.40
Revenue Growth5.47%
EPS Growth92.26%
CountryUS
Employees111
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding9,913,027
10 Day Avg. Volume33,055
30 Day Avg. Volume19,494
Financial Highlights & Ratios
PEG Ratio16.20
Price to Book (P/B)2.41
Price to Sales (P/S)1.83
P/FCF Ratio56.70
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.21
Enterprise Value/Gross Profit3.69
Enterprise Value/Ebitda-110.04
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ...
How the Company Makes Money
CSPI makes money primarily by selling cybersecurity and IT-related products and by providing ongoing services tied to those offerings. Revenue is generated from (1) product and solution sales, which can include security software and IT infrastruct...
CSP Key Performance Indicators (KPIs)
CSP Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call conveyed cautious optimism: meaningful commercial traction for AZT Protect (60+ customers, doubled land-and-expand orders, large multisite cement agreement) and a return to quarterly profitability supported by a strong cash position ($23.1M) and service margin expansion. However, growth was partly driven by a large one-time order, product gross margins compressed, six-month revenue was slightly down, and multi-site expansion timelines remain elongated due to customer procurement dynamics. Management highlighted progress on OEM and channel strategies but acknowledged execution and timing risks.Positive Updates
Product Revenue Growth
Product revenue grew 30% year-over-year to $11.1 million in Q2 FY2026, driven primarily by a large one-time purchase order and continued demand for AZT Protect.
Negative Updates
Quarterly Gross Margin Compression
Q2 gross margin fell to 28% of sales from 32% in the year-ago quarter; product gross margin declined to 15% from 18%, indicating margin pressure on product sales during the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
Product Revenue Growth
Product revenue grew 30% year-over-year to $11.1 million in Q2 FY2026, driven primarily by a large one-time purchase order and continued demand for AZT Protect.
Read all positive updates
Company Guidance
Management guided that fiscal 2026 is shaping up to be a growth year, expecting sustained top‑ and bottom‑line growth in H2 and full‑year growth versus last year, driven by AZT Protect and services momentum; key targets and progress items include >60 unique AZT Protect customers, more than 10 land‑and‑expand orders in Q2 (double Q2 2025), a three‑year deal covering 2+ dozen U.S. sites with six‑figure annual revenue to be recorded in Q3 and upside to 100+ global sites, an expectation to begin Acronis OEM revenue by year‑end, and continued multisite deployments via roughly 10 channel partners. Financial and operational metrics cited: product revenue up 30% (product revenue reported at $11.1M), service revenue up ~6.6–7% to $4.9M (managed services +11%), Q2 gross profit $4.5M and gross margin 28% (product GM 15%, service GM 57%), service gross margin +100 basis points YoY, R&D $818k (+7%), SG&A $4.5M (+2%), interest income +27.9%, Q2 net income $264k ($0.03/sh) after a $568k tax benefit (vs prior‑year loss $108k), six‑month revenue $28M (vs $28.8M prior), six‑month gross profit $9.2M (33% of sales) and YTD net income $355k ($0.04/sh), cash $23.1M, extended terms on >30 transactions, share buyback of 15,510 shares, and a $0.03/share dividend payable 06/15/2026 (record 05/21/2026); product technical metrics highlighted ~1–2% CPU utilization and ~16MB memory footprint to support wins on legacy OT hardware.CSP Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
36
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 57.96M | 58.73M | 55.22M | 64.65M | 54.36M | 49.21M |
| Gross Profit | 18.95M | 18.51M | 18.86M | 21.92M | 18.83M | 16.15M |
| EBITDA | -635.00K | -602.00K | 610.00K | 5.93M | 3.23M | 2.06M |
| Net Income | -116.00K | -91.00K | -326.00K | 5.20M | 1.89M | 699.00K |
Balance Sheet | ||||||
| Total Assets | 70.32M | 71.16M | 69.44M | 65.90M | 75.06M | 62.97M |
| Cash, Cash Equivalents and Short-Term Investments | 23.10M | 27.42M | 30.59M | 25.22M | 23.98M | 20.01M |
| Total Debt | 2.07M | 2.58M | 4.67M | 2.95M | 5.18M | 4.01M |
| Total Liabilities | 25.30M | 26.61M | 22.17M | 19.76M | 36.10M | 28.93M |
| Stockholders Equity | 70.32M | 44.55M | 47.27M | 46.15M | 38.96M | 34.05M |
Cash Flow | ||||||
| Free Cash Flow | -5.23M | 1.89M | 4.02M | 3.63M | 2.44M | 1.80M |
| Operating Cash Flow | -4.79M | 2.27M | 4.21M | 3.91M | 2.67M | 1.90M |
| Investing Cash Flow | -493.00K | -428.00K | -256.00K | -341.00K | 20.00K | -166.00K |
| Financing Cash Flow | -1.13M | -5.04M | 1.38M | -2.40M | 1.33M | -954.00K |
CSP Technical Analysis
Positive
11.45
Price Trends
8.91
Positive
10.52
Negative
11.10
Negative
Market Momentum
0.03
Negative
56.28
Neutral
66.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Positive. The current price of 11.45 is above the 20-day moving average (MA) of 8.53, above the 50-day MA of 8.91, and above the 200-day MA of 11.10, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 56.28 is Neutral, neither overbought nor oversold. The STOCH value of 66.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSPI.
CSP Risk Analysis
CSP disclosed 26 risk factors in its most recent earnings report. CSP reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $192.60M | 16.88 | 11.20% | 3.03% | 1.41% | 39.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $351.12M | -10.17 | -31.77% | ― | 52.21% | 31.30% | |
52 Neutral | $92.36M | 82.50 | -1.02% | 0.95% | 5.47% | 92.26% | |
48 Neutral | $272.97M | -2.05 | -20.84% | ― | -9.36% | -151.22% | |
47 Neutral | $131.86M | -3.99 | -109.18% | ― | -3.08% | 37.75% | |
47 Neutral | $231.84M | -1.04 | 324.90% | ― | 0.15% | -359.97% |
* Technology Sector Average
CSPI
CSP
9.17
-6.66
-42.06%
III
Information Services Group
4.04
-0.58
-12.59%
TTEC
TTEC Holdings
2.71
-2.61
-49.06%
UIS
Unisys
3.18
-2.01
-38.73%
CNDT
Conduent
1.76
-0.54
-23.48%
TLS
Telos
4.48
1.95
77.08%
CSP Corporate Events
Executive/Board Changes
CSP Announces Leadership Transition and New Board Appointment
Neutral
Mar 16, 2026
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 compan...
Executive/Board ChangesShareholder Meetings
CSP Shareholders Back Board, Executive Pay and Auditors
Positive
Feb 13, 2026
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 unti...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.