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CSP
(NASDAQ:CSPI)
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Rating:50Neutral
Price Target:
$8.00
▼(-30.13% Downside)
Action:Reiterated
Date:06/27/26
Overall score reflects a strong balance sheet and constructive FY2026/H2 growth guidance, but is held back by weak TTM profitability and negative TTM operating/free cash flow. Technicals also remain bearish (price below key moving averages and negative MACD), while valuation is difficult to support with a negative P/E and only a modest dividend yield.
Positive Factors
Strong balance sheet and liquidity
Very low leverage and a ~$23.1M cash balance provide durable financial flexibility. This supports extended customer payment terms, a small dividend and buybacks, and funds OEM/channel investments without immediate reliance on external financing, reducing solvency risk over the next several quarters.
Negative Factors
Negative operating and free cash flow (TTM)
TTM cash outflows signal weaker cash conversion from operations and higher working-capital or investment needs. Persistent negative FCF can force drawdown of cash reserves, reduce reinvestment capacity, or require external financing, constraining growth and margin improvement over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet and liquidity
Very low leverage and a ~$23.1M cash balance provide durable financial flexibility. This supports extended customer payment terms, a small dividend and buybacks, and funds OEM/channel investments without immediate reliance on external financing, reducing solvency risk over the next several quarters.
Read all positive factors
CSP Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profit from core operations for each segment after operating costs, showing which businesses are truly profitable and which may be subsidized. Useful for detecting margin differences, cost issues, or areas that boost overall earnings and for judging management’s efficiency in allocating resources.
Measures profit from core operations for each segment after operating costs, showing which businesses are truly profitable and which may be subsidized. Useful for detecting margin differences, cost issues, or areas that boost overall earnings and for judging management’s efficiency in allocating resources.
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The Fly
The FlyCSP (CSPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.89M
Dividend Yield0.95%
Average Volume (3M)19.49K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth5.47%
EPS Growth92.26%
CountryUS
Employees111
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.01
Shares Outstanding10,071,847
10 Day Avg. Volume33,055
30 Day Avg. Volume19,494
Financial Highlights & Ratios
PEG Ratio16.18
Price to Book (P/B)2.41
Price to Sales (P/S)1.83
P/FCF Ratio56.70
Enterprise Value/Market Cap0.79
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit3.44
Enterprise Value/Ebitda-21.73K
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 Inc. is a global technology company specializing in the development and distribution of a diverse array of information technology offerings. These include integrated IT solutions, advanced security products, comprehensive managed IT services, ...
How the Company Makes Money
CSPI generates revenue primarily from (1) cybersecurity products and related services and (2) IT solutions and services. In its cybersecurity business (commonly associated with ARIA), the company sells its security platform/software and associated...
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 | -3.00K | -602.00K | 610.00K | 5.93M | 3.23M | 2.06M |
| Net Income | -100.00K | -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 | 45.02M | 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
Negative
11.45
Price Trends
9.17
Negative
9.00
Negative
10.48
Negative
Market Momentum
-0.29
Positive
42.07
Neutral
32.94
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 8.64, above the 50-day MA of 9.17, and above the 200-day MA of 10.48, indicating a bearish trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.07 is Neutral, neither overbought nor oversold. The STOCH value of 32.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $196.62M | 18.56 | 11.20% | 3.03% | 1.41% | 39.19% | |
64 Neutral | $366.61M | -14.00 | -24.08% | ― | 66.50% | 52.19% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
50 Neutral | $82.89M | -663.71 | -0.22% | 0.95% | 5.47% | 92.26% | |
48 Neutral | $273.39M | -0.77 | 125.36% | ― | 0.15% | -359.97% | |
47 Neutral | $234.20M | -1.47 | -19.59% | ― | -5.40% | -172.56% | |
45 Neutral | $104.62M | -0.51 | -111.94% | ― | -3.08% | 37.75% |
* Technology Sector Average
CSPI
CSP
8.23
-4.47
-35.17%
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CNDT
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CSP Corporate Events
Executive/Board Changes
CSP Announces Chief Accounting Officer Transition and Succession
Positive
Jun 9, 2026
On June 5, 2026, CSP Inc. announced the departure of Michael Newbanks, its Vice President of Finance and Chief Accounting Officer, whose role had been temporarily extended to ensure a smooth transition of responsibilities to his successor, Eric Sa...
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.