CSP Inc (CSPI)
NASDAQ:CSPI
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CSP
(NASDAQ:CSPI)
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Rating:47Neutral
Price Target:
$8.50
▼(-25.76% Downside)
Action:ReiteratedDate: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
A low-debt capital structure combined with nearly $25M of cash provides durable financial flexibility. This supports investment in services and product integrations, cushions execution risk during revenue volatility, and enables shareholder returns (dividend/repurchases) without stressing solvency.
Negative Factors
TTM revenue decline and negative cash generation
Negative operating and free cash flow alongside recent revenue declines indicate the company is not currently self-sustaining. Persistent cash burn raises execution risk, constrains reinvestment, and increases dependence on existing liquidity or external financing to fund growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong liquidity and low leverage
A low-debt capital structure combined with nearly $25M of cash provides durable financial flexibility. This supports investment in services and product integrations, cushions execution risk during revenue volatility, and enables shareholder returns (dividend/repurchases) without stressing solvency.
Read all positive factors
CSP (CSPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.60M
Dividend Yield0.95%
Average Volume (3M)19.49K
Price to Earnings (P/E)324.2
Beta (1Y)1.43
Revenue Growth-0.75%
EPS Growth-636.84%
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 Cap0.78
Enterprise Value/Revenue1.46
Enterprise Value/Gross Profit4.30
Enterprise Value/Ebitda-141.27
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:Feb 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Neutral
The call showed meaningful operational progress in higher-margin services, notable traction for the AZT Protect product (46 customers, multisite pipeline, OEM partnership with Acronis) and improved gross margins and net income. However, these positives were offset by a material top-line decline (total revenue -23.6%, product revenue -39.1%) largely due to a non‑recurring prior-year product order, a very high effective tax rate (75.5%) that depressed after-tax results, increased R&D spend, and timing uncertainties converting the AZT pipeline into consistent revenue. The company appears to be transitioning toward a more recurring, services-driven model with encouraging early signs, but near-term revenue volatility and execution/timing risks remain.Positive Updates
Service Revenue Growth and Managed Services Momentum
Service revenue increased 14.6% year-over-year to $5.3M (from $4.7M). Management reported that the majority of service revenue is driven by managed services and signed new MSP customers that will generate nearly six figures of additional monthly revenue (clarified as net ~ $100,000 per month of new recurring revenue beginning this quarter).
Negative Updates
Material Top-Line Decline
Total revenue decreased to $12.0M from $15.7M in the prior-year quarter (a decline of ~$3.7M, or -23.6%). Product revenue fell to $6.7M from $11.0M (-$4.3M, or -39.1%), in part due to a $4.5M one-time product deal in the year-ago quarter that did not recur.
Read all updates
Q1-2026 Updates
Positive
Negative
Service Revenue Growth and Managed Services Momentum
Service revenue increased 14.6% year-over-year to $5.3M (from $4.7M). Management reported that the majority of service revenue is driven by managed services and signed new MSP customers that will generate nearly six figures of additional monthly revenue (clarified as net ~ $100,000 per month of new recurring revenue beginning this quarter).
Read all positive updates
Company Guidance
Management said fiscal 2026 is “shaping up to be a growth year,” driven by service-led momentum, MRR expansion and expected “steady profitable improvements” with substantial operating leverage as revenue scales; Q1 metrics cited include total revenue $12.0M (versus $15.7M prior year, which included a ~$4.5M one‑time product deal), product revenue $6.7M, service revenue up 14.6% to $5.3M, gross profit $4.7M (+$171K y/y) and gross margin 39.3% (vs. 29.1% prior), R&D up 9.2% ($858K) to support AZT customization/OEM work, SG&A $4.0M (down $143K), net income $91K (vs. $42K) and diluted EPS $0.01 (vs. $0.05), cash $24.9M (12/31/25) with roughly $3.3M of financing payments expected over the next two quarters, a $0.03/share dividend payable Mar 12, new MSP wins adding nearly six‑figures of monthly revenue (~$100K/month net new), AZT Protect serving 46 unique customers with multisite opportunities that could become seven‑figure relationships, an Acronis webinar that drew ~200 attendees and generated >12 demo requests, and share repurchases slated to resume within ~48 hours.CSP Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
72
Positive
Cash Flow
34
Negative
| 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
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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $192.60M | 29.80 | 9.87% | 3.03% | -1.16% | 237.57% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
58 Neutral | $342.50M | -5.71 | -31.77% | ― | 52.21% | 31.30% | |
50 Neutral | $141.46M | -0.25 | -85.51% | ― | -3.13% | 41.22% | |
48 Neutral | $265.22M | -1.68 | -20.84% | ― | -9.36% | -151.22% | |
47 Neutral | $102.60M | 324.24 | -1.02% | 0.95% | -0.75% | -636.84% | |
45 Neutral | $188.77M | 2.63 | 126.78% | ― | -2.90% | -69.87% |
* Technology Sector Average
CSPI
CSP
9.29
-7.55
-44.83%
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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.