CPS Technologies (CPSH) investor relations material

Executive summary

• Achieved record Q3 2025 revenue of $8.8 million, more than doubling year-over-year and marking the third consecutive quarter of record sales, driven by strong demand in MMC, hermetic packages, and increased SBIR funding.

• Gross margin improved to 17.1% from a gross loss in the prior year, reflecting higher sales, better absorption of fixed costs, and production efficiencies.

• Net income for Q3 2025 was just over $200,000 ($0.01 per share), compared to a net loss of $1 million ($0.07 per share) last year.

• Secured a $15.5 million power module contract with a multinational semiconductor manufacturer, a 16.5% year-over-year increase in value.

• Completed a $9.5 million public offering to fund expansion and relocation to a larger manufacturing facility.

Financial highlights

• Q3 2025 revenue was $8.8 million, up from $4.2 million in Q3 2024.

• Gross profit was $1.5 million (17.1% margin), compared to a gross loss of $500,000 (-12.3% margin) last year.

• Operating profit was $276,000, reversing a $1.5 million operating loss in Q3 2024.

• Net income was just over $200,000 ($0.01 per share), compared to a net loss of $1 million ($0.07 per share) last year.

• SG&A expenses increased to $1.2 million in Q3 2025, up from $963,000 in Q3 2024.

Outlook and guidance

• Q4 is expected to be strong but not another record due to seasonal factors and planned shutdowns.

• Fiscal 2026 is anticipated to remain strong, with continued growth in demand, new contracts, and research awards.

• The new manufacturing facility, expected to be operational in 2026, will nearly double floor space and support long-term growth.

• Margins are expected to improve further as new contracts ramp and operational efficiencies increase.

• Management expects continued cash growth from operations and sufficient liquidity for the remainder of 2025.