CPS Technologies (CPSH) investor relations material

Executive summary

• Achieved record Q2 2025 revenue of $8.1M, up 61% year-over-year, driven by strong demand, new contracts, and increased manufacturing output.

• Gross profit margin improved to 16.5–17% from a loss last year, reflecting higher sales and better production yields.

• Net income was $100K–$104K ($0.01/share), reversing a net loss of $900K–$954K in Q2 2024.

• First half 2025 revenue rose 42% to $15.6M, with net income of $200K versus a $1.1M loss prior year.

• Secured a fourth SBIR contract and first commercial order for AlMax™ material, supporting growth in defense and advanced materials.

Financial highlights

• Q2 2025 revenue: $8.1M, up from $5.0M in Q2 2024 (61% increase).

• Gross profit: $1.3M (16.5–17% margin) vs. gross loss of $200K–$230K last year.

• Operating profit: $100K–$137K vs. operating loss of $1.3M last year.

• Cash and equivalents at quarter end: $2.4M–$3.4M, with inventory up to $5.2M from $4.3M at year start.

• No borrowings under $3.0M line of credit as of June 28, 2025.

Outlook and guidance

• Management expects continued strong revenue and margin expansion, on track for best revenue year ever.

• Focus on improving manufacturing efficiencies, capacity utilization, and profitability.

• Robust demand pipeline with 4–6 months order visibility and opportunities in wind turbine and HVDC markets.

• Existing resources expected to fund operations for the remainder of 2025.

• Monitoring impact of new tax legislation on future tax rates and deferred tax assets.