CPS Technologies (CPSH) investor relations material

Executive summary

• Q2 2026 revenue increased to $8.3 million, up 3% year-over-year, driven by strong demand in semiconductor, defense, and other sectors, though partially offset by lower power electronics orders.

• Gross margin was 14.8%–15%, down from 16.5%–17% last year due to higher material and gold costs, but improved 620 basis points sequentially from Q1.

• SG&A expenses rose to $1.49 million, mainly from increased stock-based compensation and legal costs.

• Operating loss was $185,566–$259,000, compared to operating income of $100,000–$137,000 last year; net income was $37,747–$40,000, down from $100,000–$104,000.

• Successfully raised $9.6 million in gross proceeds through a secondary offering in May 2026, strengthening the balance sheet and supporting growth initiatives.

Financial highlights

• Q2 2026 revenue: $8,309,323, up from $8,078,657 in Q2 2025; H1 2026 revenue: $15.3 million (down from $15.6 million YoY).

• Gross profit for Q2 2026 was $1,228,789 (14.8% margin), down from $1,336,316 (16.5%) last year, but up 620 basis points from Q1.

• SG&A expenses increased to $1,487,316 from $1,199,389 year-over-year, reflecting higher stock-based compensation.

• Net income for Q2 2026 was $37,747–$40,000 ($0.00/share), compared to $100,000–$104,000 ($0.01/share) last year; H1 2026 net loss was $256,000.

• Cash and cash equivalents at June 27, 2026: $15.4 million; marketable securities: $3.8 million; inventory increased to $8.6 million.

Outlook and guidance

• Shipments expected to continue at a similar pace as Q2, supported by a strong order backlog and robust demand.

• Optimism for the remainder of 2026 and beyond, with expanding demand in energy, AI, defense, and semiconductors.

• Anticipates new facility will drive improved performance and margin expansion in 2027 and beyond.

• Management expects to fund operations for the remainder of 2026 from existing cash and operations.

• No formal forward guidance provided; ongoing risks from inflation, tariffs, global conflicts, and supply chain disruptions.