CPS Technologies (CPSH) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $8.1 million, up 61% year-over-year, driven by strong demand for core products and new technologies, including increased SBIR funding.

• Returned to profitability with net income of $104,000 ($0.01 per share), compared to a net loss of $954,000 ($0.07 per share) in Q2 2024.

• Gross profit margin improved to 17% in Q2 2025 from negative in Q2 2024, reflecting higher sales and better production yields.

• Strong backlog and ongoing expansion of manufacturing capacity, including a third production shift added to meet demand.

• Focused on margin expansion, operational efficiency, and innovation, with new development contracts and commercial traction for AlMax materials.

Financial highlights

• Q2 2025 revenue reached $8.1 million, a 61% increase year-over-year, with gross profit of $1.34 million (17% margin).

• Operating profit was $137,000, reversing a $1.3 million loss in Q2 2024.

• Cash and cash equivalents at June 28, 2025 were $2.4 million, with inventory rising to $5.2 million to support higher demand.

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

• SG&A expenses increased to $1.20 million in Q2 2025, mainly due to higher variable compensation and commissions.

Outlook and guidance

• On track for the best revenue year ever, with strong demand and robust pipeline expected to continue for the remainder of 2025.

• Management expects further gross margin expansion and increased profitability in the second half of 2025.

• Average order visibility is four to six months, with ongoing customer demand.

• Committed to further margin improvement through manufacturing efficiencies and modernization initiatives.

• Management expects existing resources to fund operations for the remainder of 2025.