CPS Technologies (CPSH) Q3 2025 earnings summary

Executive summary

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

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

• 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, reflecting a 16.5% year-over-year increase in value.

• Completed a secondary public offering, raising $9.5 million in net proceeds to fund a move to a larger manufacturing facility and support expansion.

Financial highlights

• Revenue for Q3 2025 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 margin was 2.4% for the quarter.

• SG&A expenses were $1.2 million, up from $963,000 in the prior year due to higher compensation, commissions, and FX impacts.

Outlook and guidance

• Management expects 2025 to be the best sales year ever, with continued focus on margin expansion and operational improvements.

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

• 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.

• Proceeds from the $9.5 million equity raise will fund facility expansion and capital expenditures.