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, increased SBIR funding, and higher gold prices.

• Secured a $15.5 million contract for power module components with a multinational semiconductor manufacturer, representing 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.

• Announced multiple new federally funded research contracts, including a $1.15 million STTR with the U.S. Army and a $125,000 SBIR with the Department of Energy.

• For the first nine months of 2025, revenue rose 61% year-over-year to $24.4 million, with net income of $408,000 versus a $2.1 million loss in the prior year.

Financial highlights

• Revenue reached $8.8 million in Q3 2025, 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–$300,000, 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) in Q3 2024.

• SG&A expenses totaled $1.2 million, up from $963,000–$1.0 million in the prior year.

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 expected from new contracts and expanded manufacturing capacity.

• The $15.5 million contract will be fulfilled steadily over 12 months, with inventory buildup planned to mitigate disruptions during the facility move.

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

• The company is actively seeking a larger facility to meet rising demand and new product development.