CPS Technologies (CPSH) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenue of $32.6 million in 2025, a 54% increase year-over-year, marking the highest in company history and a strong recovery from the prior year, driven by strong demand and expanded production.

• Fourth quarter revenue reached $8.2 million, up from $5.9 million in Q4 2024, driven by robust product demand and expanded production.

• Completed a secondary/public offering in Q4 2025, raising $9.5 million in net proceeds to support growth, facility expansion, and general corporate purposes.

• Actively progressing on relocating to a larger manufacturing facility to address space constraints and support future growth, with Dacon Corporation selected as general contractor.

• Gross margin improved to 14.6% in Q4 2025 from a gross loss in Q4 2024, reflecting higher sales and production efficiencies.

Financial highlights

• Annual revenue for 2025 was $32.6 million, up from $21.1 million in 2024.

• Q4 gross profit was $1.2 million (14.6% of sales), reversing a gross loss of $0.3 million in Q4 2024 due to higher revenue and manufacturing efficiencies.

• Q4 net income was $12,000 ($0.00 per share), compared to a net loss of $1 million ($0.07 per share) in Q4 2024.

• Operating loss for Q4 was about $100,000, a significant improvement from $1.3 million loss last year.

• Net income for the full year 2025 was $420,354, compared to a net loss of $3.1 million in 2024.

• Ended the year with $4.5 million in cash and $8.8 million in marketable securities.

• SG&A expenses were $1.3 million in Q4, up from $1.0 million in the prior year, reflecting investment in growth and higher variable compensation.

• Inventories increased to $4.5 million at year-end, reflecting higher production and demand.

• Trade accounts receivable at year-end were $5.2 million, up from $4.9 million.

• Payables and accruals totaled $4.3 million at year-end, up from $4.0 million.

• Cash and cash equivalents at year-end 2025 were $4.5 million, up from $3.3 million at year-end 2024.

Outlook and guidance

• Management expects another year of strong revenue, continued margin expansion, and a positive outlook for 2026 as the company completes its facility relocation and positions for long-term growth.

• Anticipates operational efficiencies, improved margins, and expanded product offerings once the new facility is operational.

• Orders for HybridTech Armor supporting the U.S. Navy are expected to resume in the latter half of 2026.