CSP (CSPI) Q2 2025 earnings summary

Executive summary

• Fiscal Q2 2025 revenue was $13.1M, down from $13.7M in Q2 2024, reflecting the absence of a one-time multi-million dollar deal last year.

• Net loss for Q2 2025 was $0.1M ($0.01 per diluted share), compared to net income of $1.6M ($0.16 per share) in Q2 2024.

• AZT Protect pipeline expanded globally, signing new customers, including a major South African cell tower provider, and growing its pipeline fivefold.

• New reseller partnerships were established, including Rexel USA, and international expansion continued with Oryx Industries in South Africa.

• Board declared a $0.03 per share quarterly dividend, payable June 11, 2025.

Financial highlights

• Q2 2025 revenue was $13.1M, down 4% year-over-year; six-month revenue was $28.8M, down 1% year-over-year.

• Q2 gross profit was $4.2M (32% margin), down from $6.5M (47% margin) in Q2 2024.

• Q2 net loss was $0.1M; six-month net income was $0.4M ($0.04 per share).

• Q2 operating loss was $1.0M, compared to $1.2M operating income last year.

• Cash and cash equivalents at quarter-end were $29.5M, with no long-term debt.

Outlook and guidance

• Management expects available cash, operations, and credit line to be sufficient for at least 12 months.

• AZT Protect pipeline is expected to expand into larger six- and seven-figure contracts over the next 18–24 months.

• Focus remains on maximizing AZT Protect growth, leveraging TS business profitability, and resource management for new product launches.

• Ongoing remediation of internal control weaknesses and adaptation to trade and geopolitical risks.