CSP (CSPI) Q4 2025 earnings summary

Executive summary

• Fourth quarter revenue increased 11% year-over-year to $14.5 million, driven by strong services and technology solutions performance.

• Gross margin expanded by over 800 basis points to 37% in Q4, reflecting a higher mix of services revenue.

• Service revenue grew 63% year-over-year in Q4, now representing 44% of total revenue, up from 30% a year ago.

• Net loss narrowed to $191,000 ($0.02 per share) in Q4, compared to net income of $1.7 million ($0.18 per share) last year.

• Entered fiscal 2026 with momentum in new customer acquisitions, especially for AZT PROTECT.

Financial highlights

• Q4 revenue was $14.5 million, up from $13 million in the prior year quarter.

• Q4 gross profit was $5.3 million (37% margin), up from $3.7 million (28% margin) year-over-year.

• Full-year 2025 revenue grew 6% to $58.7 million, with gross profit at $18.5 million (32% margin) compared to $18.9 million (34%) prior year.

• Full-year net loss was $91,000 ($0.01 per share), improved from a $326,000 loss ($0.04 per share) last year.

• Cash and cash equivalents at year-end: $27.4 million, down 10% year-over-year.

Outlook and guidance

• Positioned for increased momentum and growth in fiscal 2026, with a strong balance sheet and infrastructure investments.

• Expecting to leverage revenue growth and generate consistent profitability improvements in 2026.

• Brand awareness initiatives and new features for AZT PROTECT expected to drive higher customer adoption in fiscal 2026.

• Backlog for cruise ship installations and upgrades expected to convert to revenue over the next 12 months.

• Anticipate further expansion in the industrial IoT cybersecurity market.