CSP Inc. (CSPI) Market Cap
CSP Inc. has a market capitalization of $83.6M.
Price: $8.30
▼ -0.60 (-6.74%)
Market Cap: 83.60M
NASDAQ · time unavailable
CEO: Victor J. Dellovo
Sector: Technology
Industry: Information Technology Services
IPO Date: 1982-01-29
Website: https://www.cspi.com
CSP Inc. (CSPI) - Company Information
Market Cap: 83.60M|Sector: Technology
Company Profile
CSP Inc. develops and markets IT integration solutions, security products, managed IT services, purpose built network adapters, and cluster computer systems for commercial and defense customers worldwide. It operates in two segments, Technology Solutions and High Performance Products. The Technology Solutions segment provides third-party computer hardware and software as a value added reseller to various customers in Web and infrastructure hosting, education, telecommunications, healthcare services, distribution, financial and professional services, and manufacturing industries. This segment also offers professional IT consulting services, such as planning, designing, assessment, implementation, migration, optimization, and project management; storage and virtualization solutions; enterprise security intrusion prevention, network access control, and unified threat management services; and IT security compliance services. In addition, this segment provides unified communications, wireless, and routing and switching solutions; custom software applications and solutions development and support services; optimization, maintenance, and technical support services; and managed IT services, such as monitoring, reporting, and management of alerts for the resolution and preventive general IT, as well as IT security support tasks. Further, this segment offers managed and cloud services, such as proactive monitoring and remote management of IT infrastructure, managed and hosted unified communication services, security, and backup and replication. The High Performance Products segment offers ARIA Software-Defined Security, a cybersecurity solution; Myricom network adapters; and multicomputer products for digital signal processing applications in the defense markets. CSP Inc. was incorporated in 1968 and is headquartered in Lowell, Massachusetts.
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Price & Moving Averages
🎯 Wall Street Analyst Intelligence Report
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Consensus Trend Projection
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Analyst Vote Distribution
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📊 Historical Valuation Multiples
Real-time Trailing Twelve Month (TTM) momentum side-by-side with discrete quarterly metrics.
| Fiscal Quarter | TTM | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|---|---|---|---|---|
| Period Ending | Trailing 12M | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 |
| Market Cap ($M) | 84 | 82 | 118 | 108 | 121 | 143 | 147 | 118 | 139 |
| Enterprise Value ($M) | 63 | 61 | 96 | 83 | 96 | 114 | 119 | 93 | 111 |
| Price to Earnings Ratio (P/E) | -785.26 | 77.50 | 324.24 | -141.52 | -114.72 | -331.76 | 77.66 | -17.89 | -187.25 |
| Price/Earnings-to-Growth Ratio (PEG) | — | 2.35 | — | — | -6.55 | — | 3.84 | — | — |
| Price to Sales Ratio (P/S) | 1.44 | 5.11 | 9.81 | 7.47 | 7.84 | 10.90 | 9.36 | 9.09 | 10.57 |
| Price to Book Ratio (P/B) | 1.74 | 1.82 | 2.63 | 2.43 | 2.55 | 3.02 | 3.09 | 2.51 | 2.88 |
| Price to Free Cash Flow Ratio (P/FCF) | -15.97 | -161.42 | -39.07 | 65.77 | -36.17 | 75.23 | 86.55 | -77.49 | 58.91 |
| Enterprise Value to Sales (EV/Sales) | — | 3.80 | 7.96 | 5.76 | 6.22 | 8.71 | 7.57 | 7.10 | 8.44 |
| Enterprise Value to EBITDA (EV/EBITDA) | -87.26 | -89.56 | 144.29 | 2135.40 | -129.73 | -215.59 | 188.00 | -60.07 | -22130.82 |
| Debt to Equity Ratio | 29.33 | 0.05 | 0.06 | 0.06 | 0.03 | 0.01 | 0.06 | 0.10 | 0.02 |
⚡ CSPI Growth Runway Model
Standard long term linear growth fadeMulti-Stage Discounted Cash Flow Sandbox
Growth runway slowdown
This value provides a time window for the growth rate to decline beyond Stage 1 toward the terminal rate. Longer windows are most useful for companies with high growth starting conditions or strong competitive advantages. This option stretches out the growth rate slowdown across 5, 10, or 15-year steps. A high-growth starting condition (exceeding a 25% initial growth rate) automatically applies a curve decay to simulate realistic, rapid market saturation.Terminal growth rate
With long-term inflation between 3-5%, revenue must grow by that baseline to maintain flat real-world market share. This value sets the permanent terminal growth rate to factor into the valuation beyond the growth slowdown runway toward maturity.3-Stage Financial Runway Horizon
🧠 Perpetuity Horizon Engine (Stage 3: Post-2035)
📘 Full Research Report
AI-Generated Research: This report is for informational purposes only.
📰 Market News & Coverage
15 Stories AvailableReal-time institutional reporting and market updates for CSPI.
CSPI Earnings Ascend Y/Y in Q2, Revenues Increase 21.8%
CSP sees 21.8% y/y revenue growth in Q2, driven by strong product sales and expanding service business.
CSP Inc. (CSPI) Q2 2026 Earnings Call Transcript
CSP Inc. (CSPI) Q2 2026 Earnings Call Transcript
CSPi Achieves 21.8% Revenue Growth and Profitability for FY 2026 Second Quarter
Rising Initial AZT PROTECT Site Deployments Generating System-wide Opportunities to Support Longer Term Growth; Recent Q3 AZT PROTECT Engagements, Technology Solutions Momentum & Continued Services Growth Enhances Second Half Growth Potential Conference Call Today at 10 a.m. ET LOWELL, MA / ACCESS Newswire / May 7, 2026 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced 21.8% revenue growth and profitability for the fiscal second quarter ended March 31, 2026.
CSPi to Announce Fiscal Second Quarter Results on May 7, 2026
LOWELL, MA / ACCESS Newswire / May 5, 2026 / CSPi (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, announced that it will issue its fiscal 2026 second quarter financial results before the open of the market on Thursday, May 7, 2026. CSPi President and Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W.
Aria Cybersecurity Secures Agreement With One of the Largest US Cement Producers
AZT PROTECT™ to be deployed at the largest cement production plant sites to secure production from attacks while lowering operating costs BOSTON, MA / ACCESS Newswire / April 23, 2026 / ARIA Cybersecurity, a CSPi business (NASDAQ:CSPI), announces a major new customer deployment agreement to deploy of ARIA's flagship solution, AZT PROTECT™, to protect Cement plant operations at one of the largest US cement producers. The cement industry has been a top target of cybercrime, including sponsored ransomware.
Service Provider Deploys ARIA Cybersecurity's ADR & AZT PROTECT(TM) Solution to Protect Its AI Cloud-Based Service Infrastructure
LOWELL, MA / ACCESS Newswire / March 31, 2026 / ARIA Cybersecurity, a CSPi business (NASDAQ:CSPi), announced its first deployment of AZT PROTECT™ and ADR across an entire cloud-based services' production infrastructure. A leader in cloud-based commercial content automation services deployed AZT PROTECT in combination with ARIA ADR as a managed service to lock down and protect their operations' critical applications, processes, and infrastructure from attacks.
CSPi Technology Solutions Recognized on CRN's 2026 MSP 500 List
BOCA RATON, FL / ACCESS Newswire / March 30, 2026 / CSPi Technology Solutions (NASDAQ:CSPI), a solution provider delivering managed IT, professional IT, and cloud services, announced today that CRN, a brand of The Channel Company, has named CSPi Technology Solutions to its 2026 Managed Service Provider (MSP) 500 list in the Elite 150 category, marking the sixth consecutive year the company has received this industry recognition. CRN's annual MSP 500 list recognizes the leading managed service providers in North America that are driving innovation and delivering high-value managed services that enable organizations to improve operational efficiency, optimize IT investments, and successfully navigate increasingly complex technology environments.
CSPi Enhances Board of Director Capabilities with Addition of Cybersecurity Expert
Company Plans to Leverage Proven Success within Operational Technology (OT) Market to Accelerate Adoption of AZT PROTECT LOWELL, MA / ACCESS Newswire / March 17, 2026 / CSPi (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, yesterday announced that James J. LaBonty, a cybersecurity industry veteran, has been appointed as a director of the Company.
ARIA Cybersecurity Announces a Leading Pet Food Producer Deploys AZT PROTECT(TM)
ARIA's AZT PROTECT™ protects fresh food production infrastructure from attacks while locking down critical systems from production disruptions BOSTON, MASSACHUSETTS / ACCESS Newswire / March 4, 2026 / ARIA Cybersecurity, a CSPi business (NASDAQ:CSPi), announced its first deployment within a leading food producer's production infrastructure. A food producer was challenged to keep production infrastructure locked down from disruptions while: Keeping critical applications running and protected.
Is CPS's Low Valuation a Strong Reason to Invest in Its Stock?
CSPI accelerates AZT PROTECT expansion, delivers 98% y/y HPP sales growth and 73% margins in the first quarter of fiscal 2026, backed by cash strength and a premium book multiple.
ARIA Cybersecurity Announces Major Oil Refiner Deploys AZT PROTECT(TM)
ARIA's AZT PROTECT™ protects a major US oil refiner from attacks while locking down critical systems from production disruptions LOWELL, MASSACHUSETTS / ACCESS Newswire / February 24, 2026 / ARIA Cybersecurity, a CSPi business (NASDAQ:CSPi) announced its first deployment within a major US Oil refiner's critical OT infrastructure. A major oil refiner was struggling to keep critical infrastructure protected: Critical applications had to remain fully protected The potential disruption to production costs is $100,000's an hour Critical infrastructure services needed to stay locked down from disruptive updates and available 24x7 The crew managing the legacy cyber protection systems needed a simpler more automated approach to reduce production disruption due to false positives.
CSP Q1 Earnings & Revenues Fall Y/Y, Margins Rise on Service Growth
CSPI posts lower Q1 y/y revenues amid tough comps but expands the gross margin on strong service growth and recurring revenue momentum in fiscal 2026.
CSP Inc. (CSPI) Q1 2026 Earnings Call Transcript
CSP Inc. (CSPI) Q1 2026 Earnings Call Transcript
CSPi Reports 14.6% Services Revenue Growth, Significantly Expands Gross Margin and Generates FY 2026 First Quarter Profit
Strong Customer Retention & New Customers Drive Technology Solutions Business New Customers Signed for AZT PROTECT as Existing Customers Add Additional Sites Conference Call Today at 10 a.m. ET LOWELL, MA / ACCESS Newswire / February 12, 2026 / CSP Inc. (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, today announced results, including total gross margin of 39.3%, for the fiscal first quarter ended December 31, 2025.
CSPi to Announce Fiscal 2026 First Quarter Results on February 12, 2026
LOWELL, MA / ACCESS Newswire / February 6, 2026 / CSPi (NASDAQ:CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solutions, announced that it will issue its fiscal 2026 first quarter financial results before the open of the market on Thursday, February 12, 2026. CSPi President and Chief Executive Officer Victor Dellovo and Chief Financial Officer Gary W.
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📊 AI Financial Analysis
Powered by StockMarketInfo"CSPI reported Q2’26 (ended 2026-03-31) Revenue of $16.0M and Net Income of $0.25M (EPS $0.03). QoQ, revenue rose from $12.0M in Q1’26 (+33.1%), and net income improved from $0.09M to $0.25M (about +186%). YoY, revenue increased from $13.1M in Q2’25 (+21.7%), while net income swung from -$0.11M to +$0.25M. Profitability improved sequentially: gross margin contracted to 27.9% from 39.3% QoQ, but net profit margin expanded to 1.55% from 0.76% as costs/operating loss narrowed. Over the 4-quarter stretch, the company moved from net losses (Q2’25/Q3’25/Q4’25) to profitability in Q1’26 and again in Q2’26, though gross margin has been volatile. Cash flow quality was mixed. Operating cash flow was -$0.49M in Q2’26, turning negative versus -$3.0M in Q1’26, but still weaker than earlier quarters that produced positive OCF. Free cash flow remained negative (-$0.51M), despite strong operating inflection. The balance sheet remains liquid with ~$23.1M cash and net cash (net debt -$21.0M), and only modest debt. Shareholder returns are weak: the stock is down 40.2% over the last year (no momentum tailwind) with a small dividend yield (~0.7%)."
Revenue Growth
Revenue rose +33.1% QoQ (Q1’26 $12.0M → Q2’26 $16.0M) and +21.7% YoY (Q2’25 $13.1M → Q2’26 $16.0M), indicating strengthening top-line demand.
Profitability
Net income improved QoQ (+186%) and YoY (from -$0.11M to +$0.25M). However, gross margin fell to 27.9% QoQ (from 39.3%), showing earnings power is not yet stable.
Cash Flow Quality
Operating cash flow was negative (-$0.49M) and free cash flow was also negative (-$0.51M) in the latest quarter, limiting confidence despite near-term net income profitability.
Leverage & Balance Sheet
Liquidity is strong (cash $23.1M) with net cash position (net debt -$21.0M) and relatively low total debt (~$2.1M). Equity increased sharply to ~$70.3M, indicating improved balance-sheet resilience.
Shareholder Returns
Total shareholder return appears pressured: price is down -40.2% over 1Y and dividend yield is small (~0.7%). No positive momentum (>20% 1y change) support.
Analyst Sentiment & Valuation
No price target provided. Trading multiples look elevated/unstable given small earnings base (reported P/E ~82x). Valuation confidence is therefore limited without clearer guidance.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.
Fundamentals Overview
So what: CSPI reported Q2 FY26 growth in both product (+30% to $11.1M) and services (+6.6% to $4.9M), largely tied to AZT Protect land-and-expand momentum and strong managed services demand. However, consolidated results were materially weaker YoY on revenue ($6.0M vs $13.1M) and gross margin compression (28% vs 32%), including product margin down to 15% (from 18%). Management’s bullish core is a repeatable AZT story: no patching, lightweight OT footprint (~1–2% CPU, ~16MB), fewer competitive blockers in OT-only positioning, and growing multisite rollouts. The cement manufacturer contract signed in April is a key catalyst: management expects six-figure annual revenue booked in Q3 and framed savings near ~$1,000 per plant per month. Risks center on timing delays from stakeholder alignment/internal reviews and margin pressure, but channel-led multisite execution and OEM integration (Acronis by end of fiscal year) could improve visibility in the second half.
Growth Catalysts
- Product sales grew 30% YoY to $11.1M, driven primarily by a large one-time customer purchase order
- Service business grew 6.6% YoY to $4.9M; managed cloud/managed services practice grew 11% YoY
- AZT Protect “push-pull” land-and-expand: >10 land-and-expand orders with new customers, doubling Q2 2025 signed volume
- AZT Protect deployed at the fourth U.S. plant within a major raw material manufacturer (time to add sites “taking less and less time”)
- April AZT Protect land-and-expand signed: three-year agreement for >two dozen U.S. sites of a global cement manufacturer; six-figure annual revenue booked in fiscal Q3
Business Development
- Acronis OEM relationship to embed AZT Protect into its platform; management hopes to generate revenue by end of fiscal 2026
- Late March agreement with an unnamed leader in cloud-based commercial content automation services to deploy AZT in ARIA ADR across production infrastructure
- Early March AZT Protect deployment at a leading pet food producer (named as “leading pet food producer,” not quantified)
- Channel/distributor relationships repeatedly cited: CDW, Rexel, and “SolarWinds of the world” (for end-user customers; no additional named end-users besides vertical types)
- New MSP customer signed in Q1; monthly revenue nearly six figures began in Q2 (customer unnamed)
- Top-15 U.S. landscaping company engaging for comprehensive managed services (customer unnamed)
Financial Highlights
- Revenue $6.0M vs $13.1M in Q2 FY25 (YoY decline), despite product revenue up 30% to $11.1M (one-time large purchase order)
- Gross margin fell to 28% of sales vs 32% YoY; product gross margin decreased to 15% vs 18% YoY
- Service gross margin increased to 57% vs 55% YoY; management also stated service gross margins increased “more than 100 basis points” YoY
- Tax benefit: $568k (excess tax benefit from restricted stock awards vested), enabling net income $264k, $0.03 EPS vs net loss $108k, -$0.01 EPS prior year
- R&D expense +7% to $818k (supporting AZT Protect customization and OEM embedded development); SG&A +2% to $4.5M
Capital Funding
- Cash and cash equivalents: $23.1M as of 03/31/2026
- Extended terms on over 30 customer transactions to finance purchase orders
- Share repurchase: 15,510 shares purchased (amount not provided)
- Dividend: $0.03 per share payable 06/15/2026 to shareholders of record 05/21/2026
Strategy & Ops
- Land-and-expand execution slowed by stakeholder alignment and internal review requirements; management cited re-engagement when customer teams change
- Progress update: “a month into fiscal third quarter” management encouraged by AZT Protect deployment progress
- Shift toward shrink-time sales cycle: aim to move from single-site proof to multisite enterprise rollouts
- Paid POC emphasis: moving away from free POCs toward paid starter kits (one Trust Center + 5–10 licenses) requiring customer commitment
- Technical differentiator cited: AZT “lightweight,” targeting ~1% to 2% CPU utilization and ~16 MB memory; no patching required in OT environments
Market Outlook
- Revenue expectation tied to OEM: management hopes to begin generating revenue from the Acronis relationship by end of the current fiscal year
- AZT Protect cement deal economics: six-figure annual revenue value will be recorded in fiscal Q3
- Next update: management expects to report progress in August
Risks & Headwinds
- Timing delays in AZT Protect land-and-expand due to complex procurement/testing requirements and internal stakeholder alignment; some processes took longer than anticipated
- Gross margin compression: Q2 consolidated gross margin 28% vs 32% YoY, with product gross margin down to 15% vs 18%
- Land-and-expand rollout can be slower when IT and OT teams require additional validation or when customer organizations seek extended testing
Q&A: Analyst Interest
- Topic: Cement deal scope, savings, and external requirements (CISAE EPG 20 / IEC 62443). Management explained >$1,000 per plant per month savings via reduced patching spend and preserved asset life; requirements come from both industry and government sources. They noted competitor limitations largely stem from unsupported older software rather than new compliance capabilities.
- Topic: Land-and-expand mechanics and what actually drives multi-site expansion. Management stated the primary driver is getting AZT into customer labs via a believer/internal champion; budgets/contracts aren’t the core barrier. They described “all or nothing” dynamics for the cement agreement, but allowed outcomes aren’t guaranteed and aimed to shorten the process vs prior ~13-month cycle.
- Topic: Channel strategy, distributor-driven deployments, and paid POCs vs free trials. Management said they’re leaning on channel significantly and avoiding direct sales, with three major partners plus ~half-dozen smaller resellers/integrators (collectively ~10). They described moving to paid starter kits (Trust Center + 5–10 licenses) to ensure commitment and shorten cycle time.
Sentiment: MIXED
Note: This summary was synthesized by AI from the CSPI Q2 2026 (ended 03/31/2026) earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
📋 Official Regulatory 10-K / 10-Q SEC Filings
Direct authenticated documentation links to audited SEC database reports for CSPI.