CSP (NASDAQ:CSPI) Releases Earnings Results

CSP (NASDAQ:CSPI) announced its quarterly earnings data on Thursday. The information technology services provider reported $0.01 earnings per share (EPS) for the quarter, FiscalAI reports. CSP had a negative net margin of 0.87% and a negative return on equity of 1.03%. The firm had revenue of $12.04 million during the quarter.

Here are the key takeaways from CSP’s conference call:

• Total revenue declined to $12.0M from $15.7M a year ago, driven by lower product sales ( $6.7M vs. $11M) after a ~$4.5M one-time product deal in the prior-year quarter did not repeat.
• Service revenue grew 14.6% to $5.3M, with managed-services momentum including new MSP customers expected to add nearly $100,000 of monthly recurring revenue beginning this quarter.
• Mix shifted toward higher-margin services, lifting gross margin to 39.3% (vs. 29.1% prior year) and increasing gross profit by about $171,000, while net income improved to $91,000.
• AZT PROTECT showed commercial traction — now deployed at over 46 unique customers with multi-site expansion opportunities (some potentially seven-figure) and an OEM integration path with Acronis that generated strong webinar interest (≈200 attendees, 12+ demo requests).

CSP Stock Up 7.3%

CSP stock opened at $9.86 on Friday. The company has a market cap of $97.61 million, a PE ratio of -197.20 and a beta of 0.73. The company’s 50-day moving average price is $12.05 and its 200-day moving average price is $11.84. CSP has a twelve month low of $8.89 and a twelve month high of $20.39.

CSP Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, March 12th. Stockholders of record on Thursday, February 26th will be issued a $0.03 dividend. The ex-dividend date is Thursday, February 26th. This represents a $0.12 dividend on an annualized basis and a dividend yield of 1.2%. CSP’s payout ratio is -1,200.00%.

Analyst Ratings Changes

A number of equities research analysts have issued reports on CSPI shares. Wall Street Zen lowered shares of CSP from a “hold” rating to a “sell” rating in a report on Saturday. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of CSP in a research note on Monday, December 29th. One investment analyst has rated the stock with a Hold rating, According to MarketBeat, CSP has a consensus rating of “Hold”.

Key CSP News

Here are the key news stories impacting CSP this week:

• Positive Sentiment: CSP reported GAAP profit for FY2026 Q1, delivered $0.01 EPS on $12.04M revenue, and highlighted a materially higher gross margin (total gross margin ~39.3%) — results that suggest improving operating leverage and a move back to quarterly profitability, which likely lifted investor sentiment. Press Release
• Positive Sentiment: CSP reported 14.6% services revenue growth and cited strong customer retention plus new customer wins for its technology solutions (AZT PROTECT add-ons), signaling recurring revenue momentum that supports future cash flow expectations. Article
• Positive Sentiment: CSP declared a quarterly cash dividend of $0.03 per share (ex-dividend Feb 26, payable Mar 12), representing a ~1.3% yield — a signal of cash generation and returned capital that can attract income-focused investors.
• Neutral Sentiment: Company earnings call/transcript coverage is available (provides management commentary and color on margin drivers, backlog, and product uptake) — useful for investors who want details beyond the headline numbers. Earnings Call Transcript Alternate Transcript
• Neutral Sentiment: Multiple short-interest data posts show a reported “large increase” but the published figures are zero/NaN and the days-to-cover is listed as 0.0 — the data appears inconsistent/erroneous, so it’s unclear if genuine short activity is affecting shares; monitor for corrected filings or clearer short-interest reports.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in CSPI. Goldman Sachs Group Inc. grew its stake in CSP by 66.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 29,800 shares of the information technology services provider’s stock valued at $457,000 after acquiring an additional 11,850 shares during the period. Jane Street Group LLC raised its holdings in shares of CSP by 73.4% during the first quarter. Jane Street Group LLC now owns 27,640 shares of the information technology services provider’s stock valued at $424,000 after acquiring an additional 11,703 shares during the last quarter. Geode Capital Management LLC lifted its holdings in CSP by 113.0% in the 2nd quarter. Geode Capital Management LLC now owns 158,355 shares of the information technology services provider’s stock valued at $2,049,000 after purchasing an additional 83,999 shares in the last quarter. Police & Firemen s Retirement System of New Jersey purchased a new stake in shares of CSP during the second quarter worth $33,000. Finally, JPMorgan Chase & Co. raised its position in shares of CSP by 14.4% in the second quarter. JPMorgan Chase & Co. now owns 26,079 shares of the information technology services provider’s stock valued at $337,000 after buying an additional 3,279 shares during the last quarter. Hedge funds and other institutional investors own 26.74% of the company’s stock.

About CSP

CSP Inc develops and markets IT integration solutions, security products, managed IT services, cloud 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.