CPS Technologies Corp. ((CPSH)) has held its Q3 earnings call. Read on for the main highlights of the call.
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CPS Technologies Corp. recently held its third-quarter earnings call, revealing a strong performance with record revenue and significant new contracts. The company also successfully raised capital, although there are concerns about potential impacts from a government shutdown and rising SG&A expenses that could affect future growth and profitability.
Record Revenue Achievement
CPS Technologies reported a remarkable achievement with record revenue of $8.8 million for the third quarter of 2025. This figure more than doubled from $4.2 million in the same quarter of 2024, marking a 9% growth compared to the second quarter of 2025. This growth is attributed to strong customer demand and improved manufacturing throughput.
Successful Capital Raise
The company completed a successful secondary offering, bringing in over $9.5 million in net proceeds. These funds are aimed at facilitating a move to a larger manufacturing facility, planned for 2026, which will nearly double CPS’s usable space, supporting future growth.
New $15.5 Million Contract
CPS secured a substantial $15.5 million contract from a multinational semiconductor manufacturer. This contract represents a 16.5% year-over-year increase in contract value, highlighting the company’s growing influence in the semiconductor industry.
Improved Financial Performance
The financial performance of CPS Technologies showed significant improvement, with an operating profit of $276,000 and net income exceeding $200,000. This is a notable turnaround from an operating loss of $1.5 million and a net loss of about $1 million in Q3 2024.
Expansion in Research Contracts
CPS announced its fifth and sixth federally funded research contracts of 2025, with a strong potential for commercialization. This includes a $1.15 million Phase II contract for a controlled fragmentation warhead, underscoring the company’s expanding role in both commercial and military sectors.
Potential Impact of Government Shutdown
The ongoing federal government shutdown poses a risk to CPS Technologies, as it could delay new proposals and research topics under review. This situation may impact future contract opportunities, a concern highlighted during the earnings call.
Fourth Quarter Revenue Expectations
Looking ahead, CPS Technologies does not anticipate achieving another quarter of record revenue in Q4 2025. This expectation is due to holidays and planned plant shutdowns at vendors and customers, which could affect production and sales.
Increased SG&A Expenses
The company reported an increase in selling, general, and administrative expenses to $1.2 million from $1.0 million in the previous year. This rise in expenses could impact profit margins, a point of concern for the company’s financial health.
Forward-Looking Guidance
During the earnings call, CPS Technologies provided substantial guidance on its financial and operational performance. The company highlighted its record revenue and successful capital raise, which are set to support future growth. The new $15.5 million contract for power module components is expected to contribute steadily over the next year. CPS is also advancing several federally funded research initiatives, showcasing its expanding role in both commercial and military sectors.
In summary, CPS Technologies Corp. delivered a robust third-quarter performance, marked by record revenue and strategic new contracts. Despite the positive outcomes, concerns about government shutdown impacts and rising SG&A expenses were noted. The company’s forward-looking guidance remains optimistic, with plans for expansion and continued growth in both commercial and military sectors.