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CSP
(NASDAQ:CSPI)
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Rating:48Neutral
Price Target:
$8.00
▲(1.27% Upside)
Action:Reiterated
Date:08/18/26
The score is held down primarily by weakened financial performance—renewed losses and negative operating/free cash flow—along with bearish technical positioning below key moving averages. Partially offsetting these are balance-sheet strength (low leverage and sizable cash) and a cautiously constructive earnings-call outlook driven by backlog growth, improving gross margins, and expected AZT Protect/OEM conversions, though delivery delays and extended sales cycles remain key risks.
Positive Factors
Strong Balance Sheet
Conservative leverage and substantial liquidity provide resilience while the company invests in growth. This financial capacity can support operations, customer deployments and strategic execution without excessive reliance on debt.
Negative Factors
Return to Losses
The return to operating and net losses shows that current scale and cost structure are not yet converting demand into sustainable profits. Continued losses could constrain reinvestment and delay the benefits of future growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Balance Sheet
Conservative leverage and substantial liquidity provide resilience while the company invests in growth. This financial capacity can support operations, customer deployments and strategic execution without excessive reliance on debt.
Read all positive factors
CSP Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Measures profit from core operations for each segment after operating costs, showing which businesses are truly profitable and which may be subsidized. Useful for detecting margin differences, cost issues, or areas that boost overall earnings and for judging management’s efficiency in allocating resources.
Measures profit from core operations for each segment after operating costs, showing which businesses are truly profitable and which may be subsidized. Useful for detecting margin differences, cost issues, or areas that boost overall earnings and for judging management’s efficiency in allocating resources.
Data provided by:
The Fly
The FlyCSP (CSPI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$79.64M
Dividend Yield1.52%
Average Volume (3M)19.49K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-0.68%
EPS Growth57.82%
CountryUS
Employees123
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)-0.07
Shares Outstanding10,080,645
10 Day Avg. Volume33,055
30 Day Avg. Volume19,494
Financial Highlights & Ratios
PEG Ratio16.18
Price to Book (P/B)2.41
Price to Sales (P/S)1.83
P/FCF Ratio56.70
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
CSP Business Overview & Revenue Model
Company Description
CSP Inc. is a global technology company specializing in the development and distribution of a diverse array of information technology offerings. These include integrated IT solutions, advanced security products, comprehensive managed IT services, ...
How the Company Makes Money
CSPI generates revenue primarily from (1) cybersecurity products and related services and (2) IT solutions and services. In its cybersecurity business (commonly associated with ARIA), the company sells its security platform/software and associated...
CSP Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 09, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: the company demonstrated clear product and margin strengths (product gross margin improvement, 100% AZT renewals, OEM integrations, managed services wins and a healthy cash position), but these positives were offset by near-term revenue and profitability pressures driven by prolonged hardware vendor lead times, extended enterprise sales cycles for AZT Protect, and a widened quarterly net loss. Progress on OEM integrations and a growing backlog are constructive for future revenue, yet the short-term financial results and persistent delivery delays are meaningful headwinds.Positive Updates
AZT Protect Customer Retention and Security Track Record
AZT Protect achieved a 100% renewal rate on customer sites reaching their 1-year renewal period and management stated that to date no AZT Protect customer has experienced a breach, supporting product credibility and customer satisfaction.
Negative Updates
Quarterly Revenue Decline
Q3 revenue fell to $14.4 million from $15.4 million year-over-year, a decline of approximately 6.5%, driven largely by delayed hardware shipments and AZT ramp timing.
Read all updates
Q3-2026 Updates
Positive
Negative
AZT Protect Customer Retention and Security Track Record
AZT Protect achieved a 100% renewal rate on customer sites reaching their 1-year renewal period and management stated that to date no AZT Protect customer has experienced a breach, supporting product credibility and customer satisfaction.
Read all positive updates
Company Guidance
Management guided that they expect to convert several large, six‑figure AZT Protect opportunities as a number of 18–24 month sales cycles near completion over the next ~6 months, with OEM momentum (Acronis integration/SKUs on track for a fall/October launch and repeat POs in South Africa) and a restructured direct sales effort intended to shorten cycles and expand land‑and‑expand deployments; they cautioned that hardware vendor lead times have stretched well beyond 200 days (vs. historical 30–60 days), driving Technology Solutions backlog ~65% higher year‑over‑year but leaving conversion upside when shipments arrive. Financially, Q3 results were $14.4M revenue (product $9.9M; service $4.45M), $4.3M gross profit and 30.1% gross margin (up >100 bps YoY), product gross margin 20.7% (vs 15.7% prior year) and service gross margin 51.2% (service margin up 1.3% YoY), while R&D was $832k (+5%), SG&A $5.0M (+3%), operating loss $1.5M, net loss $846k ( $0.09/share), cash $24.7M, ~13k shares repurchased, and a $0.03/share dividend approved — all factors management said support execution of their managed‑services and AZT Protect growth plans.CSP Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
78
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 56.91M | 58.73M | 55.22M | 64.65M | 54.36M | 49.21M |
| Gross Profit | 18.83M | 18.51M | 18.86M | 21.92M | 18.83M | 16.15M |
| EBITDA | -736.00K | -602.00K | 610.00K | 5.93M | 3.23M | 2.06M |
| Net Income | -682.00K | -91.00K | -326.00K | 5.20M | 1.89M | 699.00K |
Balance Sheet | ||||||
| Total Assets | 70.78M | 71.16M | 69.44M | 65.90M | 75.06M | 62.97M |
| Cash, Cash Equivalents and Short-Term Investments | 24.67M | 27.42M | 30.59M | 25.22M | 23.98M | 20.01M |
| Total Debt | 3.58M | 2.58M | 4.67M | 2.95M | 5.18M | 4.01M |
| Total Liabilities | 26.52M | 26.61M | 22.17M | 19.76M | 36.10M | 28.93M |
| Stockholders Equity | 44.26M | 44.55M | 47.27M | 46.15M | 38.96M | 34.05M |
Cash Flow | ||||||
| Free Cash Flow | -1.44M | 1.89M | 4.02M | 3.63M | 2.44M | 1.80M |
| Operating Cash Flow | -1.06M | 2.27M | 4.21M | 3.91M | 2.67M | 1.90M |
| Investing Cash Flow | -427.00K | -428.00K | -256.00K | -341.00K | 20.00K | -166.00K |
| Financing Cash Flow | -142.00K | -5.04M | 1.38M | -2.40M | 1.33M | -954.00K |
CSP Technical Analysis
Positive
7.90
Price Trends
8.09
Positive
8.67
Negative
9.65
Negative
Market Momentum
-0.11
Negative
54.69
Neutral
74.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSPI, the sentiment is Positive. The current price of 7.9 is below the 20-day moving average (MA) of 7.92, below the 50-day MA of 8.09, and below the 200-day MA of 9.65, indicating a neutral trend. The MACD of -0.11 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 74.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSPI.
CSP Risk Analysis
CSP disclosed 26 risk factors in its most recent earnings report. CSP reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSP Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $240.13M | 20.82 | 12.32% | 4.66% | 4.18% | 50.80% | |
63 Neutral | $331.83M | -22.95 | -15.53% | ― | 65.93% | 71.75% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $261.27M | -1.14 | -30.45% | ― | -10.31% | -2595.28% | |
48 Neutral | $79.64M | -108.39 | -1.53% | 1.51% | -0.68% | 57.82% | |
47 Neutral | $190.31M | -0.46 | 134.79% | ― | -0.61% | -405.05% | |
43 Neutral | $68.03M | -0.32 | -162.47% | ― | -4.78% | -699.44% |
* Technology Sector Average
CSPI
CSP
8.14
-3.77
-31.64%
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CNDT
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1.72
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CSP Corporate Events
Executive/Board Changes
CSP Announces Chief Accounting Officer Transition and Succession
Positive
Jun 9, 2026
On June 5, 2026, CSP Inc. announced the departure of Michael Newbanks, its Vice President of Finance and Chief Accounting Officer, whose role had been temporarily extended to ensure a smooth transition of responsibilities to his successor, Eric Sa...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.