CPSH · CPS Technologies Corporation

CPS Technologies' Q1 2026 results showed revenue of $7.0 million, down from $7.5 million in the prior-year quarter, primarily due to order timing as stated by management. Gross profit fell to $0.6 million or 8.6% of revenue from $1.2 million or 16.4%, driven by the leverage impact of lower revenue on fixed costs and cost accounting for adding over $1.5 million to inventory levels in preparation for a planned facility move later in 2026. Operating expenses remained stable at $1.1 million, leading to an operating loss of $(0.5) million versus a $0.1 million profit last year. Net loss was $(0.3) million or $(0.02) per diluted share, compared to a $0.1 million profit or $0.01 per share prior-year. Balance sheet remains solid with cash and equivalents at $5.7 million and total assets at $29.1 million, supported by $6.8 million in marketable securities. Post-quarter, the company secured a $4 million hermetic packaging order with Q2 shipments and a $100,000 Navy SBIR Phase I extension for Amphibious Combat Vehicle weight reduction, signaling commercial and defense momentum. Management expects continued revenue growth in future quarters and margin improvement from revenue ramp and inventory normalization. The onboarding of new CFO Chris Fraser effective May 18 and advanced planning for a larger manufacturing facility underscore operational enhancements. CEO Brian Mackey emphasized commitment to gross margin improvements and minimized customer impact from the move via inventory buildup.