Core Insights - CPS Technologies Corporation (CPSH) reported record revenues of $8.8 million for Q3 2025, more than doubling the $4.2 million from the same quarter last year, driven by strong demand for its core products [2][4] - The company achieved a gross profit of $1.5 million, resulting in a gross margin of 17.1%, a significant improvement from a gross loss of $0.5 million and a negative margin of 12.3% in the prior year [2][3] - Operating profit turned positive at $0.3 million, reversing from a $1.5 million loss a year earlier, while net income was $0.2 million (1 cent per share), compared to a net loss of $1 million (7 cents per share) in the same period of 2024 [3][6] Revenue Growth and Profitability - The third consecutive quarter of record revenues indicates an accelerating growth trajectory for CPS Technologies, with increased shipping volumes and strong customer demand as key drivers [4][10] - The gross margin improved due to enhanced manufacturing efficiencies and increased production throughput, while SG&A expenses rose to $1.2 million from $1 million last year, reflecting disciplined cost control [5][6] - Management expressed confidence in sustaining growth momentum into 2026, supported by a successful $9.5 million secondary offering aimed at expanding manufacturing capabilities [8][14] Contracts and Federal Programs - CPSH secured a $15.5 million contract from a multinational semiconductor manufacturer, marking a 16.5% year-over-year increase, to be fulfilled over 12 months starting October 1, 2025 [11] - The company also received two federal contracts totaling $1.275 million, enhancing its presence in federally funded research, bringing the total federal program count for 2025 to six [12][13] Future Outlook and Strategic Initiatives - The company anticipates completing its manufacturing relocation by the end of 2026, which is expected to nearly double usable floor space and support long-term growth [8][14] - CPSH is focusing on expanding contributions from its ALMAX material and radiation shielding solutions, which are seen as significant commercial opportunities [15] - The balance sheet remains strong, with $3.2 million in cash and $1.1 million in marketable securities, alongside an increase in total assets to $20.4 million from $18.9 million at the end of 2024 [17]

Financial Performance - CPS reported record revenue of $8.8 million in Q3 2025, more than doubling the $4.2 million from the prior-year period, marking the third consecutive quarter of record revenue [4]. - Gross profit for the quarter was $1.5 million, representing a gross margin of 17.1%, compared to a gross loss of $0.5 million in Q3 2024 [5]. - Operating profit was $0.3 million in Q3 2025, a significant improvement from an operating loss of $(1.5) million in the same quarter last year [6]. - Net income for the quarter was $0.2 million, or $0.01 per diluted share, compared to a net loss of $(1.0) million, or $(0.07) per diluted share, in Q3 2024 [6]. - The company is on track for 2025 to be its best revenue year in history, with a strong outlook for growth in 2026 and beyond [3]. Contracts and Awards - CPS secured a $15.5 million follow-on contract with a major semiconductor manufacturer, representing a 16.5% year-over-year increase in business from this customer [5]. - The company received two government-funded research awards, including a $1.15 million STTR contract with the U.S. Army and a $125,000 SBIR contract from the U.S. Department of Energy [5]. Assets and Liabilities - Total current assets increased to $15.8 million as of September 27, 2025, up from $14.2 million a year earlier [13]. - Total liabilities rose to $5.3 million as of September 27, 2025, compared to $4.4 million at the end of 2024 [13]. Capital Raising - CPS closed a public offering on October 8, 2025, generating net proceeds of $9.5 million for corporate purposes, including production expansion [5].

Financial Data and Key Metrics Changes - CPS Technologies Corporation reported record revenue of $8.8 million for Q3 2025, more than doubling from $4.2 million in Q3 2024, representing a 9% growth compared to Q2 2025 [22][24] - Gross profit for the quarter was $1.5 million, approximately 17.1% of sales, compared to a gross loss of $0.5 million last year [24] - The company posted an operating profit of about $276,000 in Q3 2025, compared to an operating loss of approximately $1.5 million in Q3 2024 [25] - Net income was just over $200,000, or $0.01 per share, versus a net loss of about $1 million, or $0.07 per share, in Q3 2024 [26] Business Line Data and Key Metrics Changes - The company announced a new contract valued at approximately $15.5 million for power module components, reflecting a 16.5% year-over-year increase in value [46][48] - CPS Technologies is executing three Phase II SBIR programs simultaneously, indicating growth in federally funded research contracts [16][38] Market Data and Key Metrics Changes - Trade accounts receivable totaled $5.4 million as of September 27, 2025, compared to $4.9 million at the beginning of the fiscal year [27] - Inventories rose to $5.4 million at the end of Q3 2025, reflecting increased production and customer demand compared to $4.3 million at the start of the fiscal year [27] Company Strategy and Development Direction - The company plans to move to a larger manufacturing facility to accommodate increased production levels and meet rising demand [27][32] - CPS Technologies aims to improve operational efficiencies and gross margins while expanding its product development capabilities [25][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong demand and a robust pipeline of contracts, despite potential disruptions from the government shutdown [96][118] - The outlook for fiscal 2026 is expected to remain strong, with continued focus on new product development and market expansion [45][116] Other Important Information - The company completed a successful secondary public offering that raised over $9.5 million in net proceeds, aimed at supporting the planned move to a new manufacturing facility [16][27] - CPS Technologies has received increasing interest from various federal agencies for its technology, indicating a growing market for its products [83][85] Q&A Session Summary Question: Insights on potential players in the power module space - Management noted growth across various customer segments, with both large and medium customers increasing orders, and new customers being added to the portfolio [135][140] Question: Plans for the move to a new facility - The company is developing detailed plans for a staged move, including building up inventory to mitigate disruptions during the transition [141][145] Question: Revenue recognition for the new contract - Revenue from the new contract is expected to be stable throughout the contract term, with inventory built up to ensure no interruptions for the customer during the move [162][165] Question: Impact of the federal government shutdown - The shutdown has had minimal disruption on funded contracts, with ongoing work continuing as planned, although there may be delays in new proposals [96][168] Question: Opportunities for Almax material - Management highlighted the potential for Almax material in various applications, with ongoing discussions to validate material performance and adoption processes [184][203]

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Cambium Networks Corporation (CMBM) is up 134% at $6.92 [3] - VCI Global Limited (VCIG) is up 119% at $3.95 [3] - ARB IOT Group Limited (ARBB) is up 29% at $7.78 [3] - VivoSim Labs, Inc. (VIVS) is up 28% at $2.96 [3] - Guardant Health, Inc. (GH) is up 27% at $91.88 [3] - Tectonic Therapeutic, Inc. (TECX) is up 22% at $22.84 [3] - Metsera, Inc. (MTSR) is up 19% at $62.25 [3] - GeoPark Limited (GPRK) is up 18% at $7.84 [3] - Align Technology, Inc. (ALGN) is up 14% at $151.20 [3] - FormFactor, Inc. (FORM) is up 14% at $54.50 [3] Premarket Losers - FMC Corporation (FMC) is down 29% at $20.60 [4] - Sprouts Farmers Market, Inc. (SFM) is down 23% at $79.80 [4] - Veru Inc. (VERU) is down 22% at $2.71 [4] - Wolfspeed, Inc. (WOLF) is down 20% at $25.28 [4] - Chipotle Mexican Grill, Inc. (CMG) is down 17% at $32.86 [4] - Intellia Therapeutics, Inc. (NTLA) is down 15% at $11.06 [4] - TransMedics Group, Inc. (TMDX) is down 10% at $120.48 [4] - eBay Inc. (EBAY) is down 8% at $90.98 [4] - CPS Technologies Corporation (CPSH) is down 8% at $4.00 [4] - Carvana Co. (CVNA) is down 7% at $328.00 [4]

Core Insights - CPS Technologies Corporation reported strong financial performance for the third quarter of fiscal 2025, with expectations for the best sales year ever in 2025 [1][2] - The company achieved revenue of $8.8 million, more than doubling the $4.2 million from the prior-year period, marking the third consecutive quarter of record revenue [2][6] - Gross profit improved to $1.5 million, representing a gross margin of 17.1%, compared to a gross loss of $(0.5) million in the same quarter of the previous year [2][6] - Operating profit was $0.3 million, a significant turnaround from an operating loss of $(1.5) million in the prior-year period [3][6] - Net income for the quarter was $0.2 million, or $0.01 per diluted share, compared to a net loss of $(1.0) million, or $(0.07) per diluted share, in the same quarter last year [3][6] Financial Performance - Revenue for the third quarter was $8.8 million, up from $4.2 million year-over-year, driven by higher production rates and increased shipments [2][6] - Gross profit was $1.5 million, or 17.1% of revenue, compared to a gross loss of $(0.5) million, or (12.3)% of revenue, in the prior-year period [2][6] - Operating profit was $0.3 million, compared to an operating loss of $(1.5) million in the prior-year period [3][6] - Net income was $0.2 million, or $0.01 per diluted share, versus a net loss of $(1.0) million, or $(0.07) per diluted share, in the same quarter last year [3][6] Contracts and Growth Opportunities - CPS secured two new government-funded research contracts in 2025, bringing the total to six, which will enhance the company's technology portfolio and long-term outlook [1][6] - A follow-on contract worth $15.5 million was announced with a major multinational semiconductor manufacturer, representing a 16.5% year-over-year increase in business from this customer [6] - The company also received a Phase I SBIR contract from the U.S. Department of Energy valued at approximately $125,000 and a Phase II STTR contract with the U.S. Army worth $1.15 million [6] Capital and Expansion - CPS closed a public offering that generated net proceeds of $9.5 million, aimed at expanding production capabilities through relocation to a larger facility [6] - The company is focused on margin expansion and improving manufacturing operations to maintain a solid growth trajectory [1][6]

Core Viewpoint - The European Commission has approved Merck's KEYTRUDA® for the treatment of resectable locally advanced head and neck squamous cell carcinoma, marking a significant advancement in cancer therapy [1] Group 1: Approval Details - KEYTRUDA® (pembrolizumab) is approved as a monotherapy for neoadjuvant treatment of locally advanced head and neck squamous cell carcinoma [1] - The treatment will continue as adjuvant therapy in combination with radiation therapy, with or without concomitant cisplatin [1] - Following the combination therapy, KEYTRUDA® will be administered as a monotherapy in adults [1]

Core Insights - CPS Technologies Corp. has secured a contract worth approximately $15.5 million from a multinational semiconductor manufacturer, marking a significant business expansion [1][2] - The contract represents a 16.5% year-over-year increase in business from this customer, driven by rising demand for CPS' high-performance solutions [2] - The components will be utilized in systems for high-speed rail and energy infrastructure, indicating CPS' involvement in critical sectors [2][3] Company Performance and Strategy - The CEO of CPS, Brian Mackey, expressed optimism regarding the company's aluminum silicon carbide product line and highlighted the growing demand across industrial, energy, and mobility sectors [3] - The new contract reflects the strength of CPS' customer relationships and its expanding role in next-generation technologies, supporting the company's strategic focus on electrification and energy solutions [3] - CPS plans to relocate to a larger production facility, facilitated by a recent capital raise, to enhance operational efficiency and support future growth [3] Company Overview - CPS is recognized as a leader in high-performance materials solutions, addressing needs in various applications such as electric trains, wind turbines, hybrid vehicles, and smart electric grids [4] - The company is committed to innovation and aims to support the transition to clean energy through its advanced materials and technologies [4] - CPS articulates its vision to pioneer next-generation materials and tackle significant engineering challenges [4]

Core Points - CPS Technologies Corp. has successfully closed a public offering of 3,000,000 shares at a price of $3.00 per share, with gross proceeds of approximately $10.35 million before expenses [1][2] - The underwriter, Roth Capital Partners, exercised an over-allotment option for an additional 450,000 shares [1] - The net proceeds will be used for general corporate purposes, including working capital, capital expenditures, and expanding production capacity [1] Company Overview - CPS Technologies specializes in high-performance material solutions for various applications, including electric vehicles, wind turbines, and military ships [5] - The company aims to pioneer the next generation of high-performance materials and address significant engineering challenges [5]

Core Points - CPS Technologies Corp. announced a public offering of 3,000,000 shares of common stock at a price of $3.00 per share, aiming for gross proceeds of approximately $9.0 million before expenses [1][2] - The net proceeds will be used for general corporate purposes, including working capital, capital expenditures, and repayment of existing debt [1] - Roth Capital Partners is the sole book-running manager for the offering, which is expected to close on or about October 8, 2025, subject to customary conditions [2] Company Overview - CPS Technologies Corp. specializes in high-performance material solutions for various applications, including electric vehicles, wind turbines, and military ships [5] - The company focuses on innovation and aims to support the transition to clean energy through its advanced materials [5] - CPS's products are utilized in critical sectors such as aerospace, 5G infrastructure, and ballistic protection [5]

Core Viewpoint - CPS Technologies Corp. plans to offer shares of its common stock in an underwritten public offering, with a potential 45-day option for underwriters to purchase an additional 15% of the shares offered [1][2]. Company Overview - CPS Technologies Corp. is a leader in technology and manufacturing, focusing on high-performance material solutions for various applications, including electric trains, wind turbines, hybrid and electric vehicles, Navy ships, and 5G infrastructure [5]. - The company aims to pioneer the next generation of high-performance materials and address significant engineering challenges, particularly in the transition to clean energy [5]. Offering Details - Roth Capital Partners is the sole book-running manager for the offering, and a shelf registration statement was filed with the SEC on September 20, 2024, and declared effective on October 17, 2024 [2]. - A preliminary prospectus supplement and accompanying prospectus will be filed with the SEC, and copies will be available through Roth Capital Partners or the SEC's website [3].