Core Insights - CPS Technologies Corp. has secured a Phase II Small Business Technology Transfer contract worth $1.15 million from the U.S. Army, focusing on the development of a controlled fragmentation tungsten warhead [1] - The contract signifies a continuation of successful work from a previous Phase I program, led by Dr. Mark Occhionero, utilizing CPSH's proprietary injection molding process for tungsten components [2] - The partnership with the New Mexico Institute of Mining and Technology's Energetic Materials Research and Testing Center will enhance research efforts and technical foundation [3] Strategic Developments - This contract marks CPSH's fifth federally funded project in 2025 and the third successful transition from Phase I to Phase II since June 2024, indicating the company's growing reputation in U.S. defense initiatives [4] - The contract highlights the long-term value of CPSH's manufacturing capabilities, diversifying revenue streams beyond electric vehicles, Navy ships, 5G infrastructure, aerospace, and ballistic armor products [5] - Success in securing government contracts positions CPSH for sustained growth and strengthens its competitive edge, validating its technological advantages [6] Financial Performance - CPSH reported record revenues of $8.1 million in Q2 2025, a 61% increase from the same quarter last year, alongside a net income of $100,000, a significant recovery from a $900,000 net loss in Q2 2024 [7] - Management anticipates 2025 to be the best revenue year on record, driven by strong demand and operational efficiency improvements, with a 4-6 month visibility on orders [8] Future Outlook - The dual strategy of securing high-value defense contracts and achieving record financial performance indicates a transformative year ahead for CPS Technologies [9] - Management's confidence suggests that 2025 may represent a pivotal shift for CPSH from a niche material supplier to a key player in defense and technology partnerships [10]

Core Insights - CPS Technologies Corp. has been awarded a Phase I Small Business Innovation Research (SBIR) contract from the U.S. Department of Energy, valued at approximately $125,000, marking its sixth federally funded research award of 2025 and the first contract with the DOE this year [1][2][3] Group 1: Contract Details - The project aims to develop a high-performance, sustainable impact limiter to enhance the safety of transporting spent nuclear fuel and high-level radioactive waste [2] - The contract has a performance period extending until April 2026 [1] Group 2: Company Leadership and Innovation - The award highlights CPS's capability to translate expertise in materials science into practical technologies, reinforcing its relationship with the DOE [3] - CPS is committed to innovation in high-performance materials solutions across various sectors, including clean energy [4]

Core Insights - CPS Technologies Corp. has been awarded a Phase II Small Business Technology Transfer (STTR) contract by the U.S. Army Combat Capabilities Development Command, with funding of $1.15 million to develop a controlled fragmentation tungsten warhead, focusing initially on a 40mm variant [1][3] - This contract represents the company's fifth federally funded project in 2025 and its third successful transition from Phase I to Phase II since June 2024 [1] Company Overview - CPS Technologies specializes in high-performance material solutions across various applications, including electric trains, wind turbines, hybrid vehicles, Navy ships, and 5G infrastructure [4] - The company is committed to innovation and aims to pioneer the next generation of high-performance materials to address complex engineering challenges [4] Project Details - Dr. Mark Occhionero will continue as the principal investigator for the project, leveraging CPS's proprietary injection molding process to produce detailed tungsten features, which is a cost-effective alternative to traditional machining [2][3] - The New Mexico Institute of Mining and Technology's Energetic Materials Research and Testing Center will serve as a subcontractor during Phase II, enhancing the project's research and testing capabilities [3]

Core Insights - CPS Technologies Corporation (CPSH) has experienced a significant stock price increase of 19.5% following the release of its second-quarter 2025 results, outperforming the S&P 500's 1.4% growth during the same period [1] - The company reported record revenues of $8.1 million for the quarter, a 61% increase from $5 million in the same quarter last year, indicating strong revenue growth [2] - CPSH achieved a net income of $0.1 million, or 1 cent per diluted share, compared to a net loss of $0.9 million, or 7 cents per share, in the prior-year period, marking a significant turnaround [3] Revenue & EPS Performance - For the quarter ended June 28, 2025, CPSH's revenues reached $8.1 million, a record high, reflecting a 61% increase from the previous year's $5 million [2] - Year-to-date revenues were reported at $15.6 million, a 42% increase from $10.9 million in the first half of 2024 [3] - The gross profit improved to $1.3 million, representing 16.5% of sales, compared to a gross loss of $0.2 million (-5% margin) in the previous year [2] Other Key Business Metrics - Operating profit was recorded at $0.1 million, a notable improvement from the $1.3 million operating loss in the same quarter of 2024 [4] - Selling, general and administrative (SG&A) expenses increased slightly to $1.2 million from $1.1 million a year earlier, attributed to higher commissions and variable compensation [4] - The balance sheet showed $2.4 million in cash and $1 million in marketable securities, down from $3.3 million and $1 million, respectively, at the end of 2024 [5] Management Commentary - CEO Brian Mackey noted that the second quarter of 2025 marked the company's second consecutive profitable quarter, with an 8% sequential growth from the first quarter [6] - Management emphasized strong demand across core product lines and progress in commercializing new materials, alongside a focus on improving bottom-line performance [6] Factors Influencing Results - The company benefited from increased production capacity after adding a third production shift in late 2024, which helped meet growing demand [7] - CPSH secured additional funding under the federal Small Business Innovation Research (SBIR) program, contributing to revenue growth [7] - Improved production yields compared to the previous year positively impacted margins [7] Cost Considerations - Inflationary pressures and tariffs have affected input pricing, with domestic suppliers raising prices due to tariffs on foreign competitors [8] - Despite these challenges, CPSH has managed to pass most cost increases onto customers [8] Guidance - Management expressed confidence that 2025 will be the best revenue year ever, anticipating strong revenue momentum and improved profitability in the second half [9] - CEO Mackey indicated a 4-6 month visibility window on orders, highlighting continued robust demand across customer categories [9] Other Developments - CPSH announced its fourth SBIR contract of 2025, focused on reducing the weight of the Amphibious Combat Vehicle for the U.S. Marine Corps, valued initially at $140,000 with a potential $100,000 extension [10] - The company received its first purchase order for its AlMax fiber-reinforced aluminum composite, showcasing its innovation in materials [11] - CPSH filed a non-provisional patent application related to radiation shielding materials, expanding its innovation pipeline [11] Summary - CPS Technologies delivered record revenues and returned to profitability in the second quarter of 2025, with significant year-over-year improvements across revenues, margins, and earnings [12] - Despite challenges from tariffs and input costs, strong demand trends, a growing defense contract portfolio, and promising new product commercialization have bolstered investor sentiment [12]

Core Insights - Consumer Portfolio Services, Inc. reported earnings of $4.8 million, or $0.20 per diluted share, for Q2 2025, reflecting an increase from $4.7 million, or $0.19 per diluted share, in Q2 2024 [1][2] Financial Performance - Revenues for Q2 2025 were $109.8 million, up $13.9 million, or 14.5%, from $95.9 million in Q2 2024 [2][10] - Total operating expenses for Q2 2025 were $102.8 million, compared to $89.2 million in the same period of 2024 [2][12] - Pretax income for Q2 2025 increased to $7.0 million from $6.7 million in Q2 2024 [2][10] - For the six months ended June 30, 2025, total revenues were $216.6 million, an increase of approximately $29.0 million, or 15.5%, compared to $187.6 million for the same period in 2024 [3] - Net income for the six months ended June 30, 2025, rose to $9.5 million from $9.3 million in the prior year [3][12] Portfolio and Contracts - During Q2 2025, CPS purchased $433.0 million of new contracts, slightly up from $431.9 million in Q2 2024 [4][14] - The company's receivables totaled $3.708 billion as of June 30, 2025, an increase from $3.615 billion as of March 31, 2025, and from $3.173 billion as of June 30, 2024 [4][14] Credit Quality - Annualized net charge-offs for Q2 2025 were 7.45% of the average portfolio, compared to 7.26% for Q2 2024 [5][15] - Delinquencies greater than 30 days were 13.14% of the total portfolio as of June 30, 2025, down from 13.29% as of June 30, 2024 [5][15] Management Commentary - The CEO highlighted improvements in earnings and operating efficiencies, emphasizing a focus on credit quality and loan performance as the portfolio grows [6]

Core Insights - Cps Technologies reported record revenue of $8.1 million for Q2 FY2025, a 62% increase from $5.0 million in Q2 FY2024, marking a return to profitability with earnings per share of $0.01 [1][2] - The company achieved significant improvements in gross margin, rising to 16.5% from a negative 4.6% year-over-year, driven by increased sales volumes and operational efficiencies [2][6] - Management emphasized ongoing operational upgrades as a priority to enhance margins and profitability, with expectations for continued strong revenue through the remainder of fiscal 2025 [10] Financial Performance - Revenue for Q2 FY2025 reached $8.1 million, up from $5.0 million in the prior year, attributed to increased shipments and production rates [5] - Gross profit turned positive at $1.3 million, compared to a gross loss in the prior year, with gross margin improving by 21.1 percentage points [2][6] - Operating profit was $0.1 million, a turnaround from a $1.3 million loss in the previous year, while net income also improved to $0.1 million from a $0.9 million loss [2][6] Product Development and Innovation - Cps Technologies focuses on advanced metal matrix composites, particularly AlSiC, which offers benefits in conductivity, weight, and reliability for sectors like defense and energy [3] - The company is expanding its product catalog with new materials such as AlMax™ and Fiber Reinforced Aluminum (FRA), which are critical for maintaining competitive advantage [4][8] - Recent contracts, including four Small Business Innovation Research (SBIR) contracts, validate the company's research capabilities and enhance its profile in defense markets [8] Operational Insights - The company has seen a rise in inventories to $5.2 million and accounts receivable to $5.6 million, reflecting increased sales activity [9] - Management noted that the order backlog and diversification across sectors like transportation and aerospace have been key to revenue growth [5] - The addition of a third production shift has been instrumental in meeting demand from the electronics, energy, and defense sectors [5][6] Management Outlook - Management anticipates strong revenue for the remainder of fiscal 2025, with a focus on improving gross margins and overall profitability [10] - Key initiatives include enhancing yield following the third shift expansion and optimizing the product mix to improve profitability [10] - No detailed financial guidance was provided, but investors are encouraged to monitor progress in margin expansion and commercialization of new materials [11]

[Financial Statements](index=1&type=section&id=Financial%20Statements) CPS Technologies Corporation demonstrated a significant financial turnaround, moving from net losses to profitability and strengthening its balance sheet with increased assets and equity [Statements of Operations (Unaudited)](index=1&type=section&id=Statements%20of%20Operations%20%28Unaudited%29) CPS Technologies Corporation reported a significant turnaround in its financial performance for the three and six months ended June 28, 2025, compared to the prior year, moving from a net loss to net income, driven by substantial growth in product sales and improved gross profit margins Key Financial Highlights (Statements of Operations) | Metric | Three Months Ended June 28, 2025 | Three Months Ended June 29, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Product sales | $8,078,657 | $5,030,313 | +60.6% | | Gross profit | $1,336,316 | $(229,992) | Turnaround | | Income (loss) from operations | $136,927 | $(1,314,987) | Turnaround | | Net income (loss) | $103,833 | $(954,304) | Turnaround | | Net income (loss) per basic common share | $0.01 | $(0.07) | Turnaround | | Metric | Six Months Ended June 28, 2025 | Six Months Ended June 29, 2024 | Change (YoY) | | :--------------------------------- | :------------------------------- | :------------------------------- | :----------- | | Product sales | $15,584,578 | $10,942,947 | +42.4% | | Gross profit | $2,567,317 | $676,318 | +279.6% | | Income (loss) from operations | $266,578 | $(1,574,599) | Turnaround | | Net income (loss) | $199,795 | $(1,097,458) | Turnaround | | Net income (loss) per basic common share | $0.01 | $(0.08) | Turnaround | - Product sales increased significantly by **60.6%** for the three months ended June 28, 2025, and by **42.4%** for the six months ended June 28, 2025, compared to the respective prior-year periods[2](index=2&type=chunk) - The company achieved a positive gross profit of **$1,336,316** for the three months and **$2,567,317** for the six months ended June 28, 2025, reversing losses from the prior year[2](index=2&type=chunk) [Balance Sheets (Unaudited)](index=2&type=section&id=Balance%20Sheets%20%28Unaudited%29) As of June 28, 2025, CPS Technologies Corp. reported an increase in total assets and stockholders' equity compared to December 28, 2024, primarily driven by increases in accounts receivable and inventories, despite a decrease in cash and cash equivalents Key Financial Highlights (Balance Sheets) | Metric | June 28, 2025 | December 28, 2024 | Change | | :--------------------------------- | :---------------- | :------------------ | :----- | | **Assets:** | | | | | Cash and cash equivalents | $2,374,037 | $3,280,687 | $(906,650) | | Accounts receivable-trade | $5,602,703 | $4,858,208 | +$744,495 | | Inventories, net | $5,198,246 | $4,331,066 | +$867,180 | | Total current assets | $14,899,576 | $14,159,016 | +$740,560 | | Total Assets | $19,369,770 | $18,876,946 | +$492,824 | | **Liabilities:** | | | | | Accounts payable | $3,286,223 | $3,053,712 | +$232,511 | | Total current liabilities | $4,461,070 | $4,307,550 | +$153,520 | | Total liabilities | $4,492,347 | $4,364,827 | +$127,520 | | **Stockholders' Equity:** | | | | | Total stockholders' equity | $14,877,423 | $14,512,119 | +$365,304 | - Total assets increased by **$492,824** to **$19,369,770** as of June 28, 2025, from **$18,876,946** at December 28, 2024[4](index=4&type=chunk) - Stockholders' equity grew by **$365,304** to **$14,877,423**, reflecting the company's improved financial position[4](index=4&type=chunk)

Financial Data and Key Metrics Changes - The company achieved a record revenue of $8.1 million for Q2, representing a 61% increase compared to $5 million in the same quarter last year [6][4] - Gross profit for the quarter was $1.3 million, approximately 16.5% of sales, compared to a gross loss of $200,000 last year [6][8] - The company reported an operating profit of about $137,000 in Q2, compared to an operating loss of approximately $1.3 million last year [8] - Net income was just over $100,000 or $0.01 per share, versus a net loss of about $900,000 or $0.07 per share in the previous year [8] Business Line Data and Key Metrics Changes - The company has broadened its core product offerings and anticipates continued strong revenue results driven by strong customer demand and improved manufacturing output [6][4] - Manufacturing capacity has increased significantly, with the addition of a third shift to meet growing demand [11][8] Market Data and Key Metrics Changes - The company is experiencing strong demand across various markets, including defense spending and material science solutions [5][4] - The federal budget for fiscal 2026 prioritizes defense spending, which is expected to benefit the company’s ballistic solutions [18] Company Strategy and Development Direction - The company is focused on increasing manufacturing efficiencies to improve profitability and returns for shareholders [16][21] - Ongoing innovation in material science is a key area of focus, with new technologies being brought to market and development contracts being secured [11][14] - The company is committed to expanding gross margins and improving overall performance [15][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue opportunities, citing a strong order pipeline and ongoing demand [24][4] - The company is actively pursuing additional SBIR contracts and has a solid backlog to meet robust demand [19][20] Other Important Information - The company recently won its fourth SBIR development contract of the year, focusing on reducing the weight of military vehicles [11] - The first purchase order for Almax Materials has been received, indicating commercial traction for the newly licensed fiber reinforced aluminum composites [13][14] Q&A Session Summary Question: Visibility into future revenues and sales cycle - Management indicated that the ordering cycle varies, with some customers placing orders a few months out, while others are in the four to six month timeframe [23][24] Question: Impact of data center spending on the company - Management acknowledged the growing interest in high voltage DC projects, which could provide new opportunities for the company, separate from its core markets [27][29] Question: Status of a terminated radiation shielding contract - Management confirmed that the specific contract has been fully canceled, but remains optimistic about future opportunities in radiation shielding [33][34] Question: Capacity constraints with increased production - Management noted that while demand remains robust, plans are underway to address potential capacity constraints [37][38] Question: Licensing of fiber reinforced aluminum technology - Management clarified that the company is the exclusive global licensee and is working to enhance the material's capabilities beyond the original development [40][41]

Core Insights - CPS Technologies Corporation reported a return to profitability with positive net income and record revenue in the second quarter of fiscal 2025, driven by higher production rates and increased shipments [1][2][3] - The company expects strong revenue in the second half of the year, with an emphasis on improving gross margins and overall profitability [1][2] - CPS secured its first order for AlMax™ material, showcasing its innovative technologies and effective manufacturing capabilities [1][6] Financial Performance - Revenue for the second quarter was $8.1 million, up from $5.0 million in the same period last year, reflecting a 62% increase [2][6] - Gross profit was $1.3 million, representing a gross margin of 16.5%, compared to a gross loss of $0.2 million in the prior-year period [2][6] - Operating profit was $0.1 million, a significant improvement from an operating loss of $(1.3) million in the previous year [3][6] Earnings and Share Performance - Reported net income was $0.1 million, or $0.01 per diluted share, compared to a net loss of $(0.9) million, or $(0.07) per diluted share, in the same quarter last year [3][9] - The weighted average number of diluted common shares outstanding was 14,577,433 [9] Product and Market Development - CPS announced its fourth Small Business Innovation Research (SBIR) contract of the year, focusing on reducing the weight of the Amphibious Combat Vehicle for the U.S. Marine Corps [6] - The company continues to expand its product catalog and has demonstrated robust demand for its offerings [1][6] Company Overview - CPS is a leader in high-performance materials solutions, addressing critical needs in various applications, including electric vehicles, wind turbines, and defense [5] - The company is committed to innovation and supporting the transition to clean energy [5]

Core Insights - CPS Technologies has received its fourth Small Business Innovation Research (SBIR) contract of the year, focusing on reducing the weight of the Amphibious Combat Vehicle (ACV) for the U.S. Marine Corps [1][2][3] - The SBIR contract is valued at $140,000 for six months, with an optional extension worth an additional $100,000, aimed at redesigning vehicle components to enhance fuel efficiency and operational range [2] - CPS Technologies has also received its first commercial order for AlMax™ materials, which are Fiber-Reinforced Aluminum (FRA) Composites, indicating promising commercial traction [4][6] SBIR Contract Details - The contract will leverage CPS's expertise in advanced materials and composite engineering to evaluate components like armor and suspensions for lightweight alternatives [2] - The project is led by a CPS Materials Scientist with a strong background in composite innovation [3] - The focus is on enhancing the performance of the ACV family without compromising protection or mobility [3] AlMax™ Materials - AlMax™ materials offer the density of aluminum with superior performance characteristics, including exceptional wear resistance and high-temperature strength [4] - The initial order for AlMax™ is from a domestic manufacturer, reflecting strong interest across multiple markets [6] - Customer feedback has been positive, suggesting a strong growth trajectory for AlMax™ products [6] Company Overview - CPS Technologies is a leader in high-performance materials solutions, addressing critical needs in various applications, including defense, transportation, and clean energy [7] - The company aims to pioneer the next generation of materials and solve complex engineering challenges [8]