Shares of CSP Inc. (CSPI) have declined 1.8% since reporting results for the first quarter of fiscal 2026. This compares with the S&P 500 index’s 1.5% slip over the same time frame. Over the past month, the stock has lost 15% compared with the S&P 500’s 1.9% fall.CSP reported revenues of $12 million for the fiscal first quarter ended Dec. 31, 2025, down from $15.7 million in the year-ago period. The decline was primarily caused by the absence of several large, one-time product transactions that contributed ...

FORM 10-Q ⌧ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended December 31, 2025 or ◻ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Table of Contents United States SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the transition period from to . Commission File Number 0-10843 CSP Inc. (Exact name of Registrant as specified in its charter) Massachusetts 04-2441294 (State or other jurisdi ...

Dellovo also said the company’s previously discussed investments in its MSP practice are beginning to generate returns. In the quarter, CSPi signed new MSP customers expected to generate nearly “six figures” in monthly revenue, with the monthly revenue commencing in the current quarter. In a later clarification during Q&A, management said this equated to net new MSP revenue of close to $100,000 per month after the onboarding period required to begin billing new customers.Service revenue grew 14.6% in the qu ...

CSP (NasdaqGM:CSPI) Q1 2026 Earnings call February 12, 2026 10:00 AM ET Company ParticipantsGary Levine - CFOJoseph Nerges - Managing DirectorMichael Polyviou - VP of Investor RelationsVictor Dellovo - CEONone - Video NarratorConference Call ParticipantsNone - AnalystNone - AnalystOperatorGreetings. Welcome to the CSPi's first quarter fiscal year 2026 conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should ...

Financial Data and Key Metrics Changes - For the fiscal first quarter ended December 31, 2025, the company generated $12 million in revenue, down from $15.7 million in the same period last year [34] - Product revenue decreased to $6.7 million from $11 million, primarily due to the absence of one-time transactions totaling approximately $4.5 million from the previous year [34] - Service revenue increased by 14.6% to $5.3 million from $4.7 million year-over-year [34] - Gross profit for the quarter was $4.7 million, slightly up from $4.6 million, with gross profit margins increasing to 39.3% from 29.1% [35] - Net income for the first quarter was $91,000 compared to $42,000 in the prior year, with diluted earnings per share at $0.01, down from $0.05 [36] Business Line Data and Key Metrics Changes - The technology solutions business continues to lead progress, with strong performance in managed cloud and managed service practices [6][28] - The managed service practice signed new customers expected to generate nearly $100,000 in monthly revenue starting this quarter [7][29] - The AZT Protect product suite achieved year-over-year revenue growth, serving 46 unique customers, with potential for multi-site installations [30] Market Data and Key Metrics Changes - The company is benefiting from the trend of organizational migration to the cloud, with increasing demand for operational support services post-migration [7][28] - The market for cybersecurity solutions is expanding, with the company positioned as a resource for enterprises facing operational technology cybersecurity challenges [31] Company Strategy and Development Direction - The strategic focus is on expanding service revenue and growing the monthly recurring revenue (MRR) base [5] - The company aims to leverage partnerships, particularly with Microsoft Azure, to enhance its managed service offerings [7][28] - Investments in the managed service practice are expected to yield returns through new customer acquisitions [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence that fiscal 2026 will be a growth year, supported by infrastructure investments and a strong service segment [6][34] - The company anticipates generating substantial operating leverage as revenue grows, with a focus on maintaining high customer retention rates [8][34] Other Important Information - The company plans to pay a dividend of $0.03 per share on March 12, 2026, to shareholders of record as of February 26, 2026 [37] Q&A Session Summary Question: Clarification on service revenue categories - Management confirmed that service revenue includes multiple categories, with managed services being a significant portion [41][46] Question: Revenue predictability from Acronis integration - Management indicated that it is too early to quantify revenue from the integration with Acronis, as the APIs are still being built [67][68] Question: Share repurchase plans - Management confirmed plans to repurchase shares now that the blackout period has ended, indicating confidence in the company's stock [70][71] Question: Financing and customer repayment structure - Management clarified that the company continues to engage in financing roles with customers, which helps maintain strong relationships [87][88] Question: Multi-site customer approvals - Management provided insights into the timing of approvals for multi-site installations, indicating a growing frequency of such occurrences [90][92]

CSP (NasdaqGM:CSPI) Q1 2026 Earnings call February 12, 2026 10:00 AM ET Speaker5Greetings. Welcome to the CSPi's first quarter fiscal year 2026 conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Michael Poly ...

Exhibit 99.1 CSPi Reports 14.6% Services Revenue Growth, Significantly Expands Gross Margin and Generates FY 2026 First Quarter Profit Strong Customer Retention & New Customers Drive Technology Solutions Business New Customers Signed for AZT PROTECT as Existing Customers Add Additional Sites Conference Call Today at 10 a.m. ET LOWELL, Mass., February 12, 2026 – CSP Inc. (NASDAQ: CSPI), an award-winning provider of security and packet capture products, managed IT and professional services and technology solu ...

Core Viewpoint - CSPi is set to release its fiscal 2026 first quarter financial results on February 12, 2026, before the market opens [1] Company Summary - CSPi is recognized as an award-winning provider of security and packet capture products, managed IT and professional services, and technology solutions [1] - The announcement was made by CSPi's President and CEO Victor Dellovo and CFO Gary W. [1]

Core Insights - CSP Inc. (CSPI) has improved its operating profile as it enters fiscal 2026, driven by a growing service mix in its Technology Solutions (TS) segment and increased adoption of its AZT PROTECT cybersecurity platform in the High-Performance Products (HPP) segment [1] Financial Performance - CSPI reported revenues of $14.5 million for Q4 fiscal 2025, an 11% increase from $13 million in the same quarter last year [2] - The gross margin increased to 37%, up more than 800 basis points year-over-year, primarily due to accelerated service growth [2] - Service revenues surged by 63% or $2.5 million, improving gross profit and narrowing operating losses despite a decline in product revenues [3] Service Segment Growth - Services accounted for 44% of total revenues in Q4 fiscal 2025, up from approximately 30% in the prior-year quarter, and for the full year, services rose to 36% from 33% [4] - The managed cloud and managed service provider offerings expanded at a healthy double-digit rate in fiscal 2025, with plans to allocate more resources and add sales representatives for further expansion in 2026 [5] Maritime Industry Focus - CSPI's managed service strategy has been particularly effective in the maritime vertical, with expectations for service contracts from expanded installations to contribute significantly in fiscal 2026 [6] - The company entered fiscal 2026 with a backlog related to cruise ship installations and upgrades, enhancing revenue visibility [6] Customer Adoption and Expansion Strategy - The HPP segment is positioning AZT PROTECT as a long-cycle growth engine, with a growing pipeline of deployment opportunities and a channel approach through "gold star resellers" [7] - The company has successfully executed a strategy of deploying at one operational site and expanding to additional locations within the same enterprise [8] - Customers span multiple industries, including steel, energy, manufacturing, and telecommunications, with potential for significant multi-site deployments [9] Lead Generation and Channel Validation - Participation in Rockwell events has become a major commercial catalyst for AZT PROTECT, with a 50% year-over-year increase in leads reported during the 2025 Rockwell Fair [10] - The quality of leads has improved significantly due to greater distributor involvement, which is crucial for scaling AZT PROTECT adoption [11] Product Development in IIoT - CSPI has expanded AZT PROTECT into embedded industrial IoT (IIoT) environments, addressing challenges in protecting industrial IoT devices [12] - Enhancements to the software allow integration into existing systems of industrial IoT vendors, with a growing pipeline into the unserved industrial edge compute market [13] Balance Sheet Development - The company entered a buy-in contract in October 2024 as part of a planned termination of its U.K. defined benefit pension plan, paying £8.5 million, with expectations for this to transition into a buy-out contract in fiscal 2026 [14]

Core Insights - CSP Inc. (CSPI) shares have decreased by 15.1% since the fourth quarter results for fiscal 2025, contrasting with a 0.2% decline in the S&P 500 index, but have rebounded by 16.2% over the past month compared to a 2.7% increase in the S&P 500 [1] Financial Performance - For the quarter ending September 30, 2025, CSP reported revenues of $14.5 million, an 11% increase from $13 million in the same quarter last year, primarily driven by a surge in service revenues [2] - Gross profit rose to $5.3 million from $3.7 million a year earlier, resulting in a gross margin increase of 800 basis points to 37% from 28% [2] - The company posted a net loss of $191,000, or 2 cents per diluted share, an improvement from a net loss of $1.7 million, or 18 cents per diluted share, in the prior-year quarter [2] Annual Performance - For fiscal 2025, revenues increased by 6% to $58.7 million, while the net loss narrowed to $91,000, or 1 cent per share, from $326,000, or 4 cents per share, in fiscal 2024 [3] Revenue Composition - Service revenues surged by 63% year over year in the fiscal fourth quarter, accounting for 44% of total revenues compared to about 30% in the previous year [4] - For fiscal 2025, services represented 36% of total revenues versus 33% a year earlier, indicating a shift towards higher-margin offerings [4] Operating Metrics - The operating loss for the quarter narrowed to $0.5 million from $2 million a year earlier, reflecting margin expansion and stable operating expenses [5] - CSP ended fiscal 2025 with $27.4 million in cash and cash equivalents, down from $30.6 million a year earlier, while financing receivables increased [5] Management Insights - Management characterized the quarter as a strong finish to the fiscal year, highlighting the Technology Solutions segment's role in driving growth [6] - There is an emphasis on high customer retention and the contribution of managed services and cloud offerings to service revenue growth [6] - Leadership discussed expanding the sales organization to capture a larger share of the services market, citing opportunities for continued double-digit growth [7] Strategic Focus - Management pointed to the rapid growth in service revenues as a significant factor behind the quarter's results, which has a higher gross margin than product sales [8] - Continued investment in building a sales pipeline and customer adoption is expected to support long-term growth, despite weighing on near-term profitability [9] Future Outlook - Management expressed optimism about delivering additional growth and improving profitability in fiscal year 2026, with expectations for continued momentum in services and increased adoption of AZT PROTECT [10][11] - The timing of customer rollouts and revenue recognition may be uneven, leading to variability in quarterly revenue patterns [11] Corporate Developments - In the fiscal fourth quarter, CSP's board declared a quarterly cash dividend of 3 cents per share, payable January 15, 2026, and repurchased approximately 19,500 shares for $234,000 [12] - The company highlighted partnerships with Rockwell Automation distributors and an agreement to integrate AZT PROTECT into Acronis' Cyber Protect solution, reflecting efforts to broaden distribution [12]