| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 16.01 | 33.0% | 21.8% |
| Total Income | 16.01 | 33.0% | 21.8% |
| Expenditure | 16.86 | 38.8% | 19.2% |
| PBT | -0.30 | 181.1% | 62.0% |
| Net Profit | 0.26 | 188.9% | 336.4% |
| OPM | -5.32% | 4.38pp | 2.25pp |
| NPM | 1.65% | 0.89pp | 2.47pp |
| EPS | 0.03 | 200.0% | 400.0% |
CSPi Reports Q2 FY2026 Revenue Growth of 21.8% and Profitability
07 May 2026 · 7 May, 6:18 pm
Summary
CSP Inc. reported a 21.8% increase in revenue for the second quarter of fiscal year 2026, reaching $16.0 million compared to $13.1 million in the prior year. Product revenue saw a significant increase of 30%, while service revenue grew by 6.6%. The company achieved net income of $264,000, or $0.03 per share, after an income tax benefit. Management is optimistic about achieving full-year growth compared to fiscal year 2025, driven by the Technology Solutions business and the growing complexity of cloud environments.
Key Highlights
- 1
CSP Inc. announced a 21.8% revenue growth for the fiscal second quarter ended March 31, 2026.
- 2
Revenue for the fiscal second quarter ended March 31, 2026, was $16.0 million, compared to $13.1 million for the same period in the prior year.
- 3
Product revenue grew by 30% to $11.1 million, while service revenue increased by 6.6% to $4.9 million.
- 4
The company reported net income of $264,000, or $0.03 per share, after recording an income tax benefit of $568,000 for the quarter.
- 5
Gross profit for the three months ended March 31, 2026, increased slightly to $4.5 million compared to $4.2 million.
- 6
The Board of Directors declared a quarterly dividend of $0.03 per share payable June 15, 2026, to shareholders of record on May 21, 2026.
- 7
Revenue for the fiscal six months ended March 31, 2026, was $28.0 million compared with revenue of $28.8 million in prior year period.
Management Comments
Victor Dellovo
We had a solid quarter as revenue increased over 21% lead by our U.S. Technology Solutions business, and we have carried this business momentum into the first month of our fiscal third quarter. As a result of our second quarter, and current trends, we believe we could achieve full year growth compared to fiscal 2025. Our TS business continues to lead our progress, and a primary factor behind this market driver has been the growing complexity of the cloud and the unique and specific needs of each enterprise. At the same time, our services business continued to grow due to our best-in-class service and extremely high customer retention rate, which contributes to realizing higher gross margins within the service segment. We are generating positive trends with the AZT PROTECT offering and continue to execute an increasingly successful land and expand strategy to leverage the market opportunity for our unique cyber-security solutions. During the quarter we doubled the number of new initial site customers over the prior year period. At the beginning of the third quarter, we added a new customer who is deploying AZT at more than two dozen manufacturing sites around the U.S. We continue to work with our strategic partners and distributors on additional multi-site deployments across key markets, including steel, energy, manufacturing, water utilities, pharmaceutical, food, and telecommunications industries. Half-way through our fiscal year, we are where we expected to be and are on track to generate growth during the second half of the year. Our cloud and managed services business will remain the drivers of our growth, with AZT PROTECT positioned to make a growing contribution.
Informational and educational content only. Not investment advice.