Csp Stock Earnings Reports

CSP Inc. reported Q1 fiscal 2026 revenue of $12.0M (vs. $15.7M prior year), with product revenue down due to absence of ~$4.5M one-time product transactions in the prior-year quarter, while service revenue rose 14.6% to $5.3M. Gross margin improved materially to 39.3% (vs. 29.1% prior year) and gross profit increased ~$171k year-over-year to $4.7M. Net income was $91k and diluted EPS was $0.01. Management is focused on expanding higher-margin recurring/service revenue (MSP and managed cloud) and growing monthly recurring revenue (they signed new MSP customers expected to generate nearly six figures of monthly revenue commencing this quarter). AZT Protect (cybersecurity product) is gaining traction: ~46 unique customers, multiple multisite expansions in progress, strategic OEM/channel integration activity with Acronis, and several potentially large multisite opportunities that could become seven-figure relationships. R&D spending rose to support AZT customization and OEM embedding; SG&A modestly declined. Cash and equivalents remain strong at $24.9M. Management also announced a $0.03 per-share dividend payable March 12 (record Feb 26). Key investor takeaways: accelerating higher-margin service mix and improving gross margins, early but growing traction for AZT Protect with sizable long-term upside, solid liquidity, and management is investing to scale while starting to see returns from MSP investments.