Short answer
CSP INC /MA/ (CSPI) filed its fiscal 2025 10-K annual report with the SEC on Dec 16, 2025. It reported revenue of $59M (+6.4% year over year) and net income of −$91,000.
- Top risk flagged: U.S. Department of Commerce Section 232 investigation into semiconductor imports impacting supply chain and tariffs starting Q2 2025
FY2025 key financial metrics · XBRL
- Revenue
- $59M
- +6.4% YoY
- Net income
- −$91,000
- +72.1% YoY
- Operating margin
- -5.3%
- −1.9 pp YoY
- Gross margin
- 31.5%
- −2.6 pp YoY
- EPS (diluted)
- −$0.01
- +75.0% YoY
- ROE
- -0.2%
- +0.5 pp YoY
- Operating cash flow
- $2M
- −46.2% YoY
Source: XBRL data from the CSP INC /MA/ (CSPI) FY2025 10-K on SEC EDGAR. USD.
CSP INC /MA/ FY2025 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: IT integration solutions, advanced security products, managed IT, and cloud services through two segments; Technology Solutions (TS) and High Performance Products (HPP)
- New product introduction: Launched ARIA Zero Trust (AZT) PROTECT™ in July 2023 targeting prevention of sophisticated cyberattacks on critical infrastructure with initial revenue-generating contracts
- Strategic shift: HPP segment de-emphasizing Myricom ARC Series due to ASIC supplier issues; focus shifting to ARIA cybersecurity portfolio and MSSP partnerships
- Quantitative metrics: Revenue grows to $58.7M (+6.3% YoY) with TS segment comprising 97% of sales; R&D spend increased to $3.3M from $3.0M for ARIA product development
- Noteworthy fact: ARIA SDS software automates MITRE ATT&CK™ framework detecting threats up to 100x faster, enhancing appeal to regulated critical infrastructure markets and MSSPs
Management Discussion & Analysis
- Revenue $58.7M, up 6% YoY (+$3.5M) driven by TS segment, partly offset by HPP segment decline
- Gross margin 32% vs 34% YoY; operating loss $(3.1)M (5% margin) vs $(1.9)M (3% margin) prior year
- Best segment TS: revenue $56.8M, up 11% (+$5.7M), gross margin 31% vs 32%; worst segment HPP: revenue $1.9M, down 54% (-$2.2M), gross margin 46% vs 65%
- Cash flow: operating cash inflow $2.3M vs $4.2M prior year; financing cash outflow $(5.0)M driven by $0.9M stock repurchases, $0.2M dividends, $3.3M net debt repayment; capex $0.4M
- Outlook/risk: management cites geopolitical conflicts as uncertain risks; sufficient liquidity with $27.4M cash, $14.1M available credit for next 12 months
Risk Factors
- U.S. Department of Commerce Section 232 investigation into semiconductor imports impacting supply chain and tariffs starting Q2 2025
- Geopolitical risk from Russia-Ukraine conflict; customers and suppliers in surrounding regions face possible cyber attacks and supply disruptions
- Dependence on few large customers and key personnel, including CEO Victor Dellovo, risks significant revenue or leadership loss
- Competitive threat from larger, better-funded companies pricing below CSP Inc and rapidly evolving technologies
- Fluctuating quarterly results driven by variable large customer orders and lower gross margins on development contracts vs standard sales
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