CSP INC /MA/ (CSPI) FY2025 10-K Annual Report
CSP INC /MA/ (CSPI) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Dec 16, 2025. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
CSP INC /MA/ FY2025 10-K Analysis
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
CSP INC /MA/ FY2025 Key Financial MetricsXBRL
Revenue
$59M
▲ +6.4% YoY
Net Income
-$91,000
▲ +72.1% YoY
Gross Margin
31.5%
▼ -263bp YoY
Operating Margin
-5.3%
▼ -190bp YoY
Net Margin
-0.2%
▲ +44bp YoY
ROE
-0.2%
▲ +49bp YoY
Total Assets
$71M
▲ +2.5% YoY
EPS (Diluted)
$-0.01
▲ +75.0% YoY
Operating Cash Flow
$2M
▼ -46.2% YoY
Source: XBRL data from CSP INC /MA/ FY2025 10-K filing on SEC EDGAR. All figures in USD.
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