Lumida
/CSPI
⌘K
CSP Inc

CSP Inc

CSPI
$8.16USD↓-0.61%-0.05 today

MARKET CAP

82.2M

P/E (TTM)

—

FWD P/E

—

DAY RANGE

$8 – $8

52W RANGE

$8
$15

AI Summary

Stalk
Sell NowMedium

A decisive break below a key support zone under declining EMAs confirms a bearish medium-term bias, with price failing to find demand even in extreme oversold conditions. We recommend selling now to capture further downside continuation.

  • ↑Q2 2026 revenue $6M, product sales +30% driven by one-time order.
  • ↑High OT cybersecurity demand for AZT Protect with few rivals.
  • ↓Gross margin down to 28% from 32%, squeezing profitability.
Full analysis →

The case for & against

Bull & Bear analysis

Bearish

CSPI Inc. (NASDAQ: CSPI) operates in the technology sector, providing specialized cybersecurity solutions and managed services, primarily focusing on its AZT Protect product, which serves operational technology (OT) markets such as manufacturing and energy. The company is strategically positioned in a high-growth area amidst increasing awareness and demand for cybersecurity solutions to combat mounting cyber threats.

Bull says

  • ↑Q2 2026 revenue $6M, product sales +30% driven by one-time order.
  • ↑High OT cybersecurity demand for AZT Protect with few rivals.
  • ↑Partnership with Rockwell Automation targets >100 global plant deployments.
  • ↑Cash $23.1M funds growth initiatives, $0.03 dividend, and buybacks.
  • ↑High QS score and positive momentum suggest outperformance potential.
  • ↑CEO confident fiscal 2026 will be a growth year on expanding pipeline.

Bear says

  • ↓Gross margin down to 28% from 32%, squeezing profitability.
  • ↓Negative earnings yield indicates core return generation weakness.
  • ↓Earnings revisions declined, signaling fading analyst confidence.
  • ↓Elevated leverage versus cash flow heightens financial strain risk.
  • ↓Low liquidity and reduced institutional ownership dampen demand.
  • ↓Stock trading below 200-day MA; short interest remains elevated.

Earnings Call · Q1 2026 · Mgmt. Guidance

Updated 04-21-2026neutral

Transcript signals

Bull points

  • Service revenue for the first fiscal quarter increased 14.6%, to $5.3 million from $4.7 million in the year-ago fiscal first quarter.
  • Gross profit margins for the first quarter was 39.3% of sales, which was slightly more than 10% higher than the gross margin for the prior fiscal first quarter of 29.1%.
  • The company had increased interest income that increased 23% over the prior year on our financing deals and interest on our cash.

Bear points

  • Product revenue for the fiscal first quarter of 2025 was 6.7 million compared to product revenue of $11 million for the fiscal first quarter of 2025.
  • The company recorded a tax expense of $280,000, which represented a year-to-date effective tax rate of 75.5%.
  • Diluted earnings per common share was one cent compared to five cents in the prior year first quarter.
Read full transcript analysis ›