CSP Inc. Q1 Revenue Drops 24% to $12M, Margin Expands to 39.3%
CSP Inc. reported Q1 fiscal 2026 revenue of $12 million, down 23.6% from $15.7 million a year ago, driven by absence of $4.5 million in one-time product sales. Gross margin rose to 39.3% from 29.1% on a 14.6% increase in services revenue, narrowing operating loss to $112,000.
1. Q1 Financial Results
CSP Inc. posted fiscal Q1 revenue of $12 million, down from $15.7 million a year earlier. Net income declined to $91,000 (1 cent per share) from $472,000 (5 cents), while operating loss narrowed to $112,000 from $354,000.
2. Margin Improvement and Services Growth
Gross profit rose to $4.7 million, lifting gross margin to 39.3% from 29.1%, driven by a 14.6% increase in services revenue to $5.3 million. Product sales fell to $6.7 million from $11 million due to absence of large one-time deals.
3. Balance Sheet, Dividend and Outlook
The company ended Q1 with $24.9 million in cash versus $27.4 million, and reduced current liabilities to $17.9 million. CSP Inc.’s board declared a quarterly dividend of $0.03 per share, and management expects continued services momentum and operating leverage.