Q1 2026 CSP Inc Earnings Call Transcript

Feb 12, 2026 / 03:00 PM GMT

Release Date Price: $9.2 (-8.42%)

Transcript 10-Q8-K

Key Points

Positve

Service revenue grew by 14.6%, driven by momentum in technology solutions and managed services.
Gross margins improved significantly to 39.3%, contributing to an increase in gross profit.
The AZT Protect cybersecurity solution gained traction with new customer wins and multi-site expansions.
CSPI's managed cloud and managed service practices are excelling, benefiting from the trend of organizational migration to the cloud.
The company has a strong partnership with Microsoft Azure, enhancing its market position in managed services.

Negative

Total revenue declined due to the absence of a one-time product deal from the previous year.
The company faces timing delays in customer procurement processes, affecting sales cycles.
Net income for the quarter was relatively low at $91,000, compared to $42,000 in the prior year.
The effective tax rate was high at 75.5%, influenced by state taxes and non-deductible executive compensation.
Integration of AZT Protect into Acronus offerings is still in progress, with no clear timeline for revenue impact.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CSPI.OQ - CSP Inc
Q1 2026 CSP Inc Earnings Call
Feb 12, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Greetings. Welcome to the CSPI's first quarter fiscal year 2026 conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Michael Polivio. You may begin.

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Unidentified_2 [2]
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Great.

Thank you. Hello, everyone, and thank you for joining us to review CSPI's initial results for the fiscal

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