CSP Inc.
- Open
- 8.75
- Day high
- 8.75
- Day low
- 8.35
- Prev close
- 8.76
- Volume
- 7K
- Mkt cap
- $88M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 1.9
- P/S
- 1.5
- Yield
- 1.38%
- Per share
- $0.12
- ▲Insiders net buying $134K over the last 3 months (17 open-market buys, 0 sales)
- ◆Cluster buying — multiple insiders bought within days
- 🏛Institutions mixed (13F)
CSP Inc. (CSPI) is a Technology company listed on NASDAQ. The stock is down 27% over the past year. Over the trailing 3 months, insiders filed 17 open-market buys and 0 sales (SEC Form 4).
CSP Inc. (CSPI) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CSPI earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | — | $0.03 | — | $16M | — |
| Feb 12, 2026 | — | $0.01 | — | $12M | — |
| Dec 16, 2025 | — | $-0.02 | — | $14M | — |
| Aug 14, 2025 | — | $-0.03 | — | $15M | — |
| May 14, 2025 | — | $-0.01 | — | $13M | — |
| Dec 20, 2024 | — | $-0.18 | — | $13M | — |
| Aug 13, 2024 | — | $-0.02 | — | $13M | — |
| May 8, 2024 | — | $0.16 | — | $14M | — |
| Feb 14, 2024 | — | $-0.01 | — | $15M | — |
| Dec 12, 2023 | — | $0.15 | — | $15M | — |
| Feb 8, 2023 | — | $0.10 | — | $18M | — |
| Dec 6, 2022 | — | $0.16 | — | $17M | — |
CSPI insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 199 | $8.05 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 500 | $8.60 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 800 | $8.40 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 71 | $8.29 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 100 | $8.32 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 700 | $8.69 |
| Jun 10, 2026 | NERGES JOSEPH R10 percent owner | Buy | 1,000 | $8.75 |
| May 18, 2026 | FOLGER ANTHONYdirector | Buy | 2,500 | $9.36 |
| May 14, 2026 | Azeri Ismaildirector | Buy | 218 | $9.41 |
| May 14, 2026 | Azeri Ismaildirector | Buy | 2,282 | $9.38 |
| May 13, 2026 | NERGES JOSEPH R10 percent owner | Buy | 400 | $9.19 |
| May 13, 2026 | NERGES JOSEPH R10 percent owner | Buy | 348 | $9.18 |
| May 13, 2026 | NERGES JOSEPH R10 percent owner | Buy | 1,500 | $9.22 |
| May 13, 2026 | NERGES JOSEPH R10 percent owner | Buy | 800 | $9.30 |
| May 13, 2026 | NERGES JOSEPH R10 percent owner | Buy | 200 | $9.15 |
Source: CSPI SEC Form 4 filings, latest Jun 10, 2026. For informational purposes only — not investment advice.
See the full CSPI insider & 13F page →CSP Inc. company profile
Overview
CSP Inc. (NASDAQ:CSPI) is a technology solutions provider founded in 1968 and headquartered in Lowell, Massachusetts. The company went public in 1982 and has evolved from its origins as a computer systems manufacturer into a diversified IT services and cybersecurity solutions provider. Today, CSPI operates through two primary business segments: Technology Solutions, which provides IT integration and managed services, and High Performance Products, which focuses on specialized cybersecurity and network adapter solutions. The company serves commercial and defense customers worldwide, with a particular emphasis on critical infrastructure protection and enterprise IT services.
Business
CSPI operates in the information technology services sector through two distinct business segments that collectively generate approximately $55 million in annual revenue. The Technology Solutions segment represents the majority of CSPI's business, generating roughly 95% of total revenue (approximately $52-53 million annually). This division functions as a value-added reseller and systems integrator, providing third-party computer hardware and software to customers across various industries including healthcare, education, telecommunications, financial services, and manufacturing. The segment offers comprehensive IT consulting services such as system planning, design, implementation, and migration, along with storage and virtualization solutions. A growing component of this business is managed IT services, which includes proactive monitoring, cloud services, and unified communications solutions. The company has successfully grown its recurring revenue from less than 5% to 17% of total sales over the past two years, primarily through expanded managed services and cloud offerings. The High Performance Products segment accounts for approximately 5% of revenue (roughly $2-3 million annually) and focuses on specialized cybersecurity and networking solutions. The flagship product is AZT PROTECT, a software-defined security solution designed to protect operational technology (OT) and IT infrastructure from cyber threats including zero-day attacks, malware, and ransomware. This segment also includes Myricom network adapters for high-performance computing applications and legacy multicomputer products primarily serving defense markets. AZT PROTECT represents the company's primary growth investment, targeting critical infrastructure sectors such as utilities, manufacturing, pharmaceuticals, and energy companies that require protection for industrial control systems and operational technology environments.
Revenue model
CSPI generates revenue through multiple business models across its two segments. The Technology Solutions segment operates primarily on a product sales and service fee model, earning margins by reselling third-party hardware and software while adding value through integration, consulting, and support services. This traditional VAR (Value-Added Reseller) model typically generates gross margins around 30-35%. The company is increasingly shifting toward recurring revenue models through managed services contracts, cloud hosting, and multi-year support agreements, which provide more predictable cash flows and higher margins. The High Performance Products segment operates on both product licensing and subscription models. AZT PROTECT is transitioning to a monthly recurring revenue model priced per endpoint, which provides ongoing revenue streams from deployed installations. The company also generates revenue from professional services related to product implementation and training. Several factors influence CSPI's profitability margins. Positive margin drivers include the growing shift toward higher-margin managed services and recurring revenue contracts, the scalability of the AZT PROTECT software solution, and the company's ability to command premium pricing for specialized cybersecurity expertise in critical infrastructure markets. Margin pressures come from competitive pricing in the commodity IT hardware reselling business, supply chain disruptions affecting component costs, inflationary pressures on labor and operational expenses, and the significant upfront investment required to scale the AZT PROTECT business through sales and marketing expenditures. The company's customer base spans enterprise clients, government agencies, and mid-market businesses, with paying customers ranging from Fortune 500 companies to specialized industrial operators requiring critical systems protection.
Competitive moat
CSPI's competitive moat is relatively narrow but developing in specific niches. In the Technology Solutions segment, the company operates in a highly competitive IT services market with limited differentiation beyond customer relationships and service quality. The traditional VAR business faces ongoing pressure from larger integrators, cloud providers, and direct vendor sales, offering minimal sustainable competitive advantages. The company's emerging moat lies primarily in the AZT PROTECT cybersecurity solution, which addresses a specialized market need for operational technology protection. The product's key differentiators include its ability to protect legacy industrial systems without requiring updates, minimal system resource requirements, and compatibility with older software versions that are common in critical infrastructure environments. The solution has received nine major industry awards and has demonstrated unique capabilities in preventing system-wide outages, as highlighted during incidents like the CrowdStrike disruption. However, this moat remains fragile and unproven at scale. The cybersecurity market is intensely competitive with well-funded competitors, and CSPI's small size limits its ability to invest in R&D and sales compared to established players like CrowdStrike, Palo Alto Networks, or Fortinet. The company's partnerships with Rockwell Automation and other industrial technology providers offer some distribution advantages, but these relationships could be replicated by competitors. The primary competitive threats come from larger cybersecurity vendors expanding into OT markets, industrial automation companies developing integrated security solutions, and the potential for customers to develop in-house capabilities. CSPI's success will largely depend on its ability to establish market presence and build customer switching costs before larger competitors fully address this market segment.
Risks & safety
CSPI demonstrates a strong financial safety profile with minimal solvency risk but faces profitability challenges from growth investments. **Cash and Debt Position:** - Cash and short-term investments: $29.5 million as of Q2 2025 - Minimal debt with debt-to-equity ratio of 0.014 - Strong current ratio of 3.34, indicating excellent liquidity - Positive free cash flow of $1.9 million in recent quarter despite operating losses **Valuation Metrics:** - Trading at 3.0x book value, suggesting premium valuation - Graham Net-Net ratio of 2.26, indicating stock trades above strict value metrics - Negative EBITDA due to AZT PROTECT investment spending - Market cap of approximately $131 million against $47 million in shareholders' equity **Other Considerations:** - Quarterly dividend of $0.03 per share maintained despite losses - Active share repurchase program - Estimated earnings of $0.56 per share without AZT PROTECT investments - Strong balance sheet provides runway for continued product development and market expansion
Recent development
Over the past few years, CSPI has undergone a significant strategic transformation centered around the development and commercialization of its AZT PROTECT cybersecurity solution. The company launched this software-defined security product in fiscal 2023, targeting the operational technology (OT) cybersecurity market, which represents a departure from its traditional IT services business. The AZT PROTECT rollout has accelerated significantly, with the company signing deals with Fortune 500 companies including a major pharmaceutical company, expanding partnerships with key distributors like Rockwell Automation, and building a global reseller network spanning Chile, Peru, Brazil, Morocco, Norway, India, and Australia. The product has received nine major industry awards and generated over 100 leads from recent trade shows and conferences. CSPI has made substantial organizational changes to support this growth, including hiring Greg Pysher as VP of Sales specifically for the AZT PROTECT business and investing heavily in sales and marketing efforts. The company has also expanded its partnership strategy, signing agreements with Forescout Technologies, Ebix, and Worldwide Technology to broaden distribution channels. In the core Technology Solutions business, CSPI has successfully pivoted toward higher-margin recurring revenue services, growing this component from less than 5% to 17% of total sales over two years. The company has expanded its cloud migration services, managed IT offerings, and multi-year support contracts, with a portfolio of approximately 20-25 cloud-based projects currently in progress. This strategic shift aims to reduce dependence on lower-margin hardware reselling while building more predictable revenue streams.
CSPI company profile · for informational purposes only — not investment advice.
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