NORTON, Mass., Aug. 04, 2026 (GLOBE NEWSWIRE) -- CPS Technologies Corp. (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for its fiscal second quarter ended June 27, 2026.
Second Quarter Summary
- Revenue of $8.3 million, versus $8.1 million in the prior-year period, reflecting strong overall product demand.
- Gross margin of 14.8 percent versus 16.5 percent in the second quarter of 2025.
- Operating loss of $(0.2) million for the quarter compared to an operating profit of $0.1 million in the prior-year period.
- The Company successfully completed a secondary offering that raised gross proceeds of $9.6 million, providing additional capital to support the Company’s growth initiatives.
- Funded development work continues, including programs to develop a controlled fragmentation tungsten warhead for the U.S. Army and an initiative to reduce the weight of the Amphibious Combat Vehicle with funding from the U.S. Navy.
- CPS remains on course to build out and move to a new operating facility in the coming quarters, as previously announced.
“We continue to plan for a transition to an improved manufacturing location and are now finalizing the negotiations for the best available site to support our growth,” said Brian Mackey, President and CEO. “We’re seeing strong demand across our various product lines – reflected in our increased quarterly revenue relative to both the second quarter of 2025 and first quarter of 2026 – while gross margins recovered significantly, improving 620 basis points over Q1. In addition, with trends pointing to expanding opportunities going forward, we raised over $9 million in funds through a secondary offering, positioning the Company for its upcoming move as well as investments to meet demand and commercialize our growing portfolio of offerings. Overall, we believe CPS is executing to plan and are encouraged by the broad array of industries and organizations – from defense and space to energy infrastructure and commercial markets – interested in leveraging our advanced technology to improve product performance, increase durability, and serve as the innovative basis for new applications across the board.”
Results of Operations
CPS reported revenue of $8.3 million for the second quarter of fiscal 2026 versus $8.1 million in the prior-year period. Gross profit was $1.2 million, or 14.8 percent of revenue, versus $1.3 million, or 16.5 percent of revenue, in the fiscal 2025 second quarter.
Operating loss was $(0.2) million in the fiscal 2026 second quarter compared with an operating profit of $0.1 million in the prior-year period; SG&A expenses rose approximately $0.3 million year-over-year. Reported net income for the quarter was just under $40,000, or $0.00 per diluted share, versus a net profit of $0.1 million, or $0.01 per diluted share, in the quarter ended June 28, 2025.
Conference Call
The Company will be hosting its second quarter 2026 earnings call tomorrow, August 5, 2026, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 255505
The Company encourages those who wish to participate to call in 10 minutes before the scheduled start time to ensure the operator can connect all participants.
About CPS
CPS is an advanced materials company that designs, manufactures, and sells high-performance material solutions to global customers in transportation, energy, automotive, electronics, telecommunications, aerospace, and defense. The company specializes in proprietary metal matrix composites (MMCs), combining metals and ceramics to deliver superior strength, thermal management, and reliability for demanding applications such as high-speed rail, HVDC systems, mass transit, electric vehicles, internet equipment, and electrical infrastructure. CPS also produces hermetic packaging for high-reliability power and communications modules, supporting avionics, GPS, microprocessors, and specialized integrated circuits. Additionally, its lightweight HybridTech Armor® provides high strength-to-weight protection. CPS focuses on innovation, quality, and diversified high-growth markets to drive sustained, profitable growth. The Company’s Vision is ”to pioneer the next generation of high-performance materials and solve the world’s toughest engineering challenges.”
Safe Harbor
Statements made in this document that are not historical facts or which apply prospectively, including those relating to 2025 financial results, are forward-looking statements that involve risks and uncertainties. These forward-looking statements are identified by the use of terms and phrases such as "will," "intends," "believes," "expects," "plans," "anticipates" and similar expressions. Investors should not rely on forward looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the company's expectation. Additional information concerning risk factors is contained from time to time in the company's SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.
CPS Technologies Corporation
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com
Investor Relations:
Chris Witty
646-438-9385
[email protected]
Statements of Operations and Other Comprehensive Income (Loss)
(Unaudited) Three Months Ended Six Months Ended June 27, June 28, June 27, June 28, 2026 2025 2026 2025 Product sales $8,309,323 $8,078,657 $15,338,071 $15,584,578 Cost of product sales 7,080,534 6,742,341 13,502,404 13,017,261 Gross profit 1,228,789 1,336,316 1,835,667 2,567,317 Selling, general, and administrative expenses 1,487,316 1,199,389 2,616,828 2,300,739 Income (loss) from operations (185,566) 136,927 (781,161) 266,578 Other income, net 146,168 19,025 292,373 69,501 Net income (loss) before income taxes (39,398) 155,952 (488,788) 336,079 Income tax provision (benefit) (150,106) 52,119 (232,356) 136,284 Net income (loss) $37,747 $103,833 $(256,432) $199,795 Other comprehensive income Net unrealized gains on available for sale securities 1,398 8,169 (3,359) 10,206 Reclassification adjustment for gains included in net income - - - (16,237) Total other comprehensive income 1,398 8,169 (3,359) (6,031) Comprehensive income (loss) 39,145 112,002 (259,791) 193,764 Net income (loss) per basic common share $0.00 $0.01 $(0.01) $0.01 Weighted average number of basic common shares outstanding 18,460,574 14,525,960 18,116,660 14,525,960 Net income (loss) per diluted common share $0.00 $0.01 $(0.01) $0.01 Weighted average number of diluted common shares outstanding 18,984,367 14,577,433 18,338,857 14,560,672
Balance Sheets (Unaudited) June 27,
2026
December 27,
2025 ASSETS Current assets: Cash and cash equivalents $15,354,564
$4,466,198 Marketable securities, at fair value 3,801,426 8,769,363 Accounts receivable-trade 4,932,226 5,235,307 Accounts receivable-other 141,338 380,948 Inventories, net 8,649,437
5,598,407 Prepaid expenses and other current assets 298,780 299,829 Total current assets 33,177,771
24,750,052 Property and equipment: Production equipment 10,966,327 10,647,170 Furniture and office equipment 910,310 910,310 Leasehold improvements 997,830 997,830 Total cost 12,874,467 12,555,310 Accumulated depreciation and amortization (10,897,944) (10,877,927)Construction in progress 498,656 459,671 Net property and equipment 2,475,180 2,137,054 Net intangible assets 19,354 21,778 Right-of-use lease asset 264,000 336,000 Deferred taxes, net 2,499,666 2,266,854 Total Assets $38,435,971 29,511,738 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable 3,496,532 3,363,233 Accrued expenses 501,435 907,910 Deferred revenue 487,240 238,044 Lease liability, current portion 163,000 162,000 Total current liabilities 4,648,207 4,671,187 Deferred revenue – long term 31,277 31,277 Long term lease liability 101,000 174,000 Total liabilities 4,780,484 4,876,464 Commitments & Contingencies Stockholders’ equity: Common stock, $0.01 par value, authorized 25,000,000 shares; issued 19,605,017 and 18,132,767 shares; outstanding 19,387,942 and 17,988,634 shares at each June 27, 2026 and December 27, 2025 196,043 181,320 Preferred stock, no shares issued or outstanding – – Additional paid-in capital 60,122,967 50,295,019 Accumulated other comprehensive income (3,220) 139 Accumulated deficit (25,726,323) (25,469,891)Less cost of 217,075 and 144,133 common shares repurchased at each June 27, 2026 and December 27, 2025 (933,980) (371,313) Total stockholders’ equity 33,655,487 24,635,274 Total liabilities and stockholders’ equity $38,435,971 $29,511,738