📊 CSPI Key Takeaways
Investment Thesis
CSP Inc demonstrates structural profitability challenges despite modest revenue growth, with negative operating income and sharply negative free cash flow indicating operational distress. The company's strong balance sheet and liquidity position provide a temporary cushion, but deteriorating cash generation and minimal net margins suggest fundamental business model weakness that requires immediate operational turnaround.
CSPI Strengths
- Strong balance sheet with $24.9M cash and minimal debt (0.00x debt/equity ratio)
- Excellent liquidity position with 2.75x current ratio and 2.62x quick ratio
- Solid gross margin of 39.3% indicates reasonable pricing power despite operational challenges
CSPI Risks
- Severe negative operating cash flow of -$2.9M with -25.1% FCF margin indicating cash burn despite revenue generation
- Operating losses of -$112K despite positive net income, suggesting non-operating gains masking underlying business weakness
- Minimal profitability metrics with 0.8% net margin and near-zero ROE (0.2%) and ROA (0.1%) indicate poor capital efficiency
- Negative interest coverage ratio of -1.3x reflects inability to cover obligations from operations
Key Metrics to Watch
- Operating cash flow trend - critical indicator of whether cash burn stabilizes
- Operating margin improvement - path to positive operating income essential for viability
- Revenue quality and growth sustainability - current 6.4% growth insufficient to offset operational losses
CSPI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.75x current ratio provides a solid financial cushion.
CSPI Profitability Ratios
CSPI vs Technology Sector
How CSP INC /MA/ compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CSPI Balance Sheet & Liquidity
CSPI 5-Year Financial Trend
5-Year Trend Summary: CSP INC /MA/'s revenue has remained relatively flat over the 5-year period, with a 5% decline. The most recent EPS of $-0.04 indicates the company is currently unprofitable.
CSPI Growth Metrics (YoY)
CSPI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $12.0M | $91.0K | $0.01 |
| Q3 2025 | $13.1M | $100.0K | $0.01 |
| Q2 2025 | $13.1M | -$108.0K | $-0.01 |
| Q1 2025 | $15.4M | -$73.0K | $-0.01 |
| Q3 2024 | $13.1M | -$185.0K | $-0.02 |
| Q2 2024 | $13.3M | $321.0K | $0.03 |
| Q1 2024 | $15.4M | -$73.0K | $-0.02 |
| Q3 2023 | $13.3M | $474.0K | $0.11 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CSPI Capital Allocation
CSPI SEC Filings
Access official SEC EDGAR filings for CSP INC /MA/ (CIK: 0000356037)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSPI
What is the AI rating for CSPI?
CSP INC /MA/ (CSPI) has an AI rating of SELL with 78% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSPI's key strengths?
Strong balance sheet with $24.9M cash and minimal debt (0.00x debt/equity ratio). Excellent liquidity position with 2.75x current ratio and 2.62x quick ratio.
What are the risks of investing in CSPI?
Severe negative operating cash flow of -$2.9M with -25.1% FCF margin indicating cash burn despite revenue generation. Operating losses of -$112K despite positive net income, suggesting non-operating gains masking underlying business weakness.
What is CSPI's revenue and growth?
CSP INC /MA/ reported revenue of $12.0M.
Does CSPI pay dividends?
CSP INC /MA/ pays dividends, with $0.3M distributed to shareholders in the trailing twelve months.
Where can I find CSPI SEC filings?
Official SEC filings for CSP INC /MA/ (CIK: 0000356037) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSPI's EPS?
CSP INC /MA/ has a diluted EPS of $0.01.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.