CSP 2025 Q3 Earnings Wider Losses Despite Strong Revenue Growth

CSP (CSPI) reported its fiscal 2025 Q3 earnings on August 14th, 2025. While the company delivered robust revenue growth, it posted a wider-than-previous net loss. The results highlight a mixed financial performance with strong top-line expansion but continued bottom-line challenges.

Revenue
CSP achieved total revenue of $15.45 million in Q3 2025, representing a 17.9% year-over-year increase from $13.11 million in the same period of 2024. The Technology Solutions segment remained the primary growth engine, contributing $15.06 million in revenue, while the High Performance Products segment added $384,000. Together, these segments reflect the company’s strategic focus on scaling its Technology Solutions business and expanding demand for its AZT PROTECT product line.

Earnings/Net Income
CSP’s earnings turned negative, with a per-share loss of $0.03 in Q3 2025, an increase of 50.0% in magnitude compared to the $0.02 per share loss in Q3 2024. The net loss for the quarter widened to $264,000, a 42.7% increase from $185,000 in the prior year. This indicates continued pressure on profitability despite rising revenue.

Price Action
The stock of CSP demonstrated positive short-term momentum, surging 24.79% during the latest trading day, 12.52% in the most recent full trading week, and 4.57% month-to-date as of August 14, 2025.

Post-Earnings Price Action Review
The stock’s performance following the earnings announcement was mixed over a three-year period. While the initial 30-day return mirrored the one-month return, indicating a neutral short-term market reaction, the three-year return declined by more than 20 percentage points. This suggests that while the market may have reacted favorably to the revenue beat, the long-term trajectory for CSP shares remains uncertain. The company’s ability to deliver sustained profitability will be crucial for investor confidence.

CEO Commentary
Victor J. Dellovo, CEO, highlighted Q3 revenue growth of $15.4 million, driven by the Technology Solutions segment and increased demand for AZT PROTECT in the High Performance Products segment. He emphasized the success of the company’s managed cloud business in niche markets such as container shipping and expressed optimism about the "land and expand" strategy in industrial sectors like steel, concrete, and lumber. Dellovo also noted strong momentum with Rockwell resellers and the strategic importance of R&D investment in enhancing product capabilities. He expressed confidence in exceeding full-year growth targets, citing strong deal pipelines and recent contract wins.

Guidance
While no specific financial guidance was provided, the CEO indicated confidence in outperforming fiscal 2025 expectations based on strong Q3 results and ongoing strategic execution. CSPi is currently in the late stages of an early adoption cycle for AZT PROTECT, with revenue acceleration expected in the next three to six months as resellers scale deployments.

Additional News
On August 15, 2025, Sokoto State Governor Ahmed Aliyu announced the launch of a N2.5 billion grant program under the N-G CARES Result Area 3.2 initiative, supporting over 13,900 small-scale business owners. In a related political development, the Peoples Democratic Party (PDP) inaugurated a 44-member zoning committee ahead of its November 15 National Elective Convention in Ibadan, emphasizing party unity and strategic planning. Meanwhile, the Lagos State Government introduced a new forensic interview protocol to better protect and prosecute cases of child sexual abuse, marking a significant step toward safeguarding vulnerable populations.