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 theU.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
Results of Operations
CPS reported revenue of
Operating loss was
Conference Call
The Company will be hosting its second quarter 2026 earnings call tomorrow,
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
www.cpstechnologysolutions.com
Investor Relations:
646-438-9385
cwitty@darrowir.com
Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) | |||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||
| 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) | ||||||||
2026 | 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, | 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 | (933,980 | ) | (371,313 | ) | ||||
| Total stockholders’ equity | 33,655,487 | 24,635,274 | ||||||
| Total liabilities and stockholders’ equity | $ | 38,435,971 | $ | 29,511,738 | ||||
