CPS Technologies Corporation

CPS reported Q2 revenue of $8.3 million versus $8.1 million in the second quarter of 2025. Gross profit was $1.2 million, or 14.8% of revenue, versus $1.3 million, or 16.5% of revenue a year ago; management said the year-over-year decline was partly due to higher material and plating costs. SG&A was $1.5 million versus $1.2 million last year, leading to an operating loss of about $200,000 versus an operating profit of $100,000 in the prior-year quarter. Net income was roughly $40,000, or $0.00 per share, versus about $100,000, or $0.01 per share, last year. The company said it expects shipments to continue at a similar pace in coming quarters based on current backlog and outlook, and it remains focused on moving to a new facility to support better performance in 2027 and beyond.

Brian Mackey’s tone was constructive and upbeat, centered on long-term growth rather than near-term disruption. He said the company is very close to finalizing a lease for a facility twice the size of the current location and emphasized that the move is important to support both existing demand and new products. He also highlighted expanding interest in energy infrastructure, AI, defense, semiconductors, space, and commercial applications, plus potential follow-on business from government programs and HybridTech Armor.

Christopher Fraser emphasized improving profitability, liquidity, and balance-sheet flexibility. He noted gross profit of $1.2 million, gross margin of 14.8%, and a 620-basis-point improvement versus Q1, while SG&A rose to $1.5 million partly because of noncash stock-option expense. He also highlighted the $9.6 million secondary offering and said the company ended with $15.4 million of cash and $3.8 million of marketable securities, versus $13.2 million combined at the start of the year. Inventory increased to $8.6 million from $5.6 million at the start of the year, which he tied to preparation for the facility move.

An investor asked whether CPS’s AlSiC versus copper tungsten comparison was leading to customer retention or new business, and Brian Mackey declined to go deep into the technical comparison on the call, offering to follow up offline. Another question focused on the facility move: management confirmed it expects a phased relocation with both build-out and equipment installation, and said the new equipment will go to the new site because the current facility lacks room. On requalification risk, Mackey said validation will be handled case by case with customers and that buffer inventory may help bridge any transition period.