CPS Technologies Corporation reported its financial results for the second quarter and first half of fiscal 2026, revealing a mixed performance amid fluctuating market conditions. For the three months ended June 27, 2026, the company generated revenues of $8.31 million, a 3% increase from $8.08 million in the same period last year. However, for the first half of 2026, total revenue decreased to $15.34 million from $15.58 million in the prior year. The company reported a net income of $37,747 for Q2 2026, down from $103,833 in Q2 2025, while the net loss for the first half of 2026 was $256,432, compared to a profit of $199,795 in the same period last year.
The company's gross profit for Q2 2026 was $1.23 million, representing 15% of sales, down from 17% in Q2 2025. This decline was attributed to increased gold plating costs, which were passed on to customers without markup, affecting the gross profit percentage. Selling, general, and administrative expenses rose to $1.49 million in Q2 2026, up from $1.20 million in Q2 2025, primarily due to higher stock-based compensation and increased marketing and legal costs. The operating loss for Q2 2026 was $258,527, a significant shift from the operating income of $136,927 reported in Q2 2025.
CPS Technologies has made strategic moves to bolster its financial position, including a successful capital raise in May 2026, where it issued 1.2 million shares at $8.00 per share, generating net proceeds of approximately $8.98 million. This capital infusion contributed to a significant increase in cash and cash equivalents, which rose to $15.35 million as of June 27, 2026, compared to $4.47 million at the end of December 2025. The company also reported a decrease in days sales outstanding from 61 days to 42 days, indicating improved efficiency in collections.
Operationally, CPS Technologies has seen fluctuations in customer demand, particularly in the semiconductor and defense sectors. The company noted a planned increase in inventory to support long-term customer orders, with total inventories rising to $8.65 million from $5.60 million at the end of December 2025. The company continues to focus on its core markets, including electronics and defense, while navigating challenges such as inflation and supply chain disruptions.
Looking ahead, CPS Technologies remains cautiously optimistic about its growth prospects, emphasizing the importance of maintaining operational efficiency and adapting to market demands. The company is committed to leveraging its advanced material solutions to meet the evolving needs of its customers while managing costs effectively. However, management acknowledged the uncertainty surrounding future financial performance due to external factors, including inflation and geopolitical tensions, which could impact supply chains and pricing strategies.
About CPS TECHNOLOGIES CORP/DE/
CPS Technologies Corp. specializes in advanced metal matrix composites and hermetic packaging for high-performance electronics, aerospace, defense, and energy markets. Its products enhance thermal management, reliability, and weight reduction in applications like electric vehicles, satellites, and military armor. The company designs custom solutions, leveraging proprietary manufacturing processes, to serve global OEMs and defense contractors, supporting the transition to a greener economy and high-reliability systems.
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