CPS Technologies Corp (CPSH)
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
$3.83-0.26%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyHardware, Equipment & PartsSnapshot 2026-09-04
Broken: Primary pillar broken — Gross margin near 16.5% in FY25: 14.8% vs 16.5% target.
CPS Technologies aims to grow revenue above $32.6M by end of 2026. The company targets gross margins near 16.5% in 2025. A new CFO is in place to improve financial management. These steps could stabilize and grow the business.
Revenue fell from $8.2M to $7.0M recently, showing weak sales. Gross profit halved from $1.2M to $0.6M, indicating margin pressure. The stock is down nearly 60% from its high, reflecting deep investor concern.
The price is about 15% below our fair value near $5.75. Analysts expect 20% revenue growth, but recent results show declines. The market prices in a turnaround but with high risk.
Breaks if: CFO transition fails or causes disruption beyond 2026-Q2
Onboard new Chief Financial Officer to replace retiring CFO and support company growth.
Newly stated in 2026-Q1. The company onboarded a new CFO in May 2026 to replace the retiring predecessor, supporting management's focus on strengthening leadership during growth. This priority is recent with no financial metrics directly tied yet.
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story, as CPSH works to improve its financial performance after recent losses. The current thesis state is cautious, with recent performance trailing its industry peers.
The market appears to have priced in a low valuation compared to peers, indicating a justified but cautious outlook. There is an expectations gap, suggesting that investors may be anticipating some improvement but remain skeptical.
Management is on track with priorities like revenue growth and margin expansion, as evidenced by recent increases in both metrics. However, the company's recent momentum has declined significantly, which could pose near-term risks.
Key factors include potential guidance cuts in the next earnings call, which could negatively impact sentiment. Conversely, favorable movements in interest rates or positive earnings from sector leaders could provide a boost.
The most important moves since the prior daily snapshot.
Our read on the company is unchanged since the prior snapshot.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
“New Chief Financial Officer, Chris Fraser, joined the Company on May 4, 2026.”
Breaks if: Gross margin falls below 15% in FY25
Breaks if: Revenue falls below $30M in FY26
Continue to grow revenue through increased product demand and new business bookings.
Stated as a priority in 2 of last 2 quarters. Revenue increased from $7.0 million in 2026-Q1 to $8.3 million in 2026-Q2, reflecting strong product demand and new bookings. The trajectory matches management's stated goal of continued revenue growth.
“Revenue of $8.3 million, versus $8.1 million in the prior-year period, reflecting strong overall product demand.”
“Company on track for revenue growth in quarters to come; revenue of $7.0 million.”
Over the next 1 to 3 years, CPSH's performance will depend on its ability to execute on management's priorities and external market conditions. Not investment advice.