CPS Technologies Announces Third Quarter 2025 Financial Results

NORTON, Mass., Oct. 29, 2025 (GLOBE NEWSWIRE) -- CPS Technologies Corporation (NASDAQ:CPSH) (“CPS” or the “Company”) today announced financial results for the fiscal third quarter ended September 27, 2025.

Third Quarter Highlights

Revenue of $8.8 million, more than doubling the $4.2 million in revenue from the prior-year period, reflecting continued strong demand for the Company’s core product lines; this represents the Company’s third consecutive quarter of record revenue.Gross margin of 17.1 percent versus a gross loss in the prior-year period.Operating profit of $0.3 million for the quarter compared to an operating loss of $(1.5) million in the prior-year period.After the quarter, CPS announced a $15.5 million follow-on contract with a major multinational semiconductor manufacturer to deliver advanced power module components over a 12-month period which began October 1, 2025; this is a 16.5% year-over-year increase in business from the customer.The Company also announced two recent government-funded research awards: a Phase I Small Business Innovation Research (SBIR) contract from the U.S. Department of Energy, valued at approximately $125,000 through April, 2026; and a Phase II, two-year, $1.15 million Small Business Technology Transfer (STTR) contract with the U.S. Army to further the Company’s development of a controlled fragmentation tungsten warhead.On October 8, 2025 the Company closed on a public offering that brought in net proceeds of $9.5 million, to be used for general corporate purposes including the expansion of CPS’ production capabilities through the move to a larger facility.

“We are pleased to announce another quarter of strong performance, as we remain on track for 2025 to be our best sales year ever,” said Brian Mackey, President and CEO. “Margin expansion continues to be an area of considerable focus, and the recent capital raise will enable us to expand and improve our manufacturing operations while maintaining a solid growth trajectory. Our two newest government-funded research contracts bring our number of program awards in 2025 to six, which will strengthen our portfolio of market-driven technology and enhance our long-term outlook. In addition, our new contract with a long-standing customer affirms the continued strong demand for our core products. We believe the Company is poised to finish its best year ever, and is well positioned for growth in 2026 and beyond.”

Results of Operations
CPS reported revenue of $8.8 million in the third quarter of fiscal 2025 versus $4.2 million in the prior-year period, reflecting higher production rates and increased shipments. Gross profit was $1.5 million, or 17.1 percent of revenue, versus a gross loss of $(0.5) million, or (12.3) percent of revenue, in the fiscal 2024 third quarter, with the year-over-year increase due to higher sales and greater production efficiencies.

Operating profit was $0.3 million in the fiscal 2025 third quarter compared with an operating loss of $(1.5) million in the prior-year period. Reported net income was $0.2 million, or $0.01 per diluted share, versus a net loss of $(1.0) million, or $(0.07) per diluted share, in the quarter ended September 28, 2024.

Conference Call
The Company will be hosting its third quarter 2025 earnings call tomorrow, October 30, 2025, at 9:00 a.m. Eastern. Those interested in participating in the conference call should dial the following:
Call in Number: 1-844-943-2942
Participant Passcode: 587233

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 a technology and manufacturing leader in producing high-performance materials solutions for its customers. The company’s products and intellectual property address critical needs in a variety of applications, including electric trains and subway cars, wind turbines, hybrid vehicles, electric vehicles, Navy ships, the smart electric grid, 5G infrastructure and others. CPS hermetic packages can be found in many Aerospace and Satellite applications. CPS’ armor products provide exceptional ballistic protection and environmental durability at very light weight. CPS is committed to innovation and to supporting our customers in building solutions for the transition to clean energy. The Company articulates its Vision as follows: “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 SEC filings, including its Annual Report on Form 10-K and other periodic reports filed with the SEC. Forward-looking statements contained in this press release speak only as of the date of this release. Subsequent events or circumstances occurring after such date may render these statements incomplete or out of date. The company expressly disclaims any obligation to update the information contained in this release.

CPS Technologies Corporation                                  
111 South Worcester Street
Norton, MA 02766
www.cpstechnologysolutions.com

Investor Relations:
Chris Witty
646-438-9385
[email protected]

CPS TECHNOLOGIES CORPORATION
Statements of Operations (Unaudited) Three Months Ended Nine Months Ended September 27,
2025 September 28,
2024 September 27,
2025 September 28,
2024 Product sales $8,803,695 $4,247,116 $24,388,272 $15,190,063 Cost of product sales 7,301,129 4,770,548 20,318,390 15,037,177 Gross profit 1,502,566 (523,432) 4,069,882 152,886 Selling, general, and administrative expenses 1,226,484 963,064 3,527,223 3,214,831 Income (loss) from operations 276,082 (1,486,496) 542,659 (3,061,945) Other income, net 45,483 70,974 114,985 241,845 Net income (loss) before income taxes 321,565 (1,415,522) 657,644 (2,820,100)Income tax provision (benefit) 113,601 (372,683) 249,885 (679,803) Net income (loss) $207,964 $(1,042,839) $407,759 $(2,140,297)Other comprehensive income Net unrealized gains (losses)on available for sale securities (2,293) 8,745 7,913 17,446 Reclassification adjustment for gains included in net income - - (16,237) - Total other comprehensive income (loss) (2,293) 8,745 (8,324) 17,446 Comprehensive income (loss) 205,671 (1,034,094) 399,435 (2,122,851) Net income (loss) per basic common share $0.01 $(0.07) $0.03 $(0.15) Weighted average number of basic common shares outstanding 14,527,126 14,525,664 14,526,349 14,521,365 Net income (loss) per diluted common share $0.01 $(0.07) $0.03 $(0.15) Weighted average number of diluted common shares outstanding 14,674,384 14,525,664 14,598,576 14,521,365

CPS TECHNOLOGIES CORP.
Balance Sheets (Unaudited) September 27,
2025 December 28,
2024 ASSETS Current assets: Cash and cash equivalents $3,234,142 $3,280,687 Marketable securities, at fair value 1,054,079 1,031,001 Accounts receivable-trade 5,400,080 4,858,208 Accounts receivable-other 376,652 177,068 Inventories, net 5,383,680 4,331,066 Prepaid expenses and other current assets 328,249 480,986 Total current assets 15,776,882 14,159,016 Property and equipment: Production equipment 10,599,479 10,382,379 Furniture and office equipment 910,310 891,921 Leasehold improvements 997,830 997,830 Total cost 12,507,619 12,272,130 Accumulated depreciation and amortization (10,737,391) (10,377,756)Construction in progress 216,193 108,874 Net property and equipment 1,986,421 2,003,248 Net intangible assets 23,746 - Right-of-use lease asset 370,000 186,000 Deferred taxes, net 2,279,253 2,528,682 Total Assets $20,436,302 18,876,946 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Note payable, current portion - 8,130 Accounts payable 3,530,052 3,053,712 Accrued expenses 1,298,268 913,279 Deferred revenue 74,257 172,429 Lease liability, current portion 161,000 160,000 Total current liabilities 5,063,577 4,307,550 Deferred revenue – long term 31,277 31,277 Long term lease liability 209,000 26,000 Total liabilities 5,303,854 4,364,827 Commitments & Contingencies Stockholders’ equity: Common stock, $0.01 par value, authorized 20,000,000 shares; issued 14,666,987 and 14,661,487 shares; outstanding 14,529,277 and 14,525,960 shares at September 27, 2025 and December 28, 2024, respectively 146,670 146,615 Additional paid-in capital 40,809,151 40,580,387 Accumulated other comprehensive income 7,176 15,500 Accumulated deficit (25,482,486) (25,890,245)Less cost of 137,710 and 135,527 common shares repurchased at September 27, 2025 and December 28, 2024, respectively (348,063) (340,138) Total stockholders’ equity 15,132,448 14,512,119 Total liabilities and stockholders’ equity $20,436,302 $18,876,946