The EPS miss and margin compression are concerning, but the $9.6M secondary offering (diluting shares by ~27%) is the dominant bearish signal. Monitor the upcoming earnings call for guidance on margin recovery and the new facility timeline. The stock's recent parabolic move (+69% in 20 days) sets up for a sharp pullback on this news.
Price Chart
Executive Summary
CPS Technologies reported Q2 2026 revenue of $8.3M (slightly above $8.2M consensus) but EPS of -$0.02, a 296% miss vs the $0.00 consensus estimate.
Key Financial Metrics
Key Facts
- Revenue of $8.3M vs $8.2M consensus (slight beat)
- EPS of -$0.02 vs $0.00 consensus (296% miss)
- Gross margin fell to 14.8% from 16.5% YoY
- Operating loss of $(0.2)M vs operating profit of $0.1M a year ago
- Completed $9.6M secondary offering, diluting shares outstanding from ~14.5M to ~18.5M (basic)
- SG&A expenses rose ~$0.3M YoY, pressuring margins
- Net income was just $40K vs $104K in Q2 2025
Financial Impact
EPS miss of -$0.02 vs consensus $0.00; revenue beat of $0.1M; gross margin compression of 170bps YoY; $9.6M dilutive offering
Risk Factors
- Further margin compression from rising SG&A and cost of goods sold
- Dilution from secondary offering may pressure EPS for several quarters
- Execution risk on new facility transition and defense contract ramp
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3338865 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 1d ago | SC 13D | $3.50 | awaiting T+60 | — | $3.63 (+3.71%) |
Aug 4, 2026 12w ago | Press Release | $4.35 | awaiting T+60 | — | $3.63 (+16.55%) |
Jul 31, 2026 12w ago | Press Release | $4.08 $3.65 | ▼ −10.54% | ▼ −12.32% | $3.63 (−11.03%) |
Jun 1, 2026 21w ago | 8-K | $9.45 $4.02 | ▲ +57.46% | ▲ +58.69% | $3.63 (+61.59%) |
May 28, 2026 21w ago | 424B5 | $9.02 $3.86 | ▲ +57.21% | ▲ +58.39% | $3.63 (+59.76%) |
May 8, 2026 24w ago | 8-K | $3.97 $4.26 | ▲ +7.18% | ▲ +2.34% | $3.63 (−8.56%) |
May 6, 2026 24w ago | 8-K | $3.62 $3.92 | ▼ −8.29% | ▼ −6.23% | $3.63 (−0.28%) |
May 6, 2026 24w ago | 8-K | $3.62 $3.92 | ▲ +8.29% | ▲ +6.23% | $3.63 (+0.28%) |
May 4, 2026 25w ago | Press Release | $3.65 $4.01 | ▼ −9.86% | ▼ −7.12% | $3.63 (+0.55%) |
Apr 29, 2026 25w ago | Press Release | $4.61 $4.44 | ▼ −3.69% | ▼ −7.80% | $3.63 (−21.26%) |
US Market Status
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