Q3 FY2026
Filed Nov 6, 2026CPS Technologies reports Q3 2026 product sales of $8,900,433 and gross margin of 20.9%, with operating income of $357,747
Quarterly gross margin (20.9% vs 17.1%) and operating income ($357,747 vs $276,082) improved on nearly flat product sales ($8,900,433 vs $8,803,695). Nine-month results were weaker: an operating loss of $(423,415) against operating income of $542,659 a year earlier, and nine-month net income of $90,324 vs $407,759. The release's Q3 net income and diluted EPS in the text ($0.6 million, $0.03) conflict with the statement of operations ($346,757, $0.02). Inventories rose to $10,320,406 from $5,598,407 and cash fell to $2,791,195 from $4,466,198, while a long-term lease liability of $8,754,046 was added.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Product sales, Q3 2026 (three months ended Sept 26, 2026)GAAP | $8,900,433 | – | – |
| Cost of product sales, Q3 2026GAAP | $7,043,948 | – | – |
| Gross profit, Q3 2026GAAP | $1,856,485 | – | – |
| Gross margin, Q3 2026GAAP | 20.9% | – | – |
| Selling, general and administrative expenses, Q3 2026GAAP | $1,498,738 | – | approximately $0.2 million, as stated in the release text |
| Income from operations, Q3 2026GAAP | $357,747 | – | – |
| Other income, net, Q3 2026GAAP | $163,349 | – | – |
| Net income before income taxes, Q3 2026GAAP | $521,096 | – | – |
| Income tax provision, Q3 2026GAAP | $174,339 | – | – |
| Net income, Q3 2026 (statement of operations)GAAP | $346,757 | – | – |
| Net income, Q3 2026 (release text, conflicts with statement of operations)GAAP | $600K | – | – |
| Net income per diluted share, Q3 2026 (statement of operations)GAAP | $0.02 | – | – |
| Net income per diluted share, Q3 2026 (release text, conflicts with statement of operations)GAAP | $0.03 | – | – |
| Comprehensive income, Q3 2026GAAP | $363,889 | – | – |
| Product sales, nine months 2026 (ended Sept 26, 2026)GAAP | $24,238,504 | – | – |
| Cost of product sales, nine months 2026GAAP | $20,546,352 | – | – |
| Gross profit, nine months 2026GAAP | $3,692,152 | – | – |
| Selling, general and administrative expenses, nine months 2026GAAP | $4,115,567 | – | – |
| Income (loss) from operations, nine months 2026GAAP | $(423,415) | – | – |
| Other income, net, nine months 2026GAAP | $455,722 | – | – |
| Net income before income taxes, nine months 2026GAAP | $32,307 | – | – |
| Income tax provision (benefit), nine months 2026GAAP | $(58,017) | – | – |
| Net income, nine months 2026GAAP | $90,324 | – | – |
| Net income per diluted share, nine months 2026GAAP | $0.00 | – | – |
| Cash and cash equivalents, Sept 26, 2026GAAP | $2,791,195 | – | – |
| Total assets, Sept 26, 2026GAAP | $48,182,028 | – | – |
| Total liabilities, Sept 26, 2026GAAP | $14,061,716 | – | – |
| Total stockholders' equity, Sept 26, 2026GAAP | $34,120,312 | – | – |
Capital returns
- Treasury stock at cost: 217,075 common shares repurchased at Sept 26, 2026, cost $933,980, versus 144,133 shares at cost $371,313 at Dec 27, 2025, as shown in the balance sheet.
- The filing does not print a repurchase program amount, repurchases in the period, or dividends paid.
What drove it
- The company states that revenue rose to a new high and gross margins expanded due to higher demand and increased production.
- The company states that the Q3 gross margin of 20.9% is a level not seen since its HybridTech Armor contracts more than three years ago.
- The company states that it received its first order from a defense contractor for tungsten alloy components made with its QuickSet Injection Molding process.
- The company states that it received new volume orders from an existing customer and large semiconductor manufacturer, with deliveries continuing into fiscal 2027.
- The release states that SG&A expenses rose approximately $0.2 million year-over-year. No cause is given in the filing.
Concerns
- The release text reports Q3 net income of $0.6 million and diluted EPS of $0.03, while the statement of operations shows net income of $346,757 and diluted EPS of $0.02. The two sets of figures do not agree and the filing does not explain the difference.
- Nine-month operating result is a loss of $(423,415), against operating income of $542,659 in the prior-year nine months. Nine-month net income fell to $90,324 from $407,759.
- Nine-month product sales of $24,238,504 were slightly below $24,388,272 in the prior-year period, and nine-month gross profit fell to $3,692,152 from $4,069,882.
- Inventories rose to $10,320,406 from $5,598,407 at fiscal year-end. The filing does not explain the increase.
- Cash and cash equivalents fell to $2,791,195 from $4,466,198. Marketable securities rose to $15,612,554 from $8,769,363, so total cash and securities increased.
- The Attleboro lease adds right-of-use assets of $8,829,210 and a long term lease liability of $8,754,046. The filing does not print lease cost, commencement date or total commitment.
- Nine-month SG&A rose to $4,115,567 from $3,527,223, and the release reports Q3 SG&A up approximately $0.2 million.
- The release is dated November 3, 2026 but refers to the earnings call as 'tomorrow, November 4, 2026', while the 8-K was filed November 6, 2026.
What to watch
- Reconciliation of the Q3 net income and diluted EPS between the release text and the statement of operations.
- Whether gross margin of 20.9% holds in Q4 2026 and into fiscal 2027.
- Inventory levels and the cash conversion of the higher inventory balance.
- Timing of the partial move to the Attleboro facility, which management says may begin earlier in 2027, and full buildout in the second half of 2027.
- Revenue contribution from the new defense contractor order and the tungsten alloy QuickSet components, which the filing does not quantify.
- Whether the semiconductor customer volumes stay at levels consistent with the prior-year period, as stated by management.
Balance sheet and cash flow
- Cash and cash equivalents: $2,791,195 at Sept 26, 2026 vs $4,466,198 at Dec 27, 2025.
- Marketable securities, at fair value: $15,612,554 at Sept 26, 2026 vs $8,769,363 at Dec 27, 2025.
- Restricted cash: $510,154 at Sept 26, 2026 vs no balance at Dec 27, 2025.
- Inventories, net: $10,320,406 at Sept 26, 2026 vs $5,598,407 at Dec 27, 2025.
- Accounts receivable-trade: $4,703,028 at Sept 26, 2026 vs $5,235,307 at Dec 27, 2025.
- Accounts payable: $3,766,979 at Sept 26, 2026 vs $3,363,233 at Dec 27, 2025.
- Right-of-use lease assets: $8,829,210 at Sept 26, 2026 vs $336,000 at Dec 27, 2025.
- Long term lease liabilities: $8,754,046 at Sept 26, 2026 vs $174,000 at Dec 27, 2025.
- Total stockholders' equity: $34,120,312 at Sept 26, 2026 vs $24,635,274 at Dec 27, 2025.
- Additional paid-in capital: $60,223,530 at Sept 26, 2026 vs $50,295,019 at Dec 27, 2025.
- The filing does not include a cash flow statement, so operating cash flow and free cash flow are not reported.
Analysis
CPS Technologies reported fiscal Q3 2026 (three months ended September 26, 2026) product sales of $8,900,433, against $8,803,695 in the quarter ended September 27, 2025. Gross profit rose to $1,856,485 from $1,502,566, and the release prints gross margin at 20.9% against 17.1%. Cost of product sales fell to $7,043,948 from $7,301,129. The company attributes higher revenue and margin to higher demand and increased production. The release does not print a percentage change for product sales or a margin change in basis points, so those fields are left empty.
Operating costs moved the other way. SG&A rose to $1,498,738 from $1,226,484, which the release describes as an increase of approximately $0.2 million, and the filing gives no cause. Income from operations was $357,747 against $276,082. Other income, net of $163,349 compared with $45,483 also contributed to pre-tax income of $521,096 against $321,565. The income tax provision was $174,339 against $113,601.
The filing contains an inconsistency in the bottom line. The statement of operations shows Q3 net income of $346,757 and diluted EPS of $0.02, against $207,964 and $0.01 a year earlier. The release text reports net income of $0.6 million and diluted EPS of $0.03 for Q3 2026, against $0.2 million and $0.01. Both sets of figures are shown in key_metrics as printed. Readers should resolve the difference against the full filing before relying on either.
On a nine-month basis, the picture is weaker. Product sales were $24,238,504 against $24,388,272, gross profit $3,692,152 against $4,069,882, and SG&A $4,115,567 against $3,527,223. The company reports an operating loss of $(423,415) against operating income of $542,659 in the prior-year nine months. Nine-month net income was $90,324 against $407,759, and nine-month diluted EPS was $0.00 against $0.03. Other income of $455,722 (against $114,985) and a tax benefit of $(58,017) (against a $249,885 provision) lifted nine-month pre-tax income to $32,307.
The balance sheet shows a larger business footprint and a heavier working capital position. Total assets rose to $48,182,028 from $29,511,738 at fiscal year-end. Inventories increased to $10,320,406 from $5,598,407, and marketable securities to $15,612,554 from $8,769,363, while cash and cash equivalents fell to $2,791,195 from $4,466,198. The company signed a long-term lease for an 80,000-square-foot facility in Attleboro, and the balance sheet carries right-of-use assets of $8,829,210 and a long term lease liability of $8,754,046. The company repurchased 217,075 shares at a cost of $933,980 (cumulative, versus 144,133 shares at $371,313 at year-end). The filing does not include a cash flow statement or guidance for fiscal 2027, so no forward figures are reported.
Management, verbatim
Due to higher demand and increased production, our quarterly revenue rose to a new high and gross margins expanded to 20.9%
Brian Mackey, President and CEO
While exploring ways to potentially initiate a partial move earlier in 2027, complex production requirements likely mean the full buildout will continue into the second half of next year.
Brian Mackey, President and CEO
we believe the Company is in excellent shape for continued growth and higher financial results heading into fiscal 2027.
Brian Mackey, President and CEO
Not in the filing
stated, not guessed- No cash flow statement: operating cash flow, investing cash flow, free cash flow and capital expenditure are not reported.
- No forward guidance figures for fiscal 2027 or Q4 2026. The release states only that the company is 'in excellent shape for continued growth and higher financial results'.
- No previous-period outlook was provided, so vs_prior_guidance is empty.
- Q3 2026 net income and diluted EPS are printed differently in the release text ($0.6 million, $0.03) and in the statement of operations ($346,757, $0.02). The filing does not reconcile them.
- Percentage change in product sales, gross margin change in basis points and operating margin are not printed.
- Prior-year and prior-quarter comparisons are not printed for balance sheet items: the comparative column is the December 27, 2025 fiscal year-end, not the prior-year period.
- No segment or product-line revenue breakdown is printed.
- No revenue or contribution amounts are printed for the new defense contractor order or the semiconductor customer volumes.
- Lease cost, commencement date, lease term and total commitment for the Attleboro facility are not printed.
- Share repurchase program authorization and repurchases made during the period (as distinct from cumulative treasury stock) are not printed.
- Dividends: not reported.
- Q3 2026 operating expense detail beyond SG&A (for example R&D) is not printed.
- Cause of the SG&A increase is not stated in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.