CSP Inc. Stock Plummets 16.98% Despite Robust Q4 Growth in Cybersecurity Segment
CSP Inc. (CSPI) shares tumbled 16.98% to $12.42 in early trading, contrasting sharply with its strong fiscal Q4 2025 performance. The technology solutions provider reported an 11% year-over-year revenue increase to $14.5 million, fueled by a 63% surge in high-margin services revenue.
The company's cybersecurity expansion continues gaining momentum, now representing 44% of total revenue. Gross margins improved by 9 percentage points to 37%, reflecting the favorable revenue mix shift toward services. Cost containment measures simultaneously reduced net losses.
Market reaction appears disconnected from fundamental improvements, suggesting potential undervaluation of CSP Inc.'s growing cybersecurity capabilities and strategic partnerships. The services segment's gross profit nearly doubled to $5.3 million from $3.7 million year-over-year.
