CSP Inc. (CSPI): Business Model Canvas [Dec-2025 Updated]

You're looking at a company, CSP Inc. (CSPI), that isn't just one thing; it's a fascinating dual play between complex IT integration and specialized High Performance Products. Honestly, the real story is how they are threading their proprietary Zero Trust security software, AZT PROTECT™, into the Operational Technology (OT) space, which is a huge near-term opportunity. Looking at their Q3 FY2025 numbers, they pulled in $\text{10.2 million}$ from reselling products and $\text{5.3 million}$ from services, all while sitting on $\text{26.3 million}$ in cash as of June 30, 2025. If you want to see exactly how these two segments-from Cisco Premier alliances to defense HPC-fit together on one page, check out the Business Model Canvas below.

CSP Inc. (CSPI) - Canvas Business Model: Key Partnerships

The Key Partnerships block for CSP Inc. (CSPI) is built around strategic technology alliances, distribution agreements for its proprietary AZT PROTECT™ offering, and the resale channel for its Technology Solutions (TS) segment.

CSP Inc.'s Technology Solutions segment relies on its Value Added Reseller (VAR) channel, which involves reselling third-party computer hardware and software.

The VAR business utilizes products from companies including Palo Alto, Juniper Networks, Fortinet, and Cisco Systems.

For the fiscal nine months ended June 30, 2025, CSP Inc. reported total revenue of $44.3 million, with product revenue contributing $10.2 million in the third quarter alone. For the fiscal third quarter ended June 30, 2025, service revenue was $5.3 million.

The AZT PROTECT™ solution is being pushed through distribution networks, notably involving Rockwell Automation customers via a reseller agreement with Rexel USA, which was announced on February 26, 2025. The initial deployment of ARIA AZT PROTECT™ at a Rexel USA customer site was completed in just one hour.

CSP Inc.'s relationship with Microsoft is critical, particularly within the Technology Solutions division, which was selected to deliver a critical Microsoft Azure Project for a Florida-Based Healthcare Provider, announced on April 10, 2025. The requirements for Microsoft CSP partners set the operational bar for this alliance, as detailed below:

Technology integration partners include Acronis, which announced a partnership on September 11, 2025, to integrate AZT PROTECT™ into its Acronis Cyber Protect Solution.

The reliance on channel partners for the VAR business is structured such that for the fiscal years ended September 30, 2024, and 2023, no single customer accounted for 10% or more of total revenues.

CSP Inc. also maintains other strategic relationships:

• TS segment is a VAR of third-party hardware and software technology solutions.
• The Company reported Total Cash of $26.31 million as of the last reported quarter.
• The Board of Directors declared a quarterly dividend of $0.03 per share payable September 15, 2025.

CSP Inc. (CSPI) - Canvas Business Model: Key Activities

You're looking at how CSP Inc. (CSPI) actually generates its revenue and deploys capital across its core functions as of late 2025. It's not just one thing; it's a mix of services, proprietary tech, and reselling.

Delivering complex IT integration and managed services (MSP) globally.

This is largely driven by the Technology Solutions (TS) segment, which provides managed IT services and professional services for complex IT solutions. The focus here is on recurring revenue streams, which is key for stability. For the fiscal third quarter ended June 30, 2025, service revenue was reported at $5.3 million. This compares to the fiscal first quarter ended December 31, 2024, where services revenue was $4.7 million, representing a 17% year-over-year increase for that period. The global aspect is evident with continued momentum, such as securing an additional multi-year contract with a South African cell tower customer to protect visual monitoring systems.

Research and development (R&D) for proprietary cybersecurity products like AZT PROTECT™.

Investment in the proprietary AZT PROTECT™ offering is a clear key activity, evidenced by the spending on engineering and development. For the fiscal third quarter ended June 30, 2025, Engineering and development expenses were $791 thousand. This was up from $737 thousand in the same period last year. The product line is showing market penetration, with the company noting a strong customer order pipeline for AZT PROTECT™ as of August 2025, including a partnership announced in October 2025 with Acronis to integrate the feature set into Acronis Cyber Protect.

Value-Added Reselling (VAR) of third-party IT infrastructure and software.

The VAR function is a core component of the TS segment, involving reselling third-party hardware and software. This activity often drives the product revenue stream. For the fiscal third quarter ended June 30, 2025, product revenue was reported at $10.2 million, which represented a 29% rise year-over-year for that quarter. For the fiscal second quarter ended March 31, 2025, product revenue was $8.6 million. The TS segment is described as a VAR of third-party technology solutions.

Here's a quick look at the revenue split for the most recent reported quarter, Q3 FY2025:

Note that the sum of the reported product and service revenue for Q3 2025 is $15.5 million, slightly different from the reported total revenue of $15.4 million, which is common in segment reporting.

Providing professional services for IT lifecycle management (planning, design, optimization).

These professional services fall under the service revenue line, which also includes managed IT services. The company is executing on its strategy to focus on higher margin offerings, as seen in the gross margin expansion in Q1 FY2025 to 29.1% of sales. The TS segment delivers professional services for complex IT solutions, including advanced security, data center solutions, and network solutions. The company maintained a robust balance sheet as of June 30, 2025, holding $26.3 million in cash and cash equivalents, which supports ongoing service delivery and investment in capabilities.

• The Technology Solutions (TS) segment revenue grew 20% for the third fiscal quarter of 2025 compared to the same prior year quarter.
• The company declared a quarterly dividend of $0.03 per share, payable September 15, 2025.
• For the fiscal nine months ended June 30, 2025, total revenue was $44.3 million.

Finance: review the Q3 R&D spend of $791 thousand against the pipeline development milestones for AZT PROTECT™ by end of next week.

CSP Inc. (CSPI) - Canvas Business Model: Key Resources

You're looking at the core assets that power CSP Inc. (CSPI)'s operations right now. These aren't abstract concepts; they are tangible and financial elements that support their value delivery.

Proprietary cybersecurity software: AZT PROTECT™ (ARIA Zero Trust PROTECT)

The patented AZT PROTECT™ solution is a core asset, recently expanded to target the Industrial Internet of Things (IIOT) market with on-device embedded application lockdown, announced on October 30, 2025. This product line is showing tangible revenue contribution. For the fiscal third quarter ended June 30, 2025, product revenue, which includes AZT PROTECT™, rose 29% year-over-year to $10.2 million.

Key metrics related to this resource include:

• Product revenue for Q3 FY2025: $10.2 million
• Product revenue growth for Q3 FY2025: 29%
• Major industry awards secured in 2024: eight
• Target market expansion announced: Embedded IIOT (October 2025)

Strong balance sheet with $26.3 million in cash and equivalents as of June 30, 2025

Financial stability is a key resource, providing the runway for investment and stability for stakeholders. As of June 30, 2025, CSP Inc. maintained a very clean balance sheet.

The company also executed share repurchases during the quarter, spending $0.3 million to buy back over 19,000 shares.

Highly specialized technical and domain expertise in cybersecurity and HPC

The intellectual capital within CSP Inc. is evidenced by specific project wins and historical focus areas. The High Performance Product division's expertise originated from supporting initiatives for the Department of Defense and Western intelligence agencies related to network monitoring and data protection. This expertise translated into recent commercial wins.

Evidence of this expertise includes:

• Technology Solutions segment revenue growth in Q3 FY2025: 20%
• Selection for a critical Microsoft Azure Project for a Florida-Based Healthcare Provider
• Expertise spanning five key technology areas: Advanced Security, Communication and Collaboration, Data Center, Networking, and Wireless & Mobility

Certifications and partner status (e.g., Cisco Premier, Microsoft Gold)

While the structure of partner programs evolves, CSP Inc.'s ability to secure high-level engagements demonstrates validated capability. You should note that Microsoft retired its legacy Silver/Gold competencies on January 22, 2025, pushing partners toward Solutions Partner designations. CSP Inc.'s technical team successfully delivered a critical project for a major client leveraging Microsoft Azure, indicating a current, high-level working relationship with Microsoft's cloud platform.

The company's Technology Solutions division's ability to secure the Microsoft Azure Project suggests a strong standing within that ecosystem, even as legacy certifications like Microsoft Gold retired.

CSP Inc. (CSPI) - Canvas Business Model: Value Propositions

You're looking at what CSP Inc. (CSPI) is actually delivering to its customers right now, late in 2025. It's not just about selling boxes; it's about securing operations and managing the entire technology lifespan.

Advanced Zero Trust security for Operational Technology (OT) via AZT PROTECT™

The value here is specialized, modern security for industrial environments. We see real traction in the High-Performance Products (HPP) segment, which is deploying AZT PROTECT™ to protect things like cell tower visual monitoring systems, as seen in a recent multi-year contract expansion with a South African customer. Management noted the strongest customer order pipeline for AZT PROTECT™ since the product launched, reflecting increasing market awareness. While the HPP segment's product revenue rose 29% to $10.2 million in the third fiscal quarter of 2025 compared to the prior year's Q3, the CEO is signaling that this product is the key to future growth, targeting conversions of existing leads into active proposals across middle-market OT customers. Honestly, the potential here is significant, with the CEO indicating plans to convert existing leads into larger contracts worth six and seven figures over the next 18-24 months.

Here are some recent operational highlights tied to this value proposition:

• Added as a member of the broad-market Russell 3000® Index as part of the 2025 reconstitution.
• New AZT PROTECT™ customer engagements strengthened in the steel, concrete, and lumber industries.
• Expanded AZT PROTECT™ feature set on October 30, 2025, to enable OEM integration for embedded IIoT devices.

Complete IT lifecycle support to achieve expected business outcomes.

This is about being the single partner from start to finish for a client's IT infrastructure. The Technology Solutions (TS) segment explicitly states its value proposition is the ability to support the complete IT life cycle: planning, designing, implementing, and optimizing a comprehensive solution. This is a high-touch service designed to ensure clients hit their specific business targets. The TS segment was the primary revenue driver, growing 20% in the third fiscal quarter of 2025 compared to the same quarter last year, reaching $5.3 million in service revenue for that quarter.

You can see the financial impact of this focus on services versus lower-margin product sales in the table below, comparing the nine-month periods ending June 30, 2025, and June 30, 2024:

Managed IT services for 24x365 proactive support and cloud migration.

The market is clearly valuing recurring revenue streams. CSP Inc. (CSPI) Technology Solutions was named the #5 Cloud Computing Company in South Florida by the South Florida Business Journal on November 11, 2025. This recognition speaks directly to the strength of their managed services portfolio. They are actively delivering on cloud migration, evidenced by being selected to deliver a critical Microsoft Azure Project for a Florida-Based Healthcare Provider. The managed services are designed for 24x365 proactive support, which is crucial for digital resilience. Service revenue for the nine months ended June 30, 2025, was $5.3 million in the third quarter alone, showing a slight increase year-over-year, while the overall TS segment saw 20% revenue growth in that same quarter.

The suite of cloud and managed services includes:

• Microsoft CSP Partner services.
• Hosted Unified Communications as a Service (UCaaS).
• Data Backup, Disaster Recovery, and Business Continuity.
• Private Cloud Hosting.
• Cloud Security and Managed Services.

High-Performance Computing (HPC) solutions for complex data analysis in defense.

While the search results don't explicitly detail defense contracts, the HPP segment is the home for HPC solutions, and it is actively involved in securing critical infrastructure internationally, such as the cell tower monitoring systems. The overall company balance sheet remains robust, which supports continued investment in these specialized, high-value product lines. As of June 30, 2025, CSP Inc. (CSPI) held $26.3 million in cash and cash equivalents. The company also declared a quarterly dividend of $0.03 per share payable on September 15, 2025, showing confidence in its financial footing to support specialized product development.

Finance: draft 13-week cash view by Friday.

CSP Inc. (CSPI) - Canvas Business Model: Customer Relationships

You're looking at how CSP Inc. (CSPI) locks in its revenue base, and honestly, it's all about long-term commitments, especially in the services space. The foundation here is building relationships that last, moving beyond one-off product sales.

Dedicated, long-term partnerships and exceptional service commitment

The High Performance Products division explicitly builds its long-term business relationships on strong domain expertise and unrivaled customer support. This commitment is key to retaining the base that buys their specialized networking products. To be fair, the Technology Solutions division also works closely with the world's leading IT software and infrastructure companies to architect solutions for unique customer IT requirements. The company's inclusion in the broad-market Russell 3000® Index, effective June 30, 2025, is viewed as a milestone that should elevate awareness, coinciding with new AZT PROTECT customers.

• Strong domain expertise underpins long-term relationships.
• CSP Inc. is a Microsoft Gold Partner.
• CEO expects contract expansion to six to seven figures over 18-24 months.

Contractual relationships for Managed IT Services (MSP) and cloud-based services

The shift toward recurring revenue is clear in the Technology Solutions (TS) segment. For the fiscal third quarter ended June 30, 2025, TS revenue grew 20% compared to the same prior year quarter. This growth reflects increased demand for cloud-based services. You see this in action with the selection to deliver a critical Microsoft Azure Project for a Florida-based healthcare provider, following multi-year contracts signed in April 2025. CSP Inc. offers a robust portfolio here, including Managed Security, Managed BackUp and Replication, and Cloud services covering Microsoft 365, Azure, Amazon Web Services, and Google Cloud Platform.

Revenue generated from managed services is recognized over the term of the contract. Here's a quick look at the service revenue performance as of the latest reported quarter:

Customer support and maintenance renewals, such as six-figure, 12-month AZT contracts

Retention efforts are directly translating into measurable, high-value renewals for the AZT PROTECT product line. For instance, a global pharmaceutical company renewed twelve months' customer support for AZT PROTECT in a six-figure contract during the fiscal second quarter ended March 31, 2025. This renewal stemmed from a multi-million-dollar deal from the prior year. The company is definitely focused on converting initial sales into these high-margin, recurring support agreements.

Direct sales and consulting engagement for complex IT solutions

Direct engagement secures new logos and expands existing ones through complex solution delivery. The High Performance Products segment broadened its relationship with a South African cell tower customer by signing an additional multi-year contract to deploy AZT PROTECT™ for visual monitoring systems. Also, strengthened reseller relationships, including with Rockwell Automation, led to new AZT PROTECT customer engagements in industries like steel, concrete, and lumber. CSP Inc. signed six new customers during the fiscal second quarter of 2025 alone, showing direct sales efforts are yielding results.

Finance: draft 13-week cash view by Friday.

CSP Inc. (CSPI) - Canvas Business Model: Channels

You're looking at how CSP Inc. (CSPI) gets its offerings-from managed IT to specialized hardware-into the hands of customers. The channel strategy is clearly bifurcated, matching the two operating segments: Technology Solutions (TS) and High Performance Products (HPP).

The Technology Solutions (TS) segment, which includes the wholly-owned subsidiary Modcomp, Inc., relies heavily on a direct engagement model for its professional services and integrated solutions. This direct sales force markets and sells third-party products and professional services through sales offices located in the U.S. and the U.K., where Modcomp, Inc. operates. The effectiveness of this direct channel, combined with cloud-based service growth, is evident in the segment's performance; TS revenue grew by 20% for the fiscal third quarter ended June 30, 2025, compared to the same quarter last year. For that quarter, service revenue, which includes professional services, was $5.3 million.

The High Performance Products (HPP) segment, which includes the AZT PROTECT™ cybersecurity solution, leans more on a partner ecosystem. The strategy here involves a global reseller and distributor network. Management has noted strengthened reseller relationships leading to new AZT PROTECT™ customer engagements in industries like steel, concrete, and lumber during the third fiscal quarter of 2025. Furthermore, there is a stated plan to increasingly direct all future sales, even direct ones, through Rockwell channels to maximize market reach. This channel strategy is critical for HPP, which posted product revenue of $10.2 million in Q3 FY2025, a 29% rise year-over-year.

Digital channels play an important supporting role, especially for market exposure and lead generation for the AZT PROTECT™ offering. For instance, in the fiscal second quarter ended March 31, 2025, greater market exposure was gained via webinars and regional events held by distributors. In the fiscal first quarter ended December 31, 2024, participation in the American Petroleum Institute show resulted in generating approximately 100 leads, which the company was following up on with Rockwell distribution partners. Generally, for B2B marketing, 73% of B2B marketers and sales leaders believe webinars are the best way to generate high-quality leads. The average webinar Cost Per Lead (CPL) is $72, which is significantly lower than the average CPL of $811 at trade shows.

Here's a look at how the revenue streams, which flow through these channels, broke down for the most recent reported quarter:

The Technology Solutions division, which includes Modcomp, Inc., is also responsible for selling software licenses and support packages that are renewable on a recurring basis. As of September 30, 2024, recurring revenue represented 17% of total revenue, up from under 5% two years prior, with additional growth expected for fiscal 2025.

The company's ability to service these channels is supported by its balance sheet; as of June 30, 2025, CSP Inc. had cash and cash equivalents of $26.3 million. The Board of Directors declared a quarterly dividend of $0.03 per share payable September 15, 2025, showing continued financial commitment to shareholders while funding operations across these channels.

Finance: draft 13-week cash view by Friday.

CSP Inc. (CSPI) - Canvas Business Model: Customer Segments

You're looking at the customer base for CSP Inc. (CSPI) as of the third quarter of fiscal year 2025, which ended June 30, 2025. The company's structure clearly divides its focus across distinct groups, driving the overall reported revenue of $15.4 million for that quarter.

The Technology Solutions (TS) segment, which handles IT integration and managed services for commercial clients, showed significant traction, with its revenue growing 20% in the third fiscal quarter of 2025 compared to the same quarter last year. This growth reflects strong demand in the commercial space, particularly for cloud-based services. The overall company revenue for the nine months ending June 30, 2025, stood at $44.3 million.

The customer base is segmented by the solutions they require, spanning commercial IT needs to specialized high-performance products (HPP) for critical infrastructure protection.

Commercial enterprises requiring IT integration and managed services (TS segment) form a core part of the business, evidenced by the 20% revenue growth in the TS segment for the third quarter of fiscal 2025. This segment utilizes CSP Inc.'s expertise in areas like data center solutions, network solutions, and managed IT services.

Defense and government customers utilizing HPC and specialized products have historically been a focus for the High-Performance Products (HPP) division, which originated from supporting Department of Defense and Western intelligence agency initiatives. However, direct revenue contribution from the Department of Defense (DoD) was reported as below 1% of total revenue in the fiscal year 2024.

The Operational Technology (OT) market is a key target for the AZT PROTECT cybersecurity solution, which falls under the HPP segment. This focus is driven by reseller relationships and direct engagements:

• Strengthened reseller relationships led to new AZT PROTECT customer engagements in the steel, concrete, and lumber industries.
• The HPP segment broadened its relationship with a South African cell tower customer via a multi-year contract to protect visual monitoring systems.

Niche verticals like maritime commercial and tourism, and healthcare providers are specifically noted as contributors to the TS segment's growth:

• Increased demand from Maritime commercial and tourism customers drove TS segment growth.
• The TS segment was selected by a Florida-Based Healthcare Provider to deliver a critical Microsoft Azure Project.

The company maintained a robust balance sheet as of June 30, 2025, with cash and cash equivalents totaling $26.3 million. This financial position supports ongoing engagement with these diverse customer groups.

Finance: draft 13-week cash view by Friday

CSP Inc. (CSPI) - Canvas Business Model: Cost Structure

You're looking at the core expenses that keep CSP Inc. running, especially as they push the AZT PROTECT™ line. Honestly, the cost structure is heavily weighted toward the products they move, which makes sense given the revenue mix.

For the fiscal third quarter ended June 30, 2025, total revenue hit $15.4 million, with product revenue making up $10.2 million of that total. With a gross profit of only $4.5 million for that quarter, the implied Cost of Goods Sold (COGS) was approximately $10.9 million. This high COGS directly reflects the cost of resold third-party hardware and software, which is a significant chunk of their spending.

Personnel costs are a major fixed component, supporting both the Technology Solutions (TS) and High Performance Products (HPP) segments. As of September 30, 2024, the company employed approximately 111 full time equivalent employees worldwide. These are the specialized engineers, sales staff, and professional services people you need to deliver those managed services and integrate complex solutions.

Investment in the AZT PROTECT™ product line, which is key to their future, is baked into the operating expenses, though specific R&D dollar amounts aren't broken out in the latest reports. The focus on building sales channels for this offering means sales and marketing expenses are definitely elevated to drive adoption in new industries like utility and wastewater treatment.

General and administrative (G&A) expenses and other operating costs are managed across the two segments. The company is clearly focused on maintaining a strong liquidity position to fund these ongoing costs and investments; as of June 30, 2025, cash and cash equivalents stood at $26.3 million.

Here's a look at the revenue split that drives these cost allocations for the most recent reported quarter:

The cost structure is clearly sensitive to product sales volume, which is why the gross margin expansion seen in Q1 FY2025 (gross profit of $4.6 million on $15.7 million revenue) is so important to the bottom line, leading to a net income of $0.5 million that quarter.

You can see the operational spending pressure when comparing quarters:

• Fiscal third quarter ended June 30, 2025, reported an operating loss of $1.22 million.
• Fiscal first quarter ended December 31, 2024, generated an operating income (implied by net income of $0.5 million and interest/other income).
• The company declared a quarterly dividend of $0.03 per share in both Q1 and Q3 of fiscal 2025.

Finance: draft 13-week cash view by Friday.

CSP Inc. (CSPI) - Canvas Business Model: Revenue Streams

You're looking at how CSP Inc. (CSPI) actually brings in the money, which is key to understanding its valuation, especially with the shift toward recurring streams. The revenue mix for the third quarter of fiscal year 2025 shows a clear reliance on product sales, though services remain a necessary component.

For the fiscal third quarter ended June 30, 2025, total revenue hit $15.4 million. Here's how that broke down between the two primary sources:

The product revenue stream, which involves reselling third-party hardware and software, was the main engine for the 18% total revenue increase in Q3 FY2025. That $10.2 million in product sales was a significant jump, climbing 29% compared to the $7.8 million seen in the year-ago third quarter. Service revenue, covering professional services and managed IT/cloud offerings, was relatively flat at $5.3 million for the quarter, showing only a slight increase compared to the fiscal 2024 third quarter.

A critical part of the long-term strategy involves proprietary sales, specifically the AZT PROTECT™ security software and the High-Performance Products (HPP) segment which includes network adapters. Momentum here is building, as evidenced by new customer engagements in the steel, concrete, and lumber industries, plus an expansion of the relationship with a South African cell tower customer involving multi-year deployment of AZT PROTECT™ for visual monitoring systems. The HPP segment experienced a sharp revenue plunge in Q2 FY2025, largely due to the non-recurrence of a large ARIA AZT PROTECT order from the prior year, but the pipeline for AZT PROTECT™ is reported as the strongest since its introduction.

You can't ignore the stability that comes from recurring income. For the full fiscal year 2024, recurring revenue from managed services and annual customer support contracts accounted for approximately 17% of the total revenue. Given that full-year FY2024 revenue was $55.2 million, that translates to about $9.384 million in more predictable, recurring top-line support for the business model.

The revenue streams can be summarized by their sources:

• Product revenue from reselling third-party hardware/software, totaling $10.2 million in Q3 FY2025.
• Service revenue from professional services and managed IT/cloud services, totaling $5.3 million in Q3 FY2025.
• Sales of proprietary security software (AZT PROTECT™) and network adapters (HPP segment).
• Recurring revenue from managed services and annual customer support contracts (approx. 17% of FY2024 revenue).

Finance: draft 13-week cash view by Friday.