Research from Water Tower Research, Water Tower Research

Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Research from Water Tower Research

Equity Research Firm

Equity Bottom-Up

<ul><li>Caught up on filings; solid progress in 1Q on recurring revenue. CSA1 filed its 10-Q for 2Q26 after a delay due to an accounting matter related to preferred stock, with a relatively minor restatement below the operating income line.</li><li>It is encouraging to see the company put this matter behind it as it continues to increase revenue strongly and print the highest quarterly gross margin and the richest mix of services revenue (49%) since going public.</li><li>While we expect variability in business mix (and gross margin) given that lower-margin installation and hardware are a precursor to services revenue, it is nonetheless a positive data point.</li></ul>

Caught up on filings; solid progress in 1Q on recurring revenue. CSA1 filed its 10-Q for 2Q26 after a delay due to an accounting matter related to preferred stock, with a relatively minor restatement below the operating income line.It is encouraging to see the company put this matter behind it as it continues to increase revenue strongly and print the highest quarterly gross margin and the richest mix of services revenue (49%) since going public.While we expect variability in business mix (and gross margin) given that lower-margin installation and hardware are a precursor to services revenue, it is nonetheless a positive data point.

CSAI: Caught Up on Filings; Solid 1Q26 Recurring Revenue and Gross Margin

Cloudastructure

CSAI: Caught Up on Filings; Solid 1Q26 Recurring Revenue and Gross Margin