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ClearSign Combustion
(NASDAQ:CLIR)
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Rating:47Neutral
Price Target:
$2.50
▼(-44.81% Downside)
Action:Reiterated
Date:10/16/26
CLIR’s score is held down primarily by weak financial performance—large ongoing operating losses and sustained cash burn—despite a low-debt balance sheet. Technicals also weigh negatively, with the stock below major moving averages and bearish momentum indicators. Partly offsetting these risks, the latest earnings call showed meaningful operational momentum (strong YoY revenue growth, multiple orders, and near-term catalysts), but execution and revenue-timing uncertainty remain key constraints.
Positive Factors
Commercial revenue momentum
The sharp year-over-year revenue increase demonstrates improving customer adoption and commercial execution across flare systems, CFD studies, and spare parts. If additional orders convert, this momentum could support a materially larger revenue base over the next several quarters.
Negative Factors
Persistent operating losses
The company has not yet reached the scale needed to cover its operating cost structure, so revenue growth is not translating into sustainable earnings. Continued large losses could require further financing and may erode the equity cushion before commercial expansion produces sufficient operating leverage.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial revenue momentum
The sharp year-over-year revenue increase demonstrates improving customer adoption and commercial execution across flare systems, CFD studies, and spare parts. If additional orders convert, this momentum could support a materially larger revenue base over the next several quarters.
Read all positive factors
ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$16.61M
Dividend YieldN/A
Average Volume (3M)23.68K
Price to Earnings (P/E)―
Beta (1Y)2.67
Revenue Growth82.74%
EPS Growth17.79%
CountryUS
Employees16
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-0.92
Shares Outstanding6,807,455
10 Day Avg. Volume23,643
30 Day Avg. Volume23,677
Financial Highlights & Ratios
PEG Ratio0.56
Price to Book (P/B)3.24
Price to Sales (P/S)5.90
P/FCF Ratio-6.38
Enterprise Value/Market Cap0.72
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit11.90
Enterprise Value/Ebitda-2.41
Forecast
1Y Price Target
$20.00Price Target Upside341.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.88
Revenue Forecast (FY)$4.31M
ClearSign Combustion Business Overview & Revenue Model
Company Description
ClearSign Technologies Corporation, founded in 2008 and headquartered in Tulsa, Oklahoma, is a company focused on inventing and refining products and technological solutions. Operating in both the United States and the People's Republic of China, ...
How the Company Makes Money
ClearSign makes money primarily by commercializing its combustion/emissions-control technology for industrial heating equipment. Key revenue streams include: (1) Product and system sales: revenue from selling combustion-related equipment and solut...
ClearSign Combustion Earnings Call Summary
Earnings Call Date:Aug 19, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 25, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful commercial momentum: large YoY revenue growth, multiple M‑Series orders (including the company’s first licensing arrangement), active process‑burner and flare project pipeline, a strategic Board appointment, and an equity raise that improved cash position. Counterbalancing these positives are higher operating cash burn (timing of collections), modest absolute revenue today, at least one project on hold for client financing, and continued timing/visibility uncertainty for converting proposals into booked revenue. Management presented cautious optimism with several near‑term catalysts (Texas start‑up in October, flare start‑up in California, process‑burner testing) that could materially de‑risk revenue realization if they succeed.Positive Updates
Strong Year‑Over‑Year Revenue Growth
Q2 2026 revenue of $560,000 versus $133,000 in Q2 2025 — approximately a +321% year‑over‑year increase, driven by delivery of a portion of a flare system order, multiple CFD studies and spare parts orders.
Negative Updates
Operating Cash Usage Increased
Net cash used in operations for Q2 2026 was approximately $1.2 million versus ~$511,000 in Q2 2025 — an increase of ~$689,000 (≈+135%), driven primarily by timing of customer cash collections.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Year‑Over‑Year Revenue Growth
Q2 2026 revenue of $560,000 versus $133,000 in Q2 2025 — approximately a +321% year‑over‑year increase, driven by delivery of a portion of a flare system order, multiple CFD studies and spare parts orders.
Read all positive updates
Company Guidance
Management reiterated concrete near‑term guidance and milestones with many metrics: Q2 revenues rose to ~$560k (vs ~$133k YoY) with gross margin ~41% and a YoY net‑loss improvement of ~$373k (driven by ~$368k lower G&A); net cash used in operations was ~$1.2M in Q2 (vs ~$511k), cash & equivalents were ~$9.9M at June 30 (pro forma ~$11.6M after selling 500,000 shares at $3.54 on July 21 for ~ $1.7M net), and shares outstanding were ~6.8M as of Aug 8. They reported six M‑Series orders (five large M1s just shy of ~$200k each; M‑Series range roughly $40k–$250k with a ~$100k midpoint), a ~50‑proposal M‑Series pipeline, a 32‑burner refinery retrofit entering test burns (testing expected around October; fabrication ~3–4 months after PO), a 26‑burner Gulf Coast install on track, a 36‑burner Texas project currently on hold for client financing, flare system proposals in the ~$750k–$1.5M range (single burner fixes ~$150k–$200k), and management said midstream plus flare could support a $6–7M sales run‑rate today with the potential to reach double‑digit millions as process‑burner projects ramp.ClearSign Combustion Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
63
Positive
Cash Flow
28
Negative
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.45M | 5.23M | 3.60M | 2.40M | 374.00K | 607.00K |
| Gross Profit | 1.01M | 1.42M | 1.12M | 817.00K | 116.00K | -452.00K |
| EBITDA | -4.98M | -5.22M | -5.55M | -5.30M | -5.47M | -7.63M |
| Net Income | -5.24M | -5.50M | -5.30M | -5.19M | -5.76M | -7.89M |
Balance Sheet | ||||||
| Total Assets | 12.19M | 12.18M | 15.92M | 7.62M | 10.93M | 9.36M |
| Cash, Cash Equivalents and Short-Term Investments | 9.89M | 9.18M | 14.04M | 5.68M | 9.06M | 7.61M |
| Total Debt | 117.00K | 163.00K | 188.00K | 243.00K | 359.00K | 555.00K |
| Total Liabilities | 2.36M | 2.65M | 2.15M | 2.43M | 1.37M | 1.08M |
| Stockholders Equity | 9.83M | 9.53M | 13.76M | 5.19M | 9.55M | 8.28M |
Cash Flow | ||||||
| Free Cash Flow | -5.74M | -4.84M | -4.59M | -3.43M | -5.16M | -6.92M |
| Operating Cash Flow | -5.70M | -4.74M | -4.37M | -3.23M | -4.99M | -6.71M |
| Investing Cash Flow | -133.00K | -101.00K | -218.00K | 2.49M | -2.69M | -213.00K |
| Financing Cash Flow | 3.38M | -21.00K | 12.95M | -15.00K | 6.54M | 5.69M |
ClearSign Combustion Technical Analysis
Negative
4.53
Price Trends
3.76
Negative
3.81
Negative
4.65
Negative
Market Momentum
-0.38
Positive
27.92
Positive
23.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLIR, the sentiment is Negative. The current price of 4.53 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 3.76, and below the 200-day MA of 4.65, indicating a bearish trend. The MACD of -0.38 indicates Positive momentum. The RSI at 27.92 is Positive, neither overbought nor oversold. The STOCH value of 23.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLIR.
ClearSign Combustion Risk Analysis
ClearSign Combustion disclosed 40 risk factors in its most recent earnings report. ClearSign Combustion reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
ClearSign Combustion Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
56 Neutral | $3.44B | -98.81 | -3.60% | 2.96% | 37.64% | -145.85% | |
54 Neutral | $43.08M | -12.19 | -8.88% | ― | 8.89% | -6.47% | |
51 Neutral | $9.78M | 64.08 | 1.01% | 4.65% | -13.77% | -78.34% | |
49 Neutral | $42.30M | -1.90 | -401.94% | ― | ― | ― | |
47 Neutral | $16.61M | -2.66 | -58.08% | ― | 82.74% | 17.79% | |
43 Neutral | $11.64M | -0.43 | -68.70% | ― | -0.17% | 37.55% |
* Industrials Sector Average
CLIR
ClearSign Combustion
2.44
-7.06
-74.30%
CECO
Ceco Environmental
58.25
7.40
14.55%
CLWT
Euro Tech Holdings Company
1.32
0.10
8.20%
FTEK
Fuel Tech
1.37
-1.50
-52.26%
LIQT
LiqTech International
0.37
-2.05
-84.92%
SCWO
374Water
2.40
-2.47
-50.72%
ClearSign Combustion Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
ClearSign Shares New Investor Presentation Under Regulation FD
Neutral
Sep 14, 2026
On September 14, 2026, ClearSign Technologies posted a new investor presentation on its website for use in upcoming meetings and conferences with investors, analysts and other stakeholders. The presentation, available in the Events Presentations ...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
ClearSign Combustion Reports Q2 Progress and Board Addition
Positive
Aug 20, 2026
On August 19, 2026, ClearSign Technologies Corporation reported operational results for the quarter ended June 30, 2026, highlighting growing traction for its ClearSign Core M Series midstream burners in West Texas. The company disclosed cash and ...
Business Operations and StrategyExecutive/Board Changes
ClearSign Combustion Appoints Veteran ExxonMobil Executive to Board
Positive
Aug 11, 2026
ClearSign Technologies has strengthened its board by appointing former ExxonMobil executive Larry M. Saddler, age 76, to fill a vacant directorship, effective August 6, 2026, following its June 8, 2026 annual meeting. Saddler brings nearly four de...
Business Operations and StrategyPrivate Placements and Financing
ClearSign Combustion Raises Capital via Private Stock Placement
Positive
Jul 23, 2026
On July 21, 2026, ClearSign Technologies secured a waiver from its underwriter, Newbridge Securities, temporarily lifting certain restrictions on issuing and selling capital stock so it could complete a private stock sale to Otter Capital, an exis...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.