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ClearSign Combustion (CLIR)
NASDAQ:CLIR
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ClearSign Combustion (CLIR) AI Stock Analysis

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CLIR

ClearSign Combustion

(NASDAQ:CLIR)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$1.00
▲(5.26% Upside)
ClearSign Combustion's stock score is primarily influenced by its financial performance, which shows revenue growth but significant profitability and cash flow challenges. Technical analysis indicates a moderate positive trend, while valuation remains unattractive due to negative earnings. The earnings call provided a balanced view with both achievements and challenges.
Positive Factors
Revenue Growth
The significant year-over-year revenue growth indicates ClearSign's expanding market reach and successful product adoption, which are crucial for long-term business sustainability and competitive positioning.
Market Expansion
ClearSign's development of new products like the M25 burner for new markets suggests strategic positioning to capture additional market share, enhancing long-term growth prospects.
Strategic Partnerships
Securing orders from major industry players like supermajor refiners strengthens ClearSign's market credibility and opens opportunities for future contracts, supporting sustainable growth.
Negative Factors
Profitability Challenges
Ongoing profitability issues, with negative EBIT and net income, highlight operational inefficiencies that may hinder long-term financial health and investment potential.
Cash Flow Concerns
Negative operating cash flow indicates potential liquidity issues, which could limit ClearSign's ability to invest in growth opportunities and meet financial obligations.
Project Delays
Delays in major projects can impact revenue realization and customer satisfaction, potentially affecting ClearSign's reputation and future business opportunities.

ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)

ClearSign Combustion Business Overview & Revenue Model

Company DescriptionClearSign Technologies Corporation designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States and the People's Republic of China. Its ClearSign Core Burner Technology consists of an industrial burner body and a downstream porous ceramic structure or metal flame stabilizing device; ClearSign Core Plug & Play technology provides direct burner replacement for traditional refinery process heaters; and ClearSign Eye Flame Sensor, an electrical flame sensor for industrial applications. The company also provides ClearSign Core Boiler Burner; and ClearSign Core Flaring Burners technologies. It serves energy, institutional, commercial and industrial boiler, chemical, and petrochemical industries. The company was formerly known as ClearSign Combustion Corporation and changed its name ClearSign Technologies Corporation in November 2019. ClearSign Technologies Corporation was incorporated in 2008 and is headquartered in Tulsa, Oklahoma.
How the Company Makes MoneyClearSign Combustion generates revenue primarily through the sale of its combustion technology solutions, which include product sales, installation services, and ongoing maintenance contracts. The company partners with major industrial players in oil and gas and power generation, leveraging these relationships to secure contracts and expand its market reach. Additionally, ClearSign may earn revenue from licensing its technology and intellectual property to other companies seeking to implement more efficient and environmentally friendly combustion systems. The growth of regulatory pressures for emissions reductions in industrial sectors further drives demand for ClearSign's innovative solutions, contributing to its revenue generation.

ClearSign Combustion Earnings Call Summary

Earnings Call Date:Aug 14, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 19, 2025
Earnings Call Sentiment Neutral
The earnings call highlights significant revenue growth and strategic advancements in various projects and market expansions. However, challenges such as project delays and board transitions present concerns. The overall sentiment is balanced with notable achievements and ongoing challenges.
Q2-2025 Updates
Positive Updates
Significant Revenue Increase
Revenues for Q2 2025 increased to approximately $133,000 from $45,000 in the same period in 2024, driven by spare parts orders and a boiler burner sale.
Reduction in Net Loss and R&D Expenses
Net loss decreased by approximately $200,000, mainly due to a $155,000 reduction in research and development expenses.
Cash Management Improvement
Net cash used in operations decreased by $1 million year-over-year, predominantly due to customer cash collections.
Progress in Major Projects
Significant work on large process burner orders for household name refiners and chemical companies, with installations and testing advancing.
Expansion into New Markets
Development of M25 burner to meet new market needs and potential expansion into a larger volume part of the midstream market.
Industry Interest in DOE Hydrogen Burner Project
New burner designs are in manufacture, with significant interest from household name end users.
Negative Updates
Perceived Lack of Progress
Concerns about the company's quiet period and perceived lack of progress due to delayed timelines and uncertainty in the market.
Board Transitions
Multiple directors have resigned, and the board size has been reduced, though the company views it as a positive change.
Project Delays
Timelines for major orders have been delayed due to market uncertainty and regulatory changes, affecting revenue realization.
Company Guidance
During the ClearSign Technologies 2Q 2025 Earnings Conference Call, the company reported a significant year-over-year increase in revenues for the second quarter of 2025, reaching approximately $133,000, up from $45,000 in the same period of 2024. This growth was primarily driven by spare parts orders and a boiler burner sale. The net loss decreased by around $200,000 compared to 2024, largely due to a $155,000 reduction in research and development expenses. The company's net cash used in operations was approximately $511,000, a substantial reduction from $1.5 million in the previous year, attributed to improved customer cash collections. As of June 30, 2025, ClearSign held about $12.3 million in cash and cash equivalents. The company also discussed a Form S-1 registration filing for administrative purposes and highlighted ongoing projects, including significant burner orders and advancements in their M-Series product line, which is positioned to capture a broader market segment.

ClearSign Combustion Financial Statement Overview

Summary
ClearSign Combustion shows revenue growth but faces significant challenges with profitability and cash flow generation. The balance sheet remains stable with low leverage, but ongoing negative net income and cash flows pose risks to long-term sustainability.
Income Statement
45
Neutral
ClearSign Combustion has shown some improvement in revenue growth over the past year, increasing from $2.4 million to $3.6 million. However, the company continues to face significant challenges with negative EBIT and net income, reflecting ongoing profitability issues. The gross profit margin is positive, but the net profit margin remains negative, indicating that the company is struggling to turn revenue growth into profit.
Balance Sheet
60
Neutral
The company maintains a relatively strong equity position with an equity ratio of roughly 86.5%. The debt-to-equity ratio is low, suggesting conservative leverage. However, the negative net income impacts return on equity negatively, which remains a concern for profitability. Overall, the balance sheet shows stability with manageable debt levels.
Cash Flow
50
Neutral
Operating cash flow remains negative, raising concerns about the company's ability to generate sufficient cash from operations. Free cash flow is also negative, despite positive financing cash flow. The free cash flow to net income ratio is unfavorable, indicating ongoing cash flow challenges despite revenue growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.98M3.60M2.40M374.00K607.00K0.00
Gross Profit890.00K1.12M817.00K116.00K-452.00K-279.00K
EBITDA-6.31M-5.55M-4.77M-5.47M-7.63M-6.72M
Net Income-6.08M-5.30M-5.19M-5.40M-7.89M-6.84M
Balance Sheet
Total Assets14.23M15.92M7.62M10.93M9.36M11.12M
Cash, Cash Equivalents and Short-Term Investments12.34M14.04M5.68M9.06M7.61M8.82M
Total Debt208.00K188.00K243.00K359.00K555.00K669.00K
Total Liabilities3.82M2.15M2.43M1.37M1.08M1.58M
Stockholders Equity10.41M13.76M5.19M9.55M8.28M9.54M
Cash Flow
Free Cash Flow-3.59M-4.59M-3.43M-5.16M-6.92M-6.16M
Operating Cash Flow-3.47M-4.37M-3.23M-4.99M-6.71M-5.96M
Investing Cash Flow-158.00K-218.00K2.49M-2.69M-213.00K-194.00K
Financing Cash Flow-7.00K12.95M-15.00K6.54M5.69M6.43M

ClearSign Combustion Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.95
Price Trends
50DMA
0.71
Positive
100DMA
0.64
Positive
200DMA
0.73
Positive
Market Momentum
MACD
0.05
Positive
RSI
57.13
Neutral
STOCH
39.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLIR, the sentiment is Positive. The current price of 0.95 is above the 20-day moving average (MA) of 0.89, above the 50-day MA of 0.71, and above the 200-day MA of 0.73, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.13 is Neutral, neither overbought nor oversold. The STOCH value of 39.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLIR.

ClearSign Combustion Risk Analysis

ClearSign Combustion disclosed 37 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.78B34.2319.67%15.74%294.80%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
63
Neutral
$9.37M12.83-14.25%-59.84%
54
Neutral
$43.51M-8.44-46.19%19.03%11.70%
50
Neutral
$88.56M-27.31-7.69%-4.78%-1359.72%
48
Neutral
$22.98M-1.80-78.97%-12.76%15.23%
39
Underperform
$63.08M-160.82%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLIR
ClearSign Combustion
0.95
0.12
14.46%
CECO
Ceco Environmental
50.85
24.37
92.03%
CLWT
Euro Tech Holdings Company
1.22
-0.32
-20.78%
FTEK
Fuel Tech
2.87
1.85
181.37%
LIQT
LiqTech International
2.42
0.50
26.04%
SCWO
374Water
0.49
-1.32
-72.93%

ClearSign Combustion Corporate Events

Delistings and Listing ChangesRegulatory Filings and Compliance
ClearSign Granted Nasdaq Extension for Compliance
Neutral
Sep 30, 2025

On April 1, 2025, ClearSign Technologies Corporation received a notification from Nasdaq indicating non-compliance with the $1 minimum bid price requirement for its common stock. On September 30, 2025, Nasdaq granted ClearSign a 180-day extension until March 30, 2026, to regain compliance, potentially through a reverse stock split. Failure to meet the requirement could lead to delisting, although the company may appeal. The extension does not immediately affect the stock’s listing or trading status.

The most recent analyst rating on (CLIR) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

ClearSign Combustion’s Earnings Call: Growth Amid Challenges
Sep 1, 2025

ClearSign Combustion’s recent earnings call presented a balanced sentiment, showcasing notable revenue growth and strategic advancements while acknowledging challenges such as project delays and board transitions. The company demonstrated significant achievements but also faced ongoing hurdles.

Executive/Board ChangesRegulatory Filings and Compliance
ClearSign Regains Nasdaq Compliance with New Appointments
Positive
Aug 29, 2025

ClearSign Technologies Corporation faced compliance issues with Nasdaq’s board independence and audit committee composition requirements due to the resignations of two board members. On August 26, 2025, the company addressed these issues by appointing Anthony DiGiandomenico as an independent director and G. Todd Silva as the chairperson and financial expert of the Audit Committee, regaining compliance by August 28, 2025.

The most recent analyst rating on (CLIR) stock is a Hold with a $0.50 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
ClearSign Combustion Reports Q2 2025 Financial Results
Positive
Aug 15, 2025

On August 14, 2025, ClearSign Technologies Corporation announced its second-quarter 2025 financial results and provided updates on its operations. The company reported significant progress on major multi-heater process burner projects and steps towards launching new product offerings, which are expected to support future growth. ClearSign received several engineering orders, including enhancements to its process burner technology for a California refinery and a low emissions flare burner for an energy company. Additionally, the company launched its new ClearSign Core™ M-Series process burner technology, with installations in Texas and sales in Colorado, and expanded its collaboration with Zeeco, Inc. to launch co-branded burner lines. These developments highlight ClearSign’s strategic positioning to serve a broader market segment and emphasize the strength of its technology.

The most recent analyst rating on (CLIR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

ClearSign Technologies Reports Q2 2025 Progress and Challenges
Aug 15, 2025

ClearSign Technologies Corporation is a leader in advanced combustion and sensing technologies, focusing on reducing emissions, enhancing efficiency, and promoting the use of cleaner fuels such as hydrogen across various industrial sectors.

Executive/Board ChangesRegulatory Filings and Compliance
ClearSign Combustion Faces Board Resignations and Nasdaq Compliance
Neutral
Aug 8, 2025

On August 8, 2025, ClearSign Technologies Corporation announced the voluntary resignations of Judith S. Schrecker and Catharine M. de Lacy from its Board of Directors, effective August 4, 2025. This led to a temporary non-compliance with Nasdaq’s board independence and audit committee composition requirements. The company plans to address this by appointing a new independent director and has been granted a cure period by Nasdaq. The resignations were not due to any disagreements, and the board size was reduced from six to five members. ClearSign aims to realign its board to support its growth and commercialization objectives.

The most recent analyst rating on (CLIR) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
ClearSign Combustion Holds Annual Stockholders Meeting
Neutral
Jul 28, 2025

On July 25, 2025, ClearSign Technologies Corporation held its annual meeting of stockholders where 70.82% of the voting power was represented. During the meeting, all six nominees for the board of directors were re-elected, and the board size was reduced from seven to six following the decision of former director David M. Maley not to stand for re-election. Additionally, stockholders approved the appointment of BPM CPA LLP as the independent registered public accounting firm for 2025 and endorsed the compensation for the company’s named executive officers.

The most recent analyst rating on (CLIR) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

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.Date of analysis: Oct 23, 2025