Clps (CLPS) AI Stock Analysis

Clps

(NASDAQ:CLPS)

Select Model

Rating:35Underperform

Price Target:$0.88▼(-7.47% Downside)

Action:reiterated

Date:10/20/26

CLPS scores poorly primarily because of deteriorating financial performance: although revenue keeps expanding, gross margins have been cut roughly in half since 2021, net losses have doubled to $13.2 million, equity is shrinking and leverage has risen sharply, with two straight years of negative cash flow. The narrowing cash burn in fiscal 2026 is the main encouraging sign. Technicals add little support, with the price below most key moving averages and a negative MACD, while valuation offers no cushion given negative earnings and no dividend. The result is a high-risk profile that requires evidence of margin stabilization and a return to positive cash generation.

Positive Factors

Revenue resilienceRevenue increased in both 2025 and 2026, showing that CLPS continues to win or retain work despite weaker profitability. This top-line resilience gives the company an operating base to improve utilization, rebuild margins, and fund growth if execution stabilizes over the next several quarters.

Negative Factors

Severe margin and earnings deteriorationThe sharp decline in gross margin, combined with deeper losses and negative operating profit in 2026, indicates that revenue growth is not translating into earnings. Persistent margin pressure can restrict reinvestment, weaken resilience, and make future profitability dependent on a material operating improvement.

Clps (CLPS) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $28.35M
Dividend Yield: ―
Average Volume (3M): 11.39K
Price to Earnings (P/E): -2.2
Beta (1Y): -0.24
Revenue Growth: 4.70%
EPS Growth: -75.09%
Country: US
Employees: 3,705
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

Clps Business Overview & Revenue Model

Company Description

CLPS Incorporation specializes in delivering comprehensive information technology solutions, consulting services, and expertise to financial institutions, banks, and insurance companies. Its operations span the People's Republic of China and extend t...

Clps Financial Statement Overview

Summary

Revenue continues to grow, reaching roughly $172 million in fiscal 2026, but the quality of that growth is poor. Gross margin has halved since 2021 to just 16.5%, and the company swung to a $13.2 million net loss, nearly double the prior year's shortfall, with negative operating and EBITDA margins. The balance sheet is still solvent with equity of $44.8 million exceeding $32.7 million of debt, but equity is eroding, leverage has climbed from 0.13 to 0.73, and return on equity is -29%. Cash flow has been negative for two consecutive years, though the burn narrowed to -$0.4 million in fiscal 2026, hinting at an approach to cash breakeven. Overall, elevated financial risk with no clear path to profitability yet.

Income Statement

24Negative

Balance Sheet

42Neutral

Cash Flow

29Negative

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	172.21M	172.21M	164.48M	142.81M	150.36M	152.02M
Gross Profit	30.68M	28.46M	34.43M	32.95M	34.48M	40.99M
EBITDA	-10.76M	-8.54M	-3.20M	-1.29M	3.68M	8.32M
Net Income	-13.18M	-13.18M	-7.05M	-2.33M	192.53K	4.46M
Balance Sheet
Total Assets	106.28M	106.28M	118.11M	110.03M	95.32M	101.88M
Cash, Cash Equivalents and Short-Term Investments	26.38M	26.38M	29.07M	31.22M	22.21M	18.40M
Total Debt	32.67M	32.67M	33.87M	26.23M	11.37M	14.47M
Total Liabilities	59.09M	59.09M	60.52M	46.11M	29.81M	34.08M
Stockholders Equity	44.80M	44.80M	55.54M	62.51M	64.58M	66.55M
Cash Flow
Free Cash Flow	0	-982.58K	-3.80M	6.81M	9.19M	-17.55M
Operating Cash Flow	0	-380.56K	-2.54M	8.93M	9.71M	3.20M
Investing Cash Flow	0	-1.15M	-1.75M	-12.25M	-306.05K	-16.29M
Financing Cash Flow	0	-1.82M	2.90M	10.19M	-4.32M	7.47M

Clps Technical Analysis

Technical Analysis SentimentNegative

Last Price0.95

Price Trends

50DMA1.02Negative

100DMA0.95Negative

200DMA0.96Negative

Market Momentum

MACD-0.02Positive

RSI45.95Neutral

STOCH30.60Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLPS, the sentiment is Negative. The current price of 0.95 is below the 20-day moving average (MA) of 0.98, below the 50-day MA of 1.02, and below the 200-day MA of 0.96, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.95 is Neutral, neither overbought nor oversold. The STOCH value of 30.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLPS.

Clps Risk Analysis

Clps disclosed 80 risk factors in its most recent earnings report. Clps reported the most risks in the "Legal & Regulatory" category.

Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

1 New Risk

1.The planned initial public offering of JAJI Global may impact our operational results and financial reporting, and could give rise to related party transaction concerns.Q2, 2025

Clps Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

CLPS against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
USIO	61Neutral	$83.21M	-52.71	-8.20%	―	10.40%	-152.86%
DTST	51Neutral	$6.97M	1.53	71.05%	―	-94.31%	-1884.52%
CYCU	43Neutral	$7.75M	-0.09	-70.61%	―	-43.59%	76.04%
WYY	43Neutral	$76.89M	-57.60	-10.74%	―	8.73%	41.00%
CLPS	35Underperform	$28.37M	-2.17	-25.68%	―	4.70%	-75.09%

* Technology Sector Average

Performance Comparison

CLPS and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
CLPS	Clps Incorporation	0.95	0.08	9.20%
WYY	Widepoint	7.69	0.96	14.26%
USIO	Usio	2.92	1.45	98.64%
DTST	Data Storage Corporation	2.98	-1.19	-28.54%
VEEA	Veea Inc.	4.82	-7.12	-59.63%
CYCU	Cycurion, Inc.	2.40	-21.41	-89.92%

Clps Corporate Events

CLPS Incorporation Regains Nasdaq Minimum Bid Price Compliance

Sep 4, 2026

CLPS Incorporation, a Hong Kong-based digital transformation specialist serving fintech, payments, e-commerce, education and tourism sectors across 10 countries, focuses on AI, cloud computing and big data solutions. With strategic hubs in Shanghai,...

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 20, 2026

Clps AI Stock Analysis