ClearSign Combustion (CLIR) AI Stock Analysis

• Market Cap: $40.11M
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.17
• Revenue Growth: -49.70%
• EPS Growth: -2.72%
• Country: US
• Employees: 18
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.03
• Shares Outstanding: 53,273,403
• 10 Day Avg. Volume: 421,856
• 30 Day Avg. Volume: 1,581,167
• PEG Ratio: 0.86
• Price to Book (P/B): 5.12
• Price to Sales (P/S): 19.60
• P/FCF Ratio: -15.35
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 15.18
• Enterprise Value/Gross Profit: 46.23
• Enterprise Value/Ebitda: -5.09
• 1Y Price Target: $2.00
• Price Target Upside: 233.33% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $0.59 ▼(-1.00% Downside)

The score is held down primarily by weak financial performance (persistent losses, negative cash flow, and a recent TTM revenue decline) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include improving operational signals from the earnings call (gross margin expansion and order flow) and a positive corporate event indicating a record preliminary Q4 revenue surge, supported by a low-debt balance sheet.

Positive Factors

Conservative balance sheet

Very low leverage provides durable financial flexibility, reducing bankruptcy and interest risks and enabling the company to fund R&D, pilot projects, or bridge periods of weak revenue. This buffer matters over the next 2–6 months as cash burn continues and strategic orders scale.

Hydrogen-capable burner technology

Proven 100% hydrogen-capable burner addresses a structural industry shift to low-carbon fuels and positions ClearSign for retrofit and new-build demand as customers decarbonize. This technological differentiation supports longer-term market access and higher-spec contract opportunities across petrochemical and power sectors.

Diversifying product mix and order traction

A large turnkey order plus contributions from testing, flares, sensors and services indicates broadened revenue streams and commercial traction. A more diverse mix and an expanded backlog reduce single-order concentration risk and improve odds of sustained revenue growth over coming quarters.

Negative Factors

Negative operating cash flow

Persistent negative operating and free cash flow forces reliance on external financing or dilutive capital raises, constraining strategic flexibility. Over 2–6 months, continued cash burn can limit ability to scale manufacturing, invest in commercialization, or absorb project delays without raising capital.

Declining revenue base

A small and falling revenue base limits operating leverage and makes fixed costs burdensome; results become lumpy and dependent on a few large orders. This structural revenue volatility increases execution risk and makes multi-quarter margin progress harder to sustain without steady order flow.

Sustained operating losses

Ongoing multi-period operating losses erode equity and reflect a cost structure misaligned with current sales. Absent consistent revenue growth, continued losses will pressure cash reserves and may force cost-cutting or dilution, threatening the company’s ability to convert technology advances into profitable scale.

ClearSign Combustion Business Overview & Revenue Model

Company Description

ClearSign 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 Money

ClearSign Combustion generates revenue primarily through the sale of its combustion systems and related technologies. This includes direct sales of equipment, as well as licensing agreements for its proprietary technology to other manufacturers in the industry. The company may also derive income from installation, maintenance, and consulting services associated with its systems. Key revenue streams include contracts with large industrial clients, partnerships with equipment manufacturers, and collaborations with research institutions focused on improving combustion technology. The company's emphasis on reducing emissions and improving efficiency positions it favorably in a market increasingly driven by environmental regulations and the demand for cleaner technology.

ClearSign Combustion Financial Statement Overview

Summary

Overall fundamentals are weak: TTM revenue declined sharply and losses remain large, with materially negative operating results. The main offset is a low-leverage balance sheet, but cash burn is still significant (negative operating and free cash flow), keeping financial risk elevated.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $2.15M, down sharply (about -28%) versus the prior period, signaling uneven demand. Gross margin is positive and relatively steady (low-30% range in recent periods), but the cost structure remains far too high for the current revenue base: operating losses are very large and net margins are deeply negative in every period shown. The main positive is the multi-year rebound from very low revenue levels earlier in the history, but profitability has not improved alongside that growth and remains the core weakness.

Balance Sheet

The balance sheet is conservatively levered with very low debt relative to equity (TTM debt-to-equity ~0.02), which reduces financial risk and gives flexibility. However, shareholders’ equity has swung meaningfully over time (notably higher in 2024 than 2023 and lower again in TTM), and returns on equity are consistently negative due to ongoing losses. Overall, leverage is a strength, but persistent losses continue to erode value creation.

Cash Flow

Cash generation remains a key pressure point: TTM operating cash flow and free cash flow are both solidly negative (approximately -$3.9M). There is some improvement versus 2024 as cash burn moderates, but the business is still consuming cash rather than funding itself internally. Free cash flow tracks net losses closely (not a sign of earnings quality issues, but a sign that losses are real and cash-impacting), leaving continued reliance on external funding a risk if the trajectory does not improve.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.15M	3.60M	2.40M	374.00K	607.00K	0.00
Gross Profit	707.00K	1.12M	817.00K	-30.00K	-452.00K	-279.00K
EBITDA	-6.42M	-5.55M	-5.30M	-5.47M	-7.63M	-6.68M
Net Income	-6.35M	-5.30M	-5.19M	-5.76M	-7.89M	-6.84M
Balance Sheet
Total Assets	12.75M	15.92M	7.62M	10.93M	9.36M	11.12M
Cash, Cash Equivalents and Short-Term Investments	10.49M	14.04M	5.68M	9.06M	7.61M	8.82M
Total Debt	185.00K	188.00K	243.00K	359.00K	555.00K	669.00K
Total Liabilities	3.67M	2.15M	2.43M	1.37M	1.08M	1.58M
Stockholders Equity	9.08M	13.76M	5.19M	9.55M	8.28M	9.54M
Cash Flow
Free Cash Flow	-3.92M	-4.59M	-3.43M	-5.16M	-6.92M	-6.16M
Operating Cash Flow	-3.87M	-4.37M	-3.23M	-4.99M	-6.71M	-5.96M
Investing Cash Flow	-119.00K	-218.00K	2.49M	-2.69M	-213.00K	-194.00K
Financing Cash Flow	-7.00K	12.95M	-15.00K	6.54M	5.69M	6.43M

ClearSign Combustion Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 0.6 is below the 20-day moving average (MA) of 0.64, below the 50-day MA of 0.73, and below the 200-day MA of 0.66, indicating a bullish trend. The MACD of 0.01 indicates Negative momentum. The RSI at 56.36 is Neutral, neither overbought nor oversold. The STOCH value of 78.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CLIR.

ClearSign Combustion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CECO	72 Outperform	$2.34B	46.43	18.85%	―	29.86%	331.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$9.27M	16.72	―	―	-14.25%	-59.84%
FTEK	54 Neutral	$47.54M	-15.61	-7.10%	―	-5.66%	-397.46%
CLIR	48 Neutral	$40.11M	-6.44	-53.13%	―	-49.70%	-2.72%
SCWO	48 Neutral	$42.48M	-2.08	-232.63%	―	―	―
LIQT	45 Neutral	$17.76M	-1.84	-73.79%	―	10.97%	44.99%

ClearSign Combustion Corporate Events

ClearSign Reports Record Preliminary Fourth-Quarter 2025 Revenue Surge

On January 7, 2026, ClearSign Technologies reported preliminary, unaudited financial results indicating it expects record fourth-quarter 2025 revenues of about $3.6 million, up roughly 510% from the same period in 2024, and full-year 2025 revenues of approximately $5.2 million, a 44% increase year-on-year. Management attributed the surge in fourth-quarter performance primarily to completing a large 26-burner order for a U.S. Gulf Coast petrochemical facility, alongside contributions from testing, engineering, flares and service work, highlighting a more diversified product mix and growing market traction. The company emphasized that its broadened portfolio of low-NOx and hydrogen-capable burners, advanced flares and flame sensors is strengthening its competitive position and supporting a growing backlog and sales pipeline, although it cautioned that the figures are preliminary and subject to change pending final audited results.

The most recent analyst rating on (CLIR) stock is a Hold with a $0.74 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

ClearSign Combustion Shares Investor Presentation Update

On December 8, 2025, ClearSign Technologies Corporation shared an investor presentation on its website for upcoming meetings with investors and analysts. This presentation aims to provide insights into the company’s current operations and strategic direction, potentially impacting stakeholder perceptions and market positioning.

The most recent analyst rating on (CLIR) stock is a Hold with a $0.76 price target. To see the full list of analyst forecasts on ClearSign Combustion stock, see the CLIR Stock Forecast page.

ClearSign Reports Strong Q3 2025 Financial Results

On November 19, 2025, ClearSign Technologies Corporation announced its third-quarter 2025 financial results, highlighting an increase in order flow and market acceptance of its technologies. The company reported several strategic and operational achievements, including new orders for its ClearSign Core ‘M’ Series burners and low-emission flare burners, as well as engineering orders for process heater retrofits. These developments are expected to expand ClearSign’s market presence and support future growth, with major projects anticipated to commence in 2026.

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 Updates Bylaws and Award Agreements

On November 11, 2025, ClearSign Technologies Corporation’s Board of Directors adopted Amended and Restated Bylaws, which include changes to the stockholder voting process and procedures for business proposals and nominations at annual meetings. Additionally, the Human Capital and Compensation Committee approved modifications to the company’s award agreements, changing the governing law and jurisdiction to Delaware, aligning with the company’s state of incorporation.

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.