ClearSign Combustion (CLIR)
NASDAQ:CLIR
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ClearSign Combustion
(NASDAQ:CLIR)
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Rating:52Neutral
Price Target:
$5.50
▲(816.67% Upside)
Action:ReiteratedDate:04/11/26
CLIR scores in the low-50s primarily due to weak profitability and ongoing cash burn despite strong revenue momentum and low leverage. Technicals are mixed (near-term improvement but below longer-term averages), while valuation is constrained by losses (negative P/E). The latest earnings call supports a higher score than fundamentals alone due to an expanding backlog/pipeline and management confidence in 2026 growth, tempered by margin pressure and lumpy revenue timing.
Positive Factors
Revenue growth and expanding backlog
ClearSign has moved from pilot to commercial sales, delivering record quarterly and annual revenue and building a quoted pipeline (~225 burners). That expanding backlog provides multi-quarter commercial visibility and validation of product-market fit, supporting durable revenue growth as projects convert.
Negative Factors
Sustained operating cash burn
The business continues to consume meaningful cash while scaling: OCF and FCF near -$4.7M in 2025 despite revenue gains. Ongoing negative cash generation increases reliance on existing liquidity or future financing, which can constrain execution, slow commercialization or force dilutive capital raises if breakeven is not achieved.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and expanding backlog
ClearSign has moved from pilot to commercial sales, delivering record quarterly and annual revenue and building a quoted pipeline (~225 burners). That expanding backlog provides multi-quarter commercial visibility and validation of product-market fit, supporting durable revenue growth as projects convert.
Read all positive factors
ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.61M
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)2.39
Revenue Growth-49.70%
EPS Growth-2.72%
CountryUS
Employees18
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)0.01
Shares Outstanding5,408,723
10 Day Avg. Volume421,856
30 Day Avg. Volume1,581,167
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 Cap0.68
Enterprise Value/Revenue3.74
Enterprise Value/Gross Profit13.76
Enterprise Value/Ebitda-3.62
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-1
Revenue Forecast (FY)$9.73M
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 ...
How the Company Makes Money
ClearSign makes money primarily by commercializing its combustion and burner technologies for industrial combustion applications. Revenue is generated through (1) product-related sales tied to the deployment of its burner/combustion solutions (e.g...
ClearSign Combustion Earnings Call Summary
Earnings Call Date:Apr 09, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 21, 2026
Earnings Call Sentiment Positive
The call presented multiple positive operational and commercial developments: strong year-over-year revenue growth (44%), completion and delivery of a large 26-burner order, expanding quoted backlog (~225 burners), increasing demo attendance and industry interest, early commercial wins across process burners, midstream burners (M25 start-up), and larger flare/system orders (~$500k–$1M). Offsetting these positives are margin pressure (gross margin down ~4 ppt due to warranty accrual), a modest increase in net loss driven by a $746k nonrecurring legal expense, continued cash burn (~$4.7M used in operations), and timing/execution risks from lumpy, phased, large projects. Management stresses adequate cash, self-funding project structures, and partnership capacity (Zeeco) to execute. On balance, the call reflects accelerating commercial traction and an improving pipeline with some near-term financial and timing headwinds.Positive Updates
Record Quarterly and Annual Revenue Growth
Q4 2025 revenue of approximately $3.7M versus ~$0.59M in Q4 2024; full-year 2025 revenue approximately $5.2M versus ~$3.6M in 2024, representing a 44% year-over-year increase driven predominantly by process burner sales (notably a 26-burner order).
Negative Updates
Decline in Gross Margin
Year-end 2025 gross profit margin approximately 27%, down ~4 percentage points from 31% in 2024, with the decline primarily attributed to a warranty accrual.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Revenue Growth
Q4 2025 revenue of approximately $3.7M versus ~$0.59M in Q4 2024; full-year 2025 revenue approximately $5.2M versus ~$3.6M in 2024, representing a 44% year-over-year increase driven predominantly by process burner sales (notably a 26-burner order).
Read all positive updates
Company Guidance
Management reiterated that Q4 2025 revenue was about $3.7M (vs. ~$0.59M Q4 2024) and FY2025 revenue totaled ~$5.2M (up 44% from $3.6M), with gross margin ~27% (down 4 points from 31%) and a net loss increase of ~$197k driven in part by ~$746k of nonrecurring legal fees; operating cash use was ~$4.7M (vs. $4.4M) and cash on hand was ~$9.2M with ~5.3M shares outstanding as of 12/31/25. Management reiterated a breakeven target at roughly a $16M run rate (≈160 process burners/year), noted a typical burner sells for ~$100k, estimated ~28,000 refinery burners in CA/TX with ~15% (~4,200) retrofitable over ~10 years, and reported a quoted process‑burner backlog of ~225 burners (including a delivered 26‑burner order with field start‑up expected in October and 32‑ and 36‑burner projects moving toward testing, plus four recent inquiries totaling ~73 burners). They also highlighted a midstream proposal pipeline of ~50, M‑series results including an M1 running ~2 ppm and M25 deployments, flare/system orders ranging from ~$200–250k (burner only) up to ~$500k–$1M for full systems, that orders are typically self‑funding, that revenues will be lumpy in 2026 (Q1 not expected to match Q4’25) but management is confident in 2026 revenue growth, and upcoming industry events on Apr 15 and an Apr 23 demonstration (30+ attendees) to drive further backlog.ClearSign Combustion Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
68
Positive
Cash Flow
28
Negative
| Breakdown | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.23M | 3.60M | 2.40M | 374.00K | 607.00K |
| Gross Profit | 1.42M | 1.12M | 817.00K | -30.00K | -452.00K |
| EBITDA | -5.66M | -5.55M | -5.30M | -5.47M | -7.63M |
| Net Income | -5.50M | -5.30M | -5.19M | -5.76M | -7.89M |
Balance Sheet | |||||
| Total Assets | 12.18M | 15.92M | 7.62M | 10.93M | 9.36M |
| Cash, Cash Equivalents and Short-Term Investments | 9.18M | 14.04M | 5.68M | 9.06M | 7.61M |
| Total Debt | 163.00K | 188.00K | 243.00K | 359.00K | 555.00K |
| Total Liabilities | 2.65M | 2.15M | 2.43M | 1.37M | 1.08M |
| Stockholders Equity | 9.53M | 13.76M | 5.19M | 9.55M | 8.28M |
Cash Flow | |||||
| Free Cash Flow | -4.84M | -4.59M | -3.43M | -5.16M | -6.92M |
| Operating Cash Flow | -4.74M | -4.37M | -3.23M | -4.99M | -6.71M |
| Investing Cash Flow | -101.00K | -218.00K | 2.49M | -2.69M | -213.00K |
| Financing Cash Flow | -21.00K | 12.95M | -15.00K | 6.54M | 5.69M |
ClearSign Combustion Technical Analysis
Neutral
0.60
Price Trends
5.26
Positive
6.12
Negative
6.49
Negative
Market Momentum
0.23
Negative
52.26
Neutral
61.83
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLIR, the sentiment is Neutral. The current price of 0.6 is below the 20-day moving average (MA) of 4.52, below the 50-day MA of 5.26, and below the 200-day MA of 6.49, indicating a neutral trend. The MACD of 0.23 indicates Negative momentum. The RSI at 52.26 is Neutral, neither overbought nor oversold. The STOCH value of 61.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $2.11B | 42.25 | 16.53% | ― | 29.86% | 331.33% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | $9.41M | -16.89 | 3.61% | ― | -14.25% | -59.84% | |
56 Neutral | $39.00M | -20.77 | -5.70% | ― | -5.66% | -397.46% | |
52 Neutral | $28.61M | -24.81 | -53.54% | ― | -49.70% | -2.72% | |
50 Neutral | $54.24M | -0.93 | -241.68% | ― | ― | ― | |
46 Neutral | $17.21M | -1.35 | -73.79% | ― | 10.97% | 44.99% |
* Industrials Sector Average
CLIR
ClearSign Combustion
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ClearSign Combustion Corporate Events
Business Operations and StrategyFinancial Disclosures
ClearSign Combustion Reports Record Revenue and Strong Backlog
Positive
Apr 10, 2026
On April 9, 2026, ClearSign reported record fourth-quarter 2025 revenue of $3.7 million and full-year revenue of $5.2 million, a 44% annual increase, highlighting growing industry recognition and a stronger order backlog driven by its flexible-fue...
Delistings and Listing ChangesRegulatory Filings and Compliance
ClearSign Combustion Regains Nasdaq Minimum Bid Compliance
Positive
Mar 31, 2026
On March 30, 2026, ClearSign Technologies Corporation announced it had regained compliance with the Nasdaq Capital Market’s minimum bid price requirement after its common stock closed at or above $1.00 per share for at least ten consecutive ...
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
ClearSign Implements Reverse Stock Split to Maintain Nasdaq Listing
Neutral
Mar 11, 2026
On March 6, 2026, ClearSign Technologies Corporation filed a charter amendment in Delaware to implement a 1-for-10 reverse stock split of its common stock, which will take effect at 12:01 a.m. Eastern Time on March 16, 2026, with trading on a spli...
Delistings and Listing ChangesRegulatory Filings and ComplianceShareholder MeetingsStock Split
ClearSign Shareholders Approve Reverse Stock Split Authorization
Neutral
Mar 4, 2026
On February 26, 2026, ClearSign Technologies shareholders approved an amendment allowing the board to implement a reverse stock split at a ratio between 1-for-2 and 1-for-10 to help the company comply with Nasdaq listing rules, with 26.7 million v...
Business Operations and StrategyFinancial Disclosures
ClearSign Highlights Record Q4 Revenue and Hydrogen Burner Progress
Positive
Feb 25, 2026
On February 24, 2026, ClearSign Technologies held a corporate update call to discuss preliminary, unaudited financial results for the fourth quarter and full year ended December 31, 2025, alongside broader business developments, noting that its au...
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.