ClearSign Combustion (CLIR) AI Stock Analysis

• Market Cap: $26.62M
• Dividend Yield: N/A
• Average Volume (3M): 86.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.03
• Revenue Growth: 19.03%
• EPS Growth: 11.70%
• Country: US
• Employees: 18
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Pollution & Treatment Controls
• EPS (TTM): -0.03
• Shares Outstanding: 52,426,280
• 10 Day Avg. Volume: 133,998
• 30 Day Avg. Volume: 86,405
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.71
• Enterprise Value/Revenue: 6.30
• Enterprise Value/Gross Profit: 21.11
• Enterprise Value/Ebitda: -2.98
• 1Y Price Target: $2.00
• Price Target Upside: 300.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $0.50 ▲(0.00% Upside)

ClearSign Combustion's overall stock score reflects a mix of strengths and challenges. The most significant factor is the company's financial performance, which shows revenue growth but faces profitability and cash flow challenges. Technical analysis suggests short-term bullish momentum, while valuation metrics highlight high risk due to ongoing losses. The earnings call and corporate events provide a balanced outlook with strategic advancements and governance improvements, but also highlight ongoing operational challenges.

Positive Factors

Revenue Growth

The significant year-over-year revenue increase indicates strong demand for ClearSign's products, supporting long-term growth potential and market expansion.

Strategic Product Launches

The launch of new products like the M-Series burner positions ClearSign to capture broader market segments, enhancing its competitive edge and long-term growth prospects.

Improved Cash Management

Improved cash management through better customer collections enhances financial stability, providing more resources for strategic investments and growth.

Negative Factors

Profitability Challenges

Ongoing profitability issues, despite revenue growth, indicate struggles in converting sales into profit, which could hinder long-term financial sustainability.

Board Transitions

Frequent board changes can lead to strategic instability and may disrupt governance, impacting ClearSign's ability to execute long-term plans effectively.

Project Delays

Delays in project timelines can defer revenue realization and strain customer relationships, potentially affecting ClearSign's market position and growth trajectory.

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 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 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

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

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

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.98M	3.60M	2.40M	374.00K	607.00K	0.00
Gross Profit	890.00K	1.12M	817.00K	116.00K	-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 Assets	14.23M	15.92M	7.62M	10.93M	9.36M	11.12M
Cash, Cash Equivalents and Short-Term Investments	12.34M	14.04M	5.68M	9.06M	7.61M	8.82M
Total Debt	208.00K	188.00K	243.00K	359.00K	555.00K	669.00K
Total Liabilities	3.82M	2.15M	2.43M	1.37M	1.08M	1.58M
Stockholders Equity	10.41M	13.76M	5.19M	9.55M	8.28M	9.54M
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	-218.00K	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: Negative
• Last Price: 0.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.5 is below the 20-day moving average (MA) of 0.57, below the 50-day MA of 0.56, and below the 200-day MA of 0.77, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 34.32 is Neutral, neither overbought nor oversold. The STOCH value of 31.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLIR.

ClearSign Combustion Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLWT	72 Outperform	10.44M	14.20	4.66%	―	-14.25%	-59.84%
CLIR	58 Neutral	$26.62M	―	-46.19%	―	19.03%	11.70%
FTEK	53 Neutral	94.78M	-31.59	-4.63%	―	-4.78%	-1359.72%
LIQT	50 Neutral	25.00M	-1.97	-74.27%	―	-12.76%	15.23%
TOMZ	42 Neutral	20.68M	-4.22	-109.22%	―	-12.72%	-36.80%
SCWO	39 Underperform	51.39M	-3.05	0.00%	―	0.00%	0.00%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

ClearSign Combustion Corporate Events

ClearSign Regains Nasdaq Compliance with New Appointments

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.

ClearSign Combustion Reports Q2 2025 Financial Results

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.

ClearSign Combustion Faces Board Resignations and Nasdaq Compliance

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.

ClearSign Combustion Holds Annual Stockholders Meeting

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.

ClearSign Combustion Enters New ATM Offering Agreement

On July 17, 2025, ClearSign Technologies Corporation entered into an At The Market Offering Agreement with H.C. Wainwright & Co., LLC, allowing the company to sell shares of its common stock up to $10,390,000. The proceeds from this offering are intended for working capital, research and development, marketing, sales, and general corporate purposes. This move follows the termination of a previous agreement with Virtu Americas LLC on July 12, 2025, which had a similar purpose but a lower aggregate offering price of $8,700,000.

ClearSign Combustion Updates Board Committees

ClearSign Technologies Corporation has announced changes in the composition of its board committees, effective June 27, 2025. These changes involve the appointment of new members to the Audit and Risk Committee, Human Capital and Compensation Committee, and Nominating and Corporate Governance Committee, which may impact the company’s governance and strategic direction.