ClearSign Combustion (CLIR)
NASDAQ:CLIR
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ClearSign Combustion
(NASDAQ:CLIR)
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Rating:47Neutral
Price Target:
$5.00
▼(-8.26% Downside)
Action:Reiterated
Date:05/22/26
The score is held down primarily by weak profitability and significant ongoing cash burn despite multi-year revenue growth. Technicals are neutral-to-soft with longer-term moving averages still above price and MACD negative, adding caution. Offsetting factors include very low leverage and a cautiously optimistic earnings update supported by meaningful project activity and a solid cash position, plus incremental positives like Nasdaq compliance.
Positive Factors
Conservative leverage
Very low leverage (TTM debt-to-equity ~0.02) is a durable financial strength. It reduces refinancing risk, preserves access to capital markets and gives flexibility to support multi-phase projects or weather uneven revenue timing without excessive interest burden.
Negative Factors
Persistent cash burn
Sustained negative operating and free cash flow (~-$5M TTM) is a structural weakness. Ongoing cash burn forces dependence on external financing or drawing reserves, increasing dilution risk and constraining investment in manufacturing scale or longer sales cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative leverage
Very low leverage (TTM debt-to-equity ~0.02) is a durable financial strength. It reduces refinancing risk, preserves access to capital markets and gives flexibility to support multi-phase projects or weather uneven revenue timing without excessive interest burden.
Read all positive factors
ClearSign Combustion (CLIR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$26.25M
Dividend YieldN/A
Average Volume (3M)1.58M
Price to Earnings (P/E)―
Beta (1Y)2.44
Revenue Growth73.54%
EPS Growth17.08%
CountryUS
Employees18
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)-1.00
Shares Outstanding5,412,633
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 Cap0.71
Enterprise Value/Revenue3.71
Enterprise Value/Gross Profit22.34
Enterprise Value/Ebitda-3.32
Forecast
1Y Price Target
$20.00Price Target Upside266.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-1.06
Revenue Forecast (FY)$6.89M
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:May 20, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Neutral
The call presented a mixed but constructive picture: near-term financials were weak (revenues down ~50%, lower gross profit, increased net loss and higher operating cash usage), but there are meaningful operational positives — multiple large burner orders (32- and 36-burner), successful full-scale demonstration with strong industry attendance, a substantial project pipeline, self-funding project terms with stage payments, repeat customers, and a healthy cash balance of $7.7M. Management emphasized execution milestones (upcoming installations and source testing) that could meaningfully de-risk and accelerate revenue recognition later in the year. Given the size and quality of recent orders and demonstration traction balanced against current quarter financial softness and timing risks, the overall tone is cautiously optimistic but not yet clearly positive.Positive Updates
New Process Burner Orders (32 and 36 burners)
Received a next-phase order for a 32-burner California project (next phase engineering/fabrication and first-article testing; engineering/testing portion ~ $0.5M) and a separate 36-burner Texas order focused on increased heater performance. These larger orders expand addressable market vs prior smaller orders (e.g., 5–8 burners).
Negative Updates
Significant Revenue Decline
Q1 2026 revenue was approximately $200,000 versus ~$400,000 in Q1 2025 — a year‑over‑year decline of ~50%, driven predominantly by decreased spare part deliveries.
Read all updates
Q1-2026 Updates
Positive
Negative
New Process Burner Orders (32 and 36 burners)
Received a next-phase order for a 32-burner California project (next phase engineering/fabrication and first-article testing; engineering/testing portion ~ $0.5M) and a separate 36-burner Texas order focused on increased heater performance. These larger orders expand addressable market vs prior smaller orders (e.g., 5–8 burners).
Read all positive updates
Company Guidance
The call’s guidance emphasized that projects are typically self-funding and revenues will be lumpy but should pick up after key start-ups, with specific metrics: Q1 2026 revenue was ~$200K (vs. ~$400K in Q1 2025), a warranty accrual of $410K contributed to an approximate $589K year‑over‑year gross profit decline, net loss rose by $114K, G&A fell by $369K, net cash used in operations was ~$1.3M (vs. ~$1.1M), and cash on hand was ~$7.7M with ~5.4M shares outstanding; order activity includes a 32‑burner California project (engineering/testing for the next phase ~$0.5M), a 36‑burner Texas project, and a 26‑burner job shipped in January with installation slated for July and start‑up targeted for October, while a typical 30‑burner process order was described as ~30 × $100K burners = ~$3M equipment plus ~$300K engineering (initial engineering/modeling ~$150K, next phase ~$250K with ~$100K for the first burner), stage payments commonly ~50% upfront, M‑Series prices averaging ~$100K (M1 ~$80K–$200K+, M25 ~$50K–$150–200K), flare system projects in the $750K–$1M range, a successful demo attended by ~23 people from 8 large refiners (showing 100% gas→100% hydrogen transitions), formal flare source testing scheduled next month, and additional fabrication completions and shipments expected later in Q3.ClearSign Combustion Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
58
Neutral
Cash Flow
24
Negative
| Breakdown | Mar 2026 | 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 | 116.00K | -452.00K |
| EBITDA | -5.66M | -5.55M | -5.30M | -5.59M | -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
Negative
5.45
Price Trends
4.83
Positive
5.53
Negative
6.41
Negative
Market Momentum
-0.09
Negative
49.12
Neutral
51.21
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 5.45 is above the 20-day moving average (MA) of 4.87, above the 50-day MA of 4.83, and below the 200-day MA of 6.41, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 49.12 is Neutral, neither overbought nor oversold. The STOCH value of 51.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLIR.
ClearSign Combustion Risk Analysis
ClearSign Combustion disclosed 40 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $2.93B | 173.67 | 5.54% | ― | 32.11% | -71.47% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $46.12M | -7.00 | -7.34% | ― | -0.69% | 1.97% | |
51 Neutral | $9.04M | 8.06 | 3.61% | ― | -13.77% | -78.34% | |
50 Neutral | $17.91M | -1.74 | -73.79% | ― | 6.94% | 38.10% | |
47 Neutral | $26.25M | -2.80 | -53.54% | ― | 73.54% | 17.08% | |
42 Neutral | $42.51M | -2.71 | -338.76% | ― | ― | ― |
* Industrials Sector Average
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ClearSign Combustion Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related AnnouncementsStock Split
ClearSign Combustion Advances Low-Emission Burners and Flare Retrofits
Positive
May 21, 2026
ClearSign Technologies Corporation, a developer of advanced combustion and sensing solutions for industrial markets, reported operational progress for the quarter ended March 31, 2026, alongside a strengthened position in low-emission burner and f...
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.