ClearSign Combustion (CLIR) AI Stock Analysis

• Market Cap: $45.34M
• Dividend Yield: N/A
• Average Volume (3M): 1.58M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.19
• 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: 52,426,280
• 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: 0.41
• Enterprise Value/Revenue: 8.73
• Enterprise Value/Gross Profit: 26.57
• Enterprise Value/Ebitda: -2.93
• 1Y Price Target: $2.00
• Price Target Upside: 203.03% 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: $0.74 ▲(12.58% Upside)

ClearSign Combustion faces significant financial challenges, with ongoing losses and negative cash flows impacting its valuation and technical indicators. Despite some positive developments in product orders and market acceptance, the financial and technical weaknesses weigh heavily on the overall score.

Positive Factors

Product Line Expansion

The expansion across product lines driven by regulatory pressures and increased customer trust indicates a strong market position and potential for sustained revenue growth.

Improved Gross Margins

Improved gross margins align with the company's strategy of targeting margins between 40% and 45%, enhancing profitability potential in the long term.

Strategic Partnerships

Strong partnerships with industry leaders like Zeeco enhance product credibility and open avenues for new business opportunities, supporting long-term growth.

Negative Factors

Negative Cash Flow

Persistent negative cash flow indicates challenges in sustaining operations without external financing, potentially affecting long-term viability.

Decreased Revenue

Significant revenue decline suggests vulnerability to large order fluctuations, impacting financial stability and growth prospects.

Increased Net Loss

Rising net loss despite revenue growth highlights ongoing profitability challenges, which could hinder investment and expansion efforts.

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

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	2.15M	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: Negative
• Last Price: 0.66
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 0.66 is below the 20-day moving average (MA) of 0.76, below the 50-day MA of 0.85, and below the 200-day MA of 0.68, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 36.72 is Neutral, neither overbought nor oversold. The STOCH value of 19.10 is Positive, 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
CECO	72 Outperform	$2.17B	43.07	18.85%	―	29.86%	331.33%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CLWT	60 Neutral	$8.15M	11.25	―	―	-14.25%	-59.84%
FTEK	51 Neutral	$78.31M	-23.98	-7.10%	―	-5.66%	-397.46%
CLIR	48 Neutral	$45.34M	-7.69	-53.13%	―	-49.70%	-2.72%
LIQT	45 Neutral	$17.52M	―	-73.79%	―	10.97%	44.99%
SCWO	39 Underperform	$65.53M	-3.44	-232.63%	―	―	―

ClearSign Combustion Corporate Events

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.

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.

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.

ClearSign Granted Nasdaq Extension for Compliance

On April 1, 2025, ClearSign Technologies Corporation received a notification from Nasdaq indicating non-compliance with the $1 minimum bid price requirement for its common stock. On September 30, 2025, Nasdaq granted ClearSign a 180-day extension until March 30, 2026, to regain compliance, potentially through a reverse stock split. Failure to meet the requirement could lead to delisting, although the company may appeal. The extension does not immediately affect the stock’s listing or trading status.