Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $10.54M
• Dividend Yield: N/A
• Average Volume (3M): 1.41M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: -44.47%
• EPS Growth: -504.44%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 1,733,333
• 10 Day Avg. Volume: 130,717
• 30 Day Avg. Volume: 1,408,456
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.13
• Enterprise Value/Market Cap: 3.76
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 24.78
• Enterprise Value/Ebitda: -1.26
• 1Y Price Target: $5.50
• Price Target Upside: -9.54% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $6.00 ▼(-1.32%Downside)

The stock's overall score is primarily impacted by poor financial performance and weak technical indicators. Although the corporate event of a special stock dividend provides a positive note, it is not enough to offset the significant financial and market challenges.

Clearone Communications Business Overview & Revenue Model

Company Description

ClearOne, Inc., together with its subsidiaries, designs, develops, and sells conferencing, collaboration, and network streaming solutions for voice and visual communications in the United States and internationally. The company offers a range of audio conferencing products, including professional audio conferencing and sound-reinforcement products for use in enterprise, healthcare, education and distance learning, government, legal, and finance organizations; mid-tier premium conferencing products for smaller rooms, and small and medium businesses, which interface with video and Web conferencing systems; USB-based personal and group speakerphones that could be used with PCs, laptops, tablets, smartphones, and other portable devices; and traditional tabletop conferencing phones used in conference rooms and offices. It also provides video products, such as video conferencing and collaboration solutions; and AV networking, which deliver the IP A/V experience by streaming time sensitive high definition audio and video, and control over TCP/IP networks. In addition, the company offers professional microphones consisting of beamforming microphones, ceiling microphones, and wireless microphones. ClearOne, Inc. sells its commercial products to a network of independent professional audiovisual, information technology, and telecommunications distributors, as well as systems integrators, dealers, value-added resellers, and end-users. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

ClearOne Communications generates revenue primarily through the sale of its audio and visual communication products. The company's key revenue streams include product sales, which encompass professional audio conferencing systems, microphones, and video collaboration tools. Additionally, ClearOne earns income from software solutions that integrate with their hardware products to provide comprehensive communication solutions. The company also engages in partnerships and collaborations with technology distributors and resellers to expand its market reach and drive sales. Service offerings such as technical support, installation, and maintenance further contribute to its earnings.

Clearone Communications Financial Statement Overview

Summary

Clearone Communications is encountering severe financial challenges, characterized by declining revenues, persistent operating losses, and negative cash flows. Despite a strong equity base, the company's profitability and cash management issues need urgent resolution for long-term stability.

Income Statement

Clearone Communications has seen declining revenues over the years, with a significant drop from $29.07M in 2020 to $10.08M in TTM (Trailing-Twelve-Months) 2025. The company is operating at a loss, with negative EBIT and EBITDA margins, indicating operational inefficiencies. The net profit margin has also been negative, largely due to significant losses in recent years.

Balance Sheet

The company maintains a relatively strong equity position with an equity ratio of around 79% in TTM 2025, indicating a solid financial structure. However, the debt-to-equity ratio has increased, and the return on equity has turned negative due to substantial net losses, reflecting poor profitability.

Cash Flow

Cash flows indicate financial distress, with negative operating and free cash flows in both TTM 2025 and 2024. The free cash flow growth rate has been negative, and cash flow to net income ratios are unfavorable, highlighting cash management issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.08M	11.39M	18.70M	25.20M	28.97M	29.07M
Gross Profit	1.60M	2.63M	6.36M	9.46M	11.92M	12.56M
EBITDA	-9.22M	-8.31M	1.56M	31.25M	-4.19M	-2.81M
Net Income	-9.92M	-8.98M	-560.00K	20.56M	-7.69M	505.00K
Balance Sheet
Total Assets	24.68M	26.54M	50.69M	83.75M	66.19M	62.32M
Cash, Cash Equivalents and Short-Term Investments	961.00K	1.42M	21.32M	984.00K	2.86M	4.92M
Total Debt	460.00K	771.00K	665.00K	4.22M	6.04M	5.41M
Total Liabilities	5.17M	5.21M	6.01M	9.62M	14.69M	12.51M
Stockholders Equity	19.51M	21.33M	44.69M	74.13M	51.50M	49.81M
Cash Flow
Free Cash Flow	-8.21M	-6.31M	54.25M	-5.10M	-12.74M	-8.20M
Operating Cash Flow	-7.99M	-6.12M	54.63M	-4.18M	-4.39M	-982.00K
Investing Cash Flow	3.90M	4.19M	-4.88M	2.08M	-8.51M	-5.54M
Financing Cash Flow	-13.47M	-14.47M	-32.89M	2.05M	10.21M	6.28M

Clearone Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.08
• 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 CLRO, the sentiment is Negative. The current price of 6.08 is below the 20-day moving average (MA) of 8.56, below the 50-day MA of 7.20, and below the 200-day MA of 8.37, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 36.42 is Neutral, neither overbought nor oversold. The STOCH value of 1.85 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLRO.

Clearone Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELSE	67 Neutral	$16.11M	43.28	2.64%	―	9.56%	61.85%
Sector *	63 Neutral	$34.55B	5.25	-11.40%	1.91%	5.47%	-20.39%
CXAI	51 Neutral	$23.27M	―	-86.92%	―	-9.33%	74.24%
CLRO	45 Neutral	$10.54M	―	-41.45%	―	-44.47%	-504.44%
UAVS	45 Neutral	$29.52M	―	-327.53%	―	-3.17%	90.94%
SMSI	43 Neutral	$16.59M	―	-55.77%	―	-45.77%	67.69%
DATS	―	$13.07M	―	-53.43%	―	―	―

Clearone Communications Corporate Events

ClearOne Announces Special Stock Dividend for Legacy Holders

On June 30, 2025, ClearOne, Inc. announced a one-time special stock dividend for its legacy stockholders, providing them with a 100% stake in the proceeds from a potential sale of the company’s assets. The dividend, part of ClearOne’s strategic process, involves issuing Class A Redeemable Preferred Stock, which will be redeemed for the net proceeds of any asset sale. The record date for this dividend is July 11, 2025, and it will be payable on July 18, 2025. The Nasdaq Stock Market advised that no EX date will be issued due to the restricted nature of the preferred stock, meaning only stockholders of record as of the record date will receive the dividend.

ClearOne Announces Special Stock Dividend for Legacy Holders

On June 30, 2025, ClearOne, Inc. announced a one-time special stock dividend for its legacy stockholders, granting them a 100% stake in the proceeds from any future sale of the company’s current assets and operations. This strategic move, part of ClearOne’s ongoing plan to pursue asset sales, involves issuing Class A Redeemable Preferred Stock to holders of common stock and equivalents, with the dividend payable on July 18, 2025. The announcement underscores ClearOne’s strategic positioning and potential implications for stakeholders, as future dividends remain at the discretion of the Board.

ClearOne Regains NASDAQ Listing After Reverse Stock Split

On June 20, 2025, ClearOne, Inc. entered into a Note Purchase Agreement with First Finance Ltd., involving a $3 million private placement of convertible notes. This agreement is part of a broader strategy to sell company assets and distribute proceeds to shareholders, alongside a reduction in workforce to streamline operations. The company also faced NASDAQ compliance challenges but regained its listing status by June 24, 2025, after a reverse stock split. The board expanded to include new directors nominated by the purchaser, reflecting a shift in governance as the company explores strategic alternatives.

Clearone Communications Approves Reverse Stock Split

On May 30, 2025, ClearOne, Inc. held a special meeting where stockholders approved a reverse stock split of its common stock at a ratio of 1-for-15, effective June 9, 2025. The move aims to increase the company’s per share market price to comply with Nasdaq’s listing requirements. The reverse stock split will reduce the number of issued and outstanding shares from approximately 26 million to 1.7 million, without altering stockholders’ percentage ownership, except in cases of fractional shares.

ClearOne Announces Reverse Stock Split Plan

ClearOne, Inc. announced a 1-for-15 reverse stock split of its common stock, effective June 2, 2025, subject to stockholder approval at a special meeting on May 30, 2025. This move aims to increase the per share market price to meet Nasdaq’s minimum bid price requirement, reducing the number of outstanding shares from approximately 26 million to 1.7 million, while maintaining the same percentage ownership for stockholders.