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Clearone Communications Inc. (CLRO)
NASDAQ:CLRO
US Market
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Clearone Communications (CLRO) AI Stock Analysis

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CLRO

Clearone Communications

(NASDAQ:CLRO)

Rating:45Neutral
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 (CLRO) vs. SPDR S&P 500 ETF (SPY)

Clearone Communications Business Overview & Revenue Model

Company DescriptionClearOne, 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 MoneyClearOne 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
40
Negative
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
55
Neutral
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
30
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue10.08M11.39M18.70M25.20M28.97M29.07M
Gross Profit1.60M2.63M6.36M9.46M11.92M12.56M
EBITDA-9.22M-8.31M1.56M31.25M-4.19M-2.81M
Net Income-9.92M-8.98M-560.00K20.56M-7.69M505.00K
Balance Sheet
Total Assets24.68M26.54M50.69M83.75M66.19M62.32M
Cash, Cash Equivalents and Short-Term Investments961.00K1.42M21.32M984.00K2.86M4.92M
Total Debt460.00K771.00K665.00K4.22M6.04M5.41M
Total Liabilities5.17M5.21M6.01M9.62M14.69M12.51M
Stockholders Equity19.51M21.33M44.69M74.13M51.50M49.81M
Cash Flow
Free Cash Flow-8.21M-6.31M54.25M-5.10M-12.74M-8.20M
Operating Cash Flow-7.99M-6.12M54.63M-4.18M-4.39M-982.00K
Investing Cash Flow3.90M4.19M-4.88M2.08M-8.51M-5.54M
Financing Cash Flow-13.47M-14.47M-32.89M2.05M10.21M6.28M

Clearone Communications Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.08
Price Trends
50DMA
7.20
Negative
100DMA
7.96
Negative
200DMA
8.37
Negative
Market Momentum
MACD
-0.22
Positive
RSI
36.42
Neutral
STOCH
1.85
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 Risk Analysis

Clearone Communications disclosed 37 risk factors in its most recent earnings report. Clearone Communications 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

Clearone Communications Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$16.11M43.282.64%9.56%61.85%
63
Neutral
$34.55B5.25-11.40%1.91%5.47%-20.39%
51
Neutral
$23.27M-86.92%-9.33%74.24%
45
Neutral
$10.54M-41.45%-44.47%-504.44%
45
Neutral
$29.52M-327.53%-3.17%90.94%
43
Neutral
$16.59M-55.77%-45.77%67.69%
$13.07M-53.43%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CLRO
Clearone Communications
6.08
-4.63
-43.23%
ELSE
Electro-Sensors
4.67
0.75
19.13%
SMSI
Smith Micro Software
0.79
-1.78
-69.26%
UAVS
AgEagle Aerial Systems
2.97
-19.43
-86.74%
CXAI
CXApp
1.12
-1.13
-50.22%
DATS
DatChat
2.60
0.93
55.69%

Clearone Communications Corporate Events

DividendsBusiness Operations and Strategy
ClearOne Announces Special Stock Dividend for Legacy Holders
Positive
Jul 7, 2025

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.

DividendsBusiness Operations and Strategy
ClearOne Announces Special Stock Dividend for Legacy Holders
Positive
Jun 30, 2025

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.

Delistings and Listing ChangesExecutive/Board ChangesPrivate Placements and FinancingStock SplitBusiness Operations and StrategyRegulatory Filings and Compliance
ClearOne Regains NASDAQ Listing After Reverse Stock Split
Neutral
Jun 25, 2025

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.

Delistings and Listing ChangesShareholder MeetingsStock Split
Clearone Communications Approves Reverse Stock Split
Neutral
Jun 2, 2025

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.

Delistings and Listing ChangesShareholder MeetingsStock Split
ClearOne Announces Reverse Stock Split Plan
Neutral
May 21, 2025

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.

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.Date of analysis: Jul 22, 2025