Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $8.52M
• Dividend Yield: N/A
• Average Volume (3M): 65.72K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.90
• Revenue Growth: -35.27%
• EPS Growth: -227.55%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 84
• Industry: Communication Equipment
• EPS (TTM): -2.64
• Shares Outstanding: 1,734,249
• 10 Day Avg. Volume: 154,497
• 30 Day Avg. Volume: 65,718
• 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: 1.27
• Enterprise Value/Revenue: 1.11
• Enterprise Value/Gross Profit: 7.77
• Enterprise Value/Ebitda: -0.97
• 1Y Price Target: $4.00
• Price Target Upside: -14.71% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 39 Underperform
• Price Target: $4.00 ▼(-14.71% Downside)

Clearone Communications is facing significant financial and technical challenges, with declining revenues, negative profit margins, and bearish technical indicators. The negative P/E ratio further highlights the company's unprofitability. While the special stock dividend announcement is a positive corporate event, it does not offset the overall negative outlook.

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 generates revenue through multiple streams, primarily by selling its hardware and software products that facilitate audio and video communications. Key revenue streams include sales of conferencing equipment, professional services for system installation, and ongoing maintenance contracts. The company also earns income from licensing its technology and software solutions to other businesses. Significant partnerships with distributors and resellers enhance its market reach and contribute to sales growth. Additionally, Clearone's focus on developing advanced technologies, such as AI-driven audio processing and cloud-based solutions, positions it for future revenue opportunities in the expanding market of remote communication and collaboration tools.

Clearone Communications Financial Statement Overview

Summary

Clearone Communications is facing significant financial challenges with declining revenues and persistent operating losses. Despite a strong equity base, the negative cash flows and poor profitability highlight major financial distress.

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	9.69M	11.39M	18.70M	25.20M	28.97M	29.07M
Gross Profit	1.39M	2.63M	6.36M	9.46M	11.92M	12.56M
EBITDA	-11.17M	-8.31M	1.56M	-3.65M	-4.19M	-2.81M
Net Income	-11.67M	-8.98M	-560.00K	20.56M	-7.69M	505.00K
Balance Sheet
Total Assets	24.00M	26.54M	50.69M	83.75M	66.19M	62.32M
Cash, Cash Equivalents and Short-Term Investments	1.13M	1.42M	21.32M	984.00K	2.86M	4.92M
Total Debt	405.00K	771.00K	1.05M	4.87M	6.67M	5.99M
Total Liabilities	9.06M	5.21M	6.01M	9.62M	14.69M	12.51M
Stockholders Equity	14.95M	21.33M	44.69M	74.13M	51.50M	49.81M
Cash Flow
Free Cash Flow	-6.08M	-6.31M	54.25M	-5.10M	-12.74M	-8.20M
Operating Cash Flow	-5.96M	-6.12M	54.63M	-4.18M	-4.39M	-982.00K
Investing Cash Flow	2.34M	4.19M	-4.88M	2.08M	-8.51M	-5.54M
Financing Cash Flow	4.01M	-14.47M	-32.89M	2.05M	10.21M	6.28M

Clearone Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLRO, the sentiment is Neutral. The current price of 4.69 is above the 20-day moving average (MA) of 4.24, below the 50-day MA of 6.10, and below the 200-day MA of 7.73, indicating a neutral trend. The MACD of -0.32 indicates Negative momentum. The RSI at 50.19 is Neutral, neither overbought nor oversold. The STOCH value of 69.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLRO.

Clearone Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.56B	8.99	-10.49%	1.86%	8.45%	-8.32%
MITQ	59 Neutral	$7.45M	―	-21.35%	―	-4.85%	43.93%
SYNX	48 Neutral	$9.89M	―	-60.43%	―	19.14%	49.74%
BOXL	41 Neutral	$4.49M	―	-126.41%	―	-30.79%	43.48%
CLRO	39 Underperform	$8.52M	―	-57.64%	―	-35.27%	-227.55%
SONM	37 Underperform	$10.11M	―	-385.91%	―	-16.41%	-144.71%
FIEE	28 Underperform	$17.93M	―	-117.93%	―	-99.49%	92.50%

Clearone Communications Corporate Events

ClearOne Communications Repurchases Warrants from Intracoastal

On September 2, 2025, ClearOne, Inc. repurchased certain outstanding common stock purchase warrants from Intracoastal Capital, LLC. These warrants, originally issued on September 12, 2021, were exercisable for 6,039 shares and were bought back for a total of $3,927.77, effectively canceling them and removing any future obligations related to these warrants.

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.