Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $9.57M
• Dividend Yield: N/A
• Average Volume (3M): 29.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.62
• Revenue Growth: -44.47%
• EPS Growth: -504.44%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): N/A
• Shares Outstanding: 1,733,333
• 10 Day Avg. Volume: 39,269
• 30 Day Avg. Volume: 29,041
• 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: 4.14
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 24.78
• Enterprise Value/Ebitda: -1.26
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 44 Neutral
• Price Target: $5.50 ▼(-4.35%Downside)

The overall score is driven by challenging financial performance and valuation concerns. However, the strategic corporate event offers a bright spot, potentially enhancing future stakeholder value.

Clearone Communications Business Overview & Revenue Model

Company Description

ClearOne Communications (CLRO) is a global company that designs, develops, and sells conferencing, collaboration, and network streaming solutions. Operating primarily in the audio and visual communication sectors, ClearOne offers a wide range of products including professional audio conferencing systems, wireless microphone systems, and visual collaboration tools. The company's solutions are used in various settings such as corporate offices, educational institutions, and government facilities.

How the Company Makes Money

ClearOne Communications generates revenue through the sale of its conferencing and collaboration products and solutions. Its key revenue streams include the direct sale of audio and visual communication equipment to end-users, as well as through a network of distributors and resellers. The company also earns from providing related services such as installation, maintenance, and support. Significant partnerships with technology integrators and resellers enhance its market reach and contribute to earnings by allowing the company to tap into new markets and customer bases. Additionally, ClearOne may leverage intellectual property and licensing agreements to generate additional income.

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: Neutral
• Last Price: 5.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

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 5.75 is below the 20-day moving average (MA) of 5.84, below the 50-day MA of 6.85, and below the 200-day MA of 8.36, indicating a bearish trend. The MACD of -0.35 indicates Negative momentum. The RSI at 45.40 is Neutral, neither overbought nor oversold. The STOCH value of 13.32 is Positive, 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
ELSE	67 Neutral	$14.59M	39.20	2.64%	―	9.56%	61.85%
Sector *	63 Neutral	$33.26B	5.86	-11.55%	1.91%	5.52%	-20.13%
CXAI	54 Neutral	$21.19M	―	-86.92%	―	-9.33%	74.24%
SMSI	47 Neutral	$17.53M	―	-55.77%	―	-45.77%	67.69%
CLRO	44 Neutral	$9.57M	―	-41.45%	―	-44.47%	-504.44%
UAVS	42 Neutral	$15.04M	―	-327.53%	―	-3.17%	90.94%

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, 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.