Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $14.39M
• Dividend Yield: N/A
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.04
• Revenue Growth: -42.90%
• EPS Growth: -427.39%
• Country: US
• Employees: 80
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -7.92
• Shares Outstanding: 2,237,912
• 10 Day Avg. Volume: 16,045
• 30 Day Avg. Volume: 45,642
• PEG Ratio: -0.02
• Price to Book (P/B): 13.21
• Price to Sales (P/S): 24.74
• P/FCF Ratio: -44.63
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 11.61
• Enterprise Value/Ebitda: -0.90
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $6.00 ▲(15.38% Upside)
• Action: Reiterated Date: 02/04/26
• Date: Action: Reiterated 02/04/26

The score is held down primarily by very weak recent financial performance (sharp revenue decline, severe margin deterioration, and negative operating/free cash flow). Technicals are moderately supportive over the medium term but show neutral momentum near term. Valuation is difficult to assess due to losses and there is no dividend yield provided.

Positive Factors

Diversified end-market exposure

ClearOne sells conferencing and collaboration solutions into multiple end markets (education, healthcare, corporate, government). This sector diversification reduces revenue cyclicality, broadens demand drivers, and supports more stable long-term product adoption across institutions with recurring technology upgrade cycles.

Recurring services and partner bundles

The business generates revenue from hardware plus service contracts, maintenance and support, and partnerships that enable bundled offerings. Services and partner-driven bundles improve revenue visibility, raise switching costs, and create cross-sell opportunities that can stabilize margins and customer lifetime value over months to years.

Low financial leverage

Modest debt levels provide financial flexibility to manage operational stress, pursue product development or restructuring, and avoid immediate solvency pressure. Low leverage reduces fixed financing costs, giving management runway to execute turnaround or secure non-dilutive financing while addressing longer-term profitability challenges.

Negative Factors

Sharp revenue decline and margin erosion

Revenue and margin deterioration are structural concerns: a ~25.8% TTM revenue decline and gross margin compression to ~10% indicate weakened product economics or pricing pressure. Persistently low margins undermine ability to scale profitably and limit reinvestment capacity, threatening long-term competitiveness.

Negative operating/free cash flow

Sustained negative operating and free cash flow (~-$4.9M TTM) creates a durable liquidity constraint. Negative cash conversion limits the firm's capacity to fund R&D, marketing, and service obligations internally, increases reliance on external capital, and raises the risk of dilution or funding stress absent a credible cash-flow recovery.

Eroding equity and deeply negative returns

Material equity erosion and deeply negative ROE reflect cumulative losses and capital depletion. This weakens the balance sheet buffer, reduces strategic optionality, raises the probability of future equity raises or dilution, and undermines investor confidence—risks that persist until sustained profitability and capital restoration occur.

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 primarily through the sale of its hardware and software products, including microphones, speakers, and video conferencing systems. The company also earns money from service contracts, maintenance agreements, and customer support services. Additionally, Clearone has established partnerships with various technology and communication firms, which help expand its market reach and enhance its product offerings. These partnerships often lead to bundled solutions that attract more customers, further contributing to its revenue streams.

Clearone Communications Financial Statement Overview

Summary

Income statement and cash flow are highly stressed: TTM revenue fell ~25.8%, margins compressed sharply, and losses deepened with very negative operating and free cash flow (OCF about -$4.9M). Balance sheet leverage is modest (low debt-to-equity), but equity has declined and returns are deeply negative, increasing risk if cash burn continues.

Income Statement

TTM (Trailing-Twelve-Months) results are very weak: revenue fell ~25.8% and profitability deteriorated sharply (net margin ~-325% vs ~-79% in 2024). Gross margin also compressed meaningfully (about 10% TTM vs ~23% in 2024 and ~34% in 2023), signaling pressure on product economics and/or elevated costs. While the business showed pockets of better profitability earlier in the period (notably 2022), the most recent trend is clearly negative with deep operating losses.

Balance Sheet

Leverage is modest, with low debt relative to equity across periods (debt-to-equity ~0.16 TTM; ~0.04 in 2024), which provides some balance-sheet flexibility. However, equity has declined materially versus prior years and returns on equity are deeply negative TTM, reflecting significant losses and potential ongoing capital erosion if the trend persists. Overall: low financial leverage, but weakening net worth and poor returns are notable risks.

Cash Flow

Cash generation has turned meaningfully negative recently: TTM operating cash flow is about -$4.9M with similarly negative free cash flow, and free cash flow worsened versus the prior period (growth ~-18.6%). This contrasts with 2023, which showed unusually strong positive operating and free cash flow, highlighting volatility in cash conversion. With current losses and negative operating cash flow, liquidity burn is a key near-term concern despite low debt.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Dec 2020
Income Statement
Total Revenue	7.18M	11.39M	18.70M	25.20M	28.97M	29.07M
Gross Profit	749.00K	2.63M	6.36M	9.46M	11.92M	12.56M
EBITDA	-9.61M	-7.93M	1.56M	31.25M	-4.19M	-2.81M
Net Income	-23.34M	-8.98M	-560.00K	20.56M	-7.69M	505.00K
Balance Sheet
Total Assets	9.47M	26.54M	50.69M	83.75M	66.19M	62.32M
Cash, Cash Equivalents and Short-Term Investments	101.00K	1.42M	21.32M	984.00K	2.86M	4.92M
Total Debt	566.00K	771.00K	1.05M	4.87M	6.67M	5.99M
Total Liabilities	6.01M	5.21M	6.01M	9.62M	14.69M	12.51M
Stockholders Equity	3.46M	21.33M	44.69M	74.13M	51.50M	49.81M
Cash Flow
Free Cash Flow	-4.92M	-6.31M	54.25M	-4.23M	-4.62M	-1.27M
Operating Cash Flow	-4.86M	-6.12M	54.63M	-4.18M	-4.39M	-982.00K
Investing Cash Flow	1.26M	4.19M	-4.88M	2.08M	-8.51M	-5.54M
Financing Cash Flow	7.00K	-14.47M	-32.89M	2.05M	10.21M	6.28M

Clearone Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.20
• 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 5.2 is below the 20-day moving average (MA) of 6.46, below the 50-day MA of 6.00, and below the 200-day MA of 5.89, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 16.83 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
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FIEE	56 Neutral	$44.13M	-31.08	-66.84%	―	-5.65%	88.68%
SONM	51 Neutral	$7.37M	-0.03	-455.82%	―	4.17%	-238.36%
SYNX	48 Neutral	$6.28M	-1.59	-49.73%	―	-39.32%	-100.79%
CLRO	46 Neutral	$14.39M	-0.46	-75.61%	―	-42.90%	-427.39%
MITQ	45 Neutral	$6.09M	-20.55	-7.48%	―	-1.49%	76.04%
BOXL	39 Underperform	$1.24M	-0.02	-139.93%	―	-29.26%	14.40%

Clearone Communications Corporate Events

ClearOne Resolves Spanish Wrongful Termination Dispute Settlement

On January 5, 2026, ClearOne Spain, SL, a wholly owned subsidiary of ClearOne, Inc., reached a settlement with eight former employees who had filed wrongful termination claims related to a reduction in force initiated on June 20, 2025. Under the agreement, the former employees agreed to dismiss their claims before the High Court of Justice of Aragon in exchange for an aggregate cash payment of €392,809.80, resolving a legal dispute that had arisen from the company’s restructuring in Spain and removing a source of potential financial and operational uncertainty for the ClearOne group.

The most recent analyst rating on (CLRO) stock is a Hold with a $7.00 price target. To see the full list of analyst forecasts on Clearone Communications stock, see the CLRO Stock Forecast page.

ClearOne Resolves Spanish Employee Litigation with Settlement Agreement

ClearOne, Inc. reported that eight former employees of its Spanish subsidiary, ClearOne Spain, SL, had filed a wrongful termination claim in the High Court of Justice of Aragon following a reduction in force initiated on June 20, 2025. On January 5, 2026, ClearOne Spain entered into a Settlement Agreement and Waiver of Claims under which all eight former employees agreed to dismiss and terminate their claims in exchange for an aggregate cash payment of €392,809.80, resolving the litigation and removing a source of legal uncertainty for the company and its Spanish operations.

The most recent analyst rating on (CLRO) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Clearone Communications stock, see the CLRO Stock Forecast page.

ClearOne Shareholders Reelect Board, Approve Executive Compensation

On December 29, 2025, ClearOne Communications held its 2025 annual shareholder meeting, with 2,237,912 common shares eligible as of the December 11 record date. Shareholders re-elected all five directors—Eric L. Robinson, Eric Boehnke, Lisa B. Higley, Youngsun Park, and Bruce Whaley—to terms expiring at the 2026 annual meeting, and also approved, on an advisory basis, the compensation of the company’s named executive officers, signaling continued investor support for the current board composition and executive pay structure.

The most recent analyst rating on (CLRO) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Clearone Communications stock, see the CLRO Stock Forecast page.