Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $11.93M
• Dividend Yield: N/A
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• 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: 0.88
• Enterprise Value/Revenue: 1.47
• Enterprise Value/Gross Profit: 14.07
• Enterprise Value/Ebitda: -1.10
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $6.00 ▲(12.57% Upside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues and negative profit margins. While technical analysis provides some positive signals, the negative valuation metrics due to unprofitability weigh heavily on the score.

Positive Factors

Low Leverage

Clearone's low leverage indicates conservative financial management, providing flexibility to navigate financial challenges and invest in growth opportunities.

Strategic Asset Sale

The asset sale to Biamp Systems provides Clearone with liquidity to redeem preferred stock, potentially improving its financial stability and focusing on core operations.

Solid Capital Structure

A stable capital structure supports Clearone's ability to withstand financial pressures and invest in strategic initiatives, enhancing long-term resilience.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive positioning, which could hinder Clearone's ability to sustain operations and invest in growth.

Negative Profit Margins

Negative profit margins reflect operational inefficiencies or pricing pressures, threatening Clearone's financial health and ability to generate shareholder value.

Cash Flow Difficulties

Negative cash flow impacts Clearone's ability to fund operations and growth initiatives, potentially leading to liquidity issues and increased financial risk.

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

Clearone Communications faces considerable financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. While the balance sheet shows low leverage, the company's profitability and cash flow generation are concerning, impacting its overall financial health.

Income Statement

Clearone Communications has experienced declining revenues and negative profit margins over recent periods. The TTM (Trailing-Twelve-Months) shows a negative net profit margin of -98.43% and a negative revenue growth rate of -3.85%. The gross profit margin has also decreased significantly compared to previous years, indicating challenges in maintaining profitability.

Balance Sheet

The company maintains a low debt-to-equity ratio of 0.02 in the TTM, suggesting conservative leverage. However, the return on equity is negative at -58.88%, reflecting poor profitability relative to shareholder equity. The equity ratio remains stable, indicating a solid capital structure despite profitability issues.

Cash Flow

Cash flow metrics reveal significant challenges, with negative operating cash flow and free cash flow in the TTM. The free cash flow growth rate is -25.77%, and the operating cash flow to net income ratio is negative, indicating cash flow difficulties. The free cash flow to net income ratio is slightly positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	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: Positive
• Last Price: 5.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLRO, the sentiment is Positive. The current price of 5.33 is below the 20-day moving average (MA) of 5.36, above the 50-day MA of 5.22, and below the 200-day MA of 6.27, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 50.83 is Neutral, neither overbought nor oversold. The STOCH value of 28.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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%
MITQ	59 Neutral	$6.83M	-15.81	-7.48%	―	-1.49%	76.04%
CLRO	46 Neutral	$11.93M	-0.39	-75.61%	―	-42.90%	-427.39%
SYNX	42 Neutral	$6.37M	-1.64	-49.73%	―	-39.32%	-100.79%
BOXL	37 Underperform	$2.08M	-0.03	-139.93%	―	-29.26%	14.40%
SONM	37 Underperform	$4.91M	-0.02	-455.82%	―	4.17%	-238.36%
FIEE	28 Underperform	$17.38M	-12.17	-66.84%	―	-5.65%	88.68%

Clearone Communications Corporate Events

ClearOne Sells Assets to Biamp for $3 Million

On October 24, 2025, ClearOne, Inc. completed an Asset Purchase Agreement with Biamp Systems, LLC, selling a significant portion of its intellectual property and product inventory for $3 million. This transaction is part of ClearOne’s strategic plan to sell all or most of its assets and operations. The proceeds from this sale will be used to redeem the company’s Class A Redeemable Preferred Stock, while ClearOne retains ownership of its subsidiaries and will continue to offer product warranty and support services.

ClearOne Repurchases Warrants from Majority Stockholder

On September 17, 2025, ClearOne, Inc. repurchased certain outstanding common stock purchase warrants from its majority stockholder, Edward Dallin Bagley. The warrants, originally issued on September 12, 2021, were exercisable for 18,940 shares and were repurchased for a total of $12,319, after which they were cancelled.

ClearOne Communications Finalizes Warrant Repurchase Agreement

On September 10, 2025, ClearOne, Inc. entered into a Warrant Repurchase Agreement with Lind Global Fund Group II LP to repurchase outstanding common stock purchase warrants. These warrants, originally issued on September 12, 2021, were for 24,155 shares of the company’s common stock. The repurchase was completed for a total of $15,710.41, effectively canceling the warrants and removing them from circulation.