Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $15.60M
• Dividend Yield: N/A
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• 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: 0.68
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $7.00 ▲(34.62% Upside)

The score is held down primarily by very weak financial performance (sharp revenue decline, severe margin deterioration, large losses, and negative operating/free cash flow). Technicals provide some support with price above key moving averages and a positive MACD, but overbought RSI/Stoch temper that benefit. Valuation remains challenged due to negative earnings and no dividend yield provided.

Positive Factors

Low Financial Leverage

Modest debt levels give ClearOne structural financial flexibility during a prolonged turnaround. Low leverage reduces insolvency risk, supports potential refinancing or restructuring options, and preserves capacity to allocate proceeds from asset sales or settlements toward operations or creditor claims.

Legal Risk Resolved (Spain)

Resolving the Spanish wrongful-termination claims removes a discrete legal overhang and cash-flow uncertainty. That elimination of legal risk preserves management focus and capital allocation flexibility, improving predictability of operating costs and reducing contingent liability over the medium term.

Board and Management Continuity

Re-election of the full board and approval of executive compensation signals governance continuity and shareholder support. Stable leadership improves chances of executing strategic decisions (asset sales, restructuring) and maintains relationships with partners and customers during multi-month turnarounds.

Negative Factors

Sharp Revenue & Margin Deterioration

Sustained revenue decline and severe margin compression indicate structurally weakened product economics or pricing pressure. Persistently negative margins undermine reinvestment capacity and competitiveness, risking continued capital erosion and making a durable recovery dependent on material business-model or cost-structure changes.

Negative Cash Generation

Consistent negative operating and free cash flow creates a persistent liquidity drain, forcing reliance on asset sales or financing. Over months this erodes equity and limits investment in products and support, constraining the company's ability to stabilize revenues or execute long-term strategic initiatives without external capital.

Strategic Asset Sales / Business Shrink

Divesting core IP and inventory as part of a plan to sell most assets signals a structural shrink or wind-down of operating capacity. This reduces future product revenue potential, weakens competitive positioning, and may indicate the business will no longer support prior scale or long-term market presence.

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 trends are severely weak: TTM revenue is down ~25.8%, gross margin compressed to ~10%, and net margin is extremely negative (~-325%). Cash flow is also a key concern with TTM operating cash flow around -$4.9M and negative free cash flow. The main offset is modest leverage (low debt-to-equity), but shrinking equity and deeply negative returns keep the overall financial profile distressed.

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	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: 5.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 5.2 is below the 20-day moving average (MA) of 5.49, below the 50-day MA of 5.29, and below the 200-day MA of 6.03, indicating a bullish trend. The MACD of 0.33 indicates Negative momentum. The RSI at 68.99 is Neutral, neither overbought nor oversold. The STOCH value of 94.49 is Negative, 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%
FIEE	54 Neutral	$22.22M	-16.09	-66.84%	―	-5.65%	88.68%
MITQ	49 Neutral	$7.65M	-17.51	-7.48%	―	-1.49%	76.04%
CLRO	48 Neutral	$15.60M	-0.50	-75.61%	―	-42.90%	-427.39%
SYNX	48 Neutral	$7.36M	-1.84	-49.73%	―	-39.32%	-100.79%
SONM	41 Neutral	$5.88M	-0.03	-455.82%	―	4.17%	-238.36%
BOXL	38 Underperform	$1.25M	-0.02	-139.93%	―	-29.26%	14.40%

Clearone Communications Corporate Events

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.

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.

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.