Clearone Communications (CLRO) AI Stock Analysis

• Market Cap: $8.97M
• Dividend Yield: N/A
• Average Volume (3M): 45.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• 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: 1,734,249
• 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: 1.20
• Enterprise Value/Revenue: 1.50
• Enterprise Value/Gross Profit: 14.41
• Enterprise Value/Ebitda: -1.12
• 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: 41 Neutral
• Price Target: $5.00 ▼(-5.48% Downside)

Clearone Communications' overall stock score is primarily impacted by its poor financial performance and valuation. The company's declining revenues, negative profit margins, and cash flow difficulties are significant concerns. Additionally, weak technical indicators and a negative P/E ratio further weigh down the score.

Positive Factors

Low Debt Levels

Clearone's low debt levels suggest conservative financial management, providing flexibility and reducing risk in economic downturns.

Partnerships

Strategic partnerships enhance product offerings and market reach, potentially driving revenue growth through bundled solutions.

Diverse Sector Presence

Serving diverse sectors reduces reliance on any single market, providing stability and opportunities for growth across different industries.

Negative Factors

Declining Revenues

Declining revenues indicate potential loss of market share or demand, impacting long-term growth and profitability.

Negative Profit Margins

Sustained negative profit margins highlight operational inefficiencies and may hinder reinvestment in growth initiatives.

Cash Flow Difficulties

Negative cash flow limits the company's ability to fund operations and invest in future growth, posing a risk to financial stability.

Clearone Communications Business Overview & Revenue Model

Company Description

Clearone Communications (CLRO) is a leading provider of collaborative communication solutions, specializing in audio and video conferencing systems, unified communications, and streaming media solutions. The company serves various sectors, including education, healthcare, corporate, and government, offering products that enhance collaboration and communication experiences. Core offerings include professional audio equipment, video conferencing systems, and integrated solutions designed for both large and small environments.

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 is facing significant financial challenges, with declining revenues, negative profit margins, and cash flow difficulties. Despite a low debt-to-equity ratio, the negative return on equity and cash flow issues severely impact its 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: Neutral
• Last Price: 5.29
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Neutral. The current price of 5.29 is above the 20-day moving average (MA) of 5.03, below the 50-day MA of 5.31, and below the 200-day MA of 6.56, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 53.41 is Neutral, neither overbought nor oversold. The STOCH value of 83.36 is Negative, 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MITQ	59 Neutral	$7.65M	―	-7.48%	―	-1.49%	76.04%
SYNX	42 Neutral	$10.15M	-2.61	-49.73%	―	-39.32%	-100.79%
CLRO	41 Neutral	$8.97M	-0.74	-75.61%	―	-42.90%	-427.39%
BOXL	38 Underperform	$7.60M	-0.10	-139.93%	―	-29.26%	14.40%
SONM	37 Underperform	$11.56M	-0.06	-455.82%	―	4.17%	-238.36%
FIEE	28 Underperform	$15.49M	―	-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.