ClearSign Technologies Corp

The company maintains a strong liquidity position, with cash and equivalents amounting to $4.62 million, representing 70% of total assets. The current ratio of 2.77 indicates a solid ability to meet short-term obligations. However, the negative operating cash flow of $1.00 million and free cash flow of $1.09 million suggest ongoing operational challenges. The price-to-book ratio of 6.31 implies a premium valuation relative to its book value, which may reflect market expectations of future performance.

Profitability metrics are weak, with a net loss of $1.11 million and an operating loss of $1.25 million. The return on equity of -24.84% and return on assets of -16.74% indicate poor capital efficiency and asset utilization. Gross profit of $437,000 on revenue of $1.10 million suggests a gross margin of 40%, which is relatively high for the industrial machinery sector but insufficient to offset operating expenses.

The company operates as a single business segment, with no disclosed geographic revenue breakdown. This lack of diversification increases exposure to regional economic conditions and regulatory changes. The absence of long-term debt and a debt-to-equity ratio of 0.0 indicate a conservative capital structure, but also suggest limited leverage to drive growth.

Revenue growth is not evident, with the most recent reported revenue of $1.10 million. Analysts expect continued losses, with a mean EPS estimate of -$1.06. The company has not demonstrated a clear path to profitability, and the negative operating cash flow raises concerns about its ability to sustain operations without external financing.

Risk factors include the company's negative net income and operating cash flow, which could lead to liquidity constraints if the trend continues. The dilution risk is currently low, as there are no immediate filing-based flags. However, the absence of long-term debt and the high cash reserves may mask underlying operational inefficiencies.

Recent events include the continued reporting of losses and negative cash flows, with no significant capital expenditures or new product launches disclosed. The company's reliance on a single business model and lack of geographic diversification remain key concerns for investors.

Revenue grew 71.4% CAGR over four years, reaching $5.2 million in fiscal 2026.

The company maintains zero long-term debt, resulting in a debt-to-equity ratio of 0.0.

A single analyst recommendation is rated as a buy for the stock.

Dilution and liquidity risks are assessed as low, supporting capital structure stability.

Net income remained negative at -$5.5 million in fiscal 2026, worsening slightly year-over-year.

Free cash flow was negative $5.4 million in fiscal 2026, indicating continued cash burn.

Credit risk is flagged as medium, suggesting potential challenges in financial stability.

Revenue $3.7M, +522,2% YoY; Operating income +50,4% YoY.

• ▍Revenue $3.7M, +522,2% YoY
• ▍Operating income +50,4% YoY
• ▍Net income +73,3% YoY
• ▍Free cash flow +74,9% YoY
• ▍Net margin -8.5%

Revenue $1.0M, −44,6% YoY; Operating income −22,1% YoY.

• ▍Revenue $1.0M, −44,6% YoY
• ▍Operating income −22,1% YoY
• ▍Net income −23,7% YoY
• ▍Free cash flow −20,0% YoY
• ▍Net margin -138.9%

Revenue $133.0k, +195,6% YoY; Operating income +14,0% YoY.

• ▍Revenue $133.0k, +195,6% YoY
• ▍Operating income +14,0% YoY
• ▍Net income +10,3% YoY
• ▍Free cash flow +13,8% YoY
• ▍Net margin -1263.2%

Revenue $401.0k, −63,6% YoY; Operating income −80,3% YoY.

• ▍Revenue $401.0k, −63,6% YoY
• ▍Operating income −80,3% YoY
• ▍Net income −87,4% YoY
• ▍Free cash flow −88,7% YoY
• ▍Net margin -517.7%

Revenue $590.0k; Operating income -$1.7M.

• ▍Revenue $590.0k
• ▍Operating income -$1.7M
• ▍Net margin -197.3%

Revenue $1.9M; Operating income -$1.4M.

• ▍Revenue $1.9M
• ▍Operating income -$1.4M
• ▍Net margin -62.1%

Revenue $45.0k; Operating income -$2.1M.

• ▍Revenue $45.0k
• ▍Operating income -$2.1M
• ▍Net margin -4160.0%

Revenue $1.1M; Operating income -$1.3M.

• ▍Revenue $1.1M
• ▍Operating income -$1.3M
• ▍Net margin -100.5%

Revenue $5.2M, +45,5% YoY; Operating income −2,8% YoY.

• ▍Revenue $5.2M, +45,5% YoY
• ▍Operating income −2,8% YoY
• ▍Net income −3,7% YoY
• ▍Free cash flow −1,4% YoY
• ▍Net margin -105.0%

Revenue $3.6M, +49,6% YoY; Operating income −8,5% YoY.

• ▍Revenue $3.6M, +49,6% YoY
• ▍Operating income −8,5% YoY
• ▍Net income −2,0% YoY
• ▍Free cash flow −4,6% YoY
• ▍Net margin -147.4%

Revenue $2.4M, +542,5% YoY; Operating income +2,2% YoY.

• ▍Revenue $2.4M, +542,5% YoY
• ▍Operating income +2,2% YoY
• ▍Net income +9,8% YoY
• ▍Free cash flow +13,6% YoY
• ▍Net margin -216.1%

Revenue $374.0k, −38,4% YoY; Operating income +24,9% YoY.

• ▍Revenue $374.0k, −38,4% YoY
• ▍Operating income +24,9% YoY
• ▍Net income +27,0% YoY
• ▍Free cash flow +24,8% YoY
• ▍Net margin -1539.6%