CLPS Incorporation (CLPS) AI Stock Analysis
CLPS AI stock analysis summary
AI ResearchCLPS Incorporation is an IT consulting and solutions provider serving banking, insurance, and financial institutions worldwide. In FY2025, revenue grew 15.2% to $164.5M, though the business recorded a net loss of -$7.0M. Over the trailing twelve months, revenue reached $172.2M with an operating margin of -12.2%.
- Market cap
- $27.5M
- Revenue (TTM)
- $172.2M
- P/E
- —
- 1Y return
- -43.2% S&P 500 16.8%
- Avg. target
- —
Bull case
- Revenue expanded 15.2% in FY2025 to $164.5M, reflecting a long-term 5-year revenue CAGR of 13.0%.
- The stock trades at low top-line and asset valuation multiples, including a price-to-sales of 0.2x and price-to-book of 0.5x.
- CLPS maintains a net cash position of $491,497 supported by $29.3M in cash and short-term investments.
Bear case
- Net losses worsened to -$7.0M in FY2025, with trailing twelve-month profit margin at -7.6%.
- Free cash flow turned negative at -$3.8M in FY2025 alongside -$2.5M in operating cash flow.
- Shareholders have experienced substantial equity dilution, with the share count increasing 82.7% over 5 years as the stock fell 61.4%.
What CLPS Incorporation does
CLPS Incorporation specializes in providing comprehensive information technology (IT) consulting and solutions tailored for institutions within the banking, insurance, and financial sectors across the globe, with a strong presence in the People's Republic of China. The company's core offerings include IT consulting services aimed at enhancing operational efficiency and optimizing business processes in the credit card industry, spanning account management, settlement, promotion, and risk management. CLPS also delivers banking services covering loans, deposits, wealth management, debit card systems, anti-money laundering, and detailed reporting, along with architecture consulting for banking systems and technology solutions for online platforms and e-commerce.
Growth and profitability
CLPS achieved a 5-year revenue CAGR of 13.0% from FY2020 to FY2025. Annual revenue grew from $126.1M in FY2021 to $152.0M in FY2022, followed by declines of 1.1% in FY2023 to $150.4M and 5.0% in FY2024 to $142.8M. In FY2025, revenue rose 15.2% to $164.5M, but gross margin narrowed to 20.9% and net income fell to -$7.0M. For the latest quarter ended December 31, 2025, quarterly revenue increased 6.6% year-over-year, while quarterly earnings declined 83.7%. Over the trailing twelve months, revenue reached $172.2M with a profit margin of -7.6% and an EPS of -$0.45.
Balance sheet and cash flow
As of December 31, 2025, CLPS had $29.3M in cash and short-term investments alongside total debt of $28.8M, yielding net cash of $491,497. Total assets stood at $116.4M and shareholders' equity was $57.9M. The company reported a current ratio of 1.69 and a debt-to-equity ratio of 0.50. In FY2025, capital expenditures were $1.3M, operating cash flow was -$2.5M, and free cash flow was -$3.8M. CLPS paid $3.6M in dividends during FY2025, while its share count expanded 82.7% over the past 5 years.
Valuation and performance
CLPS trades at an enterprise value of $29.8M and a market capitalization of $27.5M. The stock is valued at a price-to-sales multiple of 0.2x and an EV-to-revenue multiple of 0.2x, below the 2.8x price-to-sales median of its US-listed Technology peers. Its EV-to-EBITDA ratio is 202.5x compared to the peer median of 16.6x, and its price-to-book ratio is 0.5x. Over the past year, the stock fell 43.2%, trailing the 16.8% return of the S&P 500 index. Over five years, the stock dropped 61.4% while the S&P 500 rose 83.0%.
What analysts expect
Wall Street analyst targets and ratings are not established for CLPS. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for October 16, 2026. For the trailing twelve months, diluted EPS was -$0.45, with quarterly earnings growth falling 83.7% year-over-year in the quarter ended December 31, 2025. Insiders own 56.2% of the company, institutions hold 0.5%, and short interest stands at 0.1% of the float.
Key risks and what to watch
- Operating margin has deteriorated from 6.6% in FY2021 to -4.0% in FY2025 and -12.2% over the trailing twelve months.
- Gross margin has shrunk continuously over several fiscal years, dropping from 31.9% in FY2021 to 20.9% in FY2025.
- Total debt of $28.8M almost entirely offsets cash and short-term investments of $29.3M amid ongoing negative cash flow.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this CLPS AI stock analysis
This page is an AI-written research summary of CLPS Incorporation (CLPS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: CLPS income statement, CLPS balance sheet, CLPS key metrics, CLPS chart. See the CLPS stock overview for the latest quote and news.
CLPS AI stock analysis FAQ
What services does CLPS Incorporation offer?
CLPS provides IT consulting and solutions tailored to banking, insurance, and financial institutions, specializing in credit card processing, digital banking systems, risk management, and e-commerce platforms.
Is CLPS Incorporation profitable?
No, CLPS reported a net loss of -$7.0M for FY2025 and a trailing twelve-month net margin of -7.6% with an EPS of -$0.45.
What is the valuation of CLPS compared to sector peers?
CLPS trades at a price-to-sales multiple of 0.2x, lower than the 2.8x median of its US-listed Technology peers, while its EV-to-EBITDA stands at 202.5x compared to the peer median of 16.6x.
What is the cash and debt position of CLPS?
As of December 31, 2025, CLPS had $29.3M in cash and short-term investments, $28.8M in total debt, and net cash of $491,497.
Who owns most of CLPS Incorporation?
Insiders hold a majority stake of 56.2%, while institutional investors hold 0.5% and short interest accounts for 0.1% of the float.