Breaking Down ClearSign Technologies Corporation (CLIR) Financial Health: Key Insights for Investors

You're looking at ClearSign Technologies Corporation and trying to map their financial health against their low-NOx technology promise, and honestly, the Q3 2025 results paint a mixed picture you need to understand now. The company is still in a heavy investment phase, which is reflected in a net loss of $1.43 million for the quarter, or $0.03 per share, which was still better than the consensus estimate of a $0.04 loss. But the top-line revenue dipped significantly to just $1.03 million, a clear sign that project timelines and sales conversion remain a near-term challenge. The good news is they're managing their burn rate; with a cash and cash equivalents balance of approximately $10.5 million as of September 30, 2025, the company has an estimated cash runway of about 2.6 years, giving them a defintely solid buffer to execute on their backlog and commercialize their XCL™ combustion and SGM™ sensor technologies. We need to look past the quarterly revenue volatility and focus on whether their 35.8% gross margin is sustainable as they scale.

Revenue Analysis

You're looking for a clear picture of what's driving the top line at ClearSign Technologies Corporation (CLIR), and honestly, the 2025 numbers show a company still in the early, lumpy stages of commercialization. The direct takeaway is that while quarterly revenue can see massive swings, the overall trend for the first nine months of 2025 shows a significant pullback from the previous year, with revenue highly concentrated in a few key customers.

For the nine months ended September 30, 2025, ClearSign Technologies Corporation reported total sales of only $1.56 million. This is a stark contrast to the $3.01 million reported for the same period in 2024. That's a huge year-over-year drop, so we need to dig into the composition of those sales, not just the total. The trailing twelve months (TTM) revenue ending September 30, 2025, stood at approximately $2.15 million.

The primary revenue streams for ClearSign Technologies Corporation center on their proprietary combustion technology, specifically the ClearSign Core™ and ClearSign Eye™ products, which aim to reduce emissions in industrial burners and boilers. The revenue breaks down into two main buckets:

• Process Burners and Boiler Sales: The big-ticket items, like the process burners for major refiners and chemical companies. The revenue increase in 2024 was largely due to higher sales of these process burners.
• Spare Parts and Services: Smaller, more frequent orders, like the spare parts and a boiler burner sale to an existing customer that drove the Q2 2025 revenue jump.

Quarterly revenue growth is erratic, which is typical for a company relying on large, infrequent orders. For example, Q2 2025 revenue was $133,000, a nearly threefold increase from Q2 2024's $45,000. But Q3 2025 revenue came in at $1.03 million, a significant miss against analyst expectations and a sharp year-over-year decrease from the $1.86 million in Q3 2024. This volatility is a key risk. One clean one-liner: Lumpy revenue is the reality of the capital equipment business.

What this estimate hides is the extreme customer concentration risk. In 2024, the two largest customers accounted for a staggering 86% of total revenue. This means the timing of a single large order, or the decision of a single customer, can swing the annual revenue by millions. The current dip in the nine-month sales figure reflects delays in project timelines and the inherent challenge of converting a technology pipeline into consistent, high-volume sales. We're watching for the M25 burner's market expansion, particularly in the midstream sector, to diversify this revenue base.

Here's the quick math on the 9-month comparison:

For a deeper dive into the company's valuation and strategic outlook, you can read the full post at Breaking Down ClearSign Technologies Corporation (CLIR) Financial Health: Key Insights for Investors. Finance: track Q4 order announcements to project full-year 2025 revenue by month-end.

Profitability Metrics

You're looking at ClearSign Technologies Corporation (CLIR) and trying to figure out if their innovative combustion technology can actually turn a profit. That's the right question. For a development-stage technology company, profitability is less about the current bottom line and more about the efficiency of their core operations and the path to scale. Right now, the numbers show a company still heavily investing in its future, and that means losses.

For the third quarter of 2025, ClearSign Technologies Corporation (CLIR) reported revenue of $1.03 million. The good news is their gross margin-the profit left after subtracting the direct cost of goods sold (COGS)-is relatively healthy at 35.8%. This is an improvement from the prior year's quarter and shows they are managing their product costs well, which is defintely a positive operational trend.

Here's the quick math on the key margins for Q3 2025, which maps out the challenge:

• Gross Profit Margin: 35.8% (This is the efficiency of product delivery).
• Operating Profit Margin: -169.9% (This shows the cost of running the business far exceeds revenue).
• Net Profit Margin: -137.9% (The final loss after all expenses).

The stark difference between the gross margin and the deep negative operating and net margins highlights the high fixed costs associated with a technology company that has not yet reached a critical mass of sales. The operating loss for the quarter was $1.75 million, driven largely by selling, general, and administrative (SG&A) expenses, which were $1.81 million in Q3 2025. They are spending money to build the sales and infrastructure needed to support a much larger revenue base. This is a classic growth-stage burn rate.

When you look at the trailing twelve months (TTM) leading up to Q3 2025, the picture is similar but more pronounced. The TTM Net Profit Margin sits at a substantial -203.7% on a TTM revenue of $2.98 million. This trend is common for companies focused on securing patents and market adoption (like their co-branded process burner line with Zeeco), but it means cash burn is the primary risk. You can dive deeper into who is funding this burn by Exploring ClearSign Technologies Corporation (CLIR) Investor Profile: Who's Buying and Why?

To be fair, let's compare these numbers to the broader industry. ClearSign Technologies Corporation (CLIR) is a specialty industrial machinery and clean technology play. For the Specialty Industrial Machinery sector, the average Gross Profit Margin is around 39%, and the average Net Profit Margin is about 8.7% as of November 2025. ClearSign Technologies Corporation (CLIR)'s gross margin of 35.8% is close to the industry average, which is great, but their net margin is nowhere near the positive 8.7% average. This gap is your investment risk: the company is operationally efficient at the product level, but not yet at the enterprise level.

Here is a snapshot of the comparison:

The key action here is to watch for gross margin stability and a significant reduction in the negative operating margin over the next four quarters. If operating expenses don't start to flatten out while revenue accelerates, the capital structure will require more attention.

Debt vs. Equity Structure

You're looking at ClearSign Technologies Corporation (CLIR) and wondering how a growth company in the industrial technology space is funding its operations. The direct takeaway is this: ClearSign Technologies Corporation operates with an ultra-low debt profile, relying almost entirely on equity to finance its growth and cover its operational burn.

This is a classic capital structure for a pre-profit, high-potential technology firm. As of the most recent quarter (MRQ), the company had essentially zero traditional short-term or long-term debt on its balance sheet, a fact that significantly de-risks its solvency profile. The only notable long-term liability is a modest $115 thousand in long-term lease liabilities as of June 30, 2025, which is a common operating commitment, not a major credit risk.

The company's Total Debt-to-Equity (D/E) ratio for the most recent quarter stands at an extremely low 2.04% (or 0.0204:1). This is markedly lower than the average for many capital-intensive sectors, and even below the D/E ratio of 0.17 (17%) seen in the Biotechnology sector, which is a good proxy for early-stage, growth-focused technology. A low D/E ratio is defintely a positive sign of financial stability, but it's a double-edged sword for a company still reporting a net loss of $1.42 million in Q3 2025.

Here's the quick math: with minimal debt, ClearSign Technologies Corporation avoids the fixed interest payments and stringent covenants that often choke smaller companies. But, this means they must turn to the equity market for cash. This is why you see a heavy reliance on equity funding mechanisms, which leads directly to shareholder dilution.

• Debt Level: Near-zero traditional debt.
• D/E Ratio: 2.04% (MRQ), indicating minimal financial leverage.
• Credit Rating: No public credit rating, as is typical for a company with no significant debt.

The company's primary financing activity in 2025 has been through the equity market. They have a $50 million mixed securities shelf registration on file and, more concretely, an At The Market (ATM) Offering Agreement with H.C. Wainwright, which allows them to sell up to $10.39 million in common stock directly into the market. This strategy keeps their cash balance healthy-it was $10.5 million as of September 30, 2025-but it is a constant source of dilution for existing shareholders. The trade-off is clear: low risk of bankruptcy, but a high risk of per-share value erosion until they hit sustainable profitability.

This equity-heavy approach is a strategic choice, not a mandate from creditors. It gives management maximum flexibility to pursue their growth strategy and fund their research and development, but it puts the onus on the technology's commercialization to justify the dilution. To understand who is absorbing this new equity, you should check out Exploring ClearSign Technologies Corporation (CLIR) Investor Profile: Who's Buying and Why?

The table below summarizes the core of their debt and equity position based on recent 2025 filings:

Liquidity and Solvency

You want to know if ClearSign Technologies Corporation (CLIR) has enough immediate cash to cover its bills, and honestly, the short answer is yes, but the longer-term picture requires your attention. The company's liquidity position is defintely strong, primarily due to past capital raises, but its operations are still burning cash, which is a critical trend to monitor.

The most recent quarter's (MRQ) liquidity ratios, as of September 30, 2025, show ClearSign Technologies Corporation is in a very comfortable spot right now. These ratios measure the company's ability to pay off its current liabilities (short-term debts) with its current assets.

• Current Ratio (MRQ): 3.28
• Quick Ratio (MRQ): 3.17

A Current Ratio of 3.28 means ClearSign Technologies Corporation has $3.28 in current assets for every dollar of current liabilities. The Quick Ratio, which strips out inventory-often the least liquid current asset-is nearly identical at 3.17. This tells you that almost all of their current assets are highly liquid, like cash and receivables. This is a sign of excellent short-term financial health, and it's a great starting point.

Working capital, which is current assets minus current liabilities, is another clear strength. As of September 30, 2025, ClearSign Technologies Corporation reported a working capital of $8.17 million. This is the capital cushion available to fund day-to-day operations and growth initiatives. Management believes this level of working capital is sufficient to sustain operations for over a year. Still, this estimate hides the fact that their cash balance is decreasing as they fund their operations, which is the key risk.

Here's the quick math on the cash flow story for the first nine months of the 2025 fiscal year, which is where the near-term risk lies:

The company's Cash Flow from Operating Activities is the primary concern, showing a cash burn of $3.45 million for the first nine months of 2025. This means the core business is not yet generating enough revenue to cover its expenses, leading to a reliance on its cash reserves. Cash and cash equivalents dropped to $10.49 million as of September 30, 2025, down from $14.0 million at the end of December 2024.

Cash Flow from Investing Activities remains minimal, indicating the company is not making significant capital expenditures (CapEx) to expand its physical assets. Cash Flow from Financing Activities was also minimal in 2025, which is good because it suggests they haven't had to issue a lot of new stock or take on debt recently. The company currently has zero debt, which is a significant solvency strength. However, if the operating cash burn continues at the trailing twelve months (TTM) rate of -$3.87 million, future funding needs may compel ClearSign Technologies Corporation to seek additional equity offerings to maintain their Mission Statement, Vision, & Core Values of ClearSign Technologies Corporation (CLIR).

The clear action for you is to monitor the operating cash flow trend in the next quarter's report; a reduction in the cash burn is the most important signal of a path to self-sustainability.

Valuation Analysis

You're looking at ClearSign Technologies Corporation (CLIR) and trying to figure out if the current price reflects the company's potential. Honestly, the valuation picture is complex, which is typical for a technology company still in its commercialization phase. The direct takeaway is that traditional metrics suggest the stock is overvalued based on current sales, but analyst sentiment points to a significant undervaluation based on future growth expectations.

Since ClearSign Technologies Corporation is not yet profitable, with a trailing 12-month (TTM) Earnings Per Share (EPS) of -$0.11 as of Q3 2025, the Price-to-Earnings (P/E) ratio is negative (around -7.3x). This means you can't use P/E for a meaningful comparison. Instead, we have to lean on other metrics, especially Price-to-Sales (P/S) and Price-to-Book (P/B), to get a clearer picture of what you're paying for today.

Here's a quick look at the core valuation figures for ClearSign Technologies Corporation in the 2025 fiscal year:

• Price-to-Sales (P/S): A high 21.5x. This is defintely a red flag, as it's far above the US Machinery industry average of around 1.9x.
• Price-to-Book (P/B): A ratio of 4.37. This means the stock trades at over four times its net asset value, suggesting investors are paying a premium for intangible assets like its patented combustion technology.
• EV/EBITDA: The Enterprise Value-to-EBITDA is negative, around -4.9x, confirming the company is operating at a loss.

What this estimate hides is the potential of their technology, like the ClearSign Core and ClearSign Eye, which you can read more about in their Mission Statement, Vision, & Core Values of ClearSign Technologies Corporation (CLIR).

Stock Performance and Analyst Outlook

The stock has shown resilience over the last year, which is a good sign for a small-cap tech play. As of mid-November 2025, the stock price is trading around $0.88 per share. Over the last 12 months, the stock has managed a small gain of 0.80%, which is notable since it outperformed its industry's decline of 12.4% during the same period.

The 52-week price range of $0.46 to $1.72 shows significant volatility. This is a speculative stock, but the market is clearly reacting to news flow, like the Q3 2025 EPS loss of -$0.03 which still managed to beat the consensus estimate of -$0.04.

The analyst consensus is where the 'undervalued' argument gains traction. While some data gives the stock a 'Hold' rank, the primary analyst coverage maintains a 'Strong Buy' rating. The median one-year price target is $2.00. Here's the quick math: from the current price, that target implies a massive upside of over 126.89%.

Dividend Policy and Next Steps

ClearSign Technologies Corporation is focused on growth and technology deployment, not returning capital to shareholders yet. The dividend yield and payout ratio are both 0.00%, as the company does not pay a dividend.

The near-term risk remains cash burn. The company reported cash and cash equivalents of $10.5 million as of September 30, 2025. They are funding growth and development, so revenue needs to accelerate to justify the high P/S and P/B ratios.

Action: Use the median price target of $2.00 as your bull-case anchor, but monitor the next quarterly revenue report closely for a sustained beat on the $1.03 million Q3 2025 revenue figure.

Risk Factors

You need to look past the innovative technology at ClearSign Technologies Corporation (CLIR) and face the cold reality of its financial structure: the primary near-term risk is liquidity and the persistent revenue gap. The company is defintely burning cash to keep its product development engine running, and that is not a sustainable model without a major commercial breakthrough.

The core challenge is translating proprietary combustion technology-which is excellent for reducing nitrogen oxides (NOx) and carbon monoxide (CO) emissions-into predictable, high-margin revenue. Right now, the market environment is a double-edged sword: stringent global emissions regulations are a huge tailwind, but the competition from established industrial players is fierce, and project cycles are long.

• Regulatory Risk: While the push for decarbonization is a long-term opportunity, changes in local emissions standards or permitting processes can delay or even halt large industrial projects where ClearSign's technology is deployed.
• Market Competition: The company faces competition from much larger, well-capitalized firms in the power generation and petrochemical sectors that can absorb greater project risk and offer broader product portfolios.
• Supply Chain and Geopolitics: Global supply chain volatility, a persistent issue since 2022, still impacts the delivery timelines and cost of components, which is a risk for a company focused on complex industrial installations.

The Q3 2025 financial results highlight the operational and financial risks clearly. For the three months ending September 30, 2025, ClearSign reported consolidated revenues of just $1.03 million, a significant drop from the previous year, and the net loss for the quarter was approximately $1.43 million. Here's the quick math: the company is spending far more than it is bringing in, which is the definition of a pre-profitability cash burn.

Operational expenses are also a point of contention. Total operating expenses reached approximately $2.77 million in Q3 2025, and a 9.3% rise in general and administrative (G&A) costs was specifically attributed to higher legal and audit costs related to governance changes and regulatory inquiries. That is non-productive spending that eats directly into the cash runway.

Here is a snapshot of the immediate financial risks based on the Q3 2025 filing:

The good news is that management is working to mitigate these risks. They expanded their collaboration with Zeeco, Inc. to co-brand new burner lines, which is a smart move to leverage a larger partner's sales channel and manufacturing scale. Also, the reported working capital of $8.17 million as of September 30, 2025, should sustain operations for over a year. Still, that runway is finite. Investors should anticipate the need for future funding, likely through additional equity offerings, which would dilute existing shareholders.

To get a full picture of the company's trajectory, you need to tie these risks back to the core valuation metrics, which we cover in more detail in Breaking Down ClearSign Technologies Corporation (CLIR) Financial Health: Key Insights for Investors.

Growth Opportunities

You're looking past the current stock price, which is smart, and focusing on the underlying growth story for ClearSign Technologies Corporation (CLIR). The takeaway is this: while the company is still pre-profit, its product innovations and strategic partnerships in 2025 have positioned it to potentially capture a significant slice of the industrial decarbonization market, which is a massive tailwind.

The company's future is tied directly to its ultra-low nitrogen oxide (NOx) combustion technology, which is defintely a must-have as environmental regulations tighten across the globe. We're seeing a clear shift from small, one-off orders to larger, strategic deployments, which is the key to scaling revenue.

Key Growth Drivers and Product Innovation

ClearSign Technologies Corporation's growth is driven by new product lines and the increasing global demand for single-digit NOx emissions solutions-that's the difference between meeting the bare minimum and being a market leader. Their core competitive advantage is the ability to achieve sub-5 parts per million (ppm) NOx emissions, which is a gold standard in the industry.

The company is expanding its product portfolio, moving beyond traditional refinery process burners:

• Zeeco CS5 and Hydrogen CS5 Burners: Co-branded with Zeeco, Inc., these burners are critical because they can fire 100% hydrogen, directly addressing the growing hydrogen economy and decarbonization efforts.
• M Series Burners: Launched for the midstream market, the ClearSign Core™ M25 burner has already secured orders for NOx reduction projects in facilities like a New Mexico gas processing plant.
• ClearSign Eye™ Sensor: This new sensing platform received a commitment for its first commercial installation at a supermajor refinery, marking an expansion into real-time combustion optimization and safety.

The transition to hydrogen-ready burners is a huge plus for long-term growth.

Revenue Projections and Earnings Estimates

The financial picture for ClearSign Technologies Corporation in 2025 is a classic growth-stage scenario: high projected revenue growth but still negative earnings. Wall Street analysts forecast a significant ramp-up, projecting an average annual revenue of approximately $213,270,115 for the 2025 fiscal year, which implies a forecast annual revenue growth rate of 77.58%. This is a volatile but high-potential trajectory.

However, the company is still in investment mode, so earnings remain negative. The average analyst forecast for 2025 earnings is a net loss of approximately -$7,486,473. This is a necessary burn rate to capture market share and fulfill engineering orders, but it's a risk you need to monitor closely.

Here's the quick math on the current analyst consensus:

Strategic Partnerships and Competitive Edge

ClearSign Technologies Corporation is using strategic partnerships to scale faster than its balance sheet would allow alone. The collaboration with Zeeco, Inc., a world leader in combustion solutions, is a game-changer, giving ClearSign Technologies Corporation access to a global sales and marketing network for its co-branded burners. Also, the agreement with California Boiler expands their reach in the critical U.S. market for boiler burners and flares.

Their competitive edge is not just in the low-emissions performance of the XCL™ ultra-low NOx combustion system, but in the flexibility of their technology. Customers get a competitive offering with the option to easily upgrade or adapt their systems in the future as regulations or fuel needs change. This future-proofing is a strong selling point for large industrial clients. For a deeper dive into the company's long-term vision, you should review their Mission Statement, Vision, & Core Values of ClearSign Technologies Corporation (CLIR).