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1. Company Snapshot

1.a. Company Description

ClearSign Technologies Corporation designs and develops products and technologies to enhance operational performance, energy efficiency, emission reduction, safety, and overall cost-effectiveness of industrial and commercial systems in the United States and the People's Republic of China.Its ClearSign Core Burner Technology consists of an industrial burner body and a downstream porous ceramic structure or metal flame stabilizing device; ClearSign Core Plug & Play technology provides direct burner replacement for traditional refinery process heaters; and ClearSign Eye Flame Sensor, an electrical flame sensor for industrial applications.The company also provides ClearSign Core Boiler Burner; and ClearSign Core Flaring Burners technologies.


It serves energy, institutional, commercial and industrial boiler, chemical, and petrochemical industries.The company was formerly known as ClearSign Combustion Corporation and changed its name ClearSign Technologies Corporation in November 2019.ClearSign Technologies Corporation was incorporated in 2008 and is headquartered in Tulsa, Oklahoma.

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1.b. Last Insights on CLIR

Negative drivers behind ClearSign Technologies Corporation's recent performance include industry headwinds in the industrial services sector, which may impact demand for its products. Additionally, the company's recent purchase orders, while positive, may not be enough to offset the challenges in the sector. The company's expansion of its partnership with Zeeco and the award of a federal grant for hydrogen burner solutions are positive developments, but may not have an immediate impact on its financial performance.

1.c. Company Highlights

2. ClearSign Technologies: Q3 2025 Earnings Analysis

In Q3 2025, ClearSign Technologies Corporation reported revenues of approximately $1 million, a decrease from $1.9 million in the same period in 2024, primarily due to a large order in the prior year. The net loss increased by $274,000, but the gross margin improved by 6.1 percentage points compared to Q3 2024. The company's EPS came in at -$0.03, beating estimates of -$0.04. The revenue was driven by executing several orders from the backlog, including spare parts, midstream, flare, and engineering services.

Publication Date: Nov -25

📋 Highlights
  • Revenue Decline:: Q3 2025 revenue dropped to $1 million from $1.9 million in Q3 2024 due to prior-year large orders.
  • Widening Net Loss:: Net loss increased by $274,000, though gross margin improved by 6.1 percentage points year-over-year.
  • Liquidity Position:: Cash and equivalents stood at $10.5 million with 52.5 million shares outstanding as of Q3 2025.
  • Large Flare Order:: A $0.5 million California-based flare order, exceeding typical flare order values.
  • Future Burner Revenue:: Anticipated shipment of 26 Zeeco-manufactured burners, projected to generate over $2 million in revenue.

Financial Performance

The company's cash and cash equivalents stood at approximately $10.5 million as of September 30, 2025, with 52.5 million shares of common stock outstanding. The current working capital positions the company well to scale its business and provide confidence to customers and suppliers. Analysts estimate next year's revenue growth at 143.9%, indicating a significant increase in business.

Order Flow and Product Developments

ClearSign has seen an uptick in order flow, with orders across process burners, flares, and the new M series line. The company announced an order for comprehensive testing of a 100% hydrogen capable burner and received a purchase order from a new super major customer in California. The company is also making progress with its sensor product, the ClearSign Eye, with a pilot installation underway at a super major customer.

Valuation Metrics

ClearSign's current valuation metrics show a P/S Ratio of 19.22 and an EV/EBITDA of -4.57. The company's ROE and ROIC are -56.07% and -81.09%, respectively, indicating significant losses. However, with the expected revenue growth, these metrics are likely to improve. According to Colin James Deller, "process burner orders are substantial but have a longer duration, making revenue flow lumpy." This indicates that the company's revenue visibility and predictability may improve as it promotes products like the M Series and flares.

Outlook

ClearSign expects to ship 26 burners being manufactured at Zeeco, which could generate revenue of over $2 million. The company is looking forward to further traction and orders from its M Series, flare, and process burner products. The burner developed through the SBIR program is expected to be significant for the industry, and ClearSign plans to promote it heavily to its customers. With a focus on developing new products and increasing spare parts sales, ClearSign anticipates growth and is navigating regulatory developments.

3. NewsRoom

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Bears are Losing Control Over ClearSign (CLIR), Here's Why It's a 'Buy' Now

Nov -26

Source: zacks.com

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ClearSign Technologies Corporation (CLIR) Q3 2025 Earnings Call Transcript

Nov -20

Source: seekingalpha.com

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ClearSign Technologies Corporation Provides Third Quarter 2025 Update

Nov -19

Source: accessnewswire.com

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ClearSign Technologies Q3 Earnings Beat Estimates, Revenues Dip Y/Y

Nov -17

Source: zacks.com

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Head to Head Comparison: Lianhe Sowell International Group (NASDAQ:LHSW) and ClearSign Technologies (NASDAQ:CLIR)

Nov -17

Source: defenseworld.net

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ClearSign Technologies (CLIR) Reports Q3 Loss, Lags Revenue Estimates

Nov -14

Source: zacks.com

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ClearSign Technologies Corporation Announces Third Quarter 2025 Conference Call

Nov -06

Source: accessnewswire.com

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ClearSign Receives ClearSign Core(TM) "M" Series Burner Order for Multinational Energy Company Mid-Stream Facility in West Texas

Nov -04

Source: accessnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.50%)

6. Segments

Combustion System

Expected Growth: 8.5%

ClearSign Technologies' Combustion System growth is driven by increasing adoption in the oil and gas industry, where it enhances efficiency and reduces emissions. Growing demand for clean energy solutions, stringent environmental regulations, and the need for cost-effective operations also contribute to the 8.5% growth rate.

7. Detailed Products

Duplex Burner

A high-temperature burner designed for industrial applications, providing high efficiency and low emissions.

Process Burner

A customized burner designed for specific industrial processes, offering high efficiency and low emissions.

Thermal Oxidizer

A system designed to destroy hazardous air pollutants and volatile organic compounds, ensuring environmental compliance.

Flare System

A system designed to safely and efficiently dispose of waste gases, reducing emissions and ensuring environmental compliance.

Emissions Control System

A system designed to reduce emissions and improve air quality, meeting environmental regulations and standards.

8. ClearSign Technologies Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for ClearSign Technologies Corporation is moderate due to the presence of alternative technologies and products in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for ClearSign Technologies Corporation due to the company's specialized products and services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for ClearSign Technologies Corporation due to the presence of multiple suppliers in the market.

Threat Of New Entrants

The threat of new entrants is high for ClearSign Technologies Corporation due to the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high for ClearSign Technologies Corporation due to the presence of several established competitors in the market.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.47%
Debt Cost 3.95%
Equity Weight 95.53%
Equity Cost 9.29%
WACC 9.05%
Leverage 4.68%

11. Quality Control: ClearSign Technologies Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Momentum: 9.5

Volatility: 3.0

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Energy Recovery

A-Score: 4.3/10

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TOMI Environmental Solutions

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Value: 6.8

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Quality: 3.6

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Quality: 3.5

Yield: 0.0

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Volatility: 2.0

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ClearSign Technologies

A-Score: 3.8/10

Value: 6.4

Growth: 7.4

Quality: 3.7

Yield: 0.0

Momentum: 4.0

Volatility: 1.0

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A-Score: 3.5/10

Value: 8.3

Growth: 2.9

Quality: 1.5

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.77$

Current Price

0.77$

Potential

-0.00%

Expected Cash-Flows