Fiscal 2026 demonstrated the resilience of
To capture high-value market demand,
Profitability for the fiscal year reflected deliberate, front-loaded investments in technology commercialization. While these initiatives pressured near term costs, they secure high-barrier technical capabilities and benchmark references that unlock a second growth curve for the Company's revenue and strengthen our long-term competitive position. Moving into fiscal 2027, the Company will implement disciplined cost control for its customized IT solutions business while scaling its international footprint and digital solution business.
Unaudited Second Half of Fiscal 2026 Highlights (all results compared to the six months ended June 30, 2025)
- Revenue increased by 6.6% to
$87.1 million from$81.7 million . - Revenue from customized IT solution services increased by 103.1% to
$3.7 million from$1.8 million . - Revenue generated outside of mainland
China increased by 27.6% to$30.0 million from$23.5 million . In particular:
-
- Revenue generated from Hong Kong SAR increased by 39.0% to
$11.1 million from$8.0 million . - Revenue generated from
Japan increased by 146.6% to$2.8 million from$1.1 million . - Revenue generated from
Singapore increased by 7.0% to$13.2 million from$12.4 million . - Revenue generated from the
U.S . increased by 21.3% to$2.2 million from$1.8 million .
- Revenue generated from Hong Kong SAR increased by 39.0% to
- Accounts receivable turnover period improved to 90 days, down from 93 days.
Audited Fiscal Year 2026 Highlights (all results compared to the twelve months ended June 30, 2025)
- Revenue increased by 4.7% to
$172.2 million from$164.5 million . - Revenue from customized IT solution services increased by 113.9% to
$5.9 million from$2.8 million . - Revenue generated outside of mainland
China increased by 47.5% to$62.7 million from$42.5 million . In particular:
-
- Revenue generated from Hong Kong SAR increased by 61.0% to
$23.2 million from$14.4 million . - Revenue generated from
Singapore increased by 18.6% to$26.0 million from$21.9 million . - Revenue generated from
Japan increased by 122.7% to$4.5 million from$2.0 million . - Revenue generated from the
U.S . increased by 63.7% to$6.4 million from$3.9 million .
- Revenue generated from Hong Kong SAR increased by 61.0% to
- Total number of clients from IT services segment increased by 12.5% to 359 from 319.
- Total number of employees increased by 4.8% to 3,705 from 3,534.
Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "Fiscal 2026 was a pivotal year of structural transition and resilience for
A core pillar of our strategy is reducing our reliance on the
Furthermore, our commitment to business diversification continues to fortify our overall resilience. Beyond our foundational strength in fintech, our diverse business lines now actively span across payment and credit services, e-commerce, education and study abroad programs, and global tourism. By extending our digital transformation capabilities into these varied sectors, we are unlocking cross-industry synergies and cultivating multiple robust revenue streams.
At the same time, our commitment to R&D and emerging technologies is yielding significant commercial traction, accelerating the momentum of our customized IT solutions business. AI is at the forefront of this transformation. Over the past year, we achieved notable operational milestones: partnering with The Bank of East Asia to conduct a proof-of-concept for Nibot within the HKMA's GenA.I. Sandbox, unveiling our Web3-ready issuance platform, and collaborating with an emerging Southeast Asian financial institution to implement CAKU-powered digital banking solutions through our subsidiary, QCC.
To optimize internal operations, we established the
While aggressive investments in emerging technology benchmark projects weighed on our bottom line this year, these capital allocations are necessary and foundational. They transform
Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "Despite the revenue headwinds caused by the restructuring of our historically largest client in fiscal year 2026, we delivered total revenue growth of 4.7% to
Our investments in emerging technology-enabled projects have driven up costs in the short run. In addition, we recognized a goodwill impairment, along with a one-time bad debt provision on loans to related parties — both of which further weighed on our profitability this period. These charges reflect non-structural items rather than ongoing operational pressures, and we view them as short-term in nature. Looking ahead, we do not expect them to have a material impact on our financial results in the coming fiscal year.
Underscoring confidence in our underlying intrinsic value and long-term trajectory, we announced a share repurchase program of up to 1,000,000 shares in
Unaudited Second Half of Fiscal Year 2026 Financial Results
Revenues
In the second half of fiscal 2026, revenues increased by $5.4 million, or 6.6%, to $87.1 million from
Revenues by Service
- Revenue from IT consulting services increased by $3.5 million, or 4.5%, to $82.2 million in the second half of fiscal 2026, from $78.7 million in the prior year period. Revenue from IT consulting services accounted for 94.4% of total revenue, compared to 96.3% in the prior year period. The increase was primarily driven by higher demand from overseas clients.
- Revenue from customized IT solution services increased by $1.9 million, or 103.1%, to $3.7 million in the second half of fiscal 2026, from
$1.8 million in the prior year period. Revenue from customized IT solution services accounted for 4.3% of total revenue, compared to 2.2% in the prior year period. The increase was primarily driven by our continued investment in cutting-edge technologies, which enabled projects involving AI, RPA, and CAKU, among others to begin generating revenue. - Revenue from academic education services decreased by $0.2 million, or 18.3%, to $0.8 million in the second half of fiscal 2026, from
$1.0 million in the prior year period. Revenue from academic education services accounted for 0.9% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the expiration and renewal of licenses for our core courses, which temporarily prevented us from enrolling students in the affected courses during certain months. - Revenue from other services increased by
$0.2 million , or 86.1%, to $0.4 million in the second half of fiscal 2026, from$0.2 million in the prior year period. Revenue from other services accounted for 0.5% of total revenue, compared to 0.3% in the prior year period. The increase was primarily due to the higher demand for other services, including human resource management services.
Revenues by Operational Areas
- Revenue from banking area increased by $2.8 million, or 9.3%, to $33.4 million in the second half of fiscal 2026, from $30.6 million in the prior year period. Revenue from banking area accounted for 38.4% and 37.5% of total revenues in the second half of fiscal 2026 and 2025, respectively.
- Revenue from wealth management area increased by
$1.8 million , or 12.7%, to $15.7 million in the second half of fiscal 2026, from $13.9 million in the prior year period. Revenue from wealth management area accounted for 18.0% and 17.0% of total revenues in the second half of fiscal 2026 and 2025, respectively. - Revenue from e-Commerce area decreased by $1.6 million, or 10.7%, to $13.3 million in the second half of fiscal 2026, from $14.9 million in the prior year period. Revenue from e-Commerce area accounted for 15.3% and 18.2% of total revenues in the second half of fiscal 2026 and 2025, respectively.
- Revenue from automotive area decreased by $6.0 million, or 52.3%, to $5.6 million in the second half of fiscal 2026, from $11.6 million in the prior year period. Revenue from automotive area accounted for 6.4% and 14.3% of total revenues in the second half of fiscal 2026 and 2025, respectively.
Revenues by Geography
- Revenue generated outside of mainland China increased by 27.6% to $30.0 million in the second half of fiscal year 2026, from $23.5 million in the prior year period. The increase was primarily due to strong performance in our operations in
Hong Kong SAR,Singapore andJapan , reflecting the successful execution of the Company's global expansion strategy.
Gross Profit
Gross profit decreased by $6.1 million, or 35.1%, to $11.1 million in the second half of fiscal 2026, from $17.2 million in the prior year period. The decrease was primarily attributable to higher project delivery costs associated with customized IT solutions leveraging emerging technologies, such as AI and RPA, which were developed as benchmark initiatives for the Company.
Operating Expenses
Selling and marketing expenses decreased by $0.6 million, or 24.7%, to $2.1 million in the second half of fiscal 2026, from $2.7 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 2.4% in the second half of fiscal 2026, compared to 3.3% in the prior year period. The decrease was primarily driven by streamlined client account management and adjustments to sales performance-based compensation in response to intensified market competition and evolving business conditions.
Research and development expenses increased by
General and administrative expenses decreased by $2.0 million, or 11.7%, to $15.7 million in the second half of fiscal 2026, from $17.7 million in the prior year period. As a percentage of total revenues, general and administrative expenses decreased to 18.0% in the second half of fiscal 2026, compared to 21.7% in the prior year period. The decrease was primarily driven by prudent expense management and adjustments to management performance-based compensation in response to intensified market competition and shifting external conditions.
Operating Loss
Operating loss was $12.1 million in the second half of fiscal 2026, compared to operating loss of $5.5 million in the same period of the previous year. Operating margin was -13.9% compared to -6.8% in the prior year period.
Other Income and Expenses
Total other expenses, net of other income was $0.6 million in the second half of fiscal 2026, compared to $87.5 thousand total other income, net of other expenses in the same period of previous year.
Provision for Income Taxes
Provision for income taxes was $46.9 thousand in the second half of fiscal 2026, compared to a provision for income taxes of
Net Loss and Losses Per Share
Net loss was
Non-GAAP net loss[1] was
Net loss attributable to
Non-GAAP net loss attributable to
Audited Fiscal Year 2026 Financial Results
Revenues
Revenues increased by $7.7 million, or 4.7%, to $172.2 million in the fiscal year 2026, from
Revenues by Service
- Revenue from IT consulting services increased by $5.3 million, or 3.3%, to $164.1 million in the fiscal year 2026, from $158.8 million in the prior year period. Revenue from IT consulting services accounted for 95.3% of total revenue, compared to 96.5% in the prior year period. The increase was primarily driven by higher demand from overseas clients.
- Revenue from customized IT solution services increased by $3.1 million, or 113.9%, to $5.9 million in the fiscal year 2026, from $2.8 million in the prior year period. Revenue from customized IT solution services accounted for 3.5% of total revenue, compared to 1.7% in the prior year period. The increase was primarily driven by our continued investment in cutting-edge technologies, which enabled projects involving AI, RPA, and CAKU, among others to begin generating revenue during the fiscal year.
- Revenue from academic education services decreased by $0.3 million, or 18.6%, to $1.7 million in the fiscal year 2026, from
$2.0 million in the prior year period. Revenue from academic education services accounted for 1.0% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the expiration and renewal of licenses for our core courses, which temporarily prevented us from enrolling students in the affected courses during certain months. - Revenue from other services decreased by
$0.4 million , or 40.6%, to $0.5 million in the fiscal year 2026, from $0.9 million in the prior year period. Revenue from other services accounted for 0.3% of total revenue, compared to 0.5% in the prior year period. The decrease was primarily due to lower demand for other services, including software sales.
Revenues by Operational Areas
- Revenue from banking area decreased by $4.6 million, or 7.1%, to $59.5 million in the fiscal year 2026, from $64.1 million in the prior year period. Revenue from banking area accounted for 34.6% and 39.0% of total revenues in the fiscal year 2026 and 2025, respectively.
- Revenue from wealth management area increased by $1.0 million, or 3.4%, to $30.3 million in the fiscal year 2026, from $29.3 million in the prior year period. Revenue from wealth management area accounted for 17.6% and 17.8% of total revenues in the fiscal year 2026 and 2025, respectively.
- Revenue from e-Commerce area decreased by $1.3 million, or 4.4%, to $28.5 million in the fiscal year 2026, from $29.8 million in the prior year period. Revenue from e-Commerce area accounted for 16.6% and 18.1% of total revenues in the fiscal year 2026 and 2025, respectively.
- Revenue from automotive area decreased by $4.1 million, or 19.8%, to $16.7 million in the fiscal year 2026, from $20.8 million in the prior year period. Revenue from automotive area accounted for 9.7% and 12.7% of total revenues in the fiscal year 2026 and 2025, respectively.
Revenues by Geography
- Revenue generated outside of mainland China increased by
$20.2 million , or 47.5%, to $62.7 million in the fiscal year 2026, from $42.5 million in the prior year period. The increase was primarily driven by strong performance across our operations in the APAC region (excluding mainlandChina ), which grew 45.2% year-over-year, reflecting the successful execution of the Company's global expansion strategy.
Gross Profit
Gross profit decreased by $5.6 million, or 15.5%, to $30.7 million in the fiscal year 2026, from $36.3 million in the prior year period. The decrease was primarily attributable to higher project delivery costs associated with customized IT solutions leveraging emerging technologies, such as AI and RPA, which were developed as benchmark initiatives for the Company.
Operating Expenses
Selling and marketing expenses decreased by $1.0 million, or 19.4%, to $4.2 million in the fiscal year 2026, from $5.2 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 2.4% in the fiscal year 2026, compared to 3.1% in the prior year period. The decrease was primarily driven by streamlined client account management and adjustments to sales performance-based compensation in response to intensified market competition and evolving business conditions.
Research and development expenses increased by $0.9 million, or 14.7%, to $6.7 million in the fiscal year 2026, from $5.8 million in the prior year period. As a percentage of total revenues, research and development expenses increased to 3.9% in the fiscal year 2026, compared to 3.5% in the prior year period. The increase was primarily driven by higher R&D investment in emerging technologies, positioning the Company to capture anticipated growth in demand for customized IT solutions.
General and administrative expenses decreased by $1.3 million, or 3.9%, to $30.6 million in the fiscal year 2026, from $31.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses decreased to 17.8% in the fiscal year 2026, compared to 19.4% in the prior year period. The decrease was primarily driven by prudent expense management and adjustments to management performance-based compensation in response to intensified market competition and shifting external conditions.
Operating Loss
Operating loss was
Other Income and Expenses
Total other expenses, net of other income was $0.7 million in the fiscal year 2026, compared to $0.3 million total other income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes was
Net Loss and Losses Per Share
Net loss was $12.9 million in the fiscal year 2026, compared to a net loss of
Non-GAAP net loss[1] was $9.5 million in the fiscal year 2026, compared to a non-GAAP net loss of
Net loss attributable to
Non-GAAP net loss attributable to
Cash Flow
As of
Net cash used in operating activities was $0.4 million for the twelve months ended June 30, 2026. Net cash used in investing activities was $1.2 million. Net cash used in financing activities was approximately
Financial Outlook
Undeterred by the short-term challenges, we remain confident about our long-term business growth. For fiscal year 2027, the Company expects, considering our financial numbers could be affected by the floating exchange rate, and absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 5% to 10% compared to fiscal year 2026 financial results, and non-GAAP net income in the range of approximately
This forecast reflects the Company's current and preliminary views, which are subject to change and to risks and uncertainties, including, but not limited to, those facing the Company's business and operations as identified in its annual report on Form 20-F made with the Securities and Exchange Commission.
Exchange Rate
The balance sheet amounts with the exception of equity as of June 30, 2026, were translated at 6.7851 RMB to 1.00 USD compared to 7.1636 RMB to 1.00 USD as of June 30, 2025. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the periods ended June 30, 2026 and 2025 were 6.9940 RMB to 1.00 USD and 7.2143 RMB to 1.00 USD, respectively. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying change in our business or results of operation.
About CLPS Incorporation
CLPS Incorporation (NASDAQ: CLPS), established in 2005 and headquartered in Hong Kong, is at the forefront of driving digital transformation and optimizing operational efficiency across industries through innovations in artificial intelligence, cloud computing, and big data. Our diverse business lines span sectors including fintech, payment and credit services, e-commerce, education and study abroad programs, and global tourism integrated with transportation services. Operating across 10 countries worldwide, with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), and supported by subsidiaries in Japan and the UAE, we provide a robust global service network that empowers legacy industries evolve into data-driven, intelligent ecosystems. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, Instagram, LinkedIn, X, and YouTube.
Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's financial and operational performance in the second half and full year of fiscal 2026, its expectations of the Company's future performance, its preliminary outlook and guidance offered in this presentation, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Use of Non-GAAP Financial Measures
The consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. The Company uses non-GAAP operating income (loss), non-GAAP general and administrative expenses, non-GAAP operating margin, non-GAAP net income (loss) attributable to CLPS Incorporation's shareholders, and basic and diluted non-GAAP earnings (losses) per share, which are non-GAAP financial measures. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses and impairment of goodwill. Non-GAAP general and administrative expenses is a non-GAAP financial measure, which is defined as general and administrative expenses excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of revenues. Non-GAAP net income (loss) attributable to CLPS Incorporation's shareholders is net income (loss) attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses and impairment of goodwill. Basic and diluted non-GAAP earnings (losses) per share is non-GAAP net income (loss) attributable to common shareholders divided by weighted average number of shares used in the calculation of basic and diluted net income per share. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation expenses adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP and GAAP Results" near the end of this release.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
| [1] Non-GAAP net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses and impairment of goodwill. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details. |
| [2] Non-GAAP net loss attributable to |
| | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (Amounts in | |||||||||
| | |||||||||
| | | As of | | ||||||
| | | 2026 (Audited) | | | December 31, 2025 (Unaudited) | | |||
| ASSETS | | | | | | | |||
| Current assets: | | | | | | | |||
| Cash and cash equivalents | | | 25,059,596 | | | | 28,422,095 | | |
| Restricted cash | | | 399,721 | | | | - | | |
| Short-term investments | | | 918,525 | | | | 916,852 | | |
| Accounts receivable, net | | | 42,460,092 | | | | 42,819,285 | | |
| Prepayments, deposits and other assets, net | | | 7,731,245 | | | | 8,866,524 | | |
| Amounts due from related parties | | | 1,085,005 | | | | 4,642,400 | | |
| Total Current Assets | | $ | 77,654,184 | | | $ | 85,667,156 | | |
| Non-current assets: | | | | | | | | | |
| Property and equipment, net | | | 19,950,121 | | | | 20,543,354 | | |
| Intangible assets, net | | | 1,811,370 | | | | 1,981,780 | | |
| Operating lease right-of-use assets | | | 2,312,396 | | | | 2,505,610 | | |
| | | | - | | | | 1,420,150 | | |
| Long-term investments | | | 2,178,538 | | | | 1,687,752 | | |
| Prepayments, deposits and other assets, net | | | 723,177 | | | | 332,357 | | |
| Amounts due from related parties | | | 1,589,657 | | | | 2,263,799 | | |
| Deferred tax assets, net | | | 59,691 | | | | 5,964 | | |
| Total Assets | | $ | 106,279,134 | | | $ | 116,407,922 | | |
| | | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | |
| Current liabilities: | | | | | | | | | |
| Bank loans | | $ | 30,289,459 | | | $ | 26,166,467 | | |
| Accounts payable | | | 1,543,603 | | | | 2,490,272 | | |
| Accrued expenses and other current liabilities | | | 527,704 | | | | 456,200 | | |
| Tax payables | | | 2,961,192 | | | | 2,270,979 | | |
| Contract liabilities | | | 2,705,511 | | | | 4,909,035 | | |
| Salaries and benefits payable | | | 13,438,704 | | | | 12,123,893 | | |
| Operating lease liabilities | | | 1,633,586 | | | | 2,126,684 | | |
| Amount due to related parties | | | 75,394 | | | | 61,208 | | |
| Total Current Liabilities | | $ | 53,175,153 | | | $ | 50,604,738 | | |
| Non-current liabilities: | | | | | | | | | |
| Operating lease liabilities | | | 751,363 | | | | 554,299 | | |
| Deferred tax liabilities | | | 204,600 | | | | 145,500 | | |
| Unrecognized tax benefit | | | 4,012,722 | | | | 4,004,545 | | |
| Other non-current liabilities | | | 946,771 | | | | 918,611 | | |
| TOTAL LIABILITIES | | $ | 59,090,609 | | | $ | 56,227,693 | | |
| | | | | | | | | | |
| Shareholders' Equity | | | | | | | | | |
| Common shares, | | | 2,986 | | | | 2,984 | | |
| Additional paid-in capital | | | 62,148,120 | | | | 61,930,342 | | |
| | | | (132,303) | | | | - | | |
| Statutory reserves | | | 6,014,347 | | | | 6,059,696 | | |
| Accumulated deficit | | | (20,744,064) | | | | (7,525,036) | | |
| Accumulated other comprehensive loss | | | (2,493,879) | | | | (2,612,878) | | |
| | | | | | | | | | |
| Total | | | 44,795,207 | | | | 57,855,108 | | |
| | | | | | | | | | |
| Noncontrolling Interests | | | 2,393,318 | | | | 2,325,121 | | |
| | | | | | | | | | |
| Total Shareholders' Equity | | | 47,188,525 | | | | 60,180,229 | | |
| | | | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 106,279,134 | | | $ | 116,407,922 | | |
| | |||||||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS | |||||||||||||||||||||
| (Amounts in | |||||||||||||||||||||
| | |||||||||||||||||||||
| | | For the six months ended | | ||||||||||||||||||
| | | 2026 | | | 2025 | | |||||||||||||||
| | | | | | | | | | |||||||||||||
| Revenue | | $ | 87,126,310 | | | $ | 81,703,894 | | |||||||||||||
| Cost of revenue (note 1) | | | (75,996,939) | | | | (64,553,449) | | |||||||||||||
| Gross profit | | | 11,129,371 | | | | 17,150,445 | | |||||||||||||
| | | | | | | | | | |||||||||||||
| Operating income (expenses): | | | | | | | | | |||||||||||||
| Selling and marketing expenses (note 1) | | | (2,053,861) | | | | (2,727,725) | | |||||||||||||
| Research and development expenses | | | (4,656,391) | | | | (2,533,678) | | |||||||||||||
| General and administrative expenses (note 1) | | | (15,655,175) | | | | (17,737,124) | | |||||||||||||
| Impairment of goodwill | | | (1,435,782) | | | | (129,270) | | |||||||||||||
| Subsidies and other operating income | | | 572,436 | | | | 440,978 | | |||||||||||||
| Total operating expenses | | | (23,228,773) | | | | (22,686,819) | | |||||||||||||
| Loss from operations | | | (12,099,402) | | | | (5,536,374) | | |||||||||||||
| Other income | | | 498,774 | | | | 652,412 | | |||||||||||||
| Other expenses | | | (1,078,384) | | | | (564,956) | | |||||||||||||
| Loss before income tax and share of loss in equity | | | (12,679,012) | | | | (5,448,918) | | |||||||||||||
| Provision for income taxes | | | 46,899 | | | | 679,739 | | |||||||||||||
| Loss before share of loss in equity investees | | | (12,725,911) | | | | (6,128,657) | | |||||||||||||
| Share of loss in equity investees, net of tax | | | (522,794) | | | | (480,926) | | |||||||||||||
| Net loss | | | (13,248,705) | | | | (6,609,583) | | |||||||||||||
| Less: Net income attributable to noncontrolling interests | | | 15,672 | | | | 50,238 | | |||||||||||||
| Net loss attributable to | | $ | (13,264,377) | | | $ | (6,659,821) | | |||||||||||||
| | | | | | | | | | |||||||||||||
| Other comprehensive income | | | | | | | | | |||||||||||||
| Foreign currency translation income | | $ | 171,524 | | | $ | 1,171,934 | | |||||||||||||
| Less: Foreign currency translation income attributable | | | 52,525 | | | | 28,775 | | |||||||||||||
| Other comprehensive income attributable to | | $ | 118,999 | | | $ | 1,143,159 | | |||||||||||||
| | | | | | | | | | |||||||||||||
| Comprehensive loss attributable to | | | | | | | | | |||||||||||||
| | | $ | (13,145,378) | | | $ | (5,516,662) | | |||||||||||||
| Comprehensive income attributable to noncontrolling | | | 68,197 | | | | 79,013 | | |||||||||||||
| Comprehensive loss | | $ | (13,077,181) | | | $ | (5,437,649) | | |||||||||||||
| | | | | | | | | | |||||||||||||
| Basic losses per common share | | $ | (0.44) | | | $ | (0.24) | | |||||||||||||
| Weighted average number of shares outstanding – basic | | | 29,811,704 | | | | 27,986,798 | | |||||||||||||
| Diluted losses per common share | | $ | (0.44) | | | $ | (0.24) | | |||||||||||||
| Weighted average number of shares outstanding – | | | 29,811,704 | | | | 27,986,798 | | |||||||||||||
| Note: | | | | | | | | | |||||||||||||
| (1) Includes share-based compensation expenses as follows: | | | | | | | | | |||||||||||||
| Cost of revenues | | | 182 | | | | 2,197 | | |||||||||||||
| Selling and marketing expenses | | | 52,339 | | | | 90,286 | | |||||||||||||
| General and administrative expenses | | | 165,258 | | | | 269,214 | | |||||||||||||
| | ||||||||||||||||||||||
| RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED | ||||||||||||||||||||||
| (Amounts in | ||||||||||||||||||||||
| | | | | For the six months ended | ||||||||||||||||||
| | ||||||||||||||||||||||
| | | | | 2026 | | | | 2025 | ||||||||||||||
| | | |||||||||||||||||||||
| | | | | | | | | | ||||||||||||||
| Cost of revenue | | | $ | (75,996,939) | | | $ | (64,553,449) | ||||||||||||||
| Less: share-based compensation expenses | | | | (182) | | | | (2,197) | ||||||||||||||
| Non-GAAP cost of revenue | | | $ | (75,996,757) | | | $ | (64,551,252) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Selling and marketing expenses | | | $ | (2,053,861) | | | $ | (2,727,725) | ||||||||||||||
| Less: share-based compensation expenses | | | | (52,339) | | | | (90,286) | ||||||||||||||
| Non-GAAP selling and marketing expenses | | | $ | (2,001,522) | | | $ | (2,637,439) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| General and administrative expenses | | | $ | (15,655,175) | | | $ | (17,737,124) | ||||||||||||||
| Less: share-based compensation expenses | | | | (165,258) | | | | (269,214) | ||||||||||||||
| Non-GAAP general and administrative | | | $ | (15,489,917) | | | $ | (17,467,910) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Loss from operations | | | $ | (12,099,402) | | | $ | (5,536,374) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 1,653,561 | | | | 490,967 | ||||||||||||||
| Non-GAAP loss from operations | | | $ | (10,445,841) | | | $ | (5,045,407) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Operating margin | | | | (13.9 %) | | | | (6.8 %) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 1.9 % | | | | 0.6 % | ||||||||||||||
| Non-GAAP operating margin | | | | (12.0 %) | | | | (6.2 %) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Net loss | | | $ | (13,248,705) | | | $ | (6,609,583) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 1,653,561 | | | | 490,967 | ||||||||||||||
| Non-GAAP net loss | | | $ | (11,595,144) | | | $ | (6,118,616) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Net loss attributable to | | | $ | (13,264,377) | | | $ | (6,659,821) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 1,653,561 | | | | 490,967 | ||||||||||||||
| Non-GAAP net loss attributable to CLPS | | | | (11,610,816) | | | | (6,168,854) | ||||||||||||||
| $ | $ | |||||||||||||||||||||
| | | | | | | | | | ||||||||||||||
| Weighted average number of shares | | | | 29,811,704 | | | | 27,986,798 | ||||||||||||||
| GAAP basic losses per common share | | | $ | (0.44) | | | $ | (0.24) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 0.05 | | | | 0.02 | ||||||||||||||
| Non-GAAP basic losses per common share | | | $ | (0.39) | | | $ | (0.22) | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| Weighted average number of shares | | | | 29,811,704 | | | | 27,986,798 | ||||||||||||||
| | | | | | | | | | ||||||||||||||
| GAAP diluted losses per common share | | | $ | (0.44) | | | $ | (0.24) | ||||||||||||||
| Add: share-based compensation expenses and | | | | 0.05 | | | | 0.02 | ||||||||||||||
| Non-GAAP diluted losses per common | | | $ | (0.39) | | | $ | (0.22) | ||||||||||||||
| | | |||||||
| AUDITED CONSOLIDATED BALANCE SHEETS | | |||||||
| (Amounts in | | |||||||
| | | |||||||
| | | As of | | |||||
| | | 2026 | | | 2025 | | ||
| ASSETS | | | | | | | ||
| Current assets: | | | | | | | | |
| Cash and cash equivalents | | $ | 25,059,596 | | | $ | 28,173,160 | |
| Restricted cash | | | 399,721 | | | | - | |
| Short-term investments | | | 918,525 | | | | 896,949 | |
| Accounts receivable, net | | | 42,460,092 | | | | 44,891,161 | |
| Prepayments, deposits and other assets, net | | | 7,731,245 | | | | 7,441,565 | |
| Amounts due from related parties | | | 1,085,005 | | | | 4,374,595 | |
| Total Current Assets | | | 77,654,184 | | | | 85,777,430 | |
| | | | | | | | | |
| Non-current assets: | | | | | | | | |
| Property and equipment, net | | | 19,950,121 | | | | 21,212,463 | |
| Intangible assets, net | | | 1,811,370 | | | | 2,055,102 | |
| | | | - | | | | 1,435,782 | |
| Operating lease right-of-use assets | | | 2,312,396 | | | | 3,407,995 | |
| Long-term investments | | | 2,178,538 | | | | 1,718,995 | |
| Prepayments, deposits and other assets, net | | | 723,177 | | | | 481,761 | |
| Amounts due from related parties | | | 1,589,657 | | | | 1,945,960 | |
| Deferred tax assets, net | | | 59,691 | | | | 73,942 | |
| Total Assets | | $ | 106,279,134 | | | $ | 118,109,430 | |
| | | | | | | | | |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | |
| Current liabilities | | | | | | | | |
| Bank loans | | $ | 30,289,459 | | | $ | 30,217,329 | |
| Accounts payable | | | 1,543,603 | | | | 2,515,207 | |
| Accrued expenses and other current liabilities | | | 527,704 | | | | 260,880 | |
| Tax payables | | | 2,961,192 | | | | 2,463,706 | |
| Contract liabilities | | | 2,705,511 | | | | 2,470,135 | |
| Salaries and benefits payable | | | 13,438,704 | | | | 14,062,007 | |
| Operating lease liabilities | | | 1,633,586 | | | | 2,348,195 | |
| Amounts due to related parties | | | 75,394 | | | | 21,884 | |
| Total Current Liabilities | | | 53,175,153 | | | | 54,359,343 | |
| | | | | | | | | |
| Non-current liabilities | | | | | | | | |
| Operating lease liabilities | | | 751,363 | | | | 1,301,369 | |
| Unrecognized tax benefits | | | 4,012,722 | | | | 3,715,163 | |
| Deferred tax liabilities | | | 204,600 | | | | 251,812 | |
| Other non-current liabilities | | | 946,771 | | | | 896,747 | |
| Total Liabilities | | | 59,090,609 | | | | 60,524,434 | |
| | | | | | | | | |
| Shareholders' Equity | | | | | | | | |
| Common shares, | | | 2,986 | | | | 2,799 | |
| Additional paid-in capital | | | 62,148,120 | | | | 60,177,851 | |
| | | | (132,303) | | | | - | |
| Statutory reserves | | | 6,014,347 | | | | 5,853,445 | |
| Accumulated deficit | | | (20,744,064) | | | | (7,401,803) | |
| Accumulated other comprehensive loss | | | (2,493,879) | | | | (3,095,507) | |
| | | | | | | | | |
| Total | | | 44,795,207 | | | | 55,536,785 | |
| | | | | | | | | |
| Noncontrolling Interests | | | 2,393,318 | | | | 2,048,211 | |
| | | | | | | | | |
| Total Shareholders' Equity | | | 47,188,525 | | | | 57,584,996 | |
| | | | | | | | | |
| Total Liabilities and Shareholders' Equity | | $ | 106,279,134 | | | $ | 118,109,430 | |
| | ||||||||
| AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS | ||||||||
| (Amounts in | ||||||||
| | ||||||||
| | | For the years ended | | |||||
| | | 2026 | | | 2025 | | ||
| | | | | | | | ||
| Revenue from third parties | | $ | 171,891,780 | | | $ | 164,229,721 | |
| Revenue from related party | | | 319,551 | | | | 251,693 | |
| Cost of revenue from third parties (note 1) | | | (141,279,868) | | | | (127,987,226) | |
| Cost of revenue from related party | | | (253,852) | | | | (188,770) | |
| Gross profit | | | 30,677,611 | | | | 36,305,418 | |
| | | | | | | | | |
| Operating income (expenses): | | | | | | | | |
| Selling and marketing expenses (note 1) | | | (4,173,712) | | | | (5,180,682) | |
| Research and development expenses | | | (6,668,643) | | | | (5,815,555) | |
| General and administrative expenses (note 1) | | | (30,595,509) | | | | (31,852,179) | |
| Impairment of goodwill | | | (1,435,782) | | | | (129,270) | |
| Subsidies and other operating income | | | 733,657 | | | | 1,294,964 | |
| Total operating expenses | | | (42,139,989) | | | | (41,682,722) | |
| Loss from operations | | | (11,462,378) | | | | (5,377,304) | |
| Other income | | | 858,058 | | | | 1,237,678 | |
| Other expenses | | | (1,550,879) | | | | (935,988) | |
| Loss before income tax and share of loss in equity | | | (12,155,199) | | | | (5,075,614) | |
| Provision for income taxes | | | 216,939 | | | | 947,529 | |
|
| | | (12,372,138) | | | | (6,023,143) | |
| Share of loss in equity investees, net of tax | | | (556,463) | | | | (403,421) | |
| Net loss | | | (12,928,601) | | | | (6,426,564) | |
| Less: Net income attributable to noncontrolling | | | 252,758 | | | | 623,170 | |
| Net loss attributable to | | $ | (13,181,359) | | | $ | (7,049,734) | |
| | | | | | | | | |
| Other comprehensive income | | | | | | | | |
| Foreign currency translation income | | $ | 693,977 | | | $ | 1,265,061 | |
| Less: Foreign currency translation income | | | 92,349 | | | | 14,666 | |
| Other comprehensive income attributable to | | $ | 601,628 | | | $ | 1,250,395 | |
| | | | | | | | | |
| Comprehensive loss attributable to | | | | | | | | |
| CLPS Incorporation's shareholders | | $ | (12,579,731) | | | $ | (5,799,339) | |
| Comprehensive income attributable to noncontrolling | | | 345,107 | | | | 637,836 | |
| Comprehensive loss | | $ | (12,234,624) | | | $ | (5,161,503) | |
| | | | | | | | | |
| Basic losses per common share | | $ | (0.45) | | | $ | (0.26) | |
| Weighted average number of shares outstanding – | | | 29,377,255 | | | | 27,533,182 | |
| Diluted losses per common share | | $ | (0.45) | | | $ | (0.26) | |
| Weighted average number of shares outstanding – | | | 29,377,255 | | | | 27,533,182 | |
| Note: | | | | | | | | |
| (1) Includes share-based compensation expenses as follows: | | | | | | | | |
| Cost of revenues | | | 2,433 | | | | 7,503 | |
| Selling and marketing expenses | | | 66,589 | | | | 179,938 | |
| General and administrative expenses | | | 1,901,434 | | | | 2,280,469 | |
| | ||||||||
| RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED | ||||||||
| (Amounts in | ||||||||
| | ||||||||
| | | | | For the years ended | ||||
| | ||||||||
| | | | 2026 | | | 2025 | ||
| | | | | | | | | |
| Cost of revenue | | | $ | (141,533,720) | | | $ | (128,175,996) |
| Less: share-based compensation expenses | | | | (2,433) | | | | (7,503) |
| Non-GAAP cost of revenue | | | $ | (141,531,287) | | | $ | (128,168,493) |
| | | | | | | | | |
| Selling and marketing expenses | | | $ | (4,173,712) | | | $ | (5,180,682) |
| Less: share-based compensation expenses | | | | (66,589) | | | | (179,938) |
| Non-GAAP selling and marketing expenses | | | $ | (4,107,123) | | | $ | (5,000,744) |
| | | | | | | | | |
| General and administrative expenses | | | $ | (30,595,509) | | | $ | (31,852,179) |
| Less: share-based compensation expenses | | | | (1,901,434) | | | | (2,280,469) |
| Non-GAAP general and administrative | | | $ | (28,694,075) | | | $ | (29,571,710) |
| | | | | | | | | |
| Operating loss | | | $ | (11,462,378) | | | $ | (5,377,304) |
| Add: share-based compensation expenses and | | | | 3,406,238 | | | | 2,597,180 |
| Non-GAAP operating loss | | | $ | (8,056,140) | | | $ | (2,780,124) |
| | | | | | | | | |
| Operating margin | | | | (6.7 %) | | | | (3.3 %) |
| Add: share-based compensation expenses and | | | | 2.0 % | | | | 1.6 % |
| Non-GAAP operating margin | | | | (4.7 %) | | | | (1.7 %) |
| | | | | | | | | |
| Net loss | | | $ | (12,928,601) | | | $ | (6,426,564) |
| Add: share-based compensation expenses and | | | | 3,406,238 | | | | 2,597,180 |
| Non-GAAP net loss | | | $ | (9,522,363) | | | $ | (3,829,384) |
| | | | | | | | | |
| Net loss attributable to | | | $ | (13,181,359) | | | $ | (7,049,734) |
| Add: share-based compensation expenses and | | | | 3,406,238 | | | | 2,597,180 |
| Non-GAAP net loss attributable to CLPS | | | $ | (9,775,121) | | | $ | (4,452,554) |
| | | | | | | | | |
| Weighted average number of shares outstanding | | | | 29,377,255 | | | | 27,533,182 |
| GAAP basic losses per common share | | | $ | (0.45) | | | $ | (0.26) |
| Add: share-based compensation expenses and | | | | 0.12 | | | | 0.10 |
| Non-GAAP basic losses per common share | | | $ | (0.33) | | | $ | (0.16) |
| | | | | | | | | |
| Weighted average number of shares outstanding | | | | 29,377,255 | | | | 27,533,182 |
| Weighted average number of shares outstanding | | | | 29,551,271 | | | | 27,533,182 |
| | | | | | | | | |
| GAAP diluted losses per common share | | | $ | (0.45) | | | $ | (0.26) |
| Add: share-based compensation expenses and | | | | 0.12 | | | | 0.10 |
| Non-GAAP diluted losses per common share | | | $ | (0.33) | | | $ | (0.16) |
View original content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2026-302911244.html
SOURCE