ClearSign 2025 Q2 Earnings Narrower Losses Amid Revenue Surge

ClearSign (CLIR) reported its fiscal 2025 Q2 earnings on August 15, 2025, delivering a revenue beat while continuing to narrow its net losses. The company’s results fell short of profitability, with no guidance provided, and the post-earnings trading strategy proved unprofitable.

Revenue
ClearSign's total revenue surged by 195.6% year-over-year to $133,000 in Q2 2025, compared to $45,000 in the same period in 2024. The dramatic increase reflects the company’s progress in securing and executing large-scale burner orders, particularly in the industrial and chemical sectors.

Earnings/Net Income
The company improved its earnings per share by 25%, narrowing the loss to $0.03 from $0.04 in the prior-year period. On a net basis, losses also decreased by 10.3% to $1.68 million from $1.87 million. While the reduction is a positive step, the company remains unprofitable, having reported losses for eight consecutive years in the same quarter.

Price Action
ClearSign’s stock price declined slightly by 0.31% during the latest trading day but gained 9.13% in the past week and surged 16.78% month-to-date, reflecting some short-term investor optimism.

Post-Earnings Price Action Review
The post-earnings trading strategy of buying shares following a revenue increase and holding for 30 days performed poorly, yielding a CAGR of -24.84%, an excess return of -102.80%, and a Sharpe ratio of -0.25. Despite the revenue beat, the trade underperformed the benchmark with no maximum drawdown, indicating high risk and low reward.

CEO Commentary
CEO Colin James Deller highlighted the execution of large process burner projects, including a 20-burner installation in California and a 26-burner order for a Gulf Coast chemical company. He also emphasized the development of hydrogen-burner technology in collaboration with the Department of Energy and the introduction of a new M25 burner to target midstream markets. Deller expressed confidence in the company’s cash position and strategic partnerships, including with Zeeco, as it looks to scale operations and diversify revenue.

Guidance
No specific financial guidance was provided in the report, though the CEO outlined key project timelines, including the expected startup of the 20-burner system in the coming weeks and the manufacturing and shipping of the 26-burner order in 2025.

Additional News
Outside of earnings, ClearSign did not announce any major M&A activity, C-level changes, or shareholder return initiatives such as dividends or buybacks in the three weeks following the August 15 earnings report. However, the company continues to focus on expanding its technological capabilities and market reach through new product launches and strategic collaborations. Meanwhile, in unrelated news, the *Shanghai Daily* launched its online subscription service, offering real-time downloadable PDF editions and digital-only access with no print delivery included. The online edition provides unlimited access to current and archived content, including breaking news that may not appear in the next day’s print edition. Subscription packages range from one month to a 12-month digital-only or combined print-and-digital offering.