Executive Summary

Q1 2025 revenue was $0.401MM, down 63.6% YoY and down sequentially vs Q4 2024 ($0.590MM); EPS was -$0.04 vs -$0.03 YoY, driven by lower process burner shipments and $0.581MM in legal expenses tied to an SEC inquiry (2020 trading) and board special committee work .
Versus S&P Global consensus, revenue missed ($0.401MM vs $0.574MM; -30%) and EPS missed (-$0.04 vs -$0.03); there was only one covering estimate, limiting conviction in the consensus. Bolded below as significant misses.*
Balance sheet remained solid: cash was $12.866MM and shares outstanding were 52.422MM at quarter end, supporting operations and customer confidence .
Strategic catalysts: launch of co-branded Zeeco CS5/Hydrogen CS5 burners, debut of M Series (M1) with SCR-level NOx and efficiency gains, and first ClearSign Eye sensor installation commitments at a supermajor refinery—each expanding channels and TAM .

What Went Well and What Went Wrong

What Went Well

Zeeco co-branding launched in March (CS5 and Hydrogen CS5), enabling 100% natural gas or hydrogen firing with sub-5 ppm NOx and global sales collaboration, expanding reach and credibility .
M Series (M1) debut achieved sub-2 ppm NOx at ~15% excess air (≈3% efficiency improvement vs market sub-10 ppm burners); installed at a Gulf Coast chemical customer through Tulsa Heaters Midstream—strong early validation and midstream traction .
ClearSign Eye sensors gained first commercial installation commitments at a supermajor U.S. Gulf Coast refinery (four sensors on a multi-burner heater), with additional quotation activity signaling pipeline development .

What Went Wrong

Revenue declined sharply YoY (to $0.401MM from $1.102MM) as process burner shipments slipped; quarterly sales skewed to spare parts, compressing scale benefits .
Legal costs of $0.581MM (SEC inquiry legal fees: $0.131MM; stockholder nomination/special committee: $0.450MM) increased the net loss to -$2.076MM (vs -$1.108MM YoY) and pressured G&A .
Consensus misses: revenue -30% and EPS -$0.01 vs S&P Global mean; with only one estimate, models may lag order timing lumpiness and backlog conversion cadence.*

Financial Results

Trend vs prior quarter and prior year

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$1.859	$0.590	$0.401

Metric	Q1 2024	Q1 2025
Revenue ($USD Millions)	$1.102	$0.401
Net Loss ($USD Millions)	$(1.108)	$(2.076)
EPS ($USD)	$(0.03)	$(0.04)

Margins

Metric	Q1 2024	Q1 2025
Gross Profit Margin %	39.7%	48.9%
Net Income Margin %	-100.5%	-517.9%

Notes: Gross margin = Gross Profit / Revenue; Net margin = Net Loss / Revenue (calculated from reported figures) .

Balance sheet / KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Cash and Cash Equivalents ($USD Millions)	$14.486	$14.035	$12.866
Shares Outstanding (Millions)	50.234	50.286	52.423

Q1 2025 vs Wall Street consensus (S&P Global)

Metric	Q1 2025 Actual	Q1 2025 Consensus	Surprise
Revenue ($USD)	$401,000	$574,000*	-30%*
EPS ($USD)	-$0.04	-$0.03*	-$0.01*
# of Estimates (Revenue/EPS)	—	1 / 1*	—

Values retrieved from S&P Global.*
Consensus target price: $2.00 with 1 estimate (context only).*

Segment breakdown / KPIs

The company does not report revenue by segment. Operational KPIs emphasized include: order pipeline (quotations doubled YoY; proposals ~5x YoY value), midstream M-series adoption, Zeeco co-brand rollout, and ClearSign Eye initial deployments .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	2025	Not provided	Not provided	Maintained (no formal guidance)
Margins / OpEx / Tax	2025	Not provided	Not provided	Maintained (no formal guidance)
Segment-specific	2025	Not provided	Not provided	Maintained (no formal guidance)

Management did not issue quantitative guidance; commentary emphasized installation milestones (LA refinery 20 burners and Gulf Coast 26 burners), midstream growth, sensor rollouts, and Zeeco channel activation .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2024)	Previous Mentions (Q4 2024)	Current Period (Q1 2025)	Trend
Zeeco partnership & co-branding	Initiated joint branding discussions; global reach highlighted	Co-branded CS5 announced; teach-ins to Zeeco sales team	Marketing materials near completion; testing hosted at Zeeco; first inquiries expected	Advancing from setup to early activation
Process burners (LA 20; Gulf Coast 26)	LA 20 shipped; startup delayed to mid-2025; 26-burner order awarded	Both slated for testing/fabrication; early Q3 2025 startups targeted	LA 20 targeted Q3 install; 26 in final engineering/testing for 2025 install	Milestones approaching; reference installs as catalysts
Midstream M Series (M1)	Early traction with Tulsa Heaters Midstream, Devco, Exotherm	M1 modeled/design, installed with 2 ppm NOx	Continued interest, repeat inquiries, retrofit opportunities	Broadening adoption and pipeline
Flares / Thermal oxidizers	Announced engineering order; California regulatory-driven need	$250k retrofit project economics; potential systems scope $600k–$1.2MM	Repeat orders; terminology clarity (incinerator vs enclosed ground flare)	Demand building; systems upsell opportunity
ClearSign Eye sensors	Not prominent	First commercial demos planned; multi-unit orders possible	Four sensors to supermajor; second-heater quotes; 6–9 month ramp expected	Initial deployments; commercialization ramp
Tariffs/macro	Record revenue despite macro; China operations suspended	Vendor pricing impacted by tariffs; cost of goods pressure	Pricing normalized near pre-tariff levels; minimal direct project impact	Stabilizing input costs
Efficiency narrative	GET study: ~4% fuel savings and lower NOx vs baseline	Reinforced in sales motion and M Series pitch	Efficiency aiding value proposition and payback narrative	Increasingly central to sales

Management Commentary

“We had a productive first quarter… launched co-branded Zeeco CS5 and Zeeco Hydrogen CS5 Burners… introduced our new M Series burners… commitments for the first commercial installation of our ‘ClearSign Eye’ Sensor… renewed interest in flaring solutions” — CEO Jim Deller .
On major installs: “Twenty burners waiting on the job site for a Los Angeles refinery… scheduled to be installed in the third quarter… also working on the 26-burner order… due to be fabricated, shipped, and hopefully installed later on this year” .
On pipeline strength: “Number of quotations… has doubled… value of proposals year-to-date just under five times last year… strong indicator” .
On Zeeco: “Cooperation is going well… testing the burners at Zeeco… hosted our client… very supportive and productive relationship” .
On sensors ramp: “First sensors installed in the next two to three months… expect commercial orders picking up in the 3- to 6-month timeframe” .

Q&A Highlights

Zeeco incentives: Sales incentive structure for co-branded line is being worked out; partnership ramp focuses on materials, engagement, and lead generation .
ClearSign Eye scale: Supermajor site offers thousands of potential sensors; broader multi-refinery/global applicability beyond NOx-regulated regions .
Tariffs/macro: Input prices have largely normalized; minimal observed impact on customers’ projects; regulatory focus more on hydrogen promotion, while NOx mandates remain stable .
Proposal pipeline composition: Mix of process burner and systems projects; ClearSign increasingly viewed as a credible alternative to SCR on cost and disruption; some bids where CLIR is sole vendor for lowest PPM needs .

Estimates Context

Q1 2025 results versus S&P Global consensus: revenue $0.401MM vs $0.574MM (miss), EPS -$0.04 vs -$0.03 (miss); only one estimate for each metric, indicating limited Street coverage.*
Implication: Expect estimate revisions to reflect the timing of major installs (LA 20; Gulf Coast 26), midstream M Series ramp, and sensor commercialization cadence highlighted by management .

Values retrieved from S&P Global.*

Key Takeaways for Investors

Near-term trading: Expect stock sensitivity to tangible installation milestones (LA 20 and Gulf Coast 26 burners), Zeeco-driven inquiries, and initial ClearSign Eye deployments; these are likely catalysts for narrative and order momentum .
Estimate recalibration: Street models should incorporate lumpiness from order timing and legal cost normalization; one-off legal expenses inflated Q1 losses, while pipeline signals are constructive .
Channel leverage: Zeeco co-branding and midstream heater OEMs extend sales reach without heavy CLIR SG&A, supporting scalable growth as materials and process standardization mature .
Efficiency as a wedge: GET-validated fuel savings and M1 efficiency provide ROI-driven sales narratives that can offset premium pricing and accelerate adoption across boilers and midstream .
Systems upsell: Flare/oxidizer projects open $600k–$1.2MM revenue opportunities per system vs $100k–$300k burner-only, expanding AOV and reference base .
Sensors TAM: ClearSign Eye is a standardized, volume product applicable globally beyond NOx policy cycles; watch for 3–6 month commercialization signals and multi-unit orders .
Balance sheet runway: $12.866MM in cash and a modest liability base provide execution runway toward H2 2025 milestones and customer confidence in delivery .

Bolded surprises in tables denote significant beats/misses versus consensus.*

ClearSign Technologies Corp (CLIR)·Q1 2025 Earnings Summary