ClearSign Technologies Corp (CLIR)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 revenue was $0.133M, up from $0.045M in Q2 2024, driven by spare parts and a boiler burner sale; net loss narrowed by ~$0.2M YoY as R&D fell ~$0.155M . Cash was $12.3M and shares outstanding were 52.4M at quarter-end .
• Versus S&P Global consensus, CLIR delivered a mixed print: revenue missed materially (estimated $0.644M* vs actual $0.133M), while EPS (-$0.03) and EBITDA (-$1.79M*) beat estimates on lower operating expense and collections timing .
• Execution milestones advanced: LA refinery 20-burner installation starting imminently, and the Gulf Coast 26-burner project moved into manufacturing with startup now expected in early 2026 (earlier than the original end-2026 timeline) .
• Catalysts: near-term start-ups (LA refinery, M-Series M1 in Colorado), sensor deployments at a supermajor and in LA, flare systems pipeline expansion (value of proposals ~10x YoY), and Zeeco co-brand rollout, all of which broaden addressable markets .

What Went Well and What Went Wrong

• What Went Well

  • “Significant progress” on the two multi-heater process burner projects; LA 20-burner install starting within weeks and Gulf Coast 26-burner test criteria met, moving to manufacturing with shipment this year .
  • M-Series process burner demonstrated SCR-level NOx and improved heat transfer; second M1 sale to Devco due to start later this year; developing a detuned M25 to target a larger midstream segment .
  • Flare solutions gaining traction: repeat client added a second engineering order, broader systems proposals emerging with unit values ~$0.5–$1.0M; value of flare/systems proposals ~10x YoY .

• What Went Wrong

  • Revenue light at $0.133M with limited order announcements amid macro/tariff uncertainty delaying timelines; management acknowledged perceived lack of progress despite strong quote activity .
  • Boiler burner market in California remained slow; execution shift toward midstream and process burners required to offset cyclicality .
  • Nasdaq minimum bid price deficiency notice (April 2025) underscores market risk and potential need for remedial actions if compliance not regained by September 29, 2025 .

Financial Results

Values with asterisk retrieved from S&P Global.

Vs Estimates (Q2 2025):

Values with asterisk retrieved from S&P Global.

KPIs:

Guidance Changes

No formal financial guidance provided for revenue, margins, OpEx, OI&E, or tax rate in Q2 materials .

Earnings Call Themes & Trends

Management Commentary

• “We believe that our recent product advancements strategically position us to serve a broader segment of the market and lay a strong foundation for future growth.” — CEO Jim Deller .
• “We have two very large process burner orders… the 20 burner order out in California… about to start up… [and] the 26 burner order… we’ve met all the requirements… expect to have those burners built and shipped this year.” — CEO Jim Deller .
• “Our net cash used in operations… approximately $511,000 compared to approximately $1.5 million [Q2 2024]… predominantly driven by customer cash collections… cash and cash equivalents ~$12.3M… 52.4M shares outstanding.” — CFO Brent Hinds .
• “We’ve continued to see strong interest from the midstream sector… M1 continues to operate flawlessly… inquiries remain strong… marketing the M25 burner to meet a higher volume part of the market.” — CEO Jim Deller .
• “The value of proposals… compared to this time last year… ~10x for flare and systems product line together.” — CEO Jim Deller .

Q&A Highlights

• Zeeco rollout: Incentives for Zeeco sales are being determined; collaboration and materials underway; expect longer-cycle order timing into 2026 .
• CFD engineering: Detailed explanation of computational modeling driving product optimization and rapid development; enabled M1 success and recent engineering orders .
• Pipeline momentum: Quote counts doubled and proposal values ~5x YoY; now being requested as a technology option in new heater projects (early-stage inclusion) .
• Tariffs/regulatory: Minimal direct impact seen; uncertainty can delay orders; watching TCEQ potential changes that could favor low-NOx adoption on the Gulf Coast .
• Sensors commercialization: Multiple field demos planned (Texas supermajor and LA); 3–6 month evaluation; potential for multi-sensor orders per heater .

Estimates Context

• Revenue missed the single-estimate S&P Global consensus by ~$0.51M*, reflecting limited shipments and delays; EPS beat by $0.01 and EBITDA beat by ~$0.30M*, aided by reduced R&D and collections timing .
• Estimate dispersion is minimal (single analyst), but the magnitude of the revenue miss suggests consensus adjustments lower for H2 unless start-ups translate to recognized revenue. Values with asterisk retrieved from S&P Global.

Key Takeaways for Investors

• Near-term catalysts: LA 20-burner start-up and commencement of Gulf Coast manufacturing should validate technology at marquee customers and support revenue conversion in H2/H1’26 .
• Midstream expansion: M1 performance plus M25 detuned variant opens larger TAM; watch for incremental orders from heater OEMs (THM, Devco) and broader midstream adoption .
• Systems opportunity: Flare and thermal oxidizer systems elevate deal sizes (to $0.5–$1.0M per unit) with clear customer cost savings (reduced supplemental gas); proposals up ~10x YoY .
• Sensors as volume driver: Off-the-shelf ClearSign Eye, evaluated at multiple sites, can yield multi-unit orders per heater and diversify revenue away from permit-driven cycles .
• Execution watchpoints: Consensus likely lowers top-line near term given Q2 miss; upside hinges on timely installations and conversions from Zeeco-led pipeline and systems proposals .
• Risk flags: Nasdaq bid-price deficiency, macro/tariff uncertainty, and California boiler market softness warrant cautious positioning; liquidity remains solid at $12.3M .
• Trading implications: Stock could react positively to confirmed start-ups and any systems wins; conversely, further revenue delays or lack of Zeeco-driven orders could pressure sentiment .