CLPS FY2026: Net Loss Widens to $12.9M, Gross Margin Falls to 17.8%
CLPS sits 24% above its 52-week low of $0.8.
Summary
CLPS's FY2026 annual report shows revenue up 4.7% to $172.2M but net loss more than doubled to $12.9M as gross margin fell to 17.8%. The company wrote off all remaining goodwill and has $30.3M of bank loans due within a year against $25.5M cash.
Updates
· PR Newswire — FY2026 revenue rose 4.7% to $172.2M; customized IT solutions revenue jumped 113.9% to $5.9M and revenue outside mainland China grew 47.5% to $62.7M.
Key Events · Earnings and Guidance · CLPS
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Net Loss More Than Doubled to $12.9M
FY2026 net loss widened to $12.9M from $6.4M in FY2025, with loss attributable to shareholders at $13.2M. Non-GAAP net loss was $9.5M versus $3.8M prior year.
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Gross Margin Collapsed 430 Basis Points
Gross margin fell to 17.8% from 22.1% as cost of revenue rose 10.4% to $141.5M against 4.7% revenue growth to $172.2M. IT consulting gross margin was just 17%.
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Full Goodwill Write-Off and Contract Cost Impairment
The company impaired its entire remaining goodwill of $1.44M (academic education reporting unit) and recognized $1.71M of impairment on deferred contract costs.
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Negative Operating Cash Flow, Loans Due Within a Year
Operating cash flow was -$0.38M. The company holds $25.5M cash against $30.3M of bank loans all due within one year, with $20.5M of unused credit facilities available.
Analysis · CLPS · Technology
Revenue grew 4.7% to $172.2M, but the bottom line deteriorated sharply. Gross margin collapsed from 22.1% to 17.8% — a 430 basis point drop — as cost of revenue rose 10.4% against only 4.7% revenue growth. The net loss more than doubled to $12.9M from $6.4M, and the company wrote off its entire remaining goodwill ($1.44M) plus $1.71M of deferred contract costs. Operating cash flow turned negative at -$0.38M. The company has $25.5M cash against $30.3M of bank loans due within one year, and it just regained Nasdaq minimum bid price compliance in September after falling below $1.00. The planned JAJI Global IPO could deconsolidate a subsidiary and create related-party complications. This is a company growing revenue but losing money at an accelerating rate, with margin pressure from wage inflation and competitive pricing in Chinese IT services.
How filings like this one have moved
In the 30 days to Oct 31, 2026, 31.5% of the 1750 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CLPS was trading at $0.99 on NASDAQ in the Technology sector, with a market capitalization of approximately $30.3M. The 52-week trading range was $0.80 to $1.88. This filing was assessed with negative market sentiment and an importance score of 7 out of 10.