CLPS revenue rises 4.7% despite widening losses

• CLPS reported fiscal 2026 revenue of $172.2 million, up 4.7%, while second-half revenue increased 6.6% to $87.1 million.
• Second-half gross profit fell 35.1% to $11.1 million, while net loss widened to $13.2 million from $6.6 million a year earlier.
• CLPS plans tighter cost controls for customized IT solutions in fiscal 2027, alongside continued international expansion and digital technology development.

CLPS (NASDAQ:CLPS) reported fiscal 2026 revenue of $172.2 million, up 4.7%, despite a widening second-half net loss of $13.2 million.

Second-half revenue increased 6.6% to $87.1 million, while the net loss doubled from $6.6 million a year earlier and gross profit declined 35.1% to $11.1 million.

CLPS attributed the gross profit decline primarily to higher delivery costs for emerging-technology projects, while a major customer's downsizing also pressured its revenue performance.

The company recognized goodwill impairment and a bad debt provision on related-party loans, adding to financial pressure during the six months ended June 30, 2026.

CLPS said it plans tighter customized-solution cost controls and further international expansion in fiscal 2027.

Full-year customized IT solution revenue increased 113.9% to $5.9 million, while revenue generated outside mainland China grew 47.5% to $62.7 million.

Earlier in fiscal 2026, CLPS reported first-half revenue of $85.1 million and launched AI-related banking technology projects, including customized solutions for legacy financial systems.