Quick Verdict: CLPS Incorporation posted $85.1M in revenue for H1 FY2026 (+2.8% YoY), with GAAP EPS of $0.003 (swinging from a -$0.015 loss) and net income surging 74.9% to $0.3M. Operating income tripled to $0.6M. Customized IT solutions revenue exploded 134.7%. Shares closed at $1.01 on earnings day, down approximately 4.7% from the prior close of $1.06, reflecting cautious market sentiment despite improved profitability.
About CLPS Incorporation
CLPS Incorporation (NASDAQ: CLPS) is a global information technology consulting and solutions service provider established in 2005 and headquartered in Hong Kong. The company primarily serves global institutions in the banking, wealth management, e-commerce, and automotive sectors, offering IT consulting, customized IT solutions, and academic education services. CLPS operates across 10 countries with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), supported by subsidiaries in Japan and the UAE.
As of March 2026, CLPS has a market capitalization of approximately $30 million and trades at roughly $1.01 per share. The company employs approximately 3,530 people globally. With a trailing revenue run rate of approximately $164.5M (FY2025) and expanding international operations, CLPS positions itself at the intersection of fintech, AI integration, and digital transformation services for financial institutions worldwide. The stock carries a beta of approximately 0.54, indicating relatively lower volatility compared to the broader market.
Top Financial Highlights
- Total Revenue: $85.1 million, up 2.8% from $82.8 million in H1 FY2025.
- Net Income: $0.3 million, up 74.9% YoY from $0.2 million.
- GAAP EPS: $0.003 basic and diluted, compared to a loss of -$0.015 in H1 FY2025.
- Non-GAAP EPS: $0.06 basic and diluted, flat with prior year.
- Gross Profit: $19.5 million, up 2.1% from $19.2 million; gross margin at 23.0%.
- Operating Income: $0.6 million, a 300.5% increase from $0.2 million.
- IT Consulting Revenue: $81.8 million (+2.2% YoY), accounting for 96.2% of total revenue.
- Customized IT Solution Services Revenue: $2.2 million, surging 134.7% from $0.9 million.
- International Revenue (Outside Mainland China): $31.0 million, up 63.1% from $19.0 million.
- U.S. Market Revenue: Revenue more than doubled, growing 101.6% to $4.1 million.
- Operating Cash Flow: Approximately $4.7 million.
- Cash and Cash Equivalents: $28.4 million as of December 31, 2025 (vs. $28.2M at June 30, 2025).
- Total Clients in IT Services: 303, up from 277.
- Total IT Projects: 35, up from 20.
- FY2026 Revenue Guidance: 10%–15% growth vs. FY2025; Non-GAAP net income of $4.4M–$5.0M.
CLPS Incorporation Consolidated Balance Sheets
CLPS Incorporation Unaudited Consolidated Statement of Income and Comprehensive Income
CLPS Incorporation Unaudited Reconciliation of Non-GAAP and GAAP Results
Beat or Miss?
CLPS does not typically receive broad Wall Street analyst coverage, so formal consensus estimates are not readily available. However, the company’s own guidance and prior-period comparisons provide context for evaluating performance:
| Metric | H1 FY2026 Reported | H1 FY2025 Reported | Difference/Analysis |
| Total Revenue | $85.1M | $82.8M | +2.8% YoY — steady growth |
| Gross Profit | $19.5M | $19.2M | +2.1% YoY; margin stable at 23.0% |
| Operating Income | $0.6M | $0.2M | +300.5% — tripled YoY |
| Net Income | $0.3M | $0.2M | +74.9% YoY improvement |
| GAAP EPS | $0.00 | ($0.02) | Swung to profit from loss |
| Non-GAAP Net Income | $2.1M | $2.3M | -9.5% — declined due to lower SBC |
| Non-GAAP EPS | $0.06 | $0.06 | Flat YoY |
| Operating Cash Flow | $4.7M | N/A | Positive, supporting liquidity |
| FY2026 Revenue Guidance | 10%–15% growth | — | Implies $181M–$189M full year (vs. $164.5M FY2025) |
The revenue growth of 2.8% is moderate but notable given the continued headwind from a key client’s China Solution Center downsizing. GAAP profitability swung decisively from a loss to a gain, representing a meaningful operational turnaround.
What Leadership Is Saying?
“The first half of fiscal year 2026 marks a pivotal turning point for CLPS, demonstrating that our comprehensive strategic transformation is not merely a response to market shifts, but a successful engine for building future-oriented competitive advantages. In the current global economy environment, the deep integration of technology and business is no longer an option; it is essential for survival and leadership. We have acted decisively to diversify our geographic footprint and evolve our service offerings. By reducing our reliance on a single market and expanding our reach into North America, APAC, and the Middle East, we are establishing a more stable and scalable foundation for long-term growth.” – CEO Raymond Lin — Strategic Vision
“I am pleased to report that our disciplined strategic execution has delivered another period of solid growth and enhanced profitability. Total revenue increased by 2.8% to $85.1 million, underpinned by the early success of our corporate transformation efforts. Notably, revenue from customized IT solution services surged 134.7% to $2.2 million, a testament to the strength of our advanced technological capabilities. Our commitment to operational efficiency is reflected in our bottom-line results. Gross profit increased by 2.1% to $19.5 million, while operating income tripled—rising 300.5% to $0.6 million.” – CFO Rui Yang — Financial Discipline
Historical Performance
CLPS: H1 FY2026 vs. H1 FY2025
| Category | H1 FY2026 (Jul–Dec 2025) | H1 FY2025 (Jul–Dec 2024) | Change (%) |
| Total Revenue | $85.1M | $82.8M | +2.8% |
| Gross Profit | $19.5M | $19.2M | +2.1% |
| Operating Income | $0.6M | $0.2M | +300.5% |
| Net Income | $0.3M | $0.2M | +74.9% |
| Non-GAAP Net Income | $2.1M | $2.3M | -9.5% |
| S&M Expenses | $2.1M | $2.5M | -13.6% |
| R&D Expenses | $2.0M | $3.3M | -38.7% |
| G&A Expenses | $14.9M | $14.1M | +5.8% |
| Total Operating Expenses | $18.9M | $19.0M | -0.4% |
| GAAP EPS | $0.00 | ($0.02) | Swing to profit |
CLPS achieved significant operating leverage during H1 FY2026. Selling & marketing expenses fell 13.6% due to AI-driven automation and workforce optimization, while R&D expenses dropped 38.7% as staff were redeployed to deliver customized IT solutions (reclassified as cost of revenues). The only operating expense increase was in G&A (+5.8%), driven by one-time employee severance costs linked to a major client’s global restructuring.
Competitor Comparison
IT Services Sector (Oct–Dec 2025 Quarter)
CLPS operates in the IT consulting and solutions space but is a micro-cap company compared to industry giants. For context, the following table compares the same reporting period (October–December 2025) across CLPS and two major global IT services competitors:
| Category | CLPS (H1 FY2026: Jul–Dec 2025) | Infosys (Q3 FY26: Oct–Dec 2025) | Wipro (Q3 FY26: Oct–Dec 2025) |
| Revenue | $85.1M (6 months) | $5,099M (3 months) | $2,622M (3 months) |
| Revenue YoY Growth | +2.8% | +3.2% | +5.5% |
| Net Income | $0.3M (6 months) | $747M (3 months) | ~$347M (3 months) |
| Operating/EBIT Margin | 0.7% GAAP / 2.8% Non-GAAP | 21.2% adjusted | 17.6% |
| EPS | $0.003 GAAP | $0.18 | $0.03 |
| Key Focus | Fintech, banking, AI/RPA | Enterprise AI (Topaz), BFSI | AI-powered IT services (WINGS/WEGA) |
| Deal Bookings | 35 IT projects | $4.8B TCV | $3.3B TCV |
| Guidance | 10%–15% FY2026 revenue growth | 3%–3.5% FY26 CC growth | 0%–2% Q4 FY26 sequential CC growth |
Key Observations
- Scale Difference: CLPS generates roughly $85M in six months, while Infosys and Wipro each produce billions per quarter. CLPS is a niche micro-cap IT services player versus these global titans.
- Revenue Growth Comparison: All three companies posted modest single-digit revenue growth, reflecting a cautious global IT spending environment. CLPS’s 2.8% H1 growth is broadly in line with its larger peers’ quarterly growth rates.
- Margin Gap: CLPS’s operating margins (0.7% GAAP, 2.8% Non-GAAP) are significantly below Infosys (21.2%) and Wipro (17.6%), reflecting the company’s smaller scale, higher relative overhead, and ongoing restructuring costs.
- Growth Guidance: CLPS’s 10%–15% revenue growth target for FY2026 is notably more aggressive than Infosys’s 3%–3.5% and Wipro’s 0%–2% sequential guidance, driven largely by CLPS’s geographic expansion and new service lines.
How the Market Reacted?
CLPS shares closed at $1.01 on March 6, 2026—the day the H1 FY2026 earnings were released before market open—reflecting an approximately 4.7% decline from the prior close of $1.06. Despite the company reporting improved revenue growth, a swing to GAAP profitability, and tripled operating income, the market reaction was muted to negative. This is consistent with the stock’s micro-cap nature and thin trading volume, where investor sentiment can be influenced by factors beyond the headline numbers.
The authorized share repurchase program (up to 1,000,000 shares below $2.00, effective through November 2026) signals management confidence in the stock’s intrinsic value but has yet to materially support the share price. Overall, the earnings report carries a cautiously bullish tone—operational fundamentals are improving, international diversification is accelerating, and the company’s AI and RPA initiatives (including the Nibot partnership with Bank of East Asia) represent meaningful catalysts—but the market appears to be waiting for sustained revenue acceleration and margin expansion before re-rating the stock.
