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HONG KONG, Oct. 17, 2025 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its financial results for the six months and full year of fiscal 2025 ended June 30, 2025.
During this fiscal year, we faced a significant challenge when our long-standing and historically largest client announced a broad downsizing of its technology employee workforce within its China Solution Centers (CSCs) in Dalian and Shanghai, as part of its global restructuring strategy. As a result, this unprecedented strategic realignment required the dissolution of most of our dedicated IT staff serving the client. This action, while necessary, resulted in a significant increase in one-time employee severance expenses. Consequently, this non-recurring expense created unavoidable short-term pressure on our current period's net income. After excluding all of the layoff compensation, our adjusted net income for the fiscal year 2025 was $78.0 thousand.
We are transforming this challenge into an opportunity to advance our strategic objectives. While sustaining organic growth, we are accelerating our strategic shift toward building a more resilient revenue framework. This involves pioneering new, high-value project work in artificial intelligence (AI) and Robotic Process Automation (RPA) while intensifying our efforts to expand our international market presence. We are confident that the positive impact of these transformative steps will materialize and become evident in our financial performance in subsequent reporting periods. CLPS will continue to focus on long-term value creation through diversification, technology innovation, and international growth.
Unaudited Second Half of Fiscal 2025 Highlights (all results compared to the six months ended June 30, 2024)
- Revenue generated from Singapore increased by 96.1% to $12.4 million from $6.3 million.
- Revenue generated from Hong Kong SAR increased by 99.9% to $8.0 million from $4.0 million.
- Revenue generated from Japan increased by 174.6% to $1.1 million from $0.4 million.
Audited Fiscal Year 2025 Highlights (all results compared to the twelve months ended June 30, 2024)
- Revenue generated from Singapore increased by 99.2% to $21.9 million from $11.0 million.
- Revenue generated from Hong Kong SAR increased by 130.5% to $14.4 million from $6.2 million.
- Revenue generated from Japan increased by 253.2% to $2.0 million from $0.6 million.
Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "The past fiscal year demonstrated meaningful progress in building a more resilient and diversified business model. A key achievement was the significant reduction in client concentration risk, evidenced by the strategic push for global expansion which yielded substantial results. Overseas revenue grew 90.5% to $42.5 million, with the APAC region being a primary driver of this growth. The successful establishment of operations in key regional markets, including Indonesia and Canada, which has begun generating revenue, alongside our presence in Dubai, underscores a strategic pivot towards high-growth international territories. Our expanding global footprint not only contributed to this growth but also positions the Company for a more globally improved revenue stream in the future, mitigating regional economic fluctuations.
Navigating the operational and financial impact of the major client's global restructuring strategy was one of the central challenges of this fiscal year. It required a careful realignment of resources while simultaneously supporting growth from other existing and new clients. In parallel, we made pivotal investments in our future by advancing our proprietary RPA product Nibot, and AI solutions. These technological developments, which moved into real-world applications, represent a critical long-term asset. As we celebrate our 20th anniversary, these investments underscore a commitment to evolving our service offerings beyond our IT consulting services towards higher-value, IP-driven solutions."
Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "The fiscal 2025 financial performance reflects a dual reality: achieving robust top-line growth while actively navigating the impact of unforeseen, non-recurring challenges.
Our operations outside Mainland China strongly validated our global expansion strategy, demonstrating impressive growth momentum. Specifically, during this fiscal year, our key international markets in APAC—Singapore, Hong Kong SAR, and Japan—recorded substantial year-over-year growth rates of 99.2%, 130.5%, and 253.2%, respectively. Furthermore, our focus on working capital management yielded positive results, with accounts receivable turnover days improving from 111 days in the previous fiscal year to 92 days.
However, the unexpected restructuring of CSCs in Dalian and Shanghai by our significant client resulted in material one-time severance expenses due to corresponding workforce reduction. This placed inevitable short-term pressure on our net income.
Moving forward, we are proactively addressing this challenge by accelerating the diversification of our revenue streams. For instance, with the market launch of Nibot, and further advancements in AI, we anticipate increased revenue generation from customized IT solutions segment, which will substantially reduce our reliance on any single client. Moreover, CLPS's diversified presence across sectors such as education and tourism, and continuous acquisition of new clients, will further mitigate this risk. We remain deeply committed to maintaining stringent financial discipline while simultaneously supporting initiatives that enhance CLPS's long-term competitive advantage and shareholder value."
Unaudited Second Half of Fiscal Year 2025 Financial Results
Revenues
In the second half of fiscal 2025, revenues increased by $10.7 million, or 15.0%, to $81.7 million from $71.0 million in the prior year period. The increase in revenue was mainly due to the increased demand in IT consulting services.
Revenues by Service
Revenues by Operational Areas
Revenues by Geography
Gross Profit
Gross profit decreased by $46.5 thousand, or 0.3%, to $17.15 million in the second half of fiscal 2025, from $17.20 million in the prior year period.
Operating Expenses
Selling and marketing expenses increased by $0.9 million, or 47.5%, to $2.7 million in the second half of fiscal 2025, from $1.8 million in the prior year period. As a percentage of total revenues, selling and marketing expenses increased to 3.3% in the second half of fiscal 2025, compared to 2.6% in the prior year period. The increase was primarily due to an increase in sales staff to capture business growth opportunities.
Research and development expenses decreased by $1.5 million, or 36.0%, to $2.5 million in the second half of fiscal 2025, from $4.0 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 3.1% in the second half of fiscal 2025, compared to 5.6% in the prior year period. The decrease was primarily due to the redeployment of R&D staff to deliver customized IT solutions, resulting in a reclassification of these expenses as cost of revenues.
General and administrative expenses increased by $3.8 million, or 27.3%, to $17.7 million in the second half of fiscal 2025, from $13.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 21.7% in the second half of fiscal 2025, compared to 19.6% in the prior year period. This increase was primarily due to the recognition of significant one-time employee severance costs, which were triggered by a major client's global restructuring strategy. After excluding all of the layoff compensation, our general and administrative expenses increased by 0.3% compared to the prior-year period.
Operating Loss
Operating loss was $5.5 million in the second half of fiscal 2025, compared to operating loss of $1.6 million in the same period of the previous year. Operating margin was -6.8% compared to -2.3% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $87.5 thousand in the second half of fiscal 2025, compared to $0.6 million total other income, net of other expenses in the same period of previous year.
Provision (Benefit) for Income Taxes
Provision for income taxes was $0.7 million in the second half of fiscal 2025, compared to a benefit for income taxes of $0.2 million in the same period of the previous year.
Net Loss and Losses Per Share
Net loss was $6.6 million in the second half of fiscal 2025, compared to a net loss of $0.9 million in the prior year period.
Non-GAAP net loss[1] was $6.1 million in the second half of fiscal 2025, compared to a Non-GAAP net loss of $0.4 million in the prior year period.
Net loss attributable to CLPS Incorporation's shareholders was $6.7 million, or $0.24 basic and diluted losses per share in the second half of fiscal 2025, compared to a net loss attributable to CLPS Incorporation's shareholders of $0.8 million, or $0.03 basic and diluted losses per share in the second half of fiscal 2024.
Non-GAAP net loss attributable to CLPS Incorporation's shareholders[2] was $6.2 million, or $0.22 basic and diluted losses per share in the second half of fiscal 2024, compared to non-GAAP net loss attributable to CLPS Incorporation's shareholders of $0.4 million, or $0.02 basic and diluted losses per share in the second half of fiscal 2024.
Audited Fiscal Year 2025 Financial Results
Revenues
Revenues increased by $21.7 million, or 15.2%, to $164.5 million in the fiscal year 2025, from $142.8 million in the prior year period. The increase in revenue was mainly due to the increased demand in IT consulting services.
Revenues by Service
Revenues by Operational Areas
Revenues by Geography
Gross Profit
Gross profit increased by $3.4 million, or 10.2%, to $36.3 million in the fiscal year 2025, from $32.9 million in the prior year period. The increase was primarily attributed to an increase in total revenue.
Operating Expenses
Selling and marketing expenses increased by $0.6 million, or 13.3%, to $5.2 million in the fiscal year 2025, from $4.6 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 3.1% in the fiscal year 2025, compared to 3.2% in the prior year period. The increase was primarily due to an increase in sales staff to capture business growth opportunities.
Research and development expenses decreased by $1.4 million, or 18.7%, to $5.8 million in the fiscal year 2025, from $7.2 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 3.5% in the fiscal year 2025, compared to 5.0% in the prior year period. The decrease was primarily due to the redeployment of R&D staff to deliver customized IT solutions, resulting in a reclassification of these expenses as cost of revenues.
General and administrative expenses increased by $6.8 million, or 26.8%, to $31.9 million in the fiscal year 2025, from $25.1 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 19.4% in the fiscal year 2025, compared to 17.6% in the prior year period. This increase was primarily driven by two factors: first, the recognition of significant one-time employee severance costs, which were triggered by a major client's global restructuring strategy. After excluding all of the layoff compensation, our general and administrative expenses increased by 9.8% compared to the prior-year period. Second, the increase reflects necessary operational investments, including the establishment of the China Development Center (CDC) and Global Testing Center (GTC), which were put in place to support and capture the anticipated growth in demand for customized IT solutions services.
Operating Loss
Operating loss was $5.4 million, compared to an operating loss of $2.5 million in the same period of the previous year. Operating margin was -3.3% in the fiscal year 2025, compared to -1.8% in the prior year period.
Other Income and Expenses
Total other income, net of other expenses was $0.3 million in the fiscal year 2025, compared to $0.7 million total other income, net of other expenses in the prior year period.
Provision for Income Taxes
Provision for income taxes was $0.9 million in the fiscal year 2025, compared to a provision for income taxes of $0.2 million in the same period of the previous year.
Net Loss and (Losses) Earnings Per Share
Net loss was $6.4 million in the fiscal year 2025, compared to a net loss of $1.8 million in the prior year period.
Non-GAAP net loss[1] was $3.8 million in the fiscal year 2025, compared to a non-GAAP net income of $1.3 million in the prior year period.
Net loss attributable to CLPS Incorporation's shareholders was $7.0 million, or $0.26 basic and diluted losses per share in the fiscal year 2025, compared to net loss attributable to CLPS Incorporation's shareholders of $2.3 million, or $0.09 basic and diluted losses per share in the fiscal year 2024.
Non-GAAP net loss attributable to CLPS Incorporation's shareholders[2] was $4.5 million, or $0.16 basic and diluted losses per share in the fiscal year 2025, compared to non-GAAP net income attributable to CLPS Incorporation's shareholders of $0.8 million, or $0.03 basic and diluted earnings per share in the fiscal year 2024.
Cash Flow
As of June 30, 2025, the Company had cash and cash equivalents of $28.2 million compared to $29.1 million as of June 30, 2024.
Net cash used in operating activities was $2.5 million for the twelve months ended June 30, 2025. Net cash used in investing activities was $1.8 million. Net cash provided by financing activities was approximately $2.9 million. The effect of exchange rate change on cash was approximately positive $0.4 million. The Company believes that its current cash position and cash flow from operations are sufficient to meet its anticipated cash needs for at least the next 12 months.
Financial Outlook
Undeterred by the short-term challenges, we remain confident about our long-term business growth. For fiscal year 2026, the Company expects, considering our financial numbers could be affected by the floating exchange rate, and absent material acquisitions or non-recurring transactions, total sales growth in the range of approximately 10% to 15% compared to fiscal year 2025 financial results, and non-GAAP net income in the range of approximately $4.4 million to $5.0 million.
This forecast reflects the Company's current and preliminary views, which are subject to change and to risks and uncertainties, including, but not limited to, those facing the Company's business and operations as identified in its annual report on Form 20-F made with the Securities and Exchange Commission.
Exchange Rate
The balance sheet amounts with the exception of equity as of June 30, 2025, were translated at 7.1636 RMB to 1.00 USD compared to 7.2672 RMB to 1.00 USD as of June 30, 2024. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the periods ended June 30, 2025 and 2024 were 7.2143 RMB to 1.00 USD and 7.2248 RMB to 1.00 USD, respectively. The change in the value of the RMB relative to the U.S. dollar may affect our financial results reported in the U.S. dollar terms without giving effect to any underlying change in our business or results of operation.
About CLPS Incorporation
CLPS Incorporation (NASDAQ: CLPS), established in 2005 and headquartered in Hong Kong, is at the forefront of driving digital transformation and optimizing operational efficiency across industries through innovations in artificial intelligence, cloud computing, and big data. Our diverse business lines span sectors including fintech, payment and credit services, e-commerce, education and study abroad programs, and global tourism integrated with transportation services. Operating across 10 countries worldwide, with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), and supported by subsidiaries in Japan and the UAE, we provide a robust global service network that empowers legacy industries evolve into data-driven, intelligent ecosystems. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, Instagram, LinkedIn, X (formerly Twitter), and YouTube.
Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, and which may cause the actual results, performance, capital, ownership or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's financial and operational performance in the second half and full year of fiscal 2025, its expectations of the Company's future performance, its preliminary outlook and guidance offered in this presentation, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Use of Non-GAAP Financial Measures
The consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"), except that the consolidated statement of changes in shareholders' equity, consolidated statements of cash flows, and the detailed notes have not been presented. The Company uses non-GAAP operating income (loss), non-GAAP general and administrative expenses, non-GAAP operating margin, non-GAAP net income (loss) attributable to CLPS Incorporation's shareholders, and basic and diluted non-GAAP earnings (losses) per share, which are non-GAAP financial measures. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses and impairment of goodwill. Non-GAAP general and administrative expenses is a non-GAAP financial measure, which is defined as general and administrative expenses excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of revenues. Non-GAAP net income (loss) attributable to CLPS Incorporation's shareholders is net income (loss) attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses and impairment of goodwill. Basic and diluted non-GAAP earnings (losses) per share is non-GAAP net income (loss) attributable to common shareholders divided by weighted average number of shares used in the calculation of basic and diluted net income per share. The Company believes that separate analysis and exclusion of the non-cash impact of share-based compensation expenses clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the effect of non-cash share-based compensation expenses, which have been and will continue to be significant recurring expenses in its business. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company's net income for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.
The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. The Company encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. For more information on these non-GAAP financial measures, please see the table captioned "Reconciliations of Non-GAAP and GAAP Results" near the end of this release.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: [email protected]
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[1] Non-GAAP net loss/income is a non-GAAP financial measure, which is defined as net loss/income excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details. |
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[2] Non-GAAP net loss/income attributable to CLPS Incorporation's shareholders is a non-GAAP financial measure, which is defined as net loss/income attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details. |
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CLPS INCORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(Amounts in U.S. dollars ("$"), except for number of shares) |
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|
|
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|
|
|
As of |
|
|||||
|
|
|
June 30, 2025 (Audited) |
|
|
December 31, 2024 (Unaudited) |
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ASSETS |
|
|
|
|
|
|
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|
Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
|
28,173,160 |
|
|
|
35,626,137 |
|
|
Short-term investments |
|
|
896,949 |
|
|
|
1,643,691 |
|
|
Accounts receivable, net |
|
|
44,891,161 |
|
|
|
40,394,147 |
|
|
Prepayments, deposits and other assets, net |
|
|
7,441,565 |
|
|
|
4,285,476 |
|
|
Amounts due from related parties |
|
|
4,374,595 |
|
|
|
4,899,451 |
|
|
Total Current Assets |
|
$ |
85,777,430 |
|
|
$ |
86,848,902 |
|
|
Non-current assets: |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,212,463 |
|
|
|
20,972,905 |
|
|
Intangible assets, net |
|
|
2,055,102 |
|
|
|
2,067,127 |
|
|
Operating lease right-of-use assets |
|
|
3,407,995 |
|
|
|
3,430,925 |
|
|
Goodwill |
|
|
1,435,782 |
|
|
|
1,462,032 |
|
|
Long-term investments |
|
|
1,718,995 |
|
|
|
692,385 |
|
|
Prepayments, deposits and other assets, net |
|
|
481,761 |
|
|
|
1,005,886 |
|
|
Amounts due from related parties |
|
|
1,945,960 |
|
|
|
2,270,249 |
|
|
Deferred tax assets, net |
|
|
73,942 |
|
|
|
666,720 |
|
|
Total Assets |
|
$ |
118,109,430 |
|
|
$ |
119,417,131 |
|
|
|
|
|
|
|
|
|
|
|
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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|
|
|
|
|
|
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Current liabilities: |
|
|
|
|
|
|
|
|
|
Bank loans |
|
$ |
30,217,329 |
|
|
$ |
27,949,778 |
|
|
Accounts payable |
|
|
2,515,207 |
|
|
|
1,548,917 |
|
|
Accrued expenses and other current liabilities |
|
|
260,880 |
|
|
|
397,767 |
|
|
Tax payables |
|
|
2,463,706 |
|
|
|
1,906,938 |
|
|
Contract liabilities |
|
|
2,470,135 |
|
|
|
3,015,923 |
|
|
Salaries and benefits payable |
|
|
14,062,007 |
|
|
|
13,285,958 |
|
|
Operating lease liabilities |
|
|
2,348,195 |
|
|
|
1,853,798 |
|
|
Amount due to related parties |
|
|
21,884 |
|
|
|
20,324 |
|
|
Total Current Liabilities |
|
$ |
54,359,343 |
|
|
$ |
49,979,403 |
|
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
1,301,369 |
|
|
|
1,846,777 |
|
|
Deferred tax liabilities |
|
|
251,812 |
|
|
|
354,649 |
|
|
Unrecognized tax benefit |
|
|
3,715,163 |
|
|
|
3,696,355 |
|
|
Other non-current liabilities |
|
|
896,747 |
|
|
|
880,076 |
|
|
TOTAL LIABILITIES |
|
$ |
60,524,434 |
|
|
$ |
56,757,260 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common stock, $0.0001 par value, 100,000,000 shares |
|
|
2,799 |
|
|
|
2,799 |
|
|
Additional paid-in capital |
|
|
60,177,851 |
|
|
|
59,815,077 |
|
|
Statutory reserves |
|
|
5,853,445 |
|
|
|
5,761,656 |
|
|
Accumulated deficit |
|
|
(7,401,803) |
|
|
|
(650,193) |
|
|
Accumulated other comprehensive losses |
|
|
(3,095,507) |
|
|
|
(4,238,666) |
|
|
|
|
|
|
|
|
|
|
|
|
Total CLPS Incorporation's Shareholders' Equity |
|
|
55,536,785 |
|
|
|
60,690,673 |
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests |
|
|
2,048,211 |
|
|
|
1,969,198 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
|
57,584,996 |
|
|
|
62,659,871 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
118,109,430 |
|
|
$ |
119,417,131 |
|
|
CLPS INCORPORATION |
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|
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
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|
(Amounts in U.S. dollars ("$"), except for number of shares) |
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|
|||||||||||||
|
|
|
For the six months ended June 30, |
|
||||||||||
|
|
|
2025 |
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|
2024 |
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|
|
|
|
|
|
|
|
|
|
|||||
|
Revenue |
|
$ |
81,703,894 |
|
|
$ |
71,038,525 |
|
|||||
|
Cost of revenue (note 1) |
|
|
(64,553,449) |
|
|
|
(53,841,552) |
|
|||||
|
Gross profit |
|
|
17,150,445 |
|
|
|
17,196,973 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Operating income (expenses): |
|
|
|
|
|
|
|
|
|||||
|
Selling and marketing expenses (note 1) |
|
|
(2,727,725) |
|
|
|
(1,849,118) |
|
|||||
|
Research and development expenses |
|
|
(2,533,678) |
|
|
|
(3,961,031) |
|
|||||
|
General and administrative expenses (note 1) |
|
|
(17,737,124) |
|
|
|
(13,935,384) |
|
|||||
|
Impairment of goodwill |
|
|
(129,270) |
|
|
|
- |
|
|||||
|
Subsidies and other operating income |
|
|
440,978 |
|
|
|
926,159 |
|
|||||
|
Total operating expenses |
|
|
(22,686,819) |
|
|
|
(18,819,374) |
|
|||||
|
Loss from operations |
|
|
(5,536,374) |
|
|
|
(1,622,401) |
|
|||||
|
Other income |
|
|
652,412 |
|
|
|
943,448 |
|
|||||
|
Other expenses |
|
|
(564,956) |
|
|
|
(358,372) |
|
|||||
|
Loss before income tax and share of (loss) income in |
|
|
(5,448,918) |
|
|
|
(1,037,325) |
|
|||||
|
Provision (benefit) for income taxes |
|
|
679,739 |
|
|
|
(176,838) |
|
|||||
|
Loss before share of income in equity investees |
|
|
(6,128,657) |
|
|
|
(860,487) |
|
|||||
|
Share of (loss) income in equity investees, net of tax |
|
|
(480,926) |
|
|
|
6,632 |
|
|||||
|
Net loss |
|
|
(6,609,583) |
|
|
|
(853,855) |
|
|||||
|
Less: Net income (loss) attributable to noncontrolling |
|
|
50,238 |
|
|
|
(11,425) |
|
|||||
|
Net loss attributable to CLPS Incorporation's |
|
$ |
(6,659,821) |
|
|
$ |
(842,430) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Other comprehensive loss |
|
|
|
|
|
|
|
|
|||||
|
Foreign currency translation income (loss) |
|
$ |
1,171,934 |
|
|
$ |
(1,260,918) |
|
|||||
|
Less: Foreign currency translation income (loss) |
|
|
28,775 |
|
|
|
(31,951) |
|
|||||
|
Other comprehensive income (loss) attributable to CLPS |
|
$ |
1,143,159 |
|
|
$ |
(1,228,967) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|||||
|
CLPS Incorporation 's shareholders |
|
$ |
(5,516,662) |
|
|
$ |
(2,071,397) |
|
|||||
|
Comprehensive income (loss) attributable to |
|
|
79,013 |
|
|
|
(43,376) |
|
|||||
|
Comprehensive loss |
|
$ |
(5,437,649) |
|
|
$ |
(2,114,773) |
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
|
Basic losses per common share |
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
|||||
|
Weighted average number of share outstanding – basic |
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|||||
|
Diluted losses per common share |
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
|||||
|
Weighted average number of share outstanding – diluted |
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|||||
|
Note: |
|
|
|
|
|
|
|
|
|||||
|
(1) Includes share-based compensation expenses as |
|
|
|
|
|
|
|
|
|||||
|
Cost of revenues |
|
|
2,197 |
|
|
|
5,658 |
|
|||||
|
Selling and marketing expenses |
|
|
90,286 |
|
|
|
82,615 |
|
|||||
|
General and administrative expenses |
|
|
269,214 |
|
|
|
348,850 |
|
|||||
|
CLPS INCORPORATION |
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS - UNAUDITED |
||||||||
|
(Amounts in U.S. dollars ("$"), except for number of shares) |
||||||||
|
|
|
|
|
For the six months ended |
||||
|
June 30, |
||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|||||||
|
Cost of revenue |
|
|
$ |
(64,553,449) |
|
|
$ |
(53,841,552) |
|
Less: share-based compensation expenses |
|
|
|
(2,197) |
|
|
|
(5,658) |
|
Non-GAAP cost of revenue |
|
|
$ |
(64,551,252) |
|
|
$ |
(53,835,894) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(2,727,725) |
|
|
$ |
(1,849,118) |
|
Less: share-based compensation expenses |
|
|
|
(90,286) |
|
|
|
(82,615) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(2,637,439) |
|
|
$ |
(1,766,503) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(17,737,124) |
|
|
$ |
(13,935,384) |
|
Less: share-based compensation expenses |
|
|
|
(269,214) |
|
|
|
(348,850) |
|
Non-GAAP general and administrative |
|
|
$ |
(17,467,910) |
|
|
$ |
(13,586,534) |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
$ |
(5,536,374) |
|
|
$ |
(1,622,401) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP loss from operations |
|
|
$ |
(5,045,407) |
|
|
$ |
(1,185,278) |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(6.8 %) |
|
|
|
(2.3 %) |
|
Add: share-based compensation expenses and |
|
|
|
0.6 % |
|
|
|
0.6 % |
|
Non-GAAP operating margin |
|
|
|
(6.2 %) |
|
|
|
(1.7 %) |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(6,609,583) |
|
|
$ |
(853,855) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP net loss |
|
|
$ |
(6,118,616) |
|
|
$ |
(416,732) |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to CLPS Incorporation's |
|
|
$ |
(6,659,821) |
|
|
$ |
(842,430) |
|
Add: share-based compensation expenses and |
|
|
|
490,967 |
|
|
|
437,123 |
|
Non-GAAP net loss attributable to CLPS |
|
|
|
(6,168,854) |
|
|
|
(405,307) |
|
$ |
$ |
|||||||
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
27,986,798 |
|
|
|
25,619,294 |
|
GAAP basic losses per common share |
|
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
Add: share-based compensation expenses and |
|
|
|
0.02 |
|
|
|
0.01 |
|
Non-GAAP basic loss es per common share |
|
|
$ |
(0.22) |
|
|
$ |
(0.02) |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share |
|
|
|
27,986,798 |
|
|
|
25,619,294 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per common share |
|
|
$ |
(0.24) |
|
|
$ |
(0.03) |
|
Add: share-based compensation expenses and |
|
|
|
0.02 |
|
|
|
0.01 |
|
Non-GAAP diluted loss
es
per common |
|
|
$ |
(0.22) |
|
|
$ |
(0.02) |
|
CLPS INCORPORATION |
||||||||
|
AUDITED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Amounts in U.S. dollars ("$"), except for number of shares) |
||||||||
|
|
||||||||
|
|
|
As of June 30, |
|
|||||
|
|
|
2025 |
|
|
2024 |
|
||
|
ASSETS |
|
|
|
|
|
|
||
|
Current assets : |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
28,173,160 |
|
|
$ |
29,116,431 |
|
|
Restricted cash |
|
|
- |
|
|
|
24,081 |
|
|
Short-term investments |
|
|
896,949 |
|
|
|
2,100,000 |
|
|
Accounts receivable, net |
|
|
44,891,161 |
|
|
|
38,779,209 |
|
|
Prepayments, deposits and other assets, net |
|
|
7,441,565 |
|
|
|
4,497,578 |
|
|
Amounts due from related parties |
|
|
4,374,595 |
|
|
|
3,559,109 |
|
|
Total Current Assets |
|
|
85,777,430 |
|
|
|
78,076,408 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current assets : |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
21,212,463 |
|
|
|
21,168,524 |
|
|
Intangible assets, net |
|
|
2,055,102 |
|
|
|
2,254,372 |
|
|
Goodwill |
|
|
1,435,782 |
|
|
|
1,473,899 |
|
|
Operating lease right-of-use assets |
|
|
3,407,995 |
|
|
|
2,776,858 |
|
|
Long-term investments |
|
|
1,718,995 |
|
|
|
613,807 |
|
|
Prepayments, deposits and other assets, net |
|
|
481,761 |
|
|
|
594,603 |
|
|
Amounts due from related parties |
|
|
1,945,960 |
|
|
|
2,374,298 |
|
|
Deferred tax assets, net |
|
|
73,942 |
|
|
|
697,047 |
|
|
Total Assets |
|
$ |
118,109,430 |
|
|
$ |
110,029,816 |
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Bank loans |
|
$ |
30,217,329 |
|
|
$ |
23,232,856 |
|
|
Accounts payable |
|
|
2,515,207 |
|
|
|
949,137 |
|
|
Accrued expenses and other current liabilities |
|
|
260,880 |
|
|
|
799,495 |
|
|
Tax payables |
|
|
2,463,706 |
|
|
|
2,351,615 |
|
|
Contract liabilities |
|
|
2,470,135 |
|
|
|
1,139,001 |
|
|
Salaries and benefits payable |
|
|
14,062,007 |
|
|
|
9,941,541 |
|
|
Operating lease liabilities |
|
|
2,348,195 |
|
|
|
1,361,928 |
|
|
Amounts due to related party |
|
|
21,884 |
|
|
|
20,230 |
|
|
Total Current Liabilities |
|
|
54,359,343 |
|
|
|
39,795,803 |
|
|
|
|
|
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
|
|
|
|
|
|
Operating lease liabilities |
|
|
1,301,369 |
|
|
|
1,638,243 |
|
|
Unrecognized tax benefits |
|
|
3,715,163 |
|
|
|
3,413,850 |
|
|
Deferred tax liabilities |
|
|
251,812 |
|
|
|
378,344 |
|
|
Other non-current liabilities |
|
|
896,747 |
|
|
|
883,963 |
|
|
T otal Liabilities |
|
|
60,524,434 |
|
|
|
46,110,203 |
|
|
Commitments and Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
|
|
|
|
|
|
|
|
Common shares, $0.0001 par value, 100,000,000 shares |
|
|
2,799 |
|
|
|
2,564 |
|
|
Additional paid-in capital |
|
|
60,177,851 |
|
|
|
61,351,200 |
|
|
Statutory reserves |
|
|
5,853,445 |
|
|
|
5,553,104 |
|
|
Accumulated deficit |
|
|
(7,401,803) |
|
|
|
(51,728) |
|
|
Accumulated other comprehensive losses |
|
|
(3,095,507) |
|
|
|
(4,345,902) |
|
|
|
|
|
|
|
|
|
|
|
|
Total CLPS Incorporation's Shareholders' Equity |
|
|
55,536,785 |
|
|
|
62,509,238 |
|
|
|
|
|
|
|
|
|
|
|
|
Noncontrolling Interests |
|
|
2,048,211 |
|
|
|
1,410,375 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Shareholders' Equity |
|
|
57,584,996 |
|
|
|
63,919,613 |
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
$ |
118,109,430 |
|
|
$ |
110,029,816 |
|
|
CLPS INCORPORATION |
||||||||
|
AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS |
||||||||
|
(Amounts in U.S. dollars ("$"), except for number of shares) |
||||||||
|
|
||||||||
|
|
|
For the years ended June 30, |
|
|||||
|
|
|
2025 |
|
|
2024 |
|
||
|
|
|
|
|
|
|
|
||
|
Revenue from third parties |
|
$ |
164,229,721 |
|
|
$ |
142,725,554 |
|
|
Revenue from related party |
|
|
251,693 |
|
|
|
87,172 |
|
|
Cost of revenue from third parties (note 1) |
|
|
(127,987,226) |
|
|
|
(109,795,857) |
|
|
Cost of revenue from related party |
|
|
(188,770) |
|
|
|
(69,738) |
|
|
Gross profit |
|
|
36,305,418 |
|
|
|
32,947,131 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (expenses): |
|
|
|
|
|
|
|
|
|
Selling and marketing expenses (note 1) |
|
|
(5,180,682) |
|
|
|
(4,573,344) |
|
|
Research and development expenses |
|
|
(5,815,555) |
|
|
|
(7,155,949) |
|
|
General and administrative expenses (note 1) |
|
|
(31,852,179) |
|
|
|
(25,120,010) |
|
|
Impairment of goodwill |
|
|
(129,270) |
|
|
|
- |
|
|
Subsidies and other operating income |
|
|
1,294,964 |
|
|
|
1,363,757 |
|
|
Total operating expenses |
|
|
(41,682,722) |
|
|
|
(35,485,546) |
|
|
Loss from operations |
|
|
(5,377,304) |
|
|
|
(2,538,415) |
|
|
Other income |
|
|
1,237,678 |
|
|
|
1,251,465 |
|
|
Other expenses |
|
|
(935,988) |
|
|
|
(556,415) |
|
|
Loss before income tax and share of (loss) income in |
|
|
(5,075,614) |
|
|
|
(1,843,365) |
|
|
Provision for income taxes |
|
|
947,529 |
|
|
|
160,725 |
|
|
Loss before share of (loss) income in equity |
|
|
(6,023,143) |
|
|
|
(2,004,090) |
|
|
Share of (loss) income in equity investees, net of tax |
|
|
(403,421) |
|
|
|
156,780 |
|
|
Net loss |
|
|
(6,426,564) |
|
|
|
(1,847,310) |
|
|
Less: Net income attributable to noncontrolling |
|
|
623,170 |
|
|
|
482,655 |
|
|
Net loss attributable to CLPS Incorporation's |
|
$ |
(7,049,734) |
|
|
$ |
(2,329,965) |
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income (loss) |
|
|
|
|
|
|
|
|
|
Foreign currency translation income (loss) |
|
$ |
1,265,061 |
|
|
$ |
(355,386) |
|
|
Less: Foreign currency translation income (loss) |
|
|
14,666 |
|
|
|
(78) |
|
|
Other comprehensive income (loss) attributable to |
|
$ |
1,250,395 |
|
|
$ |
(355,308) |
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive loss attributable to |
|
|
|
|
|
|
|
|
|
CLPS Incorporation 's shareholders |
|
$ |
(5,799,339) |
|
|
$ |
(2,685,273) |
|
|
Comprehensive income attributable to noncontrolling |
|
|
637,836 |
|
|
|
482,577 |
|
|
Comprehensive loss |
|
$ |
(5,161,503) |
|
|
$ |
(2,202,696) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic losses per common share |
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
|
Weighted average number of share outstanding – |
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
Diluted losses per common share |
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
|
Weighted average number of share outstanding – |
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
Note: |
|
|
|
|
|
|
|
|
|
(1) Includes share-based compensation expenses Cost of revenues |
|
|
7,503 |
|
|
|
11,467 |
|
|
Selling and marketing expenses |
|
|
179,938 |
|
|
|
275,562 |
|
|
General and administrative expenses |
|
|
2,280,469 |
|
|
|
2,880,987 |
|
|
CLPS INCORPORATION |
||||||||
|
RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED |
||||||||
|
(Amounts in U.S. dollars ("$"), except for number of shares) |
||||||||
|
|
|
|
|
For the years ended |
||||
|
June 30, |
||||||||
|
|
|
|
|
2025 |
|
|
|
2024 |
|
|
|
|||||||
|
Cost of revenue |
|
|
$ |
(128,175,996) |
|
|
$ |
(109,865,595) |
|
Less: share-based compensation expenses |
|
|
|
(7,503) |
|
|
|
(11,467) |
|
Non-GAAP cost of revenue |
|
|
$ |
(128,168,493) |
|
|
$ |
(109,854,128) |
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing expenses |
|
|
$ |
(5,180,682) |
|
|
$ |
(4,573,344) |
|
Less: share-based compensation expenses |
|
|
|
(179,938) |
|
|
|
(275,562) |
|
Non-GAAP selling and marketing expenses |
|
|
$ |
(5,000,744) |
|
|
$ |
(4,297,782) |
|
|
|
|
|
|
|
|
|
|
|
General and administrative expenses |
|
|
$ |
(31,852,179) |
|
|
$ |
(25,120,010) |
|
Less: share-based compensation expenses |
|
|
|
(2,280,469) |
|
|
|
(2,880,987) |
|
Non-GAAP general and administrative |
|
|
$ |
(29,571,710) |
|
|
$ |
(22,239,023) |
|
|
|
|
|
|
|
|
|
|
|
Operating loss |
|
|
$ |
(5,377,304) |
|
|
$ |
(2,538,415) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP operating (loss) income |
|
|
$ |
(2,780,124) |
|
|
$ |
629,601 |
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
(3.3 %) |
|
|
|
(1.8 %) |
|
Add: share-based compensation expenses and |
|
|
|
1.6 % |
|
|
|
2.2 % |
|
Non-GAAP operating margin |
|
|
|
(1.7 %) |
|
|
|
0.4 % |
|
|
|
|
|
|
|
|
|
|
|
Net loss |
|
|
$ |
(6,426,564) |
|
|
$ |
(1,847,310) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP net (loss) income |
|
|
$ |
(3,829,384) |
|
|
$ |
1,320,706 |
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to CLPS Incorporation's |
|
|
$ |
(7,049,734) |
|
|
$ |
(2,329,965) |
|
Add: share-based compensation expenses and |
|
|
|
2,597,180 |
|
|
|
3,168,016 |
|
Non-GAAP net (loss) income attributable to |
|
|
$ |
(4,452,554) |
|
|
$ |
838,051 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
27,533,182 |
|
|
|
25,213,012 |
|
GAAP basic losses per common share |
|
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
Add: share-based compensation expenses and |
|
|
|
0.10 |
|
|
|
0.12 |
|
Non-GAAP basic (losses) earnings per |
|
|
$ |
(0.16) |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of share outstanding |
|
|
|
27,533,182 |
|
|
|
25,213,012 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted losses per common share |
|
|
$ |
(0.26) |
|
|
$ |
(0.09) |
|
Add: share-based compensation expenses and |
|
|
|
0.10 |
|
|
|
0.12 |
|
Non-GAAP diluted (losses) earnings per |
|
|
$ |
(0.16) |
|
|
$ |
0.03 |
|
|
|
|
|
|
|
|
|
|
SOURCE CLPS
| Oct-17 | |
| Oct-10 | |
| Sep-11 | |
| Jun-06 | |
| Mar-25 | |
| Mar-05 | |
| Feb-26 | |
| Feb-25 | |
| Feb-22 | |
| Feb-21 | |
| Feb-11 | |
| Feb-07 | |
| Jan-21 | |
| Dec-19 | |
| Nov-22 |
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