CLPS

HONG KONG, March 6, 2026 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its unaudited financial results for the six months ended December 31, 2025, or the first half of the Company's fiscal year 2026. During this period, while the downsizing of a key client's China Solution Centers (CSCs) continued to create a significant financial impact, the Company delivered a robust financial performance, achieving growth across both the top and bottom lines. Total revenue continued its upward trajectory, and most significantly, the Company realized a year-over-year increase in net income. This growth trend highlights the effectiveness of our stringent resource allocation and our strategic pivot toward high-value international markets and cutting-edge technological integrations. The Company's operational resilience was further demonstrated by its ability to secure new clients and achieve year-over-year growth in IT consulting services, successfully offsetting the impact triggered by a major client's global restructuring strategy in the previous fiscal year. In addition, the digital transformation team's focus on high-demand fields such as artificial intelligence (AI), robotic process automation (RPA), and payment technologies resulted in a remarkable 134.7% increase in customized IT solution services, reaching $2.2 million for the period. These successes were underpinned by the maintenance of long-standing relationships with existing clients and a deliberate reduction in revenue concentration in mainland China in favor of aggressive overseas expansion. As a result, revenue generated from outside of mainland China surged. This was driven by a strong performance of our IT services business in the APAC region, where aggregate revenue (excluding mainland China) rose from $16.9 million to $26.8 million, while the U.S. market saw exceptional growth, with revenue more than doubling—an increase of 101.6% to $4.1 million. First Half of Fiscal 2026 Highlights (all results compared to the six months ended December 31, 2024) Revenue increased by 2.8% to $85.1 million from $82.8 million. Revenue from customized IT solution services increased by 134.7% to $2.2 million from $0.9 million. Revenue generated outside of mainland China increased by 63.1% to $31.0 million from $19.0 million. Gross profit increased by 2.1% to $19.5 million from $19.2 million. Operating income increased by 300.5% to $0.6 million from $0.2 million. Net income increased by 74.9% to $0.3 million from $0.2 million. Total number of clients in IT services sector was 303 compared to 277. Total number of IT projects was 35 compared to 20. Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "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. Our digital transformation team has been at the forefront of this evolution, delivering high-impact solutions that streamline operational efficiency for financial institutions. Our recent partnership with The Bank of East Asia, Limited (BEA) to conduct a Proof of Concept for 'Nibot'—our proprietary AI agent—within the HKMA's GenA.I. Sandbox is a testament to our leadership in integrating RPA with Generative AI to enhance banking efficiency and risk management. Similarly, our successful modernization of a 30-year-old legacy mortgage system for a major Hong Kong bank, achieved in just seven months with a 70% automation rate, provides a clear blueprint for how we can help global institutions shed technical debt and embrace digital agility. We have unveiled a Web3-ready issuance platform that bridges traditional finance and digital assets. This solution enables secure, compliant, and real-time stablecoin settlement, meeting the highest global regulatory standards. To support this accelerating global demand, our Japan subsidiary has officially established an Offshore Delivery Center, strengthening our international business footprint and ensuring we have the localized talent and R&D capabilities to serve our clients 24/7. While we continue to win new business and expand our reach, we remain focused on disciplined resource allocation to ensure that CLPS remains agile, profitable, and at the forefront of the global digital economy." Ms. Rui Yang, Chief Financial Officer of CLPS, said, "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 and ability to address complex client requirements. Furthermore, our global expansion strategy continues to yield results, with revenue generated outside mainland China increasing by an impressive 63.1% to $31.0 million. 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. Additionally, net income grew by 74.9% to $0.3 million. Subsequent to the period-end, reinforcing our confidence in the Company's future and intrinsic value, our Board authorized a share repurchase program on February 4, 2026. Effective from February 5 through November 4, 2026, this initiative allows us to repurchase up to 1,000,000 shares in the open market at prices below $2.00 per share. This program underscores our belief that our equity represents a compelling value opportunity and reflects our commitment to enhancing shareholder returns. Although the downsizing of a key client's CSCs remained a headwind during this period, these results demonstrate the resilience of our business model, the effectiveness of our strategic pivot, and our unwavering focus on driving sustainable, profitable growth." First Half of Fiscal Year 2026 Financial Results Revenues In the first half of fiscal 2026, revenues increased by $2.3 million, or 2.8%, to $85.1 million from $82.8 million in the prior year period. The increase was primarily due to the increased in revenue from IT consulting and customized IT solution services. Revenues by Service Revenue from IT consulting services increased by $1.7 million, or 2.2%, to $81.8 million in the first half of fiscal year 2026 from $80.1 million in the prior year period. Revenue from IT consulting services accounted for 96.2% of total revenue compared to 96.7% in the prior year period. The increase was primarily due to a growth in client base and the successful execution of our global expansion strategy. Revenue from customized IT solution services increased by $1.3 million, or 134.7%, to $2.2 million in the first half of fiscal year 2026 from $0.9 million in the prior year period. Revenue from customized IT solution services accounted for 2.6% of total revenue compared to 1.1% in the prior year period. The increase was primarily due to initial success of our corporate transformation efforts and expanded investment in customized IT solution services. During this period, the successful market launch of Nibot began generating revenue. Furthermore, our project to modernize legacy banking systems using AI integration contributed to revenue growth within this service segment. Revenue from academic education services decreased by $0.2 million, or 19.0%, to $0.9 million in the first half of fiscal 2026, from $1.1 million in the prior year period. Revenue from academic education services accounted for 1.0% of total revenue, compared to 1.3% in the prior year period. The decrease was primarily attributable to resource integration following the acquisition of the College of Allied Educators (CAE). Looking ahead, we are focused on generating new momentum by launching innovative courses for CAE to boost enrollment and drive segment revenue growth. Revenue from other services decreased by $0.6 million, or 79.9%, to $0.1 million in the first half of fiscal year 2026 from $0.7 million in the prior year period. Revenue from other services accounted for 0.2% of total revenue compared to 0.8% in the prior year period. The decrease was primarily due to the decrease in revenue from IT product sales and head hunting services. Revenues by Operational Areas Revenue from the banking area decreased by $7.4 million, or 22.0%, to $26.1 million in the first half of fiscal year 2026 from $33.5 million in the prior year period. Revenue from banking area accounted for 30.7% and 40.4% of total revenues in the first half of fiscal 2026 and 2025, respectively. Revenue from the wealth management area decreased by $0.8 million, or 5.1%, to $14.6 million in the first half of fiscal year 2026 from $15.4 million in the prior year period. Revenue from wealth management area accounted for 17.2% and 18.6% of total revenues in the first half of fiscal 2026 and 2025, respectively. Revenue from the e-Commerce area increased by $0.3 million, or 1.9%, to $15.2 million in the first half of fiscal year 2026 from $14.9 million in the prior year period. Revenue from e-Commerce area accounted for 17.9% and 18.0% of total revenues in the first half of fiscal 2026 and 2025, respectively. Revenue from the automotive area increased by $1.9 million, or 21.5%, to $11.1 million in the first half of fiscal year 2026 from $9.2 million in the prior year period. Revenue from automotive area accounted for 13.1% and 11.1% of total revenues in the first half of fiscal 2026 and 2025, respectively. Revenue from the other areas increased by $8.2 million, or 83.6%, to $18.0 million in the first half of fiscal year 2026 from $9.8 million in the prior year period. Revenue from other area accounted for 21.2% and 11.8% of total revenues in the first half of fiscal 2026 and 2025, respectively. Revenues by Geography Revenue generated outside of mainland China increased by 63.1% to $31.0 million in the first half of fiscal year 2026 from $19.0 million in the prior year period. The increase was primarily due to the strong operational performance in Singapore, Hong Kong SAR, Japan, and USA. Gross Profit and Gross Margin Gross profit increased by $0.3 million, or 2.1%, to $19.5 million in the first half of fiscal 2026 compared to $19.2 million in the prior year period. The increase was primarily due to an increase in total revenue. Gross margin decreased to 23.0% in the first half of fiscal 2026 compared to 23.1% in the prior year period. Operating Expenses Selling and marketing expenses decreased by $0.4 million, or 13.6%, to $2.1 million in the first half of fiscal year 2026 from $2.5 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 2.5% in the first half of fiscal 2026 compared to 3.0% in the prior year period. The decrease was primarily due to AI-driven automation, workforce optimization, and structural realignment, which reduced redundancies, targeted high-value tasks, and aligned resources with business goals, improving efficiency while lowering expenses. Research and development expenses decreased by $1.3 million, or 38.7%, to $2.0 million in the first half of fiscal year 2026 from $3.3 million in the prior year period. As a percentage of total revenues, research and development expenses decreased to 2.4% in the first half of fiscal 2026 compared to 4.0% 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 $0.8 million, or 5.8%, to $14.9 million in the first half of fiscal year 2026 from $14.1 million in the prior year period. As a percentage of total revenues, general and administrative expenses increased to 17.6% in the first half of fiscal 2026 compared to 17.1% in the prior year period. The increase was primarily due to the recognition of one-time employee severance costs, which were triggered by a major client's global restructuring strategy. Operating Income Operating income increased by $0.4 million, or 300.5% to $0.6 million in the first half of fiscal 2026 from $0.2 million in the same period of the previous year. Operating margin was 0.7% in the first half of fiscal 2026 compared to 0.2% in the prior year period. Other Income and Expenses Total other expenses, net of other income was $0.1 million in the first half of fiscal 2026 compared to $0.2 million total other income, net of other expenses in the prior year period. Provision for Income Taxes Provision for income taxes decreased by $0.1 million to $0.2 million in the first half of fiscal 2026 from $0.3 million in the same period of the previous year. Net Income (Loss) and EPS Net income increased by $0.1 million, or 74.9%, to $0.3 million in the first half of fiscal 2026 from $0.2 million net income in the prior year period. Non-GAAP net income[1] decreased by $0.2 million, or 9.5%, to $2.1 million in the first half of fiscal year 2026 from $2.3 million in the prior year period. Net income attributable to CLPS Incorporation's shareholders was $83.0 thousand, or $0.003 basic and diluted earnings per share in the first half of fiscal 2026 compared to a net loss attributable to CLPS Incorporation's shareholders of $0.4 million, or $0.015 basic and diluted losses per share in the prior year period. Non-GAAP net income attributable to CLPS Incorporation's shareholders[2] was $1.8 million, or $0.06 basic and diluted earnings per share in the first half of fiscal 2026 compared to $1.7 million, or $0.06 basic and diluted earnings per share in the prior year period. Cash Flow As of December 31, 2025, the Company had cash and cash equivalents of $28.4 million compared to $28.2 million as of June 30, 2025. Net cash provided by operating activities was approximately $4.7 million. Net cash used in investing activities was approximately $0.2 million. Net cash used in financing activities was approximately $4.6 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 are subject to risks and uncertainties, including, but not limited to various risks and uncertainties facing the Company's business and operations as identified in its public filings. Exchange Rate The balance sheet amounts with the exception of equity as of December 31, 2025, were translated at 6.9931 RMB to 1.00 USD compared to 7.1636 RMB to 1.00 USD as of June 30, 2025. The equity accounts were stated at their historical rate. The average translation rates applied to the income statements accounts for the periods ended December 31, 2025 and 2024 were 7.1235 RMB to 1.00 USD and 7.1767 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 first half of fiscal year 2026, 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 cost of revenues, non-GAAP selling and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income attributable to CLPS Incorporation's shareholders, and basic and diluted non-GAAP net income per share, which are non-GAAP financial measures. Non-GAAP cost of revenues is cost of revenue excluding share-based compensation expenses. Non-GAAP selling and marketing expenses is selling and marketing expenses excluding share-based compensation expenses. Non-GAAP general and administrative expenses is general and administrative expenses excluding share-based compensation expenses. Non-GAAP operating income is operating income excluding share-based compensation expenses. Non-GAAP operating margin is non-GAAP operating income as a percentage of revenues. Non-GAAP net income is net income excluding share-based compensation expenses. Non-GAAP net income attributable to CLPS Incorporation's shareholders is net income attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses. Basic and diluted non-GAAP net income per share is non-GAAP net income 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 "Unaudited Reconciliation 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] View original content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-first-half-of-fiscal-year-2026-302706584.html

HONG KONG, Feb. 27, 2026 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS) today announced that it will release its financial results for the six months ended December 31, 2025, (the first half of the Company's fiscal year 2026) before the market opens on Friday, March 6, 2026. 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. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from 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 expectations of the Company's future growth, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, 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. Contact: CLPS Incorporation Rhon Galicha Investor Relations Office Phone: +86-182-2192-5378 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/clps-incorporation-to-announce-first-half-of-fiscal-2026-financial-results-302699503.html

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 increased by 15.0% to $81.7 million from $71.0 million. Revenue from IT consulting services increased by 16.9% to $78.7 million from $67.3 million. Revenue generated outside of mainland China increased by 77.1% to $23.5 million from $13.3 million. In particular: - 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 increased by 15.2% to $164.5 million from $142.8 million. Revenue from IT consulting services increased by 16.0% to $158.8 million from $136.8 million. Revenue generated outside of mainland China increased by 90.5% to $42.5 million from $22.3 million. In particular: - 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. Gross profit increased by 10.2% to $36.3 million from $32.9 million. Accounts receivable turnover period improved to 92 days, down from 111 days. Total number of clients from IT services segment increased by 6.3% to 319 from 300. Total number of employees increased by 6.3% to 3,534 from 3,325. 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 Revenue from IT consulting services increased by $11.4 million, or 16.9%, to $78.7 million in the second half of fiscal 2025, from $67.3 million in the prior year period. Revenue from IT consulting services accounted for 96.3% of total revenue, compared to 94.8% in the prior year period. The increase was due to the increased demand from existing and new clients. Revenue from customized IT solution services decreased by $0.1 million, or 4.7%, to $1.8 million in the second half of fiscal 2025, from $1.9 million in the prior year period. Revenue from customized IT solution services accounted for 2.2% of total revenue, compared to 2.7% in the prior year period. The decrease was primarily due to the decreased demand from existing clients. In response, we are actively pursuing new client acquisition and identifying emerging market needs, with an expectation for this segment to resume growth in the next fiscal year. Revenue from academic education services decreased by $0.08 million, or 7.8%, to $0.96 million in the second half of fiscal 2025, from $1.04 million in the prior year period. Revenue from academic education services accounted for 1.2% of total revenue, compared to 1.5% in the prior year period. The decrease was primarily attributable to resource integration following the acquisition of the College of Allied Educators (CAE). Looking ahead, we are focused on generating new momentum by launching innovative courses for CAE to boost enrollment and drive segment revenue growth. Revenue from other services decreased by $0.5 million, or 71.1%, to $0.2 million in the second half of fiscal 2025, from $0.7 million in the prior year period. Revenue from other services accounted for 0.3% of total revenue, compared to 1.0% in the prior year period. The decrease was primarily due to the decreased demand for other services, including head hunting service. Revenues by Operational Areas Revenue from banking area increased by $1.9 million, or 6.6%, to $30.6 million in the second half of fiscal 2025, from $28.7 million in the prior year period. Revenue from banking area accounted for 37.5% and 40.3% of total revenues in the second half of fiscal 2025 and 2024, respectively. Revenue from wealth management area decreased by $3.1 million, or 18.4%, to $13.9 million in the second half of fiscal 2025, from $17.0 million in the prior year period. Revenue from wealth management area accounted for 17.0% and 23.9% of total revenues in the second half of fiscal 2025 and 2024, respectively. Revenue from e-Commerce area increased by $4.7 million, or 46.1%, to $14.9 million in the second half of fiscal 2025, from $10.2 million in the prior year period. Revenue from e-Commerce area accounted for 18.2% and 14.3% of total revenues in the second half of fiscal 2025 and 2024, respectively. Revenue from automotive area increased by $4.6 million, or 65.6%, to $11.6 million in the second half of fiscal 2025, from $7.0 million in the prior year period. Revenue from automotive area accounted for 14.3% and 9.9% of total revenues in the second half of fiscal 2025 and 2024, respectively. Revenues by Geography Revenue generated outside of mainland China increased by 77.1% to $23.5 million in the second half of fiscal year 2025, from $13.3 million in the prior year period. The increase was primarily due to strong performance of our operations in Singapore, Hong Kong SAR and Japan, reflecting the Company's successful and continuous implementation of its global expansion strategy. 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 Revenue from IT consulting services increased by $22.0 million, or 16.0%, to $158.8 million in the fiscal year 2025, from $136.8 million in the prior year period. Revenue from IT consulting services accounted for 96.5% of total revenue, compared to 95.8% in the prior year period. The increase was due to the increased demand from existing and new clients. Revenue from customized IT solution services decreased by $0.3 million, or 11.6%, to $2.8 million in the fiscal year 2025, from $3.1 million in the prior year period. Revenue from customized IT solution services accounted for 1.7% of total revenue, compared to 2.2% in the prior year period. The decrease was primarily due to the decreased demand from existing clients. In response, we are actively pursuing new client acquisition and identifying emerging market needs, with an expectation for this segment to resume growth in the next fiscal year. Revenue from academic education services increased by $1.0 million, or 96.3%, to $2.0 million in the fiscal year 2025, from $1.0 million in the prior year period. Revenue from academic education services accounted for 1.2% of total revenue, compared to 0.7% in the prior year period. The increase was primarily due the full-year consolidation of results from academic education services. As the acquisition of CAE closed in the second half of fiscal 2024, the prior year period only included approximately six months of its operating revenue. Revenue from other services decreased by $0.9 million, or 49.7%, to $0.9 million in the fiscal year 2025, from $1.8 million in the prior year period. Revenue from other services accounted for 0.5% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the decreased demand for other services, including software sales. Revenues by Operational Areas Revenue from banking area increased by $6.9 million, or 12.1%, to $64.1 million in the fiscal year 2025, from $57.2 million in the prior year period. Revenue from banking area accounted for 39.0% and 40.0% of total revenues in the fiscal year 2025 and 2024, respectively. Revenue from wealth management area decreased by $6.3 million, or 17.8%, to $29.3 million in the fiscal year 2025, from $35.6 million in the prior year period. Revenue from wealth management area accounted for 17.8% and 24.9% of total revenues in the fiscal year 2025 and 2024, respectively. Revenue from e-Commerce area increased by $8.6 million, or 40.9%, to $29.8 million in the fiscal year 2025, from $21.2 million in the prior year period. Revenue from e-Commerce area accounted for 18.1% and 14.8% of total revenues in the fiscal year 2025 and 2024, respectively. Revenue from automotive area increased by $6.6 million, or 46.1%, to $20.8 million in the fiscal year 2025, from $14.2 million in the prior year period. Revenue from automotive area accounted for 12.7% and 10.0% of total revenues in the fiscal year 2025 and 2024, respectively. Revenues by Geography Revenue generated outside of mainland China increased by $20.2 million, or 90.5%, to $42.5 million in the fiscal year 2025, from $22.3 million in the prior year period. The increase was due to strong performance of our operations in Singapore, Hong Kong SAR and Japan, reflecting the Company's successful and continuous implementation of its global expansion strategy. 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] View original content:https://www.prnewswire.com/news-releases/clps-incorporation-reports-financial-results-for-the-second-half-and-full-year-of-fiscal-2025-302587615.html

HONG KONG, Oct. 10, 2025 /PRNewswire/ -- CLPS Incorporation (Nasdaq: CLPS) ("CLPS" or the "Company"), today announced that it will release its second half and full year of fiscal 2025 financial results before the market opens on Friday, October 17, 2025. 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. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from 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 expectations of the Company's future growth, deployment in the AI technology sector, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, 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. Contact: CLPS Incorporation Rhon Galicha Investor Relations Office Phone: +86-182-2192-5378 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/clps-incorporation-to-announce-second-half-and-full-year-of-fiscal-2025-financial-results-302580807.html