ClearSign Technologies (CLIR) Q1 2026 earnings summary

Executive summary

• Reported a net loss of $2.19 million for Q1 2026, compared to a net loss of $2.08 million in Q1 2025, reflecting continued operating losses and negative cash flow as the company pursues commercialization of its combustion technologies.

• Revenues for Q1 2026 were $191,000, down 52% year-over-year, primarily from mid-stream and boiler burner product offerings; prior year revenues were mainly from spare parts and engineering services.

• Gross profit turned negative, with a loss of $393,000 in Q1 2026 versus a profit of $196,000 in Q1 2025, mainly due to lower revenues and a $410,000 increase in warranty accruals.

• Operating expenses decreased 23% year-over-year, driven by lower R&D and general and administrative costs, including reduced legal fees.

Financial highlights

• Cash and cash equivalents were $7.74 million as of March 31, 2026, down from $9.18 million at year-end 2025.

• Working capital stood at $6.61 million at quarter-end, compared to $8.64 million at December 31, 2025.

• No contractual debt obligations; operations have been funded primarily through equity offerings.

• Net cash used in operating activities was $1.35 million for Q1 2026, up from $1.11 million in Q1 2025.

Outlook and guidance

• Management expects continued operating losses and negative cash flow for the foreseeable future, with additional capital potentially needed depending on revenue growth and market conditions.

• Sufficient cash and expected collections are believed to fund operations for over twelve months; future funding may rely on equity offerings or warrant exercises.