CLPS (CLPS) H1 2026 earnings summary

Executive summary

• Achieved 2.8% year-over-year revenue growth to $85.1 million for the first half of fiscal 2026, despite continued downsizing of a key client's China Solution Centers.

• Net income rose 74.9% year-over-year to $0.3 million, reflecting operational resilience and strategic pivot to international markets and advanced technologies.

• Significant expansion outside mainland China, with overseas revenue up 63.1% to $31.0 million, driven by strong APAC and U.S. performance.

• Customized IT solution services revenue surged 134.7% to $2.2 million, supported by AI, RPA, and payment technology initiatives.

• Board authorized a share repurchase program for up to 1,000,000 shares at prices below $2.00 per share, effective February–November 2026.

Financial highlights

• Gross profit increased 2.1% to $19.5 million; gross margin slightly decreased to 23.0% from 23.1%.

• Operating income rose 300.5% to $0.6 million; operating margin improved to 0.7%.

• Non-GAAP net income decreased 9.5% to $2.1 million; non-GAAP net income attributable to shareholders was $1.8 million, or $0.06 per share.

• Cash and cash equivalents stood at $28.4 million as of December 31, 2025.

Outlook and guidance

• Expects fiscal 2026 sales growth of 10–15% over fiscal 2025, with non-GAAP net income projected at $4.4–$5.0 million.

• Guidance subject to exchange rate fluctuations and absence of major acquisitions or non-recurring transactions.