CLPS (CLPS) H2 2026 earnings summary

Executive summary

• FY26 revenue grew 4.7% to $172.2M despite downsizing at a major client’s China Solution Centers; overseas expansion and customized solutions supported growth.

• Investments in emerging technologies and one-time charges pressured profitability; FY27 priorities include cost control, international expansion, and scaling digital solutions.

Financial highlights

• FY26 revenue was $172.2M, up 4.7% YoY; H2 revenue was $87.1M, up 6.6%.

• FY26 gross profit fell 15.5% to $30.7M; operating loss widened to $11.5M from $5.4M.

• FY26 net loss was $12.9M vs. $6.4M; non-GAAP net loss was $9.5M vs. $3.8M.

• H2 net loss was $13.2M vs. $6.6M; non-GAAP net loss was $11.6M vs. $6.1M.

• FY26 clients in IT services rose 12.5% to 359 and employees increased 4.8% to 3,705.

Outlook and guidance

• FY27 sales growth is forecast at 5%–10% vs. FY26, with non-GAAP net income of $3.0M–$4.0M, absent material acquisitions or non-recurring transactions.

• Guidance is preliminary and may be affected by floating exchange rates and business and operational risks.

• FY27 focus: disciplined cost control in customized solutions, scaling digital offerings and international reach, and improving operational efficiency.