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Earnings call · Jun 2026 (Q2 FY26)

ClearSign Technologies Q2 FY26 earnings call CLIR

Aug 19, 2026 Source

Executive summary

ClearSign Q2 FY26 — Strong Project Pipeline and New Licensing Model

ClearSign Technologies reported increased revenue and a reduced net loss in Q2 FY26, driven by M-Series burner sales and flare system deliveries. The company is actively progressing key process burner installations, including a significant Gulf Coast project, and expanding its market reach with a new flat-flame burner variant and a licensing model for M-Series. A recent capital raise strengthened the balance sheet, and a new board member brings valuable industry expertise, positioning the company for potential double-digit million revenues in the coming years, contingent on successful project startups.

Highlights

5

  • Revenue increased to $560,000 in Q2 FY26, up from $133,000 in Q2 FY25.

  • Net loss decreased by $373,000 year-over-year in Q2 FY26.

  • Secured 6 M-Series burner orders, including 5 large M1 units, with individual units priced up to $200,000.

  • Successfully raised $1.7 million in net proceeds through a private equity offering in July 2026.

  • New flat-flame burner technology for process burners expands addressable market to heaters needing long flat burners, with potential for orders in the hundreds for ethylene sites.

Concerns

2

  • Net cash used in operations increased to $1.2 million in Q2 FY26, up from $511,000 in Q2 FY25.

  • A 36-burner process burner project in Texas is on hold due to client financing delays.

Guidance & targets

CategoryTargetConfidence
Sales run rate
$6 million to $7 million
medium materiality
Medium
Annual sales revenue
double-digit million
high materiality
High

Product announcements

ProductTypeDetails
Flat-flame burner variantexpansion

Deals & partnerships

long-term investor group Strategic capital raise to strengthen balance sheet. $1.7 million net proceeds

Sold 500,000 shares at $3.54 per share on July 21, 2026. This followed an earlier small strategic raise with another long-term investor.

unnamed heater manufacturer Agreement for the manufacturer to produce M-Series burners from ClearSign drawings.

This is a first step towards a royalty-type business model for scalability. ClearSign will be involved in inspection.

Risks & headwinds

Client financing delays for process burner project on hold at this time

36-burner order

Mitigation:waiting the resolution of that financing

What to watch in Q3 FY26

Gulf Coast Process Burner Startup

October
Current currently going through training for the site specific requirements
Target Successful installation and firing up

Why it matters

This is the most advanced process burner project and is expected to be extremely meaningful for ClearSign, with many industry prospects watching its success.

First thing is really easy. This Texas start-up is going to be really important and extremely meaningful for ClearSign. So we're all very excited. That right now is scheduled to be in October, and we will let people know as soon as we get results from that.

Q&A highlights

What differentiates the M1 and M25 M-Series burners in terms of technology, NOx levels, and pricing?

The M1 is a high-tech burner with sophisticated flow controls for low single-digit NOx emissions, providing extreme value by avoiding catalytic conversion units. The M25 is a simpler, more price-competitive product with less sophisticated controls, targeting less stringent NOx requirements and having less metal.

“The M1 series has a very high-tech arrangement or nozzles within the burner to control the mixing that controls the chemistry that allows us to get the NOx emissions down into the low single-digit range. The M25, which is the sister product line that is a more price competitive product does not get down to the same NOx levels but we've achieved that by simplifying the burner design.”

asked by Sameer Joshi · answered by Colin James Deller

2 min read 6 chapters

Detailed narrative

Capital Raises and Balance Sheet Strengthening

ClearSign successfully completed two private equity offerings, raising approximately $1.7 million in net proceeds in July 2026. These raises were strategic, done at market pricing, and involved long-term investors, aiming to strengthen the balance sheet, which is crucial for discussions with large customers. The pro forma cash balance as of June 30, 2026, including these proceeds, would be $11.6 million.

Strategic Board Addition

Larry Saddler, former Exxon Global Technology leader, joined the Board of Directors. Saddler, known for his technical oversight of fire equipment and corporate-level policy experience at ExxonMobil, personally vetted ClearSign's burner technology at a customer demonstration event in April, conducting extreme tests to validate its stability and ruggedness across various fuels before agreeing to join. This addition is expected to provide invaluable industry insights.

M-Series Burner Momentum and Licensing Model

The company secured orders for 6 M-Series burners, including 5 large M1 units, destined for top-tier multinational energy companies in the Permian Basin. A significant development is the introduction of a licensing model for 3 of these burners, where a heater manufacturer will fabricate the burners from ClearSign's drawings. This model maintains ClearSign's profit margin dollars while reducing its revenue per unit, offering a scalable growth path. The M-Series pipeline remains strong with approximately 50 proposals outstanding.

Key Process Burner Projects Advancing

ClearSign is progressing several significant process burner projects. The 26-burner Gulf Coast project is on track for installation and startup in October, with training and final preparations underway. A 32-burner California refinery project, featuring a new flat-flame burner variant, is in the manufacturing phase for testing, with client approval expected in early October. This new burner type significantly expands ClearSign's addressable market to heaters requiring long flat flames, including potential future applications in high-temperature processes like coker and ethylene furnaces.

Flare Product Line Maturing

The flare product line is becoming a meaningful revenue stream, evolving from selling individual burner elements (priced around $150,000-$200,000) to full system flares (ranging from $750,000 to $1.5 million). A project in California involving a ClearSign flare burner replacement has successfully started up and is awaiting formal test reports, with initial results being very positive. The first full system flare is currently being installed for the same client, with more orders anticipated.

Optimistic Outlook and Resource Management

Management expressed strong optimism about the overall business status, citing the M-Series penetration into top-tier clients, the scalable licensing model, the growing flare product line, and the significant potential from process burner startups. The company is experiencing high activity levels, with resources being carefully scheduled to manage multiple startups, installations, and testing activities across its product lines, highlighting the team's dedication.

AI-generated summary of the company's earnings call. Not investment advice.