CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2026

Second-half revenue growth coincided with lower gross profit and a net loss twice the prior-year level.

Rhea-AI Summary

CLPS (Nasdaq: CLPS) reported fiscal 2026 revenue growth of 4.7%, while its second-half net loss widened year over year. Revenue for the year ended June 30, 2026 reached $172.2 million; second-half revenue rose 6.6% to $87.1 million. Full-year customized IT solution revenue increased 113.9% to $5.9 million, and revenue outside mainland China rose 47.5% to $62.7 million.

Second-half gross profit fell 35.1% to $11.1 million, while net loss widened to $13.2 million from $6.6 million. CLPS attributed the gross profit decline primarily to higher delivery costs for emerging-technology projects. It also recognized goodwill impairment and a bad debt provision on related-party loans. A historically large client's downsizing pressured revenue. For fiscal 2027, the company plans tighter customized-solution cost controls alongside international and digital-solution expansion.

17 points · 0 major

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1 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointFiscal 2026 revenue increased 4.7% to $172.2 million from $164.5 million.
• Moderate pointFiscal 2026 revenue outside mainland China increased 47.5% to $62.7 million from $42.5 million.
• Minor pointSecond-half fiscal 2026 revenue increased 6.6% to $87.1 million from $81.7 million.
• Minor pointFiscal 2026 customized IT solution revenue rose 113.9% to $5.9 million from $2.8 million.
• Minor pointSecond-half customized IT solution revenue rose 103.1% to $3.7 million from $1.8 million.

12 minor points

• Minor pointSecond-half revenue outside mainland China increased 27.6% to $30.0 million from $23.5 million.
• Minor pointSecond-half IT consulting revenue increased 4.5% to $82.2 million from $78.7 million.
• Minor pointSecond-half banking revenue increased 9.3% to $33.4 million from $30.6 million.
• Minor pointSecond-half wealth management revenue increased 12.7% to $15.7 million from $13.9 million.
• Minor pointSecond-half other-services revenue increased 86.1% to $0.4 million from $0.2 million.
• Minor pointFiscal 2026 IT services client count increased 12.5% to 359 from 319.
• Minor pointSecond-half receivables collection time improved to 90 days from 93 days a year earlier.
• Minor pointSecond-half selling and marketing expenses fell 24.7% to $2.1 million from $2.7 million.
• Minor pointSecond-half general and administrative expenses fell 11.7% to $15.7 million from $17.7 million.
• Minor pointSecond-half income tax provision fell to $46.9 thousand from $0.7 million a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.Share repurchase program announced in February 2026 covers up to 1,000,000 shares.
• Minor point. Forward-looking: it has not happened yet and may not happen.Fiscal 2027 plans include customized-solution cost controls and expansion of international operations and digital solutions.

Negative

• Major pointSecond-half net loss widened to $13.2 million from $6.6 million a year earlier.
• Moderate pointSecond-half gross profit fell 35.1% to $11.1 million, primarily reflecting higher customized-solution delivery costs.
• Moderate pointSecond-half automotive revenue fell 52.3% to $5.6 million from $11.6 million.
• Moderate pointA historically large client's China Solution Center downsizing pressured fiscal 2026 revenue.
• Minor pointSecond-half shareholder loss per share widened to $0.44 basic and diluted from $0.24.

8 minor points

• Minor pointSecond-half operating loss widened to $12.1 million from $5.5 million a year earlier.
• Minor pointSecond-half operating margin deteriorated to -13.9% from -6.8% a year earlier.
• Minor pointSecond-half e-commerce revenue fell 10.7% to $13.3 million from $14.9 million.
• Minor pointSecond-half academic education revenue fell 18.3% to $0.8 million from $1.0 million.
• Minor pointSecond-half research and development expenses rose 83.8% to $4.7 million from $2.5 million.
• Minor pointSecond-half net other expenses were $0.6 million, versus $87.5 thousand net other income a year earlier.
• Minor pointFiscal 2026 profitability included a goodwill impairment.
• Minor pointA bad debt provision on related-party loans also weighed on fiscal 2026 profitability.

Key Figures

Full-year revenue: $172.2 million (+4.7% year over year) Customized IT solution services revenue: $5.9 million (+113.9% year over year) Revenue outside mainland China: $62.7 million (+47.5% year over year) +5 more

Full-year revenue

$172.2 million (+4.7% year over year)

Fiscal 2026

Customized IT solution services revenue

$5.9 million (+113.9% year over year)

Fiscal 2026

Revenue outside mainland China

$62.7 million (+47.5% year over year)

Fiscal 2026

Second-half revenue

$87.1 million (+6.6% year over year)

Six months ended June 30, 2026

Gross profit

$11.1 million (-35.1% year over year)

Second half of fiscal 2026

Operating loss

$12.1 million (vs. $5.5 million loss)

Second half of fiscal 2026

Net loss attributable to shareholders

$13.3 million (vs. $6.7 million loss)

Second half of fiscal 2026

Basic and diluted loss per share

$0.44 (vs. $0.24)

Second half of fiscal 2026

Previous Earnings Reports

1 past event · Latest: Oct 17

Same Type 1 event

1. Oct 17

   Annual earnings

   24h Move

   -24.7%

   FY2025 revenue grew 15.2% and gross profit 10.2%, while losses pressured profitability.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

robotic process automation, accounts receivable turnover period, goodwill impairment, non-gaap

4 terms

robotic process automation technical

"centering artificial intelligence (AI), robotic process automation (RPA), and Web3"

Robotic process automation uses software “robots” to perform repetitive digital tasks—like copying data between systems, filling forms, and routing approvals—so people can focus on exceptions and higher-value work. For investors, RPA can lower operating costs, speed up transactions, reduce errors and scale activity without hiring many more staff, which can improve profit margins and cash flow and reduce the chance of process-related mistakes—like swapping manual data entry for a reliable machine.

accounts receivable turnover period financial

"Accounts receivable turnover period improved to 90 days"

The accounts receivable turnover period is the average number of days a company takes to collect payment after making a sale on credit. It is calculated by dividing average accounts receivable by net credit sales for the period and multiplying by the number of days in that period (or equivalently 365 divided by the receivables turnover ratio). The measure depends on how ‘‘credit sales’’ and ‘‘average receivables’’ are defined and can be distorted by seasonal sales patterns, changes in credit terms, or large write-offs, so it describes billing-to-collection timing rather than actual cash-flow timing in every case.

goodwill impairment financial

"we recognized a goodwill impairment"

Goodwill impairment occurs when a company’s valued reputation or brand strength, known as goodwill, is found to be worth less than previously recorded on its financial statements. This usually happens when the company's performance declines or market conditions change, signaling that the expected benefits from acquisitions or brand value are no longer as strong. It matters to investors because it can indicate that a company's assets are less valuable than initially thought, potentially affecting its overall financial health.

non-gaap financial

"Non-GAAP net loss was $11.6 million in the second half"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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HONG KONG, Oct. 16, 2026 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced its financial results for the six months and full year of fiscal 2026 ended June 30, 2026.

Fiscal 2026 demonstrated the resilience of CLPS's business model and the success of its strategic transformation. Despite revenue pressure from the ongoing downsizing of a key client's China Solution Centers (CSCs), total revenue continued its upward trajectory, reaching 4.7% year-over-year growth to $172.2 million for the full fiscal year and 6.6% year-over-year to $87.1 million in the second half. This top-line momentum was anchored by continuous organic growth in core IT consulting, accelerated global expansion outside mainland China, and triple-digit revenue gains in customized IT solutions.

To capture high-value market demand, CLPS strategically accelerated investment in emerging technologies, centering artificial intelligence (AI), robotic process automation (RPA), and Web3. Revenue from customized IT solution services surged 113.9% year-over-year to $5.9 million for the full fiscal year, solidifying its position as the Company's second revenue growth engine. Landmark initiatives commercialized during the period included AI-powered legacy core banking system modernization, automated testing, Nibot RPA, and CAKU digital banking solutions.

Profitability for the fiscal year reflected deliberate, front-loaded investments in technology commercialization. While these initiatives pressured near term costs, they secure high-barrier technical capabilities and benchmark references that unlock a second growth curve for the Company's revenue and strengthen our long-term competitive position. Moving into fiscal 2027, the Company will implement disciplined cost control for its customized IT solutions business while scaling its international footprint and digital solution business.

Unaudited Second Half of Fiscal 2026 Highlights (all results compared to the six months ended June 30, 2025) 

• Revenue increased by 6.6% to $87.1 million from $81.7 million.
• Revenue from customized IT solution services increased by 103.1% to $3.7 million from $1.8 million.
• Revenue generated outside of mainland China increased by 27.6% to $30.0 million from $23.5 million. In particular:

• • Revenue generated from Hong Kong SAR increased by 39.0% to $11.1 million from $8.0 million.
  • Revenue generated from Japan increased by 146.6% to $2.8 million from $1.1 million.
  • Revenue generated from Singapore increased by 7.0% to $13.2 million from $12.4 million.
  • Revenue generated from the U.S. increased by 21.3% to $2.2 million from $1.8 million.

• Accounts receivable turnover period improved to 90 days, down from 93 days.

Audited Fiscal Year 2026 Highlights (all results compared to the twelve months ended June 30, 2025) 

• Revenue increased by 4.7% to $172.2 million from $164.5 million.
• Revenue from customized IT solution services increased by 113.9% to $5.9 million from $2.8 million.
• Revenue generated outside of mainland China increased by 47.5% to $62.7 million from $42.5 million. In particular:

• • Revenue generated from Hong Kong SAR increased by 61.0% to $23.2 million from $14.4 million.
  • Revenue generated from Singapore increased by 18.6% to $26.0 million from $21.9 million.
  • Revenue generated from Japan increased by 122.7% to $4.5 million from $2.0 million.
  • Revenue generated from the U.S. increased by 63.7% to $6.4 million from $3.9 million.

• Total number of clients from IT services segment increased by 12.5% to 359 from 319.
• Total number of employees increased by 4.8% to 3,705 from 3,534.

Mr. Raymond Lin, Chief Executive Officer of CLPS, commented, "Fiscal 2026 was a pivotal year of structural transition and resilience for CLPS. Navigating the downsizing of a major client's CSCs, we generated steady organic top-line growth across our core IT consulting business, while making significant inroads in expanding our geographic and technological footprint. Since becoming a publicly traded company in 2018, we have expanded our topline from $48.9 million to $172.2 million—delivering a robust 17.0% compound annual growth rate over the past eight years. This long-term trajectory underscores our operational agility and our ability to cultivate enduring relationships with global financial institutions while winning new clients across diverse markets.

A core pillar of our strategy is reducing our reliance on the China market and driving overseas expansion. In fiscal 2026, revenue generated from the APAC region (excluding mainland China) increased 45.2% year-over-year to $56.0 million, accounting for a growing share of our total revenues. We deepened our market presence across key APAC financial hubs—including Hong Kong SAR, Singapore, Japan, Malaysia, Indonesia, and the Philippines—while expanding into the Middle East region via the UAE. This global reach diversifies our revenue base and opens broader market opportunities for our higher-value service offerings.

Furthermore, our commitment to business diversification continues to fortify our overall resilience. Beyond our foundational strength in fintech, our diverse business lines now actively span across payment and credit services, e-commerce, education and study abroad programs, and global tourism. By extending our digital transformation capabilities into these varied sectors, we are unlocking cross-industry synergies and cultivating multiple robust revenue streams.

At the same time, our commitment to R&D and emerging technologies is yielding significant commercial traction, accelerating the momentum of our customized IT solutions business. AI is at the forefront of this transformation. Over the past year, we achieved notable operational milestones: partnering with The Bank of East Asia to conduct a proof-of-concept for Nibot within the HKMA's GenA.I. Sandbox, unveiling our Web3-ready issuance platform, and collaborating with an emerging Southeast Asian financial institution to implement CAKU-powered digital banking solutions through our subsidiary, QCC.

To optimize internal operations, we established the AI Rainstorm Factory, transforming the traditional software development life cycle into a streamlined, modular framework. This initiative drives the intelligent upgrade of our R&D processes and significantly improves delivery efficiency. Furthermore, we formed an AI Innovation Committee and launched Athena, our enterprise-level AI knowledge assetization project designed to safeguard the Company's core intellectual assets, centralize our institutional data and drive continuous productivity gains.

While aggressive investments in emerging technology benchmark projects weighed on our bottom line this year, these capital allocations are necessary and foundational. They transform CLPS from an established IT services provider into an intellectual-property-driven fintech partner. We enter fiscal 2027 focused on scaling our digital solutions, enforcing operational efficiency, and translating our top-line momentum into sustainable long-term profitability."

Ms. Rui Yang, Chief Financial Officer of CLPS, commented, "Despite the revenue headwinds caused by the restructuring of our historically largest client in fiscal year 2026, we delivered total revenue growth of 4.7% to $172.2 million. What stands out most is the continued traction of our business transformation: revenue from our customized IT solution services increased by 113.9% to $5.9 million. Equally encouraging, our overseas revenue grew by 47.5% to $62.7 million, reflecting the steady payoff of our global expansion strategy and our ability to capture demand in new markets.

Our investments in emerging technology-enabled projects have driven up costs in the short run. In addition, we recognized a goodwill impairment, along with a one-time bad debt provision on loans to related parties — both of which further weighed on our profitability this period. These charges reflect non-structural items rather than ongoing operational pressures, and we view them as short-term in nature. Looking ahead, we do not expect them to have a material impact on our financial results in the coming fiscal year.

Underscoring confidence in our underlying intrinsic value and long-term trajectory, we announced a share repurchase program of up to 1,000,000 shares in February 2026. This action reflects both our conviction in the path ahead and our ongoing commitment to returning value to shareholders."

Unaudited Second Half of Fiscal Year 2026 Financial Results

Revenues

In the second half of fiscal 2026, revenues increased by $5.4 million, or 6.6%, to $87.1 million from $81.7 million in the prior year period. The increase in revenue was mainly due to the increased demand in customized IT solution services.

Revenues by Service

• Revenue from IT consulting services increased by $3.5 million, or 4.5%, to $82.2 million in the second half of fiscal 2026, from $78.7 million in the prior year period. Revenue from IT consulting services accounted for 94.4% of total revenue, compared to 96.3% in the prior year period. The increase was primarily driven by higher demand from overseas clients.
• Revenue from customized IT solution services increased by $1.9 million, or 103.1%, to $3.7 million in the second half of fiscal 2026, from $1.8 million in the prior year period. Revenue from customized IT solution services accounted for 4.3% of total revenue, compared to 2.2% in the prior year period. The increase was primarily driven by our continued investment in cutting-edge technologies, which enabled projects involving AI, RPA, and CAKU, among others to begin generating revenue.
• Revenue from academic education services decreased by $0.2 million, or 18.3%, to $0.8 million in the second half of fiscal 2026, from $1.0 million in the prior year period. Revenue from academic education services accounted for 0.9% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the expiration and renewal of licenses for our core courses, which temporarily prevented us from enrolling students in the affected courses during certain months.
• Revenue from other services increased by $0.2 million, or 86.1%, to $0.4 million in the second half of fiscal 2026, from $0.2 million in the prior year period. Revenue from other services accounted for 0.5% of total revenue, compared to 0.3% in the prior year period. The increase was primarily due to the higher demand for other services, including human resource management services.

Revenues by Operational Areas

• Revenue from banking area increased by $2.8 million, or 9.3%, to $33.4 million in the second half of fiscal 2026, from $30.6 million in the prior year period. Revenue from banking area accounted for 38.4% and 37.5% of total revenues in the second half of fiscal 2026 and 2025, respectively.
• Revenue from wealth management area increased by $1.8 million, or 12.7%, to $15.7 million in the second half of fiscal 2026, from $13.9 million in the prior year period. Revenue from wealth management area accounted for 18.0% and 17.0% of total revenues in the second half of fiscal 2026 and 2025, respectively.
• Revenue from e-Commerce area decreased by $1.6 million, or 10.7%, to $13.3 million in the second half of fiscal 2026, from $14.9 million in the prior year period. Revenue from e-Commerce area accounted for 15.3% and 18.2% of total revenues in the second half of fiscal 2026 and 2025, respectively.
• Revenue from automotive area decreased by $6.0 million, or 52.3%, to $5.6 million in the second half of fiscal 2026, from $11.6 million in the prior year period. Revenue from automotive area accounted for 6.4% and 14.3% of total revenues in the second half of fiscal 2026 and 2025, respectively.

Revenues by Geography

• Revenue generated outside of mainland China increased by 27.6% to $30.0 million in the second half of fiscal year 2026, from $23.5 million in the prior year period. The increase was primarily due to strong performance in our operations in Hong Kong SAR, Singapore and Japan, reflecting the successful execution of the Company's global expansion strategy.

Gross Profit

Gross profit decreased by $6.1 million, or 35.1%, to $11.1 million in the second half of fiscal 2026, from $17.2 million in the prior year period. The decrease was primarily attributable to higher project delivery costs associated with customized IT solutions leveraging emerging technologies, such as AI and RPA, which were developed as benchmark initiatives for the Company.

Operating Expenses

Selling and marketing expenses decreased by $0.6 million, or 24.7%, to $2.1 million in the second half of fiscal 2026, from $2.7 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 2.4% in the second half of fiscal 2026, compared to 3.3% in the prior year period. The decrease was primarily driven by streamlined client account management and adjustments to sales performance-based compensation in response to intensified market competition and evolving business conditions.

Research and development expenses increased by $2.2 million, or 83.8%, to $4.7 million in the second half of fiscal 2026, from $2.5 million in the prior year period. As a percentage of total revenues, research and development expenses increased to 5.3% in the second half of fiscal 2026, compared to 3.1% in the prior year period. The increase was primarily driven by higher R&D investment in emerging technologies, including AI, positioning the Company to capture anticipated growth in demand for customized IT solutions.

General and administrative expenses decreased by $2.0 million, or 11.7%, to $15.7 million in the second half of fiscal 2026, from $17.7 million in the prior year period. As a percentage of total revenues, general and administrative expenses decreased to 18.0% in the second half of fiscal 2026, compared to 21.7% in the prior year period. The decrease was primarily driven by prudent expense management and adjustments to management performance-based compensation in response to intensified market competition and shifting external conditions.

Operating Loss

Operating loss was $12.1 million in the second half of fiscal 2026, compared to operating loss of $5.5 million in the same period of the previous year. Operating margin was -13.9% compared to -6.8% in the prior year period.

Other Income and Expenses

Total other expenses, net of other income was $0.6 million in the second half of fiscal 2026, compared to $87.5 thousand total other income, net of other expenses in the same period of previous year.

Provision for Income Taxes

Provision for income taxes was $46.9 thousand in the second half of fiscal 2026, compared to a provision for income taxes of $0.7 million in the same period of the previous year.

Net Loss and Losses Per Share

Net loss was $13.2 million in the second half of fiscal 2026 compared to a net loss of $6.6 million in the prior year period.

Non-GAAP net loss^[1] was $11.6 million in the second half of fiscal 2026, compared to a Non-GAAP net loss of $6.1 million in the prior year period.

Net loss attributable to CLPS Incorporation's shareholders was $13.3 million, or $0.44 basic and diluted losses per share in the second half of fiscal 2026, compared to a net loss attributable to CLPS Incorporation's shareholders of $6.7 million, or $0.24 basic and diluted losses per share in the second half of fiscal 2025.

Non-GAAP net loss attributable to CLPS Incorporation's shareholders^[2] was $11.6 million, or $0.39 basic and diluted losses per share in the second half of fiscal 2026, compared to non-GAAP net loss attributable to CLPS Incorporation's shareholders of $6.2 million, or $0.22 basic and diluted losses per share in the second half of fiscal 2025.

Audited Fiscal Year 2026 Financial Results

Revenues

Revenues increased by $7.7 million, or 4.7%, to $172.2 million in the fiscal year 2026, from $164.5 million in the prior year period. The increase in revenue was mainly due to the increased demand in IT consulting services and customized IT solution services.

Revenues by Service

• Revenue from IT consulting services increased by $5.3 million, or 3.3%, to $164.1 million in the fiscal year 2026, from $158.8 million in the prior year period. Revenue from IT consulting services accounted for 95.3% of total revenue, compared to 96.5% in the prior year period. The increase was primarily driven by higher demand from overseas clients.
• Revenue from customized IT solution services increased by $3.1 million, or 113.9%, to $5.9 million in the fiscal year 2026, from $2.8 million in the prior year period. Revenue from customized IT solution services accounted for 3.5% of total revenue, compared to 1.7% in the prior year period. The increase was primarily driven by our continued investment in cutting-edge technologies, which enabled projects involving AI, RPA, and CAKU, among others to begin generating revenue during the fiscal year.
• Revenue from academic education services decreased by $0.3 million, or 18.6%, to $1.7 million in the fiscal year 2026, from $2.0 million in the prior year period. Revenue from academic education services accounted for 1.0% of total revenue, compared to 1.2% in the prior year period. The decrease was primarily due to the expiration and renewal of licenses for our core courses, which temporarily prevented us from enrolling students in the affected courses during certain months.
• Revenue from other services decreased by $0.4 million, or 40.6%, to $0.5 million in the fiscal year 2026, from $0.9 million in the prior year period. Revenue from other services accounted for 0.3% of total revenue, compared to 0.5% in the prior year period. The decrease was primarily due to lower demand for other services, including software sales.

Revenues by Operational Areas

• Revenue from banking area decreased by $4.6 million, or 7.1%, to $59.5 million in the fiscal year 2026, from $64.1 million in the prior year period. Revenue from banking area accounted for 34.6% and 39.0% of total revenues in the fiscal year 2026 and 2025, respectively.
• Revenue from wealth management area increased by $1.0 million, or 3.4%, to $30.3 million in the fiscal year 2026, from $29.3 million in the prior year period. Revenue from wealth management area accounted for 17.6% and 17.8% of total revenues in the fiscal year 2026 and 2025, respectively.
• Revenue from e-Commerce area decreased by $1.3 million, or 4.4%, to $28.5 million in the fiscal year 2026, from $29.8 million in the prior year period. Revenue from e-Commerce area accounted for 16.6% and 18.1% of total revenues in the fiscal year 2026 and 2025, respectively.
• Revenue from automotive area decreased by $4.1 million, or 19.8%, to $16.7 million in the fiscal year 2026, from $20.8 million in the prior year period. Revenue from automotive area accounted for 9.7% and 12.7% of total revenues in the fiscal year 2026 and 2025, respectively.

Revenues by Geography

• Revenue generated outside of mainland China increased by $20.2 million, or 47.5%, to $62.7 million in the fiscal year 2026, from $42.5 million in the prior year period. The increase was primarily driven by strong performance across our operations in the APAC region (excluding mainland China), which grew 45.2% year-over-year, reflecting the successful execution of the Company's global expansion strategy.

Gross Profit

Gross profit decreased by $5.6 million, or 15.5%, to $30.7 million in the fiscal year 2026, from $36.3 million in the prior year period. The decrease was primarily attributable to higher project delivery costs associated with customized IT solutions leveraging emerging technologies, such as AI and RPA, which were developed as benchmark initiatives for the Company.

Operating Expenses

Selling and marketing expenses decreased by $1.0 million, or 19.4%, to $4.2 million in the fiscal year 2026, from $5.2 million in the prior year period. As a percentage of total revenues, selling and marketing expenses decreased to 2.4% in the fiscal year 2026, compared to 3.1% in the prior year period. The decrease was primarily driven by streamlined client account management and adjustments to sales performance-based compensation in response to intensified market competition and evolving business conditions.

Research and development expenses increased by $0.9 million, or 14.7%, to $6.7 million in the fiscal year 2026, from $5.8 million in the prior year period. As a percentage of total revenues, research and development expenses increased to 3.9% in the fiscal year 2026, compared to 3.5% in the prior year period. The increase was primarily driven by higher R&D investment in emerging technologies, positioning the Company to capture anticipated growth in demand for customized IT solutions.

General and administrative expenses decreased by $1.3 million, or 3.9%, to $30.6 million in the fiscal year 2026, from $31.9 million in the prior year period. As a percentage of total revenues, general and administrative expenses decreased to 17.8% in the fiscal year 2026, compared to 19.4% in the prior year period. The decrease was primarily driven by prudent expense management and adjustments to management performance-based compensation in response to intensified market competition and shifting external conditions.

Operating Loss

Operating loss was $11.5 million, compared to an operating loss of $5.4 million in the same period of the previous year. Operating margin was -6.7% in the fiscal year 2026, compared to -3.3% in the prior year period.

Other Income and Expenses

Total other expenses, net of other income was $0.7 million in the fiscal year 2026, compared to $0.3 million total other income, net of other expenses in the prior year period.

Provision for Income Taxes

Provision for income taxes was $0.2 million in the fiscal year 2026, compared to a provision for income taxes of $0.9 million in the same period of the previous year.

Net Loss and Losses Per Share

Net loss was $12.9 million in the fiscal year 2026, compared to a net loss of $6.4 million in the prior year period.

Non-GAAP net loss^[1] was $9.5 million in the fiscal year 2026, compared to a non-GAAP net loss of $3.8 million in the prior year period.

Net loss attributable to CLPS Incorporation's shareholders was $13.2 million, or $0.45 basic and diluted losses per share in the fiscal year 2026, compared to net loss attributable to CLPS Incorporation's shareholders of $7.0 million, or $0.26 basic and diluted losses per share in the fiscal year 2025.

Non-GAAP net loss attributable to CLPS Incorporation's shareholders^[2] was $9.8 million, or $0.33 basic and diluted losses per share in the fiscal year 2026, compared to non-GAAP net loss attributable to CLPS Incorporation's shareholders of $4.5 million, or $0.16 basic and diluted losses per share in the fiscal year 2025.

Cash Flow

As of June 30, 2026, the Company had cash and cash equivalents and restricted cash of $25.5 million, along with short term investments of $0.9 million.

Net cash used in operating activities was $0.4 million for the twelve months ended June 30, 2026. Net cash used in investing activities was $1.2 million. Net cash used in financing activities was approximately $1.8 million. The effect of exchange rate change on cash was approximately positive $0.6 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 2027, 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 5% to 10% compared to fiscal year 2026 financial results, and non-GAAP net income in the range of approximately $3.0 million to $4.0 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, 2026, were translated at 6.7851 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 June 30, 2026 and 2025 were 6.9940 RMB to 1.00 USD and 7.2143 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, 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 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 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 adds 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: ir@clpsglobal.com

[1]  Non-GAAP net loss is a non-GAAP financial measure, which is defined as net loss excluding share-based compensation expenses and impairment of goodwill. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details.

[2]  Non-GAAP net loss attributable to CLPS Incorporation's shareholders is a non-GAAP financial measure, which is defined as net loss attributable to CLPS Incorporation's shareholders excluding share-based compensation expenses and impairment of goodwill. Please refer to the section titled "Reconciliation of Non-GAAP and GAAP Results" for details.

 

 

CLPS INCORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. dollars ("$"), except for number of shares)
		As of
		June 30, 2026 (Audited)				December 31, 2025 (Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			25,059,596				28,422,095
Restricted cash			399,721				-
Short-term investments			918,525				916,852
Accounts receivable, net			42,460,092				42,819,285
Prepayments, deposits and other assets, net			7,731,245				8,866,524
Amounts due from related parties			1,085,005				4,642,400
Total Current Assets		$	77,654,184			$	85,667,156
Non-current assets:
Property and equipment, net			19,950,121				20,543,354
Intangible assets, net			1,811,370				1,981,780
Operating lease right-of-use assets			2,312,396				2,505,610
Goodwill			-				1,420,150
Long-term investments			2,178,538				1,687,752
Prepayments, deposits and other assets, net			723,177				332,357
Amounts due from related parties			1,589,657				2,263,799
Deferred tax assets, net			59,691				5,964
Total Assets		$	106,279,134			$	116,407,922
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Bank loans		$	30,289,459			$	26,166,467
Accounts payable			1,543,603				2,490,272
Accrued expenses and other current liabilities			527,704				456,200
Tax payables			2,961,192				2,270,979
Contract liabilities			2,705,511				4,909,035
Salaries and benefits payable			13,438,704				12,123,893
Operating lease liabilities			1,633,586				2,126,684
Amount due to related parties			75,394				61,208
Total Current Liabilities		$	53,175,153			$	50,604,738
Non-current liabilities:
Operating lease liabilities			751,363				554,299
Deferred tax liabilities			204,600				145,500
Unrecognized tax benefit			4,012,722				4,004,545
Other non-current liabilities			946,771				918,611
TOTAL LIABILITIES		$	59,090,609			$	56,227,693
Shareholders' Equity
Common shares, $0.0001 par value, 100,000,000 shares      authorized; 29,854,852 shares issued and outstanding as of      June 30, 2026; 29,841,828 shares issued and outstanding      as of December 31, 2025			2,986				2,984
Additional paid-in capital			62,148,120				61,930,342
Treasury shares			(132,303)				-
Statutory reserves			6,014,347				6,059,696
Accumulated deficit			(20,744,064)				(7,525,036)
Accumulated other comprehensive loss			(2,493,879)				(2,612,878)
Total CLPS Incorporation's Shareholders' Equity			44,795,207				57,855,108
Noncontrolling Interests			2,393,318				2,325,121
Total Shareholders' Equity			47,188,525				60,180,229
Total Liabilities and Shareholders' Equity		$	106,279,134			$	116,407,922

 

 

CLPS INCORPORATION
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS
(Amounts in U.S. dollars ("$"), except for number of shares)
					For the six months ended June 30,
					2026							2025
Revenue					$	87,126,310						$		81,703,894
Cost of revenue (note 1)						(75,996,939)								(64,553,449)
Gross profit						11,129,371								17,150,445
Operating income (expenses):
Selling and marketing expenses (note 1)						(2,053,861)								(2,727,725)
Research and development expenses						(4,656,391)								(2,533,678)
General and administrative expenses (note 1)						(15,655,175)								(17,737,124)
Impairment of goodwill						(1,435,782)								(129,270)
Subsidies and other operating income						572,436								440,978
Total operating expenses						(23,228,773)								(22,686,819)
Loss from operations						(12,099,402)								(5,536,374)
Other income						498,774								652,412
Other expenses						(1,078,384)								(564,956)
Loss before income tax and share of loss in equity      investees						(12,679,012)								(5,448,918)
Provision for income taxes						46,899								679,739
Loss before share of loss in equity investees						(12,725,911)								(6,128,657)
Share of loss in equity investees, net of tax						(522,794)								(480,926)
Net loss						(13,248,705)								(6,609,583)
Less: Net income attributable to noncontrolling interests						15,672								50,238
Net loss attributable to CLPS Incorporation's      shareholders					$	(13,264,377)						$		(6,659,821)
Other comprehensive income
Foreign currency translation income					$	171,524						$		1,171,934
Less: Foreign currency translation income attributable      to noncontrolling interests						52,525								28,775
Other comprehensive income attributable to CLPS      Incorporation's shareholders					$	118,999						$		1,143,159
Comprehensive loss attributable to
CLPS Incorporation's shareholders					$	(13,145,378)						$		(5,516,662)
Comprehensive income attributable to noncontrolling      interests						68,197								79,013
Comprehensive loss					$	(13,077,181)						$		(5,437,649)
Basic losses per common share					$	(0.44)						$		(0.24)
Weighted average number of shares outstanding – basic						29,811,704								27,986,798
Diluted losses per common share					$	(0.44)						$		(0.24)
Weighted average number of shares outstanding –      diluted						29,811,704								27,986,798
Note:
(1) Includes share-based compensation expenses as follows:
Cost of revenues						182								2,197
Selling and marketing expenses						52,339								90,286
General and administrative expenses						165,258								269,214

 

CLPS INCORPORATION
RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED
(Amounts in U.S. dollars ("$"), except for number of shares)
							For the six months ended
							June 30,
							2026										2025
Cost of revenue			$				(75,996,939)									$	(64,553,449)
Less: share-based compensation expenses							(182)										(2,197)
Non-GAAP cost of revenue			$				(75,996,757)									$	(64,551,252)
Selling and marketing expenses			$				(2,053,861)									$	(2,727,725)
Less: share-based compensation expenses							(52,339)										(90,286)
Non-GAAP selling and marketing expenses			$				(2,001,522)									$	(2,637,439)
General and administrative expenses			$				(15,655,175)									$	(17,737,124)
Less: share-based compensation expenses							(165,258)										(269,214)
Non-GAAP general and administrative expenses			$				(15,489,917)									$	(17,467,910)
Loss from operations			$				(12,099,402)									$	(5,536,374)
Add: share-based compensation expenses and impairment of goodwill							1,653,561										490,967
Non-GAAP loss from operations			$				(10,445,841)									$	(5,045,407)
Operating margin							(13.9 %)										(6.8 %)
Add: share-based compensation expenses and impairment of goodwill							1.9 %										0.6 %
Non-GAAP operating margin							(12.0 %)										(6.2 %)
Net loss			$				(13,248,705)									$	(6,609,583)
Add: share-based compensation expenses and impairment of goodwill							1,653,561										490,967
Non-GAAP net loss			$				(11,595,144)									$	(6,118,616)
Net loss attributable to CLPS Incorporation's shareholders			$				(13,264,377)									$	(6,659,821)
Add: share-based compensation expenses and impairment of goodwill							1,653,561										490,967
Non-GAAP net loss attributable to CLPS Incorporation's shareholders							(11,610,816)										(6,168,854)
			$													$
Weighted average number of shares outstanding used in computing GAAP and non- GAAP basic earnings							29,811,704										27,986,798
GAAP basic losses per common share			$				(0.44)									$	(0.24)
Add: share-based compensation expenses and impairment of goodwill							0.05										0.02
Non-GAAP basic losses per common share			$				(0.39)									$	(0.22)
Weighted average number of shares outstanding used in computing GAAP diluted losses and non-GAAP diluted losses							29,811,704										27,986,798
GAAP diluted losses per common share			$				(0.44)									$	(0.24)
Add: share-based compensation expenses and impairment of goodwill							0.05										0.02
Non-GAAP diluted losses per common share			$				(0.39)									$	(0.22)

 

 

CLPS INCORPORATION
AUDITED CONSOLIDATED BALANCE SHEETS
(Amounts in U.S. dollars ("$"), except for number of shares)
		As of June 30,
		2026				2025
ASSETS
Current assets:
Cash and cash equivalents		$	25,059,596			$	28,173,160
Restricted cash			399,721				-
Short-term investments			918,525				896,949
Accounts receivable, net			42,460,092				44,891,161
Prepayments, deposits and other assets, net			7,731,245				7,441,565
Amounts due from related parties			1,085,005				4,374,595
Total Current Assets			77,654,184				85,777,430
Non-current assets:
Property and equipment, net			19,950,121				21,212,463
Intangible assets, net			1,811,370				2,055,102
Goodwill			-				1,435,782
Operating lease right-of-use assets			2,312,396				3,407,995
Long-term investments			2,178,538				1,718,995
Prepayments, deposits and other assets, net			723,177				481,761
Amounts due from related parties			1,589,657				1,945,960
Deferred tax assets, net			59,691				73,942
Total Assets		$	106,279,134			$	118,109,430
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank loans		$	30,289,459			$	30,217,329
Accounts payable			1,543,603				2,515,207
Accrued expenses and other current liabilities			527,704				260,880
Tax payables			2,961,192				2,463,706
Contract liabilities			2,705,511				2,470,135
Salaries and benefits payable			13,438,704				14,062,007
Operating lease liabilities			1,633,586				2,348,195
Amounts due to related parties			75,394				21,884
Total Current Liabilities			53,175,153				54,359,343
Non-current liabilities
Operating lease liabilities			751,363				1,301,369
Unrecognized tax benefits			4,012,722				3,715,163
Deferred tax liabilities			204,600				251,812
Other non-current liabilities			946,771				896,747
Total Liabilities			59,090,609				60,524,434
Shareholders' Equity
Common shares, $0.0001 par value, 100,000,000 shares      authorized; 29,854,852 shares issued and outstanding as of      June 30, 2026; 27,988,452 shares issued and outstanding as      of June 30, 2025			2,986				2,799
Additional paid-in capital			62,148,120				60,177,851
Treasury shares			(132,303)				-
Statutory reserves			6,014,347				5,853,445
Accumulated deficit			(20,744,064)				(7,401,803)
Accumulated other comprehensive loss			(2,493,879)				(3,095,507)
Total CLPS Incorporation's Shareholders' Equity			44,795,207				55,536,785
Noncontrolling Interests			2,393,318				2,048,211
Total Shareholders' Equity			47,188,525				57,584,996
Total Liabilities and Shareholders' Equity		$	106,279,134			$	118,109,430

 

 

CLPS INCORPORATION
AUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE LOSS
(Amounts in U.S. dollars ("$"), except for number of shares)
		For the years ended June 30,
		2026				2025
Revenue from third parties		$	171,891,780			$	164,229,721
Revenue from related party			319,551				251,693
Cost of revenue from third parties (note 1)			(141,279,868)				(127,987,226)
Cost of revenue from related party			(253,852)				(188,770)
Gross profit			30,677,611				36,305,418
Operating income (expenses):
Selling and marketing expenses (note 1)			(4,173,712)				(5,180,682)
Research and development expenses			(6,668,643)				(5,815,555)
General and administrative expenses (note 1)			(30,595,509)				(31,852,179)
Impairment of goodwill			(1,435,782)				(129,270)
Subsidies and other operating income			733,657				1,294,964
Total operating expenses			(42,139,989)				(41,682,722)
Loss from operations			(11,462,378)				(5,377,304)
Other income			858,058				1,237,678
Other expenses			(1,550,879)				(935,988)
Loss before income tax and share of loss in equity      investees			(12,155,199)				(5,075,614)
Provision for income taxes			216,939				947,529
Loss before share of loss in equity investees			(12,372,138)				(6,023,143)
Share of loss in equity investees, net of tax			(556,463)				(403,421)
Net loss			(12,928,601)				(6,426,564)
Less: Net income attributable to noncontrolling      interests			252,758				623,170
Net loss attributable to CLPS Incorporation's      shareholders		$	(13,181,359)			$	(7,049,734)
Other comprehensive income
Foreign currency translation income		$	693,977			$	1,265,061
Less: Foreign currency translation income      attributable to noncontrolling interests			92,349				14,666
Other comprehensive income attributable to CLPS      Incorporation's shareholders		$	601,628			$	1,250,395
Comprehensive loss attributable to
CLPS Incorporation's shareholders		$	(12,579,731)			$	(5,799,339)
Comprehensive income attributable to noncontrolling       interests			345,107				637,836
Comprehensive loss		$	(12,234,624)			$	(5,161,503)
Basic losses per common share		$	(0.45)			$	(0.26)
Weighted average number of shares outstanding –      basic			29,377,255				27,533,182
Diluted losses per common share		$	(0.45)			$	(0.26)
Weighted average number of shares outstanding –      diluted			29,377,255				27,533,182
Note:
(1)   Includes share-based compensation expenses as follows:
Cost of revenues			2,433				7,503
Selling and marketing expenses			66,589				179,938
General and administrative expenses			1,901,434				2,280,469

 

 

CLPS INCORPORATION
RECONCILIATION OF NON-GAAP AND GAAP RESULTS- UNAUDITED
(Amounts in U.S. dollars ("$"), except for number of shares)
				For the years ended
				June 30,
			2026				2025
Cost of revenue			$	(141,533,720)			$	(128,175,996)
Less: share-based compensation expenses				(2,433)				(7,503)
Non-GAAP cost of revenue			$	(141,531,287)			$	(128,168,493)
Selling and marketing expenses			$	(4,173,712)			$	(5,180,682)
Less: share-based compensation expenses				(66,589)				(179,938)
Non-GAAP selling and marketing expenses			$	(4,107,123)			$	(5,000,744)
General and administrative expenses			$	(30,595,509)			$	(31,852,179)
Less: share-based compensation expenses				(1,901,434)				(2,280,469)
Non-GAAP general and administrative expenses			$	(28,694,075)			$	(29,571,710)
Operating loss			$	(11,462,378)			$	(5,377,304)
Add: share-based compensation expenses and impairment of goodwill				3,406,238				2,597,180
Non-GAAP operating loss			$	(8,056,140)			$	(2,780,124)
Operating margin				(6.7 %)				(3.3 %)
Add: share-based compensation expenses and impairment of goodwill				2.0 %				1.6 %
Non-GAAP operating margin				(4.7 %)				(1.7 %)
Net loss			$	(12,928,601)			$	(6,426,564)
Add: share-based compensation expenses and impairment of goodwill				3,406,238				2,597,180
Non-GAAP net loss			$	(9,522,363)			$	(3,829,384)
Net loss attributable to CLPS Incorporation's shareholders			$	(13,181,359)			$	(7,049,734)
Add: share-based compensation expenses and impairment of goodwill				3,406,238				2,597,180
Non-GAAP net loss attributable to CLPS Incorporation's shareholders			$	(9,775,121)			$	(4,452,554)
Weighted average number of shares outstanding used in computing GAAP and non-GAAP basic losses				29,377,255				27,533,182
GAAP basic losses per common share			$	(0.45)			$	(0.26)
Add: share-based compensation expenses and impairment of goodwill				0.12				0.10
Non-GAAP basic losses per common share			$	(0.33)			$	(0.16)
Weighted average number of shares outstanding used in computing GAAP diluted losses				29,377,255				27,533,182
Weighted average number of shares outstanding used in computing non-GAAP diluted losses				29,551,271				27,533,182
GAAP diluted losses per common share			$	(0.45)			$	(0.26)
Add: share-based compensation expenses and impairment of goodwill				0.12				0.10
Non-GAAP diluted losses per common share			$	(0.33)			$	(0.16)

 

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SOURCE CLPS Incorporation

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did CLPS revenue grow in fiscal 2026?

CLPS fiscal 2026 revenue increased 4.7% to $172.2 million from $164.5 million in the prior fiscal year. The fiscal year ended June 30, 2026. Second-half revenue increased 6.6% to $87.1 million from $81.7 million.

What was CLPS's net loss in the second half of fiscal 2026?

CLPS reported a second-half fiscal 2026 net loss of $13.2 million, compared with $6.6 million a year earlier. Net loss attributable to CLPS shareholders was $13.3 million, or $0.44 per basic and diluted share, versus $6.7 million, or $0.24 per share.

Why did CLPS academic education revenue decline in the second half of fiscal 2026?

CLPS attributed the decline primarily to core-course license expiration and renewal, which temporarily prevented enrollment in affected courses during certain months. Second-half academic education revenue decreased 18.3% to $0.8 million from $1.0 million a year earlier.

Does CLPS expect its fiscal 2026 impairment and related-party loan provision to affect fiscal 2027?

CLPS does not expect a material impact on the coming fiscal year's financial results from the goodwill impairment and one-time bad debt provision on related-party loans. This is the company's expectation, rather than an achieved financial outcome.