CLPS Incorporation reported unaudited results for the first half of fiscal 2026, showing modest growth and a return to profitability for common shareholders. Revenue rose 2.8% to $85.1 million, driven mainly by IT consulting and a 134.7% jump in customized IT solution services to $2.2 million.
Gross profit increased 2.1% to $19.5 million, though gross margin was nearly flat at 23.0%. Operating income climbed to $0.6 million, up 300.5%, and net income grew 74.9% to $0.3 million. Net income attributable to CLPS shareholders improved to $83.0 thousand, or $0.003 per share, versus a prior-year loss.
Non-GAAP net income was $2.1 million, down 9.5%. Revenue outside mainland China rose 63.1% to $31.0 million, with APAC and U.S. markets particularly strong. Management guided fiscal 2026 sales growth of about 10–15% and non-GAAP net income of $4.4–5.0 million, and authorized a share repurchase of up to 1,000,000 shares below $2.00 per share.
CLPS Incorporation announced that its board has approved a share repurchase program authorizing the company to buy back up to 1,000,000 outstanding common shares. Purchases may be made in the open market at prevailing prices when the share price is below US$2.00 per share.
The program is scheduled to run from February 5, 2026 through November 4, 2026. Repurchases may occur through open market trades, privately negotiated deals, or other methods permitted by regulation. The company is not obligated to repurchase any specific amount and can suspend or end the program at its discretion.
CLPS Incorporation filed a Form F-3 shelf registration to offer and sell, from time to time, up to US$80,000,000 of securities, including common and preferred shares, warrants, debt securities, rights, depositary shares, and units. Any specific terms will be set in a prospectus supplement, and sales may occur via underwriters, dealers, agents, or direct placements. Net proceeds, when raised, will be used for working capital and general corporate purposes.
Because its public float was approximately US$12 million as of October 23, 2025, offerings under General Instruction I.B.5 are limited to no more than one-third of public float during any 12‑month period while float remains below US$75 million. CLPS’s common shares trade on Nasdaq under “CLPS”; the closing price was US$0.925 on October 23, 2025. 29,743,452 common shares were outstanding as of October 24, 2025.
CLPS Incorporation filed its annual report on Form 20-F for the fiscal year ended June 30, 2025. Revenue was $164.5 million in fiscal 2025, after $142.8 million in 2024 and $150.4 million in 2023. The company operates across 10 countries with hubs in Shanghai, Singapore, and California. Headcount was 3,534 full-time employees as of June 30, 2025.
Client concentration remains notable: the top client accounted for 13.4% of fiscal 2025 revenue; Citibank and affiliates represented 16.7% in 2024 and 21.4% in 2023. Accounts receivable were $44.9 million as of June 30, 2025. Employee attrition was 14.5% in fiscal 2025 versus 18.6% in 2024. The report highlights risks including economic cycles affecting IT spending, competition for skilled talent, fixed‑price project execution, foreign exchange exposure, regulatory requirements in China, and cybersecurity. The company paid special cash dividends of $0.13 on November 24, 2024, $0.10 on December 13, 2023, and $0.05 on January 10, 2023. Shares outstanding were 29,743,452 as of October 6, 2025.