ClearSign Technologies Corporation

What they do

The company designs and develops patented ClearSign Core combustion technology, which uses a porous ceramic or metal flame holder placed away from the burner injection plane to shorten flame length and cut nitrogen oxide (NOx) emissions without external flue gas recirculation, selective catalytic reduction, or high excess air. It sells this into downstream refining, upstream oil production, midstream gas processing, and commercial/industrial boiler applications as process burners, flare systems, boiler burners, and M Series midstream burners. It is also commercializing a flame sensing line called ClearSign Eye.

Revenue drivers

• Burner and flare equipment projects — Project-based sales of ClearSign Core process burners, boiler burners, M1 Series midstream burners, and flare system equipment, including a 32-burner California refinery retrofit now in its physical testing phase. This is the dominant revenue source, driving record annual revenue of $5.2M in 2025 and the Q2 2026 revenue increase.
• Spare parts — Recurring aftermarket spare parts orders to multiple customers; the company cited a year-over-year decrease in spare parts revenue as one factor in the six-month gross profit decline.
• CFD studies and engineering services — Computational fluid dynamics analyses and process burner CFD studies sold as standalone work; the company reported finalizing process burner CFD studies among Q2 and six-month 2026 revenue sources.
• ClearSign Eye sensing — A flame sensing product line still in design and commercialization, targeting combustion and non-emissions-reduction markets; no separate revenue was disclosed in the excerpts.

Recent performance

Q2 2026 revenue was $560 thousand versus $133 thousand a year earlier, a 321.1% increase, driven by flare system equipment delivery, spare parts orders, and process burner CFD studies. Gross profit rose to $228 thousand from $55 thousand, though gross margin fell 0.6 percentage points on product mix. For the six months ended June 30, 2026, revenue was $751 thousand versus $534 thousand, but gross profit swung to a $165 thousand loss from $251 thousand of profit, primarily due to a $410 thousand warranty accrual adjustment for process burners installed in Q3 2025. Six-month net loss narrowed to $3,497 thousand from $3,756 thousand, and Q2 net loss narrowed to $1,307 thousand from $1,680 thousand.

Strategy

Management is pushing the M1 Series midstream burner into West Texas, citing six burners sold to two major operators, and points to a growing pipeline of larger process burner and flare proposals. It is advancing the second phase of a 32-burner California refinery retrofit through physical testing and demonstration, and has added former ExxonMobil heat transfer executive Larry Saddler to the board. The company funded operations primarily through equity sales and raised additional capital in July 2026 via an unregistered equity sale. It also markets hydrogen fuel capability and decarbonization benefits to industrial operators.

Risks

• No history of profitability — The company had an accumulated deficit of approximately $104.5 million as of December 31, 2025 and expects continued operating losses and negative cash flow; operating cash flow was negative $4.7M in 2025.
• Customer concentration and lumpy project revenue — Revenue depends on individual equipment orders, evidenced by quarterly revenue swinging from $3.7M in Q4 2025 to $191 thousand in Q1 2026 and $560 thousand in Q2 2026.
• Product performance and warranty exposure — A $410 thousand warranty accrual was recorded in Q1 2026 for Q3 2025-installed process burners that required adjustment to meet emission guarantees at maximum specified firing rates.
• Dependence on capital markets and Nasdaq listing — Operations have been funded primarily through equity sales, and the company completed a 1-for-10 reverse stock split effective March 16, 2026 to comply with Nasdaq Listing Rule 5550(a)(2).

Outlook

Management said the M Series midstream burners appear to be gaining market traction and cited six burners sold to two major operators in West Texas, with M1 burner deliveries expected in Q3 and Q4 2026. It described several larger opportunities across process burner and flare product lines and a growing pipeline of proposals, and expects upcoming installations to support growth across the portfolio. The company reported cash and cash equivalents of approximately $9.9 million as of June 30, 2026.