CLPS (CLPS) H1 2025 earnings summary

Executive summary

• Revenue grew 15.3% year-over-year to $82.8 million for the first half of fiscal 2025, with significant gains in international markets, especially APAC, and a turnaround to net profitability from a prior-year loss.

• Strategic investments in proprietary product development, including new centers in China and globally, supported innovation and ecosystem synergies.

• The company’s subsidiary, JAJI Global, advanced toward a Nasdaq IPO, expected to unlock further value.

• Launched next-generation RPA product, Nibot, and established an AI Innovation Committee to drive technological leadership.

Financial highlights

• Revenue increased to $82.8 million from $71.8 million year-over-year; gross profit rose 21.6% to $19.2 million.

• Gross margin improved to 23.1% from 21.9% year-over-year.

• Operating income was $0.2 million, reversing a $0.9 million operating loss in the prior year.

• Net income reached $0.2 million, compared to a $1.0 million net loss a year ago; non-GAAP net income rose 31.8% to $2.3 million.

• Cash and cash equivalents increased to $35.6 million as of December 31, 2024, from $29.1 million as of June 30, 2024.

• Special cash dividend of $0.13 per share distributed in November 2024.

Outlook and guidance

• Fiscal 2025 sales growth expected in the range of 12% to 17% year-over-year.

• Non-GAAP net income growth forecasted at 15% to 20% year-over-year.