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CLPS Incorporation Reports Continued Financial Growth Amid Market Changes

On October 16, 2026, CLPS Incorporation (NASDAQ: CLPS) announced its financial results for the second half and the full fiscal year ending June 30, 2026. The company exhibited remarkable resilience during a challenging economic landscape marked by the downsizing of a significant client’s operations in China.

Revenue Growth Amid Challenges
CLPS recorded a total revenue of $172.2 million for the fiscal year, marking a 4.7% growth from the previous year. The second half of the year alone saw an even more impressive 6.6% increase, reaching $87.1 million. This positive trend can be attributed to continuous organic growth in IT consulting services, an aggressive push towards global expansion outside mainland China, and a staggering 113.9% year-over-year increase in revenue from customized IT solution services, which brought in approximately $5.9 million.

Strategic Investments in Technology
To effectively tap into high-value market demands, CLPS strategically prioritized investments in emerging technologies. Areas like artificial intelligence (AI), robotic process automation (RPA), and Web3 were at the forefront of their initiatives. Notable achievements during this period included launching AI-powered systems for modernizing legacy banking solutions and introducing automated testing and digital banking solutions powered by the company's innovations including Nibot RPA.

CLPS’s CEO, Mr. Raymond Lin, emphasized that fiscal 2026 was pivotal for the company's structural change and resilience, showing how the business model adapts under pressure. He pointed out that CLPS's revenue has impressively surged from $48.9 million since going public in 2018 to the current figure, achieving a compound annual growth rate of 17.0%. This data reflects a robust operational agility and an ability to foster lasting relationships with global financial institutions.

Geographical Expansion and Client Diversification
During fiscal 2026, CLPS made significant strides in diversifying its revenue streams and reducing its dependence on the mainland China market. Revenue from the APAC region (excluding mainland China) surged by 45.2% year-over-year to $56.0 million, contributing to a broader revenue base. The company established a more substantial presence in key financial hubs across the APAC region, including Hong Kong, Singapore, and Japan, while also venturing into the UAE market in the Middle East.

Balancing Investments and Profitability
Although investments into emerging technology projects initially inflated costs, the strategy is deemed necessary for establishing high-barrier capabilities and enhancing CLPS's competitive stance in the market. The company is set to implement stringent cost controls for its customized IT solutions division as it works towards scaling its international presence and further developing its digital offerings.

Highlights from the Financial Results
1. Unaudited Second Half Highlights:
- Overall revenue grew 6.6% to $87.1 million, with a 103.1% increase in revenue from customized IT solutions.
- Significant increases in revenues from regions outside China included Hong Kong (up 39.0%), Japan (up 146.6%), and the U.S. (up 21.3%).
2. Audited Full Year Highlights:
- The number of clients in the IT services segment rose by 12.5% to total 359.
- Employee count grew by 4.8%, totaling 3,705, reflecting CLPS’s commitment to expanding its workforce in tandem with business growth.

Future Outlook
Looking ahead to fiscal 2027, CLPS aims to drive total sales growth of approximately 5% to 10% over fiscal 2026 results, as the company continues to capitalize on its investments in R&D and emerging technologies. Mr. Lin's optimism for the upcoming fiscal year is supported by the ongoing enhancements in their operational capabilities and the continued commitment to delivering high-value services across various industries.

In summary, CLPS Incorporation is navigating through a restructuring phase but successfully increasing its market share through strategic investments and geographic diversification. This proactive approach places the company on a solid trajectory toward sustainable growth and long-term profitability.