CLPS Incorporation's Chairman Reflects on 2025 and Looks Ahead to 2026

Reflection on 2025 and Insights for 2026

CLPS Incorporation (Nasdaq: CLPS) has officially begun the new year with a heartfelt letter from its Chairman, underscoring the perseverance and adaptability of the company amidst a fluctuating global landscape. As we dive into the depths of the Chairman's reflections and prospects, a closer look at the evolution of CLPS is warranted.

Acknowledge the Challenges

In 2025, CLPS faced a significant hurdle as one of its largest clients significantly downsized operations in China, which resulted in a reduction of dedicated IT teams. This event sharply impacted the company's financial performance for the fiscal year. However, the Chairman remained optimistic about the transition toward a more diverse business model that is better equipped to withstand future challenges. This pivot allows CLPS to focus on sustainable and resilient growth strategies moving forward.

Emphasizing Technological Innovation

Innovation has always been central to CLPS's operational ethos. The company successfully launched Nibot, a proprietary Robotic Process Automation (RPA) product, which received positive feedback from clients for its ease of use and adaptability. Furthermore, CLPS's exploration into Web3 technology showcases its commitment to staying ahead of industry trends, specifically in the context of digital asset infrastructure. These advancements symbolize CLPS's dedication to crafting future-ready solutions for dynamic client needs.

The deployment of AI-driven solutions is essential as well, as CLPS has helped major financial institutions modernize their legacy systems, establishing frameworks that can cater to the technology wave of the future.

Financial Performance in Review

Despite the setbacks due to the client downsizing, CLPS reported a year-over-year revenue growth of 15.2%, totaling $164.5 million. Restructuring and focusing on diversifying revenue streams has also led to a gross profit increase of 10.2%. However, the adjustments had their drawbacks, as the company faced one-time severance costs related to the downsizing.

Looking ahead, management is optimistic about maintaining a revenue growth rate between 10%-15% in fiscal year 2026, driven by organic growth in consulting services and the rising demand for AI-enabled solutions.

Strategic Partnerships Highlight

Strategic partnerships play a vital role in bolstering CLPS's innovation roadmap. Collaborating with The Bank of East Asia, CLPS showcased the advanced capabilities of its Nibot program. This partnership affirms the company's prowess in navigating cutting-edge finance initiatives and positions it as a formidable partner in the evolution of intelligent financial services.

Operations and Organizational Development

Operational excellence is prioritized as CLPS continues to scale its business. The formation of the CLPS AI Innovation Committee fortifies governance and strategic alignment regarding AI. Additionally, the company has made progress towards an initial public offering for its subsidiary JAJI Global Incorporation, indicating that CLPS is moving forward with ambitious growth plans.

Exploring Global Expansion

Fiscal 2025 marked significant milestones in international expansion, with the establishment of subsidiaries in Indonesia, reflecting CLPS's commitment to broadening its presence throughout Southeast Asia. The success in generating nearly 90.5% of revenue outside mainland China signifies the effectiveness of the company's global footprint strategy.

Diversification Throughout Economic Cycles

CLPS continues to develop a business model that thrives across various sectors, from fintech to education. The acquisition of the College of Allied Educators is an example of how the company efficiently integrates strategic assets, diversifying its approach to reduce vulnerabilities in the market.

Looking Forward to 2026

As CLPS moves into 2026, it does so with a sharper strategic focus, enhanced innovation capacities, and an evolving global presence. The continuous support of employees, partners, and shareholders remains crucial as the company strives to add long-term value and further establish itself as a reliable global technology partner.

In closing, the Chairman expressed gratitude towards employees for their dedication, partners for their collaboration, and shareholders for their trust, emphasizing a unified commitment to driving CLPS forward.

For more details about CLPS Incorporation, please check their official website or follow their updates on various social media platforms.