CLPS Incorporation Reports Financial Results for the Second Half and Full Year of Fiscal 2026

Raymond Lin, Chief Executive Officer of CLPS

“Fiscal 2026 was a pivotal year of structural transition and resilience for CLPS. Navigating the downsizing of a major client's CSCs, we generated steady organic top-line growth across our core IT consulting business, while making significant inroads in expanding our geographic and technological footprint. Since becoming a publicly traded company in 2018, we have expanded our topline from $48.9 million to $172.2 million—delivering a robust 17.0% compound annual growth rate over the past eight years. This long-term trajectory underscores our operational agility and our ability to cultivate enduring relationships with global financial institutions while winning new clients across diverse markets. A core pillar of our strategy is reducing our reliance on the China market and driving overseas expansion. In fiscal 2026, revenue generated from the APAC region (excluding mainland China) increased 45.2% year-over-year to $56.0 million, accounting for a growing share of our total revenues. We deepened our market presence across key APAC financial hubs—including Hong Kong SAR, Singapore, Japan, Malaysia, Indonesia, and the Philippines—while expanding into the Middle East region via the UAE. This global reach diversifies our revenue base and opens broader market opportunities for our higher-value service offerings. Furthermore, our commitment to business diversification continues to fortify our overall resilience. Beyond our foundational strength in fintech, our diverse business lines now actively span across payment and credit services, e-commerce, education and study abroad programs, and global tourism. By extending our digital transformation capabilities into these varied sectors, we are unlocking cross-industry synergies and cultivating multiple robust revenue streams. At the same time, our commitment to R&D and emerging technologies is yielding significant commercial traction, accelerating the momentum of our customized IT solutions business. AI is at the forefront of this transformation. Over the past year, we achieved notable operational milestones: partnering with The Bank of East Asia to conduct a proof-of-concept for Nibot within the HKMA's GenA.I. Sandbox, unveiling our Web3-ready issuance platform, and collaborating with an emerging Southeast Asian financial institution to implement CAKU-powered digital banking solutions through our subsidiary, QCC. To optimize internal operations, we established the AI Rainstorm Factory, transforming the traditional software development life cycle into a streamlined, modular framework. This initiative drives the intelligent upgrade of our R&D processes and significantly improves delivery efficiency. Furthermore, we formed an AI Innovation Committee and launched Athena, our enterprise-level AI knowledge assetization project designed to safeguard the Company's core intellectual assets, centralize our institutional data and drive continuous productivity gains. While aggressive investments in emerging technology benchmark projects weighed on our bottom line this year, these capital allocations are necessary and foundational. They transform CLPS from an established IT services provider into an intellectual-property-driven fintech partner. We enter fiscal 2027 focused on scaling our digital solutions, enforcing operational efficiency, and translating our top-line momentum into sustainable long-term profitability.”

Rui Yang, Chief Financial Officer of CLPS

“Despite the revenue headwinds caused by the restructuring of our historically largest client in fiscal year 2026, we delivered total revenue growth of 4.7% to $172.2 million. What stands out most is the continued traction of our business transformation: revenue from our customized IT solution services increased by 113.9% to $5.9 million. Equally encouraging, our overseas revenue grew by 47.5% to $62.7 million, reflecting the steady payoff of our global expansion strategy and our ability to capture demand in new markets. Our investments in emerging technology-enabled projects have driven up costs in the short run. In addition, we recognized a goodwill impairment, along with a one-time bad debt provision on loans to related parties — both of which further weighed on our profitability this period. These charges reflect non-structural items rather than ongoing operational pressures, and we view them as short-term in nature. Looking ahead, we do not expect them to have a material impact on our financial results in the coming fiscal year. Underscoring confidence in our underlying intrinsic value and long-term trajectory, we announced a share repurchase program of up to 1,000,000 shares in February 2026. This action reflects both our conviction in the path ahead and our ongoing commitment to returning value to shareholders.”