ClearSign Technologies (NASDAQ:CLIR) reported higher second-quarter revenue and a narrower net loss as it delivered part of a flare-system order, completed computational fluid dynamics studies and fulfilled spare-parts orders. Management also discussed recent midstream burner orders, progress on refinery and petrochemical projects, and a capital raise completed after the quarter ended.
Revenue for the second quarter of 2026 was approximately $560,000, compared with about $133,000 in the prior-year period, Chief Financial Officer Brent Hinds said. Gross margin was approximately 41%, relatively unchanged year over year. Net loss decreased by $373,000 from the second quarter of 2025, primarily reflecting a $368,000 reduction in general and administrative expense. The lower expense was largely tied to reduced legal fees associated with a board special committee that was dissolved after the company’s annual meeting.
After the quarter closed, ClearSign sold 500,000 common shares at $3.54 per share in a July 21 private placement with a long-time investor, generating approximately $1.7 million in net proceeds. On a pro forma basis, the company’s June 30 cash balance would have been approximately $11.6 million. Hinds said ClearSign had 6.8 million common shares outstanding as of Aug. 8, including recent share offerings.
Midstream burner orders and licensing model
Chief Executive Officer Jim Deller said ClearSign recently announced orders for six M Series midstream burners, including five large M1 burners and one smaller unit. Two large M1 burners were ordered through Tulsa Heaters Midstream for a multinational energy company’s site in the Permian Basin of West Texas. A separate order for three large M1 burners is intended for a different Fortune 500 midstream customer in the same region.
The three-burner order is structured as a licensing-style arrangement under which the heater manufacturer will fabricate the burners from ClearSign drawings, while ClearSign will participate in inspection and verification. Deller said this approach reduces ClearSign’s reported revenue relative to a fully manufactured burner sale, but maintains the same profit-margin dollars for the company.
“It’s a first step in the direction of actually hopefully getting a royalty business up and going that we can grow in the future,” Deller said.
Deller described the M1 as the company’s higher-performance product, designed to achieve low single-digit nitrogen oxide emissions. The M25 is a simplified, lower-priced offering intended for less stringent emissions requirements. He said large M1 burners can be priced near or above $200,000 per burner, while smaller M25 units can be priced around $40,000. ClearSign has generally used approximately $100,000 per burner as broad guidance across the M Series range.
Management said its estimated M Series proposal pipeline remains at roughly 50 opportunities, though Deller noted heater manufacturers may include ClearSign products in customer proposals without seeking a new quote each time. He also said the company has received inquiries for a single batch of nearly 30 midstream burners. Midstream applications generally use one burner per heater, meaning multi-burner orders typically represent multiple heaters at one customer site.
Process burner project updates
ClearSign said engineering and computational modeling are progressing for a California refinery project involving 32 process burners across two heaters. The project uses a new “flat flame” burner configuration designed to direct a flame along the wall of a heater. Deller said the burner was being manufactured for testing and was expected to enter a test furnace within weeks of the call.
During the question-and-answer session, Deller said he expected customer witnessing of the test in early October, subject to the customer’s schedule. If testing is approved and the customer issues a fabrication order, he estimated manufacturing would take roughly three to four months. The customer has indicated it expects to purchase burners for one heater first and then proceed with the second heater.
Deller said the flat-flame design could expand ClearSign’s addressable market to heaters that could not previously use the company’s technology. He also identified delayed coker and ethylene furnace applications as longer-term possibilities, though he said additional development would be necessary before the current refinery burner could be used in those markets.
For a separate 36-burner project in Texas, ClearSign has completed initial engineering and CFD work, and Deller said the burner design performed well in modeling. However, the customer has placed the project on hold because of internal financing delays.
Meanwhile, a 26-burner order for a Gulf Coast petrochemical customer remains on track for installation and startup. ClearSign is conducting site-specific training and coordinating final spare-parts requirements. Deller said the Texas startup is scheduled for October and will be an important milestone for the company.
Management said three customers have discussed more than 20 additional heaters that could potentially be brought to ClearSign for proposals after they gain operating experience with initial installations. Deller estimated a conservative revenue value of about $2 million per heater when engineering and CFD work are included, while emphasizing that those discussions are not yet orders.
Flare systems and board addition
ClearSign also provided an update on its flare business. A California customer that had purchased a competitor’s flare system engaged ClearSign to replace the burner element after the original flare did not operate properly. The ClearSign flare burner has been installed and has completed source testing. Formal test results were not yet available, but Deller said ClearSign and the customer were pleased with the data observed during testing.
The same customer is receiving equipment for ClearSign’s first full flare system, including the stack, controls, blower and related components. That system is being installed and is expected to start up in the coming months. Deller said full-system flare proposals have generally ranged from about $750,000 to $1 million, with the largest quoted project reaching roughly $1.5 million. A retrofit involving only a burner had been priced in the approximately $150,000 to $200,000 range.
The company also recently added Larry Saddler, a former ExxonMobil technology leader, to its board. Deller said Saddler visited ClearSign’s test site before agreeing to join, directing tests intended to assess burner stability, durability, emissions and operation across a broad range of fuels.
Looking ahead, Deller said investors should watch for the planned October Texas startup, the full flare-system startup in California, potential additional flare orders and further M Series activity. He said the company is managing resources closely as it handles testing, installations, site work and startup activity across its product lines.
About ClearSign Technologies (NASDAQ:CLIR)
ClearSign Technologies Corporation is a clean energy technology company specializing in advanced combustion solutions that significantly reduce emissions of nitrogen oxides (NOx), carbon monoxide (CO), and greenhouse gases from industrial and power generation sources. Established in 2010 and based in Santa Rosa, California, ClearSign has developed proprietary burner and sensing platforms designed to enhance fuel efficiency and environmental performance for gas turbines, furnaces, boilers, and incineration units.
The company’s core offerings center around two technology platforms: the XCL™ ultra-low NOx combustion system and the SGM™ (Syngas & Gas Measurement) sensor suite.
