ClearSign Technologies Corporation Q3 FY2025 earnings call

• Order flow is up across product lines including process burners, flares, and M Series. Process burner orders are fueled by regulatory pressure, cost efficiency compared to SCR installations, and equipment being in the field. - Flare orders are driven by NOx emission regulations in California and client needs for flaring capacity. - M Series orders through Devco are for retrofit applications in the midstream industry, with quick turnarounds. - A petrochemical client conducted comprehensive testing of a 100% hydrogen capable burner, a repeat customer project. - Engineering orders for California refinery and U.S. Gulf Coast refinery are for Core burners. - ClearSign Eye sensor product has a pilot installation with a super major, with further opportunities. - Relationship with Zeeco is strong, with extensive testing and support for product development.

For the third quarter of 2025, ClearSign recognized approximately $1 million in revenues, down from ~$1.9 million in the same period of 2024. The year-over-year decrease was due to lower sales volume, but gross margin increased by approximately 6.1 percentage points compared to 2024. YTD Q3 2025 gross profit margin increased 5.3 percentage points. Revenue was generated from spare parts orders, midstream orders, flare orders, CFD analysis, engineering services, and a customer witness test. Net loss increased by ~$274,000 year-over-year, driven by the decrease in sales volume.

• Shipping of the 26 burner order is on schedule and expected to result in well north of $2 million in revenue by year-end. - Expect more orders from M Series, flares, process burners, and promotion of the SBIR program burner for future growth.

• Uncertainties around field testing and sales of products being successfully completed. - Risks related to expanding the market for products, as described in ClearSign's SEC filings.

Q: How do different product lines contribute to order flow?

A: Process burners are driven by regulatory pressure and cost efficiency; flares by NOx regulations and client needs; M Series by midstream retrofit market.

Q: What's the status of the 100% hydrogen capable burner testing?

A: It was a repeat customer project, virtually complete with positive results.

Q: What's the outlook for spare parts revenue?

A:Spares are a steady, high-margin revenue stream growing with installed equipment.

Q: Any regulatory headwinds?

A: No significant headwinds expected on NOx regulations, with global interest in hydrogen burner capabilities despite short-term U.S. decarbonization deemphasis