CLPS Incorporation (CLPS): BCG Matrix [Dec-2025 Updated]

You're looking for a clear, no-nonsense breakdown of CLPS Incorporation's business portfolio as of late 2025, so let's map their segments onto the Boston Consulting Group Matrix to see where the capital should flow. We see high-octane growth in International Revenue Expansion, surging 90.5%, and APAC operations, but the core stability rests on the 39.0% revenue contribution from Banking Area IT Consulting, our main Cash Cow. Meanwhile, we must decide what to do with the 17.8% revenue decrease in Wealth Management IT Services, which sits firmly in the Dog quadrant, while simultaneously funding high-potential Question Marks like the proprietary AI product Nibot and new ventures in Dubai and Indonesia. This matrix shows exactly where CLPS Incorporation is winning today and where the next big investment-or divestment-must land.

Background of CLPS Incorporation (CLPS)

You're looking at CLPS Incorporation (CLPS), a company established in 2005 and headquartered in Hong Kong, operating as a global IT consulting and solutions provider. CLPS Incorporation primarily serves global institutions across sectors like banking, wealth management, e-commerce, and automotive. To be fair, the business has expanded beyond its core IT services, now also touching on loan, e-commerce, academic education, and tourism sectors.

For the full fiscal year 2025, which ended June 30, 2025, CLPS Incorporation reported total revenues of $164.5$ million, marking a 15.2% increase from the prior year period. The bulk of this, 96.5%, came from its IT consulting services segment. However, this year wasn't without its bumps; a major, long-standing client downsized its technology workforce in Dalian and Shanghai, which led to significant one-time severance expenses that pressured the reported net income.

Despite that challenge, the company's strategic shift is showing results, especially internationally. Revenue generated outside of mainland China jumped 90.5% to $42.5$ million for the full fiscal year 2025. This growth was fueled by strong performance in regions like Singapore, Hong Kong SAR, and Japan. CLPS Incorporation is actively pushing its innovation engines, focusing on areas like Artificial Intelligence (AI), Robotic Process Automation (RPA) with its product Nibot, low-code platforms, cloud computing, and big data to build a more resilient revenue framework.

Operationally, CLPS Incorporation maintains a wide footprint, with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), and supports its network across 10$ countries worldwide. From a valuation perspective, looking at the Price to Book Value per Share Ratio, it stood at 0.46$, which suggests the market was valuing the company below its book value as of late 2025.

CLPS Incorporation (CLPS) - BCG Matrix: Stars

You're looking at the segments of CLPS Incorporation (CLPS) that are leading the charge in expanding markets, which is exactly what a Star in the BCG Matrix represents. These units are consuming cash to fuel their high growth, but they are also generating significant revenue, positioning the company for future Cash Cow status.

The overall business performance for the full fiscal year 2025 ended June 30, 2025, saw total revenue reach $164.5 million, marking a 15.2% increase compared to the prior year's $142.8 million. This top-line momentum is being driven by the core service lines that operate in rapidly expanding digital transformation spaces.

Here is a breakdown of the key areas exhibiting Star-like characteristics based on the first half of fiscal year 2025 (H1 FY2025) results, which show the high-growth trajectory:

The growth in international revenue to $19.0 million in the first half of the year, a surge of 110.4%, clearly demonstrates high market share gain in new geographies, which is a hallmark of a Star. This international success was primarily fueled by strong operational performance in the APAC region.

The focus on Fintech solutions is evidenced by CLPS Incorporation leveraging core expertise in high-growth areas. You see this commitment in their strategic investments:

• Established five key innovation engines in early 2025: AI, low-code platform, RPA, cloud computing, and big data.
• Reported Net Income of $0.2 million in H1 FY2025, a turnaround from a net loss of $1.0 million in the prior year period.
• Gross Profit increased by 21.6% to $19.2 million in H1 FY2025.
• Successfully conducted a Proof of Concept (PoC) of its product Nibot in the Hong Kong Monetary Authority's GenA.I. Sandbox.

To maintain this Star status, CLPS Incorporation is dedicating resources to these growth engines, which explains why operating income was only $0.2 million in H1 FY2025, despite the high revenue growth; the cash burn for promotion and placement is happening now. Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - BCG Matrix: Cash Cows

You're looking at the bedrock of CLPS Incorporation's current financial stability. These are the business units that have already won the market and now just need careful management to keep the cash flowing.

The Banking Area IT Consulting segment stands out as a primary Cash Cow candidate. For the fiscal year 2025, this segment generated $64.1 million in revenue. This figure represents a solid 39.0% of the Company's total revenue base for the year, which totaled approximately $164.5 million (calculated from the sum of the first half revenue of $82.8 million and the second half revenue of $81.7 million for fiscal year 2025). This high market share in a mature sector is exactly what defines a Cash Cow; it consumes less in promotional spend relative to its output.

Here's a quick look at the scale of this segment within the full fiscal year 2025 results:

The stability you see here is heavily supported by established, long-term client relationships with major financial institutions. These partnerships are the engine for the stable, recurring revenue streams that Cash Cows are known for. The IT services segment, which houses this core business, served 319 total clients as of the end of the second half of fiscal 2025, showing a continued, albeit measured, expansion of this stable base.

Furthermore, the efficiency in converting service delivery into cash has improved, which directly boosts the cash flow you can 'milk' from this unit. The accounts receivable turnover period improved significantly to 92 days in fiscal year 2025. That's a marked improvement from the 111 days recorded in the previous fiscal year. This faster collection cycle means less working capital is tied up waiting for payments from these large, established clients, effectively increasing the net cash flow generated by this mature business line.

You should focus investment here on infrastructure that drives efficiency, not necessarily on aggressive market expansion. Think about optimizing the systems that support these $64.1 million in banking services to shave another few days off that 92-day collection cycle.

CLPS Incorporation (CLPS) - BCG Matrix: Dogs

Dogs are business units or products characterized by a low market share within a low-growth market. These units frequently break even, tying up capital without generating significant returns. Divestiture is often the prime strategic consideration for these areas of CLPS Incorporation (CLPS).

The following segments align with the Dogs quadrant characteristics based on recent financial performance metrics for CLPS Incorporation (CLPS) as of the fiscal year 2025 reporting periods.

Wealth Management IT Services appears to be a segment facing significant contraction, fitting the profile of a Dog due to declining revenue contribution and market share within a potentially mature or slow-growth area of the financial services IT spend.

Customized IT Solution Services represents a small, declining segment. The revenue figures show a clear negative trajectory, indicating low market share and minimal growth prospects in the near term for CLPS Incorporation (CLPS).

• Revenue in the second half of FY2025: $1.8 million.
• Revenue decrease in H2 FY2025: 4.7% compared to H2 FY2024.
• Revenue share of total revenue in H2 FY2025: 2.2%.
• Revenue share of total revenue in H2 FY2024: 2.7%.
• Full Year FY2025 Revenue: $2.8 million.
• Full Year FY2025 Revenue decrease: 11.6% compared to FY2024.

Non-core Academic Education Services is a small, non-IT segment that contributes minimally to the overall revenue base of CLPS Incorporation (CLPS), fitting the low market share characteristic of a Dog. The segment's revenue has also shown a decline year-over-year.

Here's the quick math on the Academic Education Services revenue:

Legacy IT maintenance projects are another area that falls into the Dog category. These projects typically involve older technology stacks, resulting in low-margin profiles and minimal growth potential, which means they consume management attention without offering significant upside for CLPS Incorporation (CLPS).

• Profile: Low-margin profiles.
• Growth Potential: Minimal.
• Cash Flow: Frequently break even, acting as cash traps.

The overall picture for these units suggests that expensive turn-around plans are unlikely to yield sufficient returns for CLPS Incorporation (CLPS). Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - BCG Matrix: Question Marks

You're hiring before product-market fit, and that's exactly where CLPS Incorporation is positioning its newest ventures. These are the Question Marks-high potential, high cash-consumption bets that need immediate market traction to avoid becoming Dogs. The financial reality for fiscal year 2025 shows this drain: CLPS Incorporation reported a net loss attributable to shareholders of $7.0 million for the full year ended June 30, 2025. To put that in perspective, the net loss in the second half of fiscal 2025 alone was $6.7 million, indicating that the investment phase for these new initiatives is heavily weighing on near-term profitability.

The company's cash position as of June 30, 2025, was $28.2 million in cash and cash equivalents. Given that net cash used in operating activities for the twelve months ending June 30, 2025, was $2.5 million, you see the cash burn is real, and these Question Marks are the primary reason for the negative operating cash flow.

Here are the specific business units and initiatives currently categorized as Question Marks:

• Proprietary AI/RPA product Nibot, launched in February 2025.
• Web3-Ready Issuance Platform, unveiled on October 24, 2025.
• New geographic subsidiaries in Dubai (established July 31, 2024) and Indonesia (established March 25, 2025).
• CLPS AI Innovation Committee (CAIC) initiatives.

The strategy here is clear: invest heavily to gain share or divest. The markets these units target are definitely growing rapidly, which justifies the investment thesis. For example, the global Artificial Intelligence market is projected to grow at a Compound Annual Growth Rate (CAGR) of approximately 30.6% from 2025 to 2032.

The geographic expansion is already showing early signs of traction in the broader region, even if the individual subsidiaries are in the investment phase. The Southeast Asia (SEA) region, which includes the new Indonesian subsidiary, reported a 101.7% year-over-year revenue increase in the first half of fiscal 2025. This is against the backdrop of Indonesia's digital economy being projected to exceed $130 billion by 2025.

Here's a breakdown of the Question Mark components and their market context:

The overall company performance in fiscal 2025 was a total revenue of $164.5 million, a 15.2% increase year-over-year. The challenge for CLPS Incorporation is converting the high growth potential of these new areas-like Nibot, which is being integrated with AI capabilities-into market share that reverses the current net loss trend. With 3,530 employees as of November 2025, the investment in these new platforms must quickly translate into revenue per employee growth, which was approximately $46.54 K USD in the last year.

Finance: draft 13-week cash view by Friday.