CLPS Incorporation (CLPS): Business Model Canvas [Dec-2025 Updated]

You're looking at a global IT firm that just posted $164.5 million in Total Revenue for FY2025, right? Well, digging into the Business Model Canvas for CLPS Incorporation shows a sharp pivot: they are moving beyond standard system modernization-like that VB/MS Access to Java migration-and aggressively chasing the next wave with proprietary tech like Nibot and Web3 platforms. What's really telling is that revenue from outside mainland China surged 77.1% in the second half of FY2025, proving their global network of 18 centers and 3,534 specialized employees is paying off. This isn't just consulting; it's a strategic bet on AI and digital transformation for big banks, and you need to see exactly how they structure their value capture across Key Activities and Revenue Streams below.

CLPS Incorporation (CLPS) - Canvas Business Model: Key Partnerships

You're looking at how CLPS Incorporation structures its external relationships to deliver its value proposition, which is heavily leaning into intelligent transformation for financial services.

The Key Partnerships block shows a clear focus on co-developing and validating next-generation technology within regulated environments, alongside maintaining core service delivery relationships.

Strategic alliances with large financial institutions and banks (e.g., BEA)

CLPS Incorporation has a concrete partnership with The Bank of East Asia, Limited ("BEA") as of November 7, 2025, to conduct a Proof-of-Concept (PoC) for its proprietary solution, "Nibot."

• The PoC is part of the second cohort of the Hong Kong Monetary Authority's ("HKMA") GenA.I. Sandbox.
• Nibot integrates Robotic Process Automation ("RPA") and Generative Artificial Intelligence ("GenA.I.").
• BEA contributes banking expertise while CLPS Incorporation provides the technology strengths.

This collaboration is designed to explore enhancing banking operations through efficiency gains, regulatory compliance, and strengthened risk management within financial workflows.

Collaboration with a prominent U.S. digital payment platform

CLPS Technology Inc., a wholly-owned subsidiary, has a vendor agreement with a well-known U.S. digital payment platform. This relationship, which followed over six years of collaboration, involves providing IT services.

This relationship is vital for CLPS Incorporation's growth beyond Mainland China.

Technology partners for AI, cloud computing, and big data solutions

In early 2025, CLPS Incorporation established five key innovation engines, which inherently require deep technology partnerships or internal development built on external foundations.

• The five innovation engines are: AI, low-code platform, RPA, cloud computing, and big data.
• The CLPS AI Innovation Committee (CAIC) utilizes advanced AI tools such as OpenAI and DeepSeek.
• CLPS Incorporation also launched a joint venture with an unnamed industry partner to expand its AI footprint globally.

The market context for these technology focuses is significant; global AI spending is projected to reach $632 billion by 2028, showing a Compound Annual Growth Rate (CAGR) of 29.0% from 2024-2028.

HKMA's GenA.I. Sandbox participation for new technology validation

The participation in the HKMA's GenA.I. Sandbox, alongside BEA, serves as a critical validation mechanism for CLPS Incorporation's proprietary technology, specifically "Nibot."

The PoC aims to validate specific advanced capabilities:

• Intelligent Process Generation & Optimization for embedding regulatory requirements.
• Automated Risk Monitoring & Feedback for intelligent operations.
• AI Interactive Verification using a multi-agent collaboration mechanism.

This validation effort supports CLPS Incorporation's overall Fiscal Year 2025 performance, where total revenue reached $164.5 million, with revenue generated outside of mainland China surging 110.4% to $19.0 million in the first half of the fiscal year.

Finance: review the Q3 2025 cash flow statement for any capital commitments to the unnamed AI joint venture by next Tuesday.

CLPS Incorporation (CLPS) - Canvas Business Model: Key Activities

You're looking at the core actions CLPS Incorporation is taking to drive its business forward as of late 2025. It's all about execution in high-value tech services, especially given the recent restructuring impact from a major client downsizing.

Delivering IT consulting and customized IT solutions.

The bread and butter remains IT consulting, which saw solid growth even as the company navigated a major client event. The focus is clearly on building a more resilient revenue framework around these core services.

• Total number of clients from the IT services segment grew to 319 from 300, a 6.3% increase.
• Revenue from IT consulting services in the second half of fiscal year 2025 reached $78.7 million, up 16.9% from the prior year period's $67.3 million.

Research and development (R&D) of proprietary products like Nibot.

CLPS Incorporation is pushing its proprietary technology, particularly in automation and AI, to compete in the multibillion-dollar global RPA market by offering high-performance, cost-effective solutions. They remain committed to ongoing R&D investment.

• In 2025, CLPS is focusing on five key innovation engines: AI, low-code platform, RPA, cloud computing, and big data.
• The proprietary product, Nibot, an advanced AI agent integrating Robotic Process Automation (RPA) and Generative Artificial Intelligence (GenA.I.), was the subject of a Proof-of-Concept with The Bank of East Asia, Limited in the HKMA's GenA.I. Sandbox in November 2025.

Global market expansion, especially in the APAC region.

A major strategic thrust is intensifying efforts to expand international market presence, which is showing up nicely in the revenue figures from key APAC locations. This diversification is key to building that resilient revenue framework.

Here's a look at the financial impact of this geographic shift for the full fiscal year 2025:

The total revenue for the full fiscal year 2025 was $164.5 million, a 15.2% increase from the prior year.

System modernization projects (e.g., VB/MS Access to Java migration).

CLPS Incorporation is applying its technology strengths, including AI, to tackle complex, older systems for clients. This is a high-value project area they are accelerating.

• In September 2025, CLPS announced the successful modernization of a 30-year-old legacy mortgage system for a major Hong Kong bank, using artificial intelligence.

Talent acquisition and development for 3,534 employees.

Managing and growing the talent pool is a critical activity, especially following the necessary dissolution of dedicated IT staff serving a former major client, which resulted in one-time severance expenses.

• The total number of employees as of June 30, 2025, stood at 3,534, reflecting a 6.3% increase from 3,325 in the prior period.
• Roughly 53% of this personnel base is dedicated to serving the company's foreign financial institution clients.

Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - Canvas Business Model: Key Resources

You're looking at the core assets that let CLPS Incorporation actually deliver on its promises to the global financial sector. These aren't just line items; they are the engines running the business.

Global Network of Delivery and R&D Centers

CLPS Incorporation maintains a significant physical footprint to service its global client base. As of February 2025, the company reported operating 19 delivery and/or research & development centers. This network is strategically split between Mainland China and international locations to manage service delivery and innovation.

Here's a breakdown of the locations cited in recent reports:

This global setup helps CLPS Incorporation mitigate single-market exposure, as noted when discussing their growth strategy. The network supports their focus on international markets, which saw a 25.4% increase in revenue in the first half of fiscal year 2024. Also, in October 2025, the Japan subsidiary officially established an Offshore Delivery Center to further bolster this international footprint.

Specialized Technical Talent in Fintech, AI, and RPA

The human capital is critical, especially given the focus on advanced technology. As of June 30, 2025, CLPS Incorporation had 3,534 employees. Honestly, the sheer volume isn't the whole story; it's the focus. Approximately 53% of this personnel base is dedicated specifically to serving their foreign financial institution clients.

The talent is being directed through key strategic initiatives announced in early 2025:

• Established five key innovation engines: AI, low-code platform, RPA, cloud computing, and big data.
• Formed the CLPS AI Innovation Committee (CAIC) in February 2025, led by the CEO.
• Launched Nibot, a new generation RPA product, in February 2025.

Proprietary Technology Platforms (e.g., Web3-Ready Issuance Platform)

CLPS Incorporation is actively building and deploying its own technology stack to create new revenue streams and enhance service delivery. This is a clear shift toward productizing expertise.

Key proprietary platforms and solutions include:

• CLPS AI: A portfolio of tools that completed proof-of-concept and pilot deployments by June 2025, targeting operational challenges.
• Web3-Ready Issuance Platform: Unveiled in October 2025, marking a strategic move into the stablecoin economy.

The CLPS AI suite includes solutions like AI-Powered Code Migration, which addresses the multi-billion-dollar challenge of legacy system modernization by converting COBOL and JCL systems to Java and Python.

Long-standing Client Relationships with Global Financial Firms

The company's longevity in the fintech and financial services space translates directly into a stable, albeit concentrated, client base. As of the first half of fiscal year 2025, CLPS Incorporation served 277 total clients, up from 225 in the prior year period.

The financial reliance on these relationships is evident in revenue segmentation:

• Revenue from the banking area accounted for 40.4% of total revenues in the first half of fiscal 2025.
• Overall Fiscal Year 2025 Revenue reached $164.5 million, a 15.2% increase over the $142.8 million reported for Fiscal Year 2024.

The company has been serving clients in the US, Europe, Australia, and Asia for a long time, solidifying its position as a provider of turn-key financial solutions. Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - Canvas Business Model: Value Propositions

For multinational clients, CLPS Incorporation delivers value by driving digital transformation and operational efficiency across their core processes.

You receive customized IT solutions specifically engineered for complex financial workflows, primarily serving banking, wealth management, and credit card clients to build new or modify existing proprietary systems.

CLPS Incorporation demonstrates expertise in emerging technology adoption for legacy industries, focusing on five core innovation engines:

• AI, with proprietary CLPS AI solutions completing robust proof-of-concept and pilot deployments.
• AI-Powered Code Migration framework converting legacy COBOL and JCL systems to Java and Python.
• Robotic Process Automation (RPA) via the Nibot product, launched in February 2025.
• Low-code platform integration.
• Cloud computing and big data utilization.

The firm supports multinational clients through a global service network spanning 10 countries worldwide. This network is supported by 19 delivery and/or research & development centers.

• Mainland China centers: Shanghai, Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan.
• Global centers include locations in Hong Kong SAR, USA, Japan, Singapore, Malaysia, India, Philippines, Canada, and UAE.

For banks, a key value is improving risk management and regulatory compliance. CLPS AI solutions are strategically engineered to optimize compliance management. Furthermore, in November 2025, CLPS partnered with BEA to conduct a Proof-of-Concept (PoC) of its 'Nibot' RPA solution within the HKMA's GenA.I. Sandbox. The company also unveiled a Web3-Ready Issuance Platform in October 2025, making a strategic leap into the stablecoin economy.

CLPS Incorporation (CLPS) - Canvas Business Model: Customer Relationships

The approach to customer relationships at CLPS Incorporation is centered on deep engagement, especially within its core financial services client base, while actively managing concentration risk. The firm held an Account Manager Conference on November 14, 2025, which focused on Global Vision and Multidimensional Growth, indicating a direct effort to strengthen its client-centric strategy and enhance frontline team effectiveness.

Historically, CLPS Incorporation relied on high-touch, long-term vendor agreements, but this dependency created near-term volatility. During Fiscal Year 2025, the company faced a major challenge when its long-standing, historically largest client initiated a global restructuring, leading to the dissolution of most dedicated IT staff serving that client. This event triggered significant one-time employee severance expenses, which put unavoidable short-term pressure on net income. After excluding this layoff compensation, the adjusted net income for Fiscal Year 2025 was reported at $78.0 thousand. This situation has accelerated the strategic shift toward building a more resilient revenue framework to substantially reduce reliance on any single client.

The performance metrics related to the client base for the fiscal year ending late 2025 show a mixed picture of existing client service success and diversification efforts. The company is actively transforming this challenge into an opportunity to advance its strategic objectives.

Continuous engagement is now heavily focused on identifying untapped business scenarios through technology innovation. CLPS Incorporation is pioneering new, high-value project work in artificial intelligence (AI) and Robotic Process Automation (RPA). Furthermore, the market launch of proprietary solutions like Nibot is anticipated to increase revenue generation from customized IT solutions, which helps in diversifying the service offering beyond traditional staff augmentation models. This defintely supports the goal of creating a more resilient revenue framework.

Focused efforts on new client acquisition are a key part of mitigating single-client risk and achieving multidimensional growth. The total number of clients grew to 277 in the first half of fiscal year 2025 from 225 in the prior year period. This expansion is also reflected in geographic performance, with revenue generated outside of mainland China increasing by 77.1% to $23.5 million in the second half of fiscal 2025 compared to the prior year period, driven by strong operations in Singapore, Hong Kong SAR, and Japan.

• Revenue from banking area accounted for 40.4% of total revenues in H1 FY2025.
• Revenue from e-Commerce area accounted for 18.0% of total revenues in H1 FY2025.
• Revenue from wealth management area accounted for 18.6% of total revenues in H1 FY2025.
• The company maintains 19 delivery and/or research & development centers globally.

CLPS Incorporation (CLPS) - Canvas Business Model: Channels

You're looking at how CLPS Incorporation gets its services and solutions into the hands of its global client base. It's not just about a website; it's a physical, global footprint that supports their sales and delivery efforts. This structure is key to their reported international growth, where revenue generated outside of mainland China surged by 110.4% to $19.0 million in the first half of fiscal year 2025.

Direct Sales and Account Management

The frontline for CLPS Incorporation is its direct sales teams and account managers, operating globally to serve their growing client base, which reached 277 total clients in the first half of fiscal 2025. This direct approach is essential for managing the complex IT consulting services that accounted for 96.7% of total revenue in that same period, totaling $80.1 million. The company held an Account Manager Conference on November 14, 2025, focusing on their global vision, which shows a commitment to keeping these frontline teams sharp.

Global Delivery and R&D Footprint

CLPS Incorporation supports its global sales with a substantial physical infrastructure. The company maintains 19 delivery and/or research & development centers to serve customers across various geographies. This network is clearly driving the international expansion, as overseas revenue grew 77.1% to $23.5 million in the second half of fiscal 2025. Here's a breakdown of where those centers are located, based on the latest available data:

Honestly, having 9 centers outside of mainland China is what allows them to capture growth in places like Singapore, where revenue increased 96.1% to $12.4 million in the second half of fiscal 2025.

Strategic Regional Hubs

To manage this sprawling network, CLPS Incorporation designates specific cities as strategic regional hubs. These hubs are critical for local market penetration and operational oversight. You'll find their key operational anchors in:

• Shanghai (mainland China)
• Singapore (Southeast Asia)
• California (North America)

The company also has subsidiaries in Japan and the UAE, further solidifying this global service network.

Thought Leadership and Industry Engagement

To establish credibility and drive new business, CLPS Incorporation actively engages through industry events. This is how they showcase their evolving capabilities, especially in new areas like AI and RPA. They recently concluded a Technology and Executive Strategy Seminar on November 13, 2025, which focused on defining future technology roadmaps. Furthermore, they are actively involved in Proofs of Concept (PoCs), such as the one partnered with BEA in the HKMA's GenA.I. Sandbox, announced on November 7, 2025. These aren't just meetings; they are direct channels for demonstrating technological edge.

For the full fiscal year 2025, total revenue for CLPS Incorporation reached $164.5 million. Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - Canvas Business Model: Customer Segments

You're looking at the client base for CLPS Incorporation as of late 2025, which shows a clear pivot toward global diversification and sector expansion beyond its traditional core. The customer segments are quite specific, reflecting where CLPS Incorporation focuses its high-value IT consulting services.

The total number of clients in the IT services segment reached 319 in Fiscal Year 2025, which was a 6.3% increase from the 300 clients reported previously. This growth in client count is a key indicator of the success of their strategy to reduce reliance on any single major customer.

CLPS Incorporation serves a mix of established giants and emerging digital players. The primary segments include:

• Large global financial institutions, covering banking and insurance sectors.
• Fintech and digital payment platform companies.
• Enterprises across e-commerce, education, and global tourism.

The financial sector remains central, but its composition is shifting. For instance, in the first half of Fiscal Year 2025, revenue from the banking area made up 40.4% of total revenues. This is a slight increase from the 39.9% seen in the prior year period for the same six months. Still, wealth management revenue saw a decrease of 17.3%, falling to $15.4 million in H1 FY2025 from $18.6 million in H1 FY2024.

The diversification into other sectors is showing tangible results. For the full Fiscal Year 2025, revenue from the e-Commerce area accounted for 18.1% of total revenues, up from 14.8% in FY2024. CLPS Incorporation also serves clients in the academic education and tourism sectors, which are part of their strategy to broaden their footprint.

Here's a look at how the key revenue-contributing sectors and geographic areas stacked up in FY2025:

Geographically, you're seeing a major push outside of mainland China. Southeast Asia is a key growth driver. In the first half of Fiscal Year 2025, revenue in the Southeast Asia region saw a massive year-over-year increase of 101.7%. This focus led to the establishment of a wholly-owned subsidiary in Jakarta, Indonesia, in March 2025, to better serve that critical market. The company's overall overseas revenue grew by 90.5% to reach $42.5 million for the full fiscal year 2025. The growth in specific APAC markets was notable, with Singapore revenue increasing by 99.2% to $21.9 million and Hong Kong SAR revenue surging by 130.5% to $14.4 million in FY2025.

The client base is definitely more geographically diverse now. In fact, the company maintains delivery and/or research & development centers across 10 countries worldwide, with strategic hubs in Shanghai (mainland China), Singapore (Southeast Asia), and the USA, among others. This global setup helps CLPS Incorporation service its geographically diverse clients effectively.

CLPS Incorporation (CLPS) - Canvas Business Model: Cost Structure

You're looking at the major drains on CLPS Incorporation's cash flow, which is critical when assessing near-term stability. The cost structure here is heavily weighted toward personnel and strategic technology investment, so you need to watch those lines closely.

Employee compensation and one-time severance costs form a significant portion of the operating expense base. As of June 30, 2025, CLPS Incorporation had 3,534 employees. A major cost event in the second half of fiscal year 2025 involved significant one-time employee severance expenses following a large client's restructuring and downsizing of its dedicated IT staff in Dalian and Shanghai. This non-recurring expense put unavoidable short-term pressure on the net income for that period. Approximately 53% of the personnel are dedicated to serving foreign financial institution clients.

General and administrative (G&A) expenses show a clear upward trend, reflecting investment in infrastructure to support growth. For the second half of fiscal year 2025 (H2 FY2025), G&A expenses were reported at $17.7 million. To give you context, for the first half of fiscal year 2025 (H1 FY2025, ended December 31, 2024), G&A expenses were $14.1 million, an increase of 26.2% from the prior year period, primarily due to personnel costs linked to establishing the China Development Center (CDC) and Global Testing Center (GTC).

The operating costs for global delivery and R&D centers support a wide geographic footprint. CLPS Incorporation maintains 18 delivery and/or research & development centers to serve its diverse customer base across various locations. These centers are key to delivering localized services globally. The operational expense associated with maintaining this physical infrastructure is substantial, covering leases, utilities, and local support staff across these sites.

Investment in R&D for AI and proprietary product defintely development is a strategic cost driver, positioning CLPS Incorporation for future revenue. In 2025, the focus was explicitly on five key innovation engines. The company formalized this commitment by establishing the CLPS AI Innovation Committee (CAIC) in February 2025, led by the CEO, to drive the strategic planning and implementation of AI technologies. This investment is aimed at developing high-quality, efficient, and intelligent solutions for clients.

Here's a quick look at the key financial and operational cost metrics we have for the 2025 fiscal year reporting periods:

The strategic allocation of costs is visible in the focus areas for innovation:

• AI, including the development of proprietary solutions.
• Low-code platform development.
• Robotic Process Automation (RPA), exemplified by the Nibot product.
• Cloud computing services infrastructure.
• Big Data processing capabilities.

The cost structure is clearly evolving, moving from general G&A increases in H1 FY2025 to absorbing significant one-time severance costs in H2 FY2025, all while maintaining a large global physical footprint and heavily funding the five innovation engines. Finance: draft 13-week cash view by Friday.

CLPS Incorporation (CLPS) - Canvas Business Model: Revenue Streams

You're looking at how CLPS Incorporation actually brings in the money, which is key for understanding its near-term stability. Honestly, the story for fiscal year 2025 is one of strong core service performance coupled with aggressive international expansion.

The Total Revenue for FY2025 was $164.5 million, a solid increase of 15.2% from the $142.8 million booked in fiscal year 2024.

The main engine here is definitely the bread-and-butter service.

• Primary revenue driver: IT consulting services.

For the first half of FY2025 (ended December 31, 2024), IT consulting services revenue hit $80.1 million, making up 96.7% of the total revenue for that period. Then, in the second half of FY2025 (ended June 30, 2025), this segment grew again, bringing in $78.7 million, which was 96.3% of the H2 total revenue. That's a clear picture of where the bulk of the cash flow comes from.

Now, let's look at the smaller, but strategically important, revenue lines. The revenue from customized IT solutions is a smaller piece of the pie, though CLPS Incorporation is actively trying to grow it with new tech. For the full fiscal year 2025, this segment generated approximately $2.7 million in revenue (calculated from H1 $0.9M and H2 $1.8M), which works out to about 1.7% of the total revenue, aligning with the strategic focus area you mentioned.

Here's a quick breakdown of the revenue composition across the two halves of FY2025:

The international push is definitely paying off. Revenue generated outside mainland China surged 77.1% in H2 FY2025, climbing to $23.5 million from $13.3 million in H2 FY2024. For the full fiscal year 2025, this overseas revenue grew 90.5% to reach $42.5 million. This diversification is a critical risk mitigator, so you want to watch those international contributions closely.

The growth outside mainland China was led by specific markets in H2 FY2025:

• Revenue from Singapore increased by 96.1% to $12.4 million.
• Revenue from Hong Kong SAR increased by 130.5% for the full year 2025.
• Revenue from Japan increased by 253.2% for the full year 2025.

Finally, you asked about the newer tech streams. CLPS Incorporation is making pivotal investments here, which are expected to feed into the customized IT solutions segment. In early 2025, the company established five key innovation engines: AI, low-code platform, RPA, cloud computing, and big data. We saw concrete steps in late 2025, including the unveiling of a Web3-Ready Issuance Platform in October 2025, signaling a strategic move into the stablecoin economy. Furthermore, the proprietary RPA product, Nibot, was involved in a Proof-of-Concept with the Hong Kong Monetary Authority's GenA.I. Sandbox in November 2025. These efforts are explicitly intended to open a new revenue source through tailored AI implementations.

Finance: review the Q3 2025 cash flow statement against this revenue growth by end of next week.