CLPS Incorporation (CLPS): Marketing Mix Analysis [Dec-2025 Updated]

Look, you're trying to make sense of CLPS Incorporation's strategy heading into the end of 2025, and honestly, the numbers show a company in motion, even with that recent profitability hiccup. While the net loss of $6.4 million in FY2025 was a headwind, the top line grew 15.2% to $164.5 million, driven by a sharp pivot toward high-value AI and RPA services that define their Product. What's really telling is their 'Place' strategy: revenue outside mainland China jumped 90.5% to $42.5 million, signaling a successful global push that underpins their entire market play. Let's break down exactly how their Product, Place, Promotion, and Price are set up for the next chapter, because the strategic shifts are defintely clearer than the quarterly P&L.

CLPS Incorporation (CLPS) - Marketing Mix: Product

You're looking at what CLPS Incorporation is actually selling right now, and the numbers show a heavy reliance on their core service. For the full Fiscal Year 2025, the revenue generated specifically from IT consulting services hit $158.8 million. This service line accounted for 96.3% of the total revenue for the year, showing that their product offering is overwhelmingly service-based consulting. The core focus, as you'd expect from their history, remains squarely on providing fintech solutions for banking and wealth management clients. Also, revenue from customized IT solution services saw a dip, decreasing by $0.3 million, or 11.6%, to reach $2.8 million for the full fiscal year 2025. That's a clear signal on where the focus is shifting.

Here's the quick math on the service revenue split for the full fiscal year 2025:

The strategic shift you're seeing is a clear pivot toward high-value, technology-intensive projects. In 2025, CLPS Incorporation emphasized five key innovation engines: AI, low-code platform, RPA, cloud computing, and big data. This isn't just talk; they are backing it up with tangible proprietary products designed to capture this new demand. This move is about moving up the value chain from pure staff augmentation to solution delivery, which is defintely a higher-margin play long-term.

The development of proprietary products is central to this strategy, giving them assets they can scale beyond billable hours. You can see this in their two major recent releases:

• The Nibot RPA tool, launched in February 2025, is designed for multi-robot intelligent collaboration and integrates with AI for decision support.
• The CAKU credit card system received a major upgrade with the Web3-Ready Issuance Platform unveiled in October 2025.

The CAKU system's new functionality is quite specific, bridging traditional finance with digital assets. It leverages the NextGen platform to allow users to settle point of sale transactions and pay credit card bills using stablecoins. This is a concrete product enhancement that directly addresses evolving payment rails. For example, the system supports fiat-pegged digital assets like USDC and Tether (USDT), and it features intelligent stablecoin minting at a precise 1:1 ratio based on fiat currency reserves. Also, the CAKU system itself boasts over 200 pre-built scenarios covering the entire card lifecycle, which helps speed up deployment for new clients.

The Nibot RPA tool, which CLPS has been developing expertise in since 2018, is already seeing real-world application, including a Proof of Concept with BEA in the HKMA's GenA.I. Sandbox as of November 2025. The product's features focus on automation effectiveness and security:

• Advanced visual process designer using drag-and-drop functionality.
• End-to-end encryption and role-based access control for compliance.
• Intelligent task scheduling for dynamic resource allocation.

CLPS Incorporation (CLPS) - Marketing Mix: Place

CLPS Incorporation serves its global clientele through a deliberately structured physical presence designed to support its IT consulting and solution delivery model. The company's distribution strategy centers on proximity to its major financial institution clients across key international markets.

The global corporate headquarters for CLPS Incorporation is situated in Hong Kong SAR.

To support its service delivery and innovation pipeline, CLPS Incorporation operates a network of 19 delivery and/or research & development centers worldwide as of February 2025. The distribution of these centers reflects a dual focus on the domestic Chinese market and international expansion.

The key regional hubs are strategically positioned to cover major economic zones. These hubs include Shanghai (mainland China), Singapore (Southeast Asia), and California (North America).

The success of this international placement strategy is evident in the financial results. Revenue generated outside of mainland China surged by 90.5% to $42.5 million in the fiscal year 2025. This significant growth underscores the effectiveness of deploying delivery capabilities in these international locations.

The strong international growth in FY2025 was specifically driven by performance in key markets:

• Singapore
• Hong Kong SAR
• Japan

This geographic expansion, supported by the network of centers, allows CLPS Incorporation to deliver its services where and when needed by its global financial services client base. The nine global centers include locations such as the USA, Japan, Singapore, Malaysia, India, Philippines, Canada, and the UAE.

CLPS Incorporation (CLPS) - Marketing Mix: Promotion

Promotion for CLPS Incorporation centers on communicating its technological leadership and strategic direction to a global, financially-literate audience. The promotional narrative is built around tangible achievements in advanced IT services, particularly in Artificial Intelligence (AI).

Dual-engine strategy emphasizes global expansion and industry diversification.

The communication strategy highlights the success of the dual-engine approach. For instance, in the first half of fiscal year 2025, revenue generated outside of mainland China surged by an impressive 110.4%, growing from $9.0 million to $19.0 million. This expansion is supported by a growing global footprint, with CLPS Incorporation maintaining a total of 19 delivery and/or research & development centers across various locations. The total number of clients served also grew to 277 as of the first half of fiscal 2025, up from 225.

Established the CLPS AI Innovation Committee (CAIC) to integrate AI into client solutions.

The establishment of the CLPS AI Innovation Committee (CAIC) serves as a major promotional pillar, signaling a commitment to next-generation intelligent solutions. This committee builds upon the five key innovation engines established in early 2025: AI, low-code platform, RPA, cloud computing, and big data. CAIC leverages cutting-edge AI tools, including those from OpenAI and DeepSeek, to create an intelligent engineering system. This focus aligns with the broader market trend, where worldwide spending on AI is projected to reach $632 billion by 2028, growing at a CAGR of 29.0% from 2024-2028. A concrete promotional example is the successful modernization of a Hong Kong bank's loan system, where CAIC used AI to migrate legacy code to Java.

Engages in Proof-of-Concept (PoC) partnerships, like Nibot with BEA in the HKMA GenA.I. Sandbox.

Active participation in high-profile industry sandboxes is used to validate technology. CLPS Incorporation announced its collaboration with The Bank of East Asia, Limited ('BEA') to conduct a Proof-of-Concept ('PoC') of its advanced AI agent, Nibot, within 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.'). This PoC aims to explore enhancing banking operations through features like Intelligent Process Generation & Optimization and Automated Risk Monitoring & Feedback.

Uses digital channels like LinkedIn, X, and YouTube for corporate and technology news.

CLPS Incorporation actively uses major digital platforms to disseminate news and engage stakeholders. The company follows clients on LinkedIn, X (formerly Twitter), and YouTube. While specific CLPS engagement metrics aren't public, industry data suggests that using 1-2 hashtags on X can increase engagement by 21%. Furthermore, video content, often shared on platforms like YouTube, is a key influencer, with 72% of consumers preferring a product video over reading about it.

The financial commitment to promotion is reflected in operational spending:

Convenes internal Account Manager Conferences to reinforce client-centric global vision.

Internal communication is also a key promotional activity, reinforcing the external message. CLPS Incorporation convened its Account Manager Conference on November 14, 2025, with a focus on Global Vision and Multidimensional Growth. This internal event is designed to strengthen the client-centric strategy and enhance the effectiveness of frontline teams. The total number of employees supporting this client-facing effort stood at 3,642 in the first half of fiscal 2025.

The company's R&D investment also supports the promotional narrative of technological edge:

• Research and development expenses as a percentage of total revenues decreased to 4.0% in the first half of fiscal 2025, down from 4.5% in the prior year period.
• R&D personnel costs are associated with initiatives like AI-generated content (AIGC), CAKU 2.0, Nibot, and a new generation of loan system.

CLPS Incorporation (CLPS) - Marketing Mix: Price

You're looking at how CLPS Incorporation prices its specialized IT services in a competitive global landscape. The price element here isn't about a shelf sticker; it's about structuring service fees to capture the value delivered through deep consulting and new technology implementation, so you need to see the hard numbers behind that strategy.

The overall top-line performance gives a baseline for pricing power. For the full fiscal year 2025, CLPS Incorporation saw its total revenue increase by 15.2%, reaching $164.5 million, up from $142.8 million in the prior year period. This growth suggests that, overall, their pricing structure supported increased client demand for their services.

The service value reflected in the pricing structure is evident in the gross margin. For the first half of fiscal year 2025, the gross margin stood at 23.1%, an improvement from 21.9% in the first half of the previous year, which points to effective cost management relative to the billed service rates.

The pricing model is fundamentally service-based, heavily weighted toward IT consulting. To be fair, this reliance means pricing strategy is intrinsically linked to utilization rates and project scope. Here's a quick look at the revenue composition for fiscal year 2025:

The remaining percentage is comprised of other services, such as customized IT solution services, which accounted for 1.7% of total revenue in FY2025. This heavy concentration in IT consulting shows where the primary pricing leverage lies.

The bottom line shows the impact of external costs on realized pricing outcomes. While the first half of FY2025 actually resulted in a net income of $0.2 million, the second half saw a net loss of $6.6 million, largely due to one-time severance expenses related to a major client restructuring. However, after excluding all layoff compensation for the full fiscal year 2025, the adjusted net income was $78.0 thousand, which helps illustrate the underlying operational profitability before that significant, non-recurring charge.

New offerings like AI and RPA are positioned to command a premium, reflecting their high-value impact on client operations. The pricing for these specialized, high-value digital transformation projects is supported by concrete performance metrics achieved in recent deployments. You can see the value proposition in these results from an AI-driven legacy system modernization project:

• Achieved 70% automation rate in system code conversion.
• Reduced project timeline from 24 months to 7 months.
• Decreased labor requirements by over 60%, generating millions in cost savings.

This demonstrates a clear ability to price for significant time and cost reduction, which is the essence of premium pricing in the consulting space. The launch of the Nibot RPA product also signals a strategy to compete on performance and cost-effectiveness in the automation market.

Finance: draft 13-week cash view by Friday.