Quarterly Revenue of $217.5 Million, Up 72% Year-Over-Year
Annualized Recurring Revenue of $841 Million, Up 77% Year-Over-Year
Adjusted EBITDA of $74.1 Million, Up 78% Year-Over-Year
Operating Cash Flows of $55.3 Million Enabled Repayment of $17 Million of Debt
BOISE, Idaho--(BUSINESS WIRE)--February 18, 2026--
Clearwater Analytics Holdings, Inc. (NYSE: CWAN) ("CWAN" or the "Company"), the most comprehensive technology platform for investment management, today announced its financial results for the quarter ended December 31, 2025.
"We delivered a strong end to 2025 with Q4 revenue of $217.5 million, up 72% year-over-year. Our GenAI investments are producing meaningful internal efficiencies, driving Non-GAAP gross margin to a record 79.2%. Adjusted EBITDA was ahead of our expectations as well, growing 77.7% year-over-year to $74.1 million," said Sandeep Sahai, CEO at CWAN. "Beyond the numbers, Q4 was a transformative quarter that positions us to accelerate our vision of reimagining institutional investment management. Despite many moving parts, the team executed at an extraordinary level. Sequential ARR growth of over $33 million is a testament to the capability and focus of our employees."
"The industry is changing at an unprecedented pace. Portfolios span public and private assets, data volumes are exploding, and clients need real-time intelligence. Since Clearwater Connect, we've seen a 10x increase in the number of clients using agentic workflows. We now have nearly 1,000 AI agents available for deployment across more than $10 trillion in client assets, reducing manual reconciliation by 90%, accelerating regulatory reporting by 80%, and speeding close cycles by 50%," continued Sahai. "The foundation we're building--integrating and strengthening Enfusion, Beacon, and our core platform with AI, natively handles the complexity of today's global portfolios. Looking ahead, we look forward to accelerating our focus and ability to solve the industry's hardest problems, deliver the agentic solutions our clients need, and lead the future of investing."
Fourth Quarter 2025 Financial Results Summary
-- Revenue: Total revenue for the fourth quarter of 2025 was $217.5
million, an increase of 72%, from $126.5 million in the fourth quarter of
2024.
-- Gross Profit: Gross profit for the fourth quarter of 2025 increased to
$146.2 million, which equates to a 67.2% GAAP gross margin, compared with
gross profit of $92.9 million and GAAP gross margin of 73.5% in the
fourth quarter of 2024. Non-GAAP gross profit for the fourth quarter of
2025 was $172.2 million, which equates to a 79.2% non-GAAP gross margin,
compared with non-GAAP gross profit of $99.7 million and non-GAAP gross
margin of 78.8% in the fourth quarter of 2024.
-- Net Income/(Loss): Net loss for the fourth quarter of 2025 was $12.5
million, compared with net income of $420.3 million in the fourth quarter
of 2024. Non-GAAP net income for the fourth quarter of 2025 increased to
$44.4 million, an increase of 30.7% from $33.9 million in the fourth
quarter of 2024.
-- Adjusted EBITDA: Adjusted EBITDA for the fourth quarter of 2025 was
$74.1 million, an increase of 78%, from $41.7 million in the fourth
quarter of 2024. Adjusted EBITDA margin for the fourth quarter of 2025
was 34.1%, an increase of 110 basis points over the fourth quarter of
2024.
-- Cash Flows: Operating cash flows for the fourth quarter of 2025 were
$55.3 million. Free cash flows for the fourth quarter of 2025 were $52.3
million.
-- Net Loss Per Share and Non-GAAP Net Income Per Share: Net loss per
basic and diluted share was $0.04 in the fourth quarter of 2025. Non-GAAP
net income per basic and diluted share was $0.15 in the fourth quarter of
2025.
-- Cash, cash equivalents, and investments were $91.2 million as of
December 31, 2025. Total debt, net of debt issuance cost, was $822.6
million as of December 31, 2025.
Fourth Quarter 2025 Key Metrics Summary
-- Annualized Recurring Revenue: As of December 31, 2025, annualized
recurring revenue ("ARR") reached $841 million, an increase of 77% from
$475 million as of December 31, 2024. ARR is calculated at the end of
a period by dividing the recurring revenue in the last month of such
period by the number of days in the month and multiplying by 365.
-- Gross Revenue Retention Rate: As of December 31, 2025, the gross
revenue retention rate was 98%. Gross revenue retention rate
represents annual contract value ("ACV") at the beginning of the 12-month
period ended on the reporting date less client attrition over the prior
12-month period, divided by ACV at the beginning of the 12-month period,
expressed as a percentage. ACV is comprised of annualized recurring
revenue plus contracted-not-billed revenue, which represents the
estimated annual contracted revenue for new and existing client
opportunities prior to revenue recognition.
-- Net Revenue Retention Rate: As of December 31, 2025, the net revenue
retention rate was 109% up from 108% in September 30, 2025. Net
revenue retention rate is the percentage of recurring revenue from
clients on the platform for 12 months and includes changes from the
addition, removal, or value of assets on our platform, contractual
changes that have an impact to annualized recurring revenues and lost
revenue from client attrition.
Recent Business Highlights
-- On September 3, 2025, at our Investor Day, we announced that our Board
of Directors authorized a $100 million share repurchase program. We
repurchased approximately 510,000 CWAN shares in the quarter for $9.2
million at an average price of $17.97 per share. All of the shares that
were repurchased in the fourth quarter were repurchased pursuant to a
10b5-1 Plan. We have $82 million remaining under the authorization.
-- CWAN embedded agentic AI capabilities directly into its Beacon risk and
quantitative analytics platform to significantly accelerate model
validation, and exposure analysis for institutional investors. The AI
operates within Beacon's core calculation engine on live portfolio data,
eliminating manual workflows and enabling near real-time risk insights.
This enhancement allows risk teams to validate models faster, run
natural-language scenario analysis, and automate complex risk workflows
with full auditability and governance.
-- As of December 31, 2025 we had over 2,500 clients, 152 of whom
generated ARR of more than $1 million. In the fourth quarter, we closed
multiple 7-figure deals including new client wins with Beacon by CWAN.
The incredible progress we've demonstrated expanding our client base,
speaks to the strength of our solutions and the disruptive nature of our
front-to-back offering.
-- Generali Deutschland AG selected CWAN to modernize and scale its EUR40
billion, unit-linked fund (ULF) life insurance operations across four
subsidiaries, positioning the insurer for accelerated growth in one of
Europe's fastest-expanding markets. The multi-year agreement will
consolidate portfolio management, order execution, and reconciliation on
a single front-to-back platform, delivering real-time data, standardizing
processes, and automated controls. Designed to support multiple
accounting standards and evolving European regulatory requirements, the
deployment is expected to enhance operational agility, transparency, and
efficiency.
-- BarmeniaGothaer Asset Management AG has selected Clearwater Analytics
as its strategic investment management platform provider. As the in-house
asset manager of the BarmeniaGothaer Group, Barmenia Gothaer Asset
Management AG currently manages approximately 50 billion EUR.
BarmeniaGothaer is one of Germany's top 10 insurers with 8.6 billion EUR
in premium income. This client exemplifies how leading European insurers
are turning to Clearwater's single instance multi-tenant architecture to
improve operational efficiency and leverage AI capabilities in an
increasingly complex capital markets environment.
-- On December 20, 2025, the Company entered into an Agreement and Plan of
Merger to be acquired in a transaction (the "Proposed Transaction")
valued at approximately $8.4 billion by a Permira and Warburg Pincus-led
investor group, with participation from Temasek, and key support from
Francisco Partners (collectively, the "Investor Group"). Under the terms
of the agreement, Company stockholders will receive $24.55 per share in
cash upon completion of the Proposed Transaction.
Earnings Conference Call and Guidance
As a result of the execution of a definitive agreement under which the Investor Group will acquire all of the outstanding shares of the Company's common stock in an all-cash transaction, as announced on December 21, 2025, the Company will not host an earnings conference call or webcast to discuss its fourth quarter and full year 2025 financial results nor provide forward-looking guidance.
CWAN currently expects to close the Proposed Transaction in the second quarter of 2026.
About CWAN
CWAN (NYSE: CWAN) is transforming investment management with the industry's most comprehensive cloud-native platform for institutional investors across global public and private markets. While legacy systems create risk, inefficiency, and data fragmentation, CWAN's single-instance, multi-tenant architecture delivers real-time data and AI-driven insights throughout the investment lifecycle. The platform eliminates information silos by integrating portfolio management, trading, investment accounting, reconciliation, regulatory reporting, performance, compliance, and risk analytics in one unified system. Serving leading insurers, asset managers, hedge funds, banks, corporations, and governments, CWAN supports over $10 trillion in assets globally. Learn more at www.cwan.com.
Use of non-GAAP Information
This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow.
The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.
The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, transaction expenses, impairment and other charges. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.
Use of Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's expectations with respect to the proposed transaction, including the timing thereof, and the Company's possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as "anticipate," "believe," "could," "estimate," "expect," "intend," "aim," "may," "plan," "potential," "predict," "project," "seek," "should," "will," "would" or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.
Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Company's control, that may cause the Company's actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties may cause actual results to differ materially from the Company's current expectations and include, but are not limited to: $(A)$ risks related to the Proposed Transactions, including (i) the risk that the Proposed Transaction may not be completed in a timely manner or at all; (ii) the failure to receive, on a timely basis or otherwise, the required approvals of the Proposed Transaction by the Company's stockholders; (iii) the possibility that any or all of the various conditions to the consummation of the Proposed Transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); (iv) the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the Proposed Transaction, including in circumstances which would require the Company to pay a termination fee; (v) the effect of the announcement or pendency of the Proposed Transaction on the Company's ability to attract, motivate or retain key executives and associates, its ability to maintain relationships with its customers, vendors, service providers and others with whom it does business, or its operating results and business generally; (vi) risks related to the Proposed Transaction diverting management's attention from the Company's ongoing business operations; (vii) the risk of shareholder litigation in connection with the Proposed Transaction, including resulting expense or delay; (viii) certain restrictions during the pendency of the Proposed Transaction that may impact the Company's ability to pursue certain business opportunities or strategic transactions; (ix) risks that the anticipated benefits of the Proposed Transaction are not realized when and as expected; (x) the availability of capital and financing and rating agency actions in connection with the Proposed Transaction; $(B)$ ongoing risks such as those related to (i) the Company's ability to successfully integrate the operations and technology of its acquisitions of Enfusion, Beacon and Bistro (the "Acquisitions") with those of the Company and to obtain third party data rights, retain and incentivize the employees of the Acquisitions following the close of the Acquisitions, retain the Acquisitions' clients, repay debt incurred in connection with the Acquisitions and meet financial covenants to be imposed in connection with such debt; (ii) risks that synergies and growth from the Acquisitions may not be fully realized or may take longer to realize than expected, (iii) the Company's ability to keep pace with rapid technological change and market developments, including artificial intelligence, (iv) competitors in its industry, (v) the possibility that market volatility, a downturn in economic conditions or other factors may cause negative trends or fluctuations in the value of the assets on the Company's platform, (vi) the Company's ability to manage growth, (vii) the Company's ability to attract and retain skilled employees, (viii) the possibility that the Company's solutions fail to perform properly, (ix) disruptions and failures in the Company's and third parties' computer equipment, cloud-based services, electronic delivery systems, networks and telecommunications systems and infrastructure, (x) the failure to protect the Company, its customers' and/or its vendors' confidential information and/or intellectual property, claims of infringement of others' intellectual property, (xi) factors related to the Company's ownership structure; and (C) other risks and uncertainties detailed in the Company's periodic public filings with the SEC, including but not limited to those discussed under "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 filed on February 18, 2026, and in other periodic reports filed by the Company with the SEC. These filings are available at www.sec.gov and on the Company's website.
Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management's beliefs and assumptions only as of the date of this press release and should not be relied upon as representing the Company's expectations or beliefs as of any date subsequent to the time they are made. The Company does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of the Company.
Clearwater Analytics Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share amounts and per share amounts, unaudited)
December 31,
-------------------------
2025 2024
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 91,245 $ 177,350
Short-term investments -- 78,139
Accounts receivable, net 167,348 106,151
Prepaid expenses and other current assets 36,977 23,006
--------- ---------
Total current assets 295,570 384,646
Property, equipment and software, net 26,607 14,797
Operating lease right-of-use assets, net 34,300 24,797
Deferred contract costs, non-current 13,017 7,013
Debt issuance costs - line of credit 3,467 339
Deferred tax assets, net 695,998 602,500
Other non-current assets 5,336 3,340
Intangible assets, net 687,578 30,868
Goodwill 1,270,056 70,971
Long-term investments -- 30,301
--------- ---------
Total assets $3,031,929 $1,169,572
========= =========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 4,096 $ 2,934
Accrued expenses and other current
liabilities 112,249 55,654
Deferred revenue 21,860 7,329
Notes payable, current portion 8,000 2,750
Operating lease liability, current portion 15,138 8,350
Tax receivable agreement liability -- 35
--------- ---------
Total current liabilities 161,343 77,052
Notes payable, less current maturities and
unamortized debt issuance costs 814,643 43,164
Operating lease liability, less current
portion 22,555 17,655
Other long-term liabilities 2,296 1,470
--------- ---------
Total liabilities 1,000,837 139,341
Commitments and contingencies
Stockholders' Equity
Class A common stock, par value $0.001 per
share; 1,500,000,000 shares authorized,
291,426,648 shares issued and outstanding
as of December 31, 2025, 212,857,580
shares issued and outstanding as of
December 31, 2024 291 213
Class B common stock, par value $0.001 per
share; 500,000,000 shares authorized,
2,017,754 share issued and outstanding as
of December 31, 2025, no share issued and
outstanding as of December 31, 2024 2 --
Class C common stock, par value $0.001 per
share; 500,000,000 shares authorized, no
shares issued and outstanding as of
December 31, 2025, 12,542,110 shares
issued and outstanding as of December 31,
2024 -- 13
Class D common stock, par value $0.001 per
share; 500,000,000 shares authorized, no
shares issued and outstanding as of
December 31, 2025, 22,243,668 shares
issued and outstanding as of December 31,
2024 -- 22
Additional paid-in-capital 1,754,387 725,174
Accumulated other comprehensive (loss)
income 7,089 (1,113)
Retained earnings 259,963 283,946
--------- ---------
Total stockholders' equity attributable to
Clearwater Analytics Holdings, Inc. 2,021,732 1,008,255
Non-controlling interests 9,360 21,976
--------- ---------
Total stockholders' equity 2,031,092 1,030,231
--------- ---------
Total liabilities and stockholders' equity $3,031,929 $1,169,572
========= =========
Clearwater Analytics Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended
December 31, Year Ended December 31,
---------------------------- ------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue $ 217,457 $ 126,465 $ 731,368 $ 451,803
Cost of revenue(1) 71,236 33,561 239,220 122,987
----------- ----------- ----------- -----------
Gross profit 146,221 92,904 492,148 328,816
----------- ----------- ----------- -----------
Operating expenses:
Research and
development(1) 57,009 40,904 196,228 150,558
Sales and
marketing(1) 45,857 17,885 149,180 67,254
General and
administrative(1) 50,098 32,896 154,426 98,770
----------- ----------- ----------- -----------
Total operating
expenses 152,964 91,685 499,834 316,582
----------- ----------- ----------- -----------
Income (loss) from
operations (6,743) 1,219 (7,686) 12,234
Interest expense 15,162 1,069 45,664 4,325
Tax receivable
agreement
expense -- 41,637 -- 53,181
Other income, net (249) (4,649) (3,678) (15,209)
----------- ----------- ----------- -----------
Loss before income
taxes (21,656) (36,838) (49,672) (30,063)
Provision for
(benefit from)
income taxes (9,131) (457,143) (9,418) (457,648)
----------- ----------- ----------- -----------
Net income (loss) (12,525) 420,305 (40,254) 427,585
Less: Net income
(loss) attributable
to non-controlling
interests (295) 819 (1,447) 3,207
----------- ----------- ----------- -----------
Net income (loss)
attributable to
Clearwater Analytics
Holdings, Inc. $ (12,230) $ 419,486 $ (38,807) $ 424,378
=========== =========== =========== ===========
Net earnings (loss)
per share
attributable to Class
A and Class D common
stock:
Basic $ (0.04) $ 1.85 $ (0.14) $ 1.93
Diluted $ (0.04) $ 1.63 $ (0.14) $ 1.68
Weighted average
shares of Class A and
Class D common stock
outstanding:
Basic 288,607,569 226,571,994 271,323,558 219,316,625
Diluted 288,607,569 258,131,701 271,323,558 254,362,539
(1) Amounts include equity-based compensation as follows:
Cost of revenue $ 3,965 $ 3,755 $ 16,445 $ 13,634
Operating expenses:
Research and development 9,247 9,326 33,835 36,093
Sales and marketing 10,499 4,885 37,369 15,304
General and administrative 9,455 10,176 40,247 38,170
------ ------ ------- -------
Total equity-based
compensation expense $33,166 $28,142 $127,896 $103,201
====== ====== ======= =======
Clearwater Analytics Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands, unaudited)
Three Months Ended
December 31, Year Ended December 31,
--------------------- --------------------------
2025 2024 2025 2024
------- -------- ---------- --------
OPERATING ACTIVITIES
Net income (loss) $(12,525) $ 420,305 $ (40,254) $ 427,585
Adjustments to
reconcile net income
(loss) to net cash
provided by (used in)
operating activities:
Depreciation and
amortization 29,489 3,451 85,541 12,181
Noncash operating
lease cost 4,383 2,341 16,682 9,221
Equity-based
compensation 33,166 28,142 127,896 103,201
Amortization of
deferred contract
acquisition costs 4,362 1,692 11,487 5,265
Amortization of
debt issuance
costs, included in
interest expense 977 71 2,770 280
Debt extinguishment
costs -- -- 419 --
Provision for bad
debt 488 -- 2,165 --
Deferred tax
benefit (9,877) (456,956) (12,607) (460,032)
Accretion of
discount on
investments -- (452) (284) (2,185)
Realized gain on
investments -- -- (112) (35)
Changes in operating
assets and
liabilities, excluding
the impact of business
acquisitions:
Accounts
receivable, net (15,045) (5,774) (11,148) (13,648)
Prepaid expenses
and other assets (2,539) 3,066 (11,159) 5,627
Deferred contract
acquisition costs (8,325) (2,826) (17,036) (6,242)
Accounts payable 624 (1,317) (1,341) 269
Accrued expenses
and other
liabilities 28,599 8,110 22,449 11,693
Tax receivable
agreement
liability -- (28,793) (35) (18,859)
Other long-term
liabilities 1,554 -- 463 --
------- -------- ---------- --------
Net cash provided by
(used in) operating
activities 55,331 (28,940) 175,896 74,321
------- -------- ---------- --------
INVESTING ACTIVITIES
Purchases of
property,
equipment and
software (3,042) (822) (11,554) (5,259)
Purchases of
intangible assets -- -- (10,239) --
Purchase of held to
maturity
investments -- -- (4,686) (3,009)
Purchases of
available-for-sale
investments -- (20,662) -- (114,572)
Proceeds from sale
of
available-for-sale
investments -- -- 89,479 --
Proceeds from
maturities of
investments 3,341 20,550 23,716 107,417
Acquisition of
business, net of
cash acquired -- -- (1,074,754) (40,121)
Payment of initial
direct costs for
operating lease -- -- (89) (104)
------- -------- ---------- --------
Net cash provided by
(used in) investing
activities 299 (934) (988,127) (55,648)
------- -------- ---------- --------
FINANCING ACTIVITIES
Proceeds from
exercise of
options -- 38 168 248
Taxes paid related
to net share
settlement of
equity awards (1,517) (12,638) (33,749) (55,301)
Repurchase of
common stock (9,551) -- (18,054) --
Proceeds from
borrowings, net of
payment of debt
issuance costs -- -- 924,475 --
Repayments of
borrowings (17,000) (688) (154,063) (2,750)
Proceeds from
employee stock
purchase plan 3,320 1,898 6,636 4,693
Payment of tax
distributions -- (3,873) -- (3,873)
Payment of business
acquisition
holdback
liability -- (3,905) -- (4,685)
------- -------- ---------- --------
Net cash provided by
(used in) financing
activities (24,748) (19,168) 725,413 (61,668)
------- -------- ---------- --------
Effect of exchange
rate changes on cash
and cash equivalents (387) (2,302) 713 (1,420)
Change in cash and
cash equivalents
during the period 30,495 (51,344) (86,105) (44,415)
Cash and cash
equivalents,
beginning of period 60,750 228,694 177,350 221,765
------- -------- ---------- --------
Cash and cash
equivalents, end of
period $ 91,245 $ 177,350 $ 91,245 $ 177,350
======= ======== ========== ========
SUPPLEMENTAL
DISCLOSURE OF CASH
FLOW INFORMATION
Cash paid for interest $ 14,250 $ 837 $ 31,142 $ 3,464
Cash paid for income
taxes $ 2,320 $ 800 $ 3,486 $ 1,979
NON-CASH INVESTING AND
FINANCING ACTIVITIES
Purchase of property
and equipment
included in accounts
payable and accrued
expense $ 210 $ 38 $ 210 $ 38
Acquisition of Bistro
intangible assets
paid in common stock $ -- $ -- $ 102,729 $ --
Tax distributions
payable to Continuing
Equity Owners
included in accrued
expenses $ 3 $ 23 $ 3 $ 23
Clearwater Analytics Holdings, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In thousands, unaudited)
Three Months Ended December 31,
------------------------------------------------
2025 2024
------------------------- ---------------------
(in thousands, except percentages)
Net income (loss) $ (12,525) (6%) $ 420,305 332%
Adjustments:
Interest
expense 15,162 7% 1,069 1%
Depreciation
and
amortization 29,489 14% 3,451 3%
Equity-based
compensation
expense and
related
payroll taxes 33,797 16% 30,421 24%
Tax receivable
agreement
expense -- --% 41,637 33%
Transaction
expenses 17,508 8% 6,382 5%
Amortization of
prepaid
management
fees and
reimbursable
expenses 21 0% 210 0%
Benefit from
income taxes (9,131) (4%) (457,143) (361)%
Other income,
net (249) 0% (4,649) (4%)
-------- --- --------- ----
Adjusted EBITDA $ 74,072 34% $ 41,683 33%
======== === ========= ====
Revenue $ 217,457 100% $ 126,465 100%
Year Ended December 31,
------------------------------------------------
2025 2024
------------------------- ---------------------
(in thousands, except percentages)
Net income (loss) $ (40,254) (6%) $ 427,585 95%
Adjustments:
Interest
expense 45,664 6% 4,325 1%
Depreciation
and
amortization 85,541 12% 12,181 3%
Equity-based
compensation
expense and
related
payroll taxes 134,533 18% 110,961 25%
Tax receivable
agreement
expense -- --% 53,181 12%
Transaction
expenses 35,773 5% 8,308 2%
Amortization of
prepaid
management
fees and
reimbursable
expenses 29 0% 1,990 0%
Benefit from
income taxes (9,418) (1%) (457,648) (101%)
Other income,
net (3,678) (1%) (15,209) (3%)
-------- --- --------- ----
Adjusted EBITDA $ 248,190 34% $ 145,674 32%
======== === ========= ====
Revenue $ 731,368 100% $ 451,803 100%
Clearwater Analytics Holdings, Inc.
Reconciliation of Free Cash Flow
(In thousands, unaudited)
Three Months Ended
December 31, Year Ended December 31,
----------------------- --------------------------
2025 2024 2025 2024
----------- -------- -------------- ----------
Net cash
provided by
(used in)
operating
activities $ 55,331 $ (28,940) $ 175,896 $ 74,321
Less:
Purchases
of
property
and
equipment 3,042 822 11,554 5,259
------- -------- ---------- ---------
Free cash
flow $ 52,289 $ (29,762) $ 164,342 $ 69,062
======= ======== ========== =========
Clearwater Analytics Holdings, Inc.
Reconciliation of Non-GAAP Information
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended
December 31, Year Ended December 31,
---------------------------------- ----------------------------------
2025 2024 2025 2024
----------- ----------- ----------- -----------
Revenue $ 217,457 $ 126,465 $ 731,368 $ 451,803
Gross profit $ 146,221 $ 92,904 $ 492,148 $ 328,816
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 4,078 3,963 17,896 14,546
Depreciation
and
amortization 21,865 2,840 63,980 10,137
----------- ----------- ----------- -----------
Gross profit,
non-GAAP $ 172,164 $ 99,707 $ 574,024 $ 353,499
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 79% 79% 78% 78%
Cost of revenue $ 71,236 $ 33,561 $ 239,220 $ 122,987
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 4,078 3,963 17,896 14,546
Depreciation
and
amortization 21,865 2,840 63,980 10,137
----------- ----------- ----------- -----------
Cost of revenue,
non-GAAP $ 45,293 $ 26,758 $ 157,344 $ 98,304
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 21% 21% 22% 22%
Research and
development $ 57,009 $ 40,904 $ 196,228 $ 150,558
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 9,416 11,091 35,654 41,356
Depreciation
and
amortization 556 156 1,542 736
----------- ----------- ----------- -----------
Research and
development,
non-GAAP $ 47,037 $ 29,657 $ 159,032 $ 108,466
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 22% 23% 22% 24%
Sales and
marketing $ 45,857 $ 17,885 $ 149,180 $ 67,254
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 10,773 5,024 38,893 16,017
Depreciation
and
amortization 6,277 173 17,400 638
----------- ----------- ----------- -----------
Sales and
marketing,
non-GAAP $ 28,807 $ 12,688 $ 92,887 $ 50,599
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 13% 10% 13% 11%
General and
administrative $ 50,098 $ 32,896 $ 154,426 $ 98,770
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 9,530 10,343 42,090 39,042
Depreciation
and
amortization 791 282 2,619 670
Amortization
of prepaid
management
fees and
reimbursable
expenses 21 210 29 1,990
Transaction
expenses 17,508 6,382 35,773 8,308
----------- ----------- ----------- -----------
General and
administrative,
non-GAAP $ 22,248 $ 15,679 $ 73,915 $ 48,760
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 10% 12% 10% 11%
Income (loss)
from
operations $ (6,743) $ 1,219 $ (7,686) $ 12,234
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 33,797 30,421 134,533 110,961
Depreciation
and
amortization 29,489 3,451 85,541 12,181
Amortization
of prepaid
management
fees and
reimbursable
expenses 21 210 29 1,990
Transaction
expenses 17,508 6,382 35,773 8,308
----------- ----------- ----------- -----------
Income from
operations,
non-GAAP $ 74,072 $ 41,683 $ 248,190 $ 145,674
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 34% 33% 34% 32%
Net income
(loss) $ (12,525) $ 420,305 $ (40,254) $ 427,585
Adjustments:
Equity-based
compensation
expense and
related
payroll
taxes 33,797 30,421 134,533 110,961
Depreciation
and
amortization 29,489 3,451 85,541 12,181
Tax
receivable
agreement
expense -- 41,637 -- 53,181
Amortization
of prepaid
management
fees and
reimbursable
expenses 21 210 29 1,990
Transaction
expenses 17,508 6,382 35,773 8,308
Tax impacts
of
adjustments
to net
income
(loss)(1) (23,921) (468,459) (60,969) (496,779)
----------- ----------- ----------- -----------
Net income,
non-GAAP $ 44,369 $ 33,947 $ 154,653 $ 117,427
=========== =========== =========== ===========
As a percentage
of revenue,
non-GAAP 20% 27% 21% 26%
Net income per
share - basic,
non-GAAP $ 0.15 $ 0.15 $ 0.57 $ 0.54
Net income per
share -
diluted,
non-GAAP $ 0.15 $ 0.13 $ 0.54 $ 0.46
Weighted average
common shares
outstanding -
basic 288,607,569 226,571,994 271,323,558 219,316,625
Weighted average
common shares
outstanding -
diluted 299,337,394 258,131,701 286,495,278 254,362,539
(1) The non-GAAP effective tax rate was 25% for the three months and year
ended December 31, 2025 and 2024, respectively, and has been used to
adjust the provision for income taxes for non-GAAP net income and
non-GAAP basic and diluted net income per share. The Company excludes
income tax benefits from discrete activities, including the income tax
benefit related to the release of the US federal state valuation
allowance, because of their nonrecurring nature.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260218581398/en/
CONTACT: Investor Contact:
Kamil Mielczarek | +1 208-510-6856 | investors@cwan.com
Media Contact:
Claudia Cahill | +1 703-728-1221 | press@cwan.com
(END) Dow Jones Newswires
February 18, 2026 16:15 ET (21:15 GMT)