Key Highlights

  • Third quarter Revenue rose 27.8% to USD 292.9 million, above the USD 286.7 million estimate.
  • EPS of USD 0.53 topped the USD 0.48 estimate, and Net Income rose 67% to USD 75.3 million.
  • Adjusted EBITDA reached USD 103.9 million at a 35.5% margin, nearly 5 percentage points higher.
  • Share repurchases reached USD 171 million in the quarter, the largest quarterly buyback in the company's history so far.

Clear Secure (NYSE:YOU) reported third quarter revenue of USD 292.9 million, up 27.8% from USD 229.2 million a year earlier and above the USD 286.7 million estimate. Basic EPS of USD 0.53 beat the USD 0.48 estimate, with diluted EPS at USD 0.52, compared with USD 0.29 a year ago. Net income was USD 75.3 million versus USD 45.1 million, and Operating Income rose to USD 82.9 million from USD 52.6 million.

Members, Bookings and Network Growth

Total bookings reached USD 323.5 million, up 24.4%. Active CLEAR+ members grew 14.5% to 8.5 million, and total CLEAR members rose 30.7% to 46.7 million. Founder and chief executive Caryn Seidman-Becker said the company is extending its identity platform from airport checkpoints to cybersecurity, workforce, health care and government use cases. Nearly 80% of the airport network is now covered by eGates and Concierge operates in almost 70% of airports, with more than 96% of travelers clearing the lane in under five minutes.

On the enterprise side, the company expanded to a multiyear contract with the Centers for Medicare & Medicaid Services and announced a pilot with the Department of Veterans Affairs. It is integrated into almost 10% of US health care systems, and CrowdStrike has integrated its verified identity into the Falcon platform. Deferred revenue stood at USD 603.6 million, up from USD 516.2 million at the start of the year.

Margins, Cash Flow and Buybacks

Adjusted EBITDA was USD 103.9 million, a 35.5% Margin that expanded nearly 5 percentage points year over year. For the first nine months, revenue was USD 823.6 million versus USD 660.0 million, and net income was USD 204.0 million versus USD 121.6 million.

Third quarter cash flow followed its usual pattern because of the annual settlement of accrued Partnership liabilities, mainly merchant Credit card benefits. Net cash used in Operating Activities was USD 98.6 million, and free cash flow was negative USD 103.8 million, reflecting a settlement of about USD 315 million. The chief financial officer said no further payments on those liabilities are scheduled in fiscal 2026. Under the renewed agreement with its credit card partner, quarterly payments begin in the first quarter of 2027, which spreads cash flow more evenly through the year.

Cash and equivalents were USD 35.4 million, with USD 633 million of cash and marketable securities in total. The company repurchased 3.7 million shares for USD 171 million at an average price of USD 46.19. It has bought back close to USD 650 million of stock since its IPO at an average of about USD 25 per share, reducing the net share count by roughly 11%.

Fourth Quarter and Cash Flow Guidance

Management guided fourth quarter revenue to USD 299 million to USD 302 million and total bookings to USD 335 million to USD 340 million, implying growth of 24.8% and 17.6% at the midpoints. The guidance excludes potential large CLEAR1 contracts because their timing is hard to predict. Full year free cash flow guidance rose to at least USD 490 million from at least USD 480 million, which represents growth of at least 42.8%.

Figures Worth Comparing

Third quarter revenue of USD 292.9 million compares with the fourth quarter guide of USD 299 million to USD 302 million, and bookings of USD 323.5 million compare with USD 335 million to USD 340 million guided for the fourth quarter. Free cash flow of negative USD 103.8 million for the quarter compares with the full year guide of at least USD 490 million. Quarterly Buybacks of USD 171 million compare with USD 633 million of cash and marketable securities.