Clearwater Analystics slightly beats Q3 revenue estimates

Clearwater Analytics Holdings

05/11/2025 22:28

Overview

Clearwater Q3 2025 revenue grows 77% yr/yr, slightly beating analyst expectations

Adjusted EBITDA for Q3 2025 beats expectations, rising 84% yr/yr

Company reports Q3 2025 net loss, adjusted net income misses estimates

Outlook

Clearwater Analytics forecasts Q4 2025 revenue between $216 mln and $217 mln

Company expects full-year 2025 revenue to reach $730 mln to $731 mln

Company projects Q4 2025 adjusted EBITDA at $73 mln

Result Drivers

INTEGRATED PLATFORM - Clearwater's single security master architecture and Gen AI models contributed to strong revenue growth

COMPETITIVE WINS - Secured marquee wins with insurance, hedge funds, asset management, and asset owners globally

AI TRANSFORMATION - Clients experienced transformative results with AI agents, reducing manual efforts and speeding report generation

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Slight Beat*
$205.10 mln
$203.65 mln (10 Analysts)
Q3 Adjusted Net Income
Miss
$40.60 mln
$46.04 mln (8 Analysts)
Q3 Net Income
-$10.50 mln
Q3 Adjusted EBITDA
Beat
$70.70 mln
$64.47 mln (10 Analysts)
Q3 Adjusted EBITDA Margin
34.50%
Q3 Adjusted Gross Profit
$161 mln
Q3 Annual Recurring Revenue
$807.50 mln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Clearwater Analytics Holdings Inc is $30.00, about 42.1% above its November 4 closing price of $17.37

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release: ID:nBw8SdjKla

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)