Clarivate Analytics Stock Earnings Reports

CCC reported a strong Q3 FY2025: revenue of $267M (+12% YoY), adjusted EBITDA of $110M (41% margin), and free cash flow of $79M in the quarter (trailing 12-month FCF $255M, +28% YoY). Key growth drivers were cross-sell/upsell, new logos (repair shops and parts suppliers), and adoption of AI-driven "emerging" solutions (Estimate‑STP, Intelligent Reinspection, Mobile Jumpstart, Build Sheets). EvolutionIQ contributed to growth and integration of its Medhub medical‑record AI is underway (6M documents processed in 12 months); EvolutionIQ added modest near‑term margin drag but is expected to add more revenue as deployments ramp. Casualty is accelerating (Liberty Mutual transition announced; casualty growth outpacing company average) and represents a large long‑term opportunity. Industry claim volumes remain a modest headwind (Q3 industry claims -6% YoY; ~1 percentage point drag on growth). Balance sheet: $97M cash, $993M debt, net leverage 2.1x EBITDA. Capital return: ~30M shares repurchased YTD (~$280M). Management is investing in go‑to‑market, change management, and organizational structure (splitting CPO/CTO roles, hiring senior client leaders) to accelerate adoption; these are funded largely by reallocating spend and include some one‑time costs in Q4. Guidance: Q4 revenue $272M–$277M (+10%–12% YoY), Q4 adjusted EBITDA $106M–$111M (~40% margin at midpoint). Full‑year 2025 guidance raised at the low end: revenue $1.051B–$1.056B and adjusted EBITDA $423M–$428M (40% midpoint). Key investor takeaways: durable recurring revenue base with high gross dollar retention (99%), improving NDR dynamics (105% in Q3), strong FCF generation, accelerating AI adoption that can materially expand per‑client revenue over time, and targeted investments to scale larger strategic relationships and casualty expansion.