Clarivate Reports Second Quarter 2025 Results
Clarivate (NYSE:CLVT) reported Q2 2025 results with total revenues of $621.4 million, down from $650.3 million in Q2 2024 due to divestitures. The company showed positive trends with organic revenue growth of 0.5% and organic ACV growth of 1.3%. Notably, organic recurring revenue mix improved to 88%, up 800 basis points from year-end 2024.
Q2 2025 net loss was $72.0 million ($0.11 per share), improving from a $304.3 million loss in Q2 2024. Adjusted EBITDA reached $261.6 million. The company generated $287.5 million in operating cash flow and repurchased 11.5 million shares in Q2. Management reaffirmed its 2025 outlook, projecting revenues of $2.28B-$2.40B and adjusted EBITDA of $940M-$1.00B.
[ "Organic revenue growth of 0.5% and organic ACV growth of 1.3%", "Improved recurring revenue mix to 88%, up 800 basis points from 2024", "Net loss improved significantly to $72.0M from $304.3M in Q2 2024", "Generated strong operating cash flow of $287.5M in H1 2025", "Executed share repurchase of 23.2M shares at average price of $4.29" ]Clarivate (NYSE:CLVT) ha riportato i risultati del secondo trimestre 2025 con ricavi totali pari a 621,4 milioni di dollari, in calo rispetto ai 650,3 milioni di dollari del secondo trimestre 2024 a causa di dismissioni. L'azienda ha mostrato segnali positivi con una crescita organica dei ricavi dello 0,5% e una crescita organica dell'ACV dell'1,3%. In particolare, la quota di ricavi ricorrenti organici è migliorata raggiungendo l'88%, con un aumento di 800 punti base rispetto alla fine del 2024.
La perdita netta del secondo trimestre 2025 è stata di 72,0 milioni di dollari (0,11 dollari per azione), in miglioramento rispetto alla perdita di 304,3 milioni di dollari nel secondo trimestre 2024. L'EBITDA rettificato ha raggiunto 261,6 milioni di dollari. L'azienda ha generato un flusso di cassa operativo di 287,5 milioni di dollari e ha riacquistato 11,5 milioni di azioni nel secondo trimestre. La direzione ha confermato le previsioni per il 2025, prevedendo ricavi tra 2,28 e 2,40 miliardi di dollari e un EBITDA rettificato tra 940 milioni e 1 miliardo di dollari.
- Crescita organica dei ricavi dello 0,5% e crescita organica dell'ACV dell'1,3%
- Miglioramento della quota di ricavi ricorrenti all'88%, con un aumento di 800 punti base rispetto al 2024
- Perdita netta significativamente migliorata a 72,0 milioni di dollari rispetto a 304,3 milioni nel secondo trimestre 2024
- Forte generazione di flusso di cassa operativo di 287,5 milioni di dollari nella prima metà del 2025
- Riacquisto di 23,2 milioni di azioni a un prezzo medio di 4,29 dollari
Clarivate (NYSE:CLVT) reportó resultados del segundo trimestre de 2025 con ingresos totales de 621,4 millones de dólares, una disminución respecto a los 650,3 millones de dólares del segundo trimestre de 2024 debido a desinversiones. La compañía mostró tendencias positivas con un crecimiento orgánico de ingresos del 0,5% y un crecimiento orgánico del ACV del 1,3%. Notablemente, la mezcla de ingresos recurrentes orgánicos mejoró a 88%, aumentando 800 puntos básicos desde finales de 2024.
La pérdida neta del segundo trimestre de 2025 fue de 72,0 millones de dólares (0,11 dólares por acción), mejorando desde una pérdida de 304,3 millones en el mismo periodo de 2024. El EBITDA ajustado alcanzó 261,6 millones de dólares. La empresa generó un flujo de caja operativo de 287,5 millones de dólares y recompró 11,5 millones de acciones en el trimestre. La dirección reafirmó sus perspectivas para 2025, proyectando ingresos entre 2,28 y 2,40 mil millones de dólares y un EBITDA ajustado de 940 millones a 1.000 millones de dólares.
- Crecimiento orgánico de ingresos del 0,5% y crecimiento orgánico del ACV del 1,3%
- Mejora en la mezcla de ingresos recurrentes al 88%, un aumento de 800 puntos básicos desde 2024
- Pérdida neta mejorada significativamente a 72,0 millones desde 304,3 millones en el segundo trimestre de 2024
- Generación sólida de flujo de caja operativo de 287,5 millones en la primera mitad de 2025
- Compra de 23,2 millones de acciones a un precio promedio de 4,29 dólares
Clarivate (NYSE:CLVT)는 2025년 2분기 실적으로 총 매출액 6억 2,140만 달러를 보고했으며, 이는 매각으로 인해 2024년 2분기의 6억 5,030만 달러에서 감소한 수치입니다. 회사는 유기적 매출 성장률 0.5%와 유기적 ACV 성장률 1.3%로 긍정적인 추세를 보였습니다. 특히, 유기적 반복 매출 비중이 88%로 개선되어 2024년 말 대비 800 베이시스 포인트 상승했습니다.
2025년 2분기 순손실은 7,200만 달러(주당 0.11달러)로, 2024년 2분기의 3억 4,300만 달러 손실에서 크게 개선되었습니다. 조정 EBITDA는 2억 6,160만 달러에 달했습니다. 회사는 2억 8,750만 달러의 영업 현금 흐름을 창출했고 2분기에 1,150만 주를 재매입했습니다. 경영진은 2025년 전망을 재확인하며 매출 22.8억~24억 달러, 조정 EBITDA 9억 4천만~10억 달러를 예상했습니다.
- 유기적 매출 성장률 0.5% 및 유기적 ACV 성장률 1.3%
- 2024년 대비 800 베이시스 포인트 상승한 88%의 반복 매출 비중 개선
- 2024년 2분기 3억 4,300만 달러 손실에서 크게 개선된 7,200만 달러 순손실
- 2025년 상반기 강력한 영업 현금 흐름 2억 8,750만 달러 창출
- 평균 가격 4.29달러에 2,320만 주 재매입 실행
Clarivate (NYSE:CLVT) a annoncé ses résultats du deuxième trimestre 2025 avec un chiffre d'affaires total de 621,4 millions de dollars, en baisse par rapport à 650,3 millions de dollars au deuxième trimestre 2024 en raison de cessions. L'entreprise a affiché des tendances positives avec une croissance organique du chiffre d'affaires de 0,5% et une croissance organique de l'ACV de 1,3%. Notamment, la part des revenus récurrents organiques s'est améliorée pour atteindre 88%, soit une hausse de 800 points de base depuis la fin 2024.
La perte nette du deuxième trimestre 2025 s'est élevée à 72,0 millions de dollars (0,11 dollar par action), en nette amélioration par rapport à une perte de 304,3 millions au deuxième trimestre 2024. L'EBITDA ajusté a atteint 261,6 millions de dollars. L'entreprise a généré un flux de trésorerie opérationnel de 287,5 millions de dollars et a racheté 11,5 millions d'actions au cours du trimestre. La direction a confirmé ses prévisions pour 2025, projetant un chiffre d'affaires entre 2,28 et 2,40 milliards de dollars et un EBITDA ajusté entre 940 millions et 1 milliard de dollars.
- Croissance organique du chiffre d'affaires de 0,5% et croissance organique de l'ACV de 1,3%
- Amélioration de la part des revenus récurrents à 88%, soit une hausse de 800 points de base depuis 2024
- Perte nette significativement réduite à 72,0 millions de dollars contre 304,3 millions au deuxième trimestre 2024
- Forte génération de flux de trésorerie opérationnel de 287,5 millions de dollars au premier semestre 2025
- Rachat de 23,2 millions d'actions à un prix moyen de 4,29 dollars
Clarivate (NYSE:CLVT) meldete für das zweite Quartal 2025 einen Gesamtumsatz von 621,4 Millionen US-Dollar, was im Vergleich zu 650,3 Millionen US-Dollar im zweiten Quartal 2024 aufgrund von Veräußerungen einen Rückgang darstellt. Das Unternehmen zeigte positive Entwicklungen mit einem organischen Umsatzwachstum von 0,5% und einem organischen ACV-Wachstum von 1,3%. Bemerkenswert ist, dass der Anteil der organischen wiederkehrenden Umsätze auf 88% gestiegen ist, was einem Anstieg von 800 Basispunkten gegenüber Ende 2024 entspricht.
Der Nettoverlust im zweiten Quartal 2025 betrug 72,0 Millionen US-Dollar (0,11 US-Dollar pro Aktie) und verbesserte sich damit gegenüber einem Verlust von 304,3 Millionen US-Dollar im zweiten Quartal 2024. Das bereinigte EBITDA erreichte 261,6 Millionen US-Dollar. Das Unternehmen generierte einen operativen Cashflow von 287,5 Millionen US-Dollar und kaufte im zweiten Quartal 11,5 Millionen Aktien zurück. Das Management bestätigte seinen Ausblick für 2025 und prognostiziert Umsätze von 2,28 bis 2,40 Milliarden US-Dollar sowie ein bereinigtes EBITDA von 940 Millionen bis 1 Milliarde US-Dollar.
- Organisches Umsatzwachstum von 0,5% und organisches ACV-Wachstum von 1,3%
- Verbesserter Anteil wiederkehrender Umsätze auf 88%, Anstieg um 800 Basispunkte seit 2024
- Nettoverlust deutlich verbessert auf 72,0 Millionen US-Dollar gegenüber 304,3 Millionen US-Dollar im zweiten Quartal 2024
- Starker operativer Cashflow von 287,5 Millionen US-Dollar im ersten Halbjahr 2025
- Aktienrückkauf von 23,2 Millionen Aktien zum Durchschnittspreis von 4,29 US-Dollar
- None.
- Total revenues declined 4.4% to $621.4M due to divestitures
- Adjusted EBITDA decreased 4.7% to $261.6M vs Q2 2024
- Adjusted diluted EPS dropped to $0.18 from $0.20 in Q2 2024
- Free cash flow declined 16.6% to $50.3M in Q2 2025
- High debt level of $4.57B remains largely unchanged
Insights
Clarivate shows positive organic growth trends despite overall revenue decline due to divestitures; maintains 2025 guidance with signs of turnaround.
Clarivate's Q2 2025 results reveal a mixed but gradually improving financial picture. Total revenue decreased
A key highlight is the improvement in revenue quality - the company's organic Annual Contract Value (ACV) grew
While the company still reported a net loss of
The segment performance shows subscription revenues holding steady with
Cash generation remains solid with
Management reaffirmed its full-year 2025 guidance, projecting organic ACV growth of
Overall, while Clarivate continues to navigate challenges, the acceleration in organic ACV growth, improving recurring revenue mix, and management's confident outlook suggest the company's transformation efforts are beginning to yield results.
— Continued acceleration of organic ACV and recurring organic revenue growth —
— Delivered improved organic recurring revenue mix —
— Reaffirmed 2025 Outlook —
— Repurchased 11.5 million ordinary shares in the second quarter—
Total revenues for the second quarter of 2025 were
Net loss for the second quarter of 2025 was
Total revenues for the first half of 2025 were
Net loss for the first half of 2025 was
Clarivate generated
"We reported solid second quarter performance and delivered growth in our key metrics. We have good momentum underway building off a solid first half of the year," said Matti Shem Tov, Chief Executive Officer. "There are early indications that our Value Creation Plan is driving improved performance and I'm pleased by the way in which the team is coming together to move the business forward."
"Looking ahead, we believe that the enhancements we made to the sales operating model to improve execution, customer engagement, and retention, as well as AI tailwinds benefiting our IP business, will support Clarivate's profitability and value creation."
Selected Financial Information
(In millions, except percentages and per share data), | Three Months Ended June 30, | Change | Six Months Ended June 30, | Change | |||||||||||
2025 | 2024 | $ | % | 2025 | 2024 | $ | % | ||||||||
Revenues | $ 621.4 | $ 650.3 | $ (28.9) | (4.4) % | $ (56.4) | (4.4) % | |||||||||
Net income (loss) | $ (72.0) | $ (304.3) | $ 232.3 | 76.3 % | $ (175.9) | $ (379.3) | $ 203.4 | 53.6 % | |||||||
Adjusted net income(1) | $ 123.3 | $ 142.2 | $ (18.9) | (13.3) % | $ 219.1 | $ 245.7 | $ (26.6) | (10.8) % | |||||||
Adjusted EBITDA(1) | $ 261.6 | $ 274.4 | $ (12.8) | (4.7) % | $ 494.8 | $ 510.7 | $ (15.9) | (3.1) % | |||||||
Diluted EPS | $ (0.11) | $ (0.46) | $ 0.35 | 76.1 % | $ (0.26) | $ (0.61) | $ 0.35 | 57.4 % | |||||||
Adjusted diluted EPS(1) | $ 0.18 | $ 0.20 | $ (0.02) | (10.0) % | $ 0.32 | $ 0.34 | $ (0.02) | (5.9) % | |||||||
Net cash provided by operating activities | $ 116.3 | $ 126.2 | $ (9.9) | (7.8) % | $ 287.5 | $ 302.4 | $ (14.9) | (4.9) % | |||||||
Free cash flow(1) | $ 50.3 | $ 60.3 | $ (10.0) | (16.6) % | $ 160.6 | $ 172.1 | $ (11.5) | (6.7) % | |||||||
Second Quarter 2025 Commentary
Subscription revenues of
Re-occurring revenues increased
Recurring revenues, which consist of subscription and re-occurring revenues, increased
Transactional revenues decreased
Balance Sheet and Cash Flow
As of June 30, 2025, cash and cash equivalents of
Total debt outstanding was
Net cash provided by operating activities for the first half of 2025 was
Reaffirmed Outlook for 2025 (forward-looking statement)
"During the first half of 2025, we achieved enhanced performance, primarily driven by growth in organic ACV within the Academia & Government (A&G) and Life Sciences & Healthcare segments and in organic subscription revenue within A&G," said Jonathan Collins, Executive Vice President and Chief Financial Officer. "With revenue for the first half meeting our projections and continued strong cost management, we are reaffirming our outlook for the full year 2025."
The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.
2025 Outlook | |
Organic ACV | |
Recurring Organic Revenue Growth | (1.0)% to |
Revenues | |
Adjusted EBITDA(1) | |
Adjusted EBITDA Margin(1) | |
Adjusted Diluted EPS(1)(2) | |
Free Cash Flow(1) |
Notes to press release |
(1) Non-GAAP measure. Please see "Reconciliations to Certain Non-GAAP Measures" in this release for important disclosures and reconciliations of these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release. |
(2) Adjusted diluted EPS for 2025 is calculated based on approximately 685 million fully diluted adjusted weighted average ordinary shares outstanding. |
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the second quarter at 9:00 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.
The live webcast of the earnings call will be accessible through the investor relations section of the Company's website. To join the webcast please visit https://events.q4inc.com/attendee/706759362.
Interested parties may access the live audio broadcast.
A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call and will remain available for one year.
Use of Non-GAAP Financial Measures
This release contains financial measures that have not been prepared in accordance with
We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating performance of our business, to assess performance for employee compensation purposes, and to decide how to allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. Further, these measures can be useful in evaluating our performance against our peer companies because we believe they provide users with valuable insight into key components of GAAP financial disclosure. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.
Forward-Looking Statements
This release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, and the markets in which we operate. Such forward-looking statements are based on available current market material and management's expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the caption "Risk Factors" in our annual report on Form 10-K, along with our other filings with the
About Clarivate
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
Condensed Consolidated Balance Sheets (Unaudited) | |||
(In millions) | March 31, 2025 | December 31, 2024 | |
ASSETS | |||
Current assets: | |||
Cash and cash equivalents, including restricted cash | $ 362.6 | $ 295.2 | |
Accounts receivable, net | 820.4 | 798.3 | |
Prepaid expenses | 88.5 | 85.9 | |
Other current assets | 68.7 | 65.2 | |
Total current assets | 1,340.2 | 1,244.6 | |
Property and equipment, net | 56.3 | 53.5 | |
Other intangible assets, net | 8,284.0 | 8,441.2 | |
Goodwill | 1,566.9 | 1,566.6 | |
Other non-current assets | 69.5 | 82.2 | |
Deferred income taxes | 51.1 | 48.5 | |
Operating lease right-of-use assets | 53.2 | 53.6 | |
Total assets | $ 11,421.2 | $ 11,490.2 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities: | |||
Accounts payable | $ 125.7 | $ 124.5 | |
Accrued compensation | 111.4 | 119.2 | |
Accrued expenses and other current liabilities | 292.5 | 310.1 | |
Current portion of deferred revenues | 929.1 | 859.1 | |
Current portion of operating lease liability | 20.1 | 20.6 | |
Total current liabilities | 1,478.8 | 1,433.5 | |
Long-term debt | 4,516.8 | 4,518.7 | |
Other non-current liabilities | 97.4 | 72.5 | |
Deferred income taxes | 284.3 | 273.3 | |
Operating lease liabilities | 49.8 | 53.2 | |
Total liabilities | 6,427.1 | 6,351.2 | |
Commitments and contingencies | |||
Shareholders' equity: | |||
Ordinary Shares, no par value; unlimited shares authorized; 672.2 and 691.4 shares | 12,902.7 | 12,978.8 | |
Accumulated other comprehensive loss | (419.2) | (526.3) | |
Accumulated deficit | (7,489.4) | (7,313.5) | |
Total shareholders' equity | 4,994.1 | 5,139.0 | |
Total liabilities and shareholders' equity | $ 11,421.2 | $ 11,490.2 | |
Condensed Consolidated Statements of Operations (Unaudited) | |||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions, except per share data) | 2025 | 2024 | 2025 | 2024 | |||
Revenues | $ 621.4 | $ 650.3 | $ 1,215.1 | $ 1,271.5 | |||
Operating expenses: | |||||||
Cost of revenues | 203.6 | 213.6 | 410.6 | 431.4 | |||
Selling, general and administrative costs | 181.1 | 185.2 | 359.5 | 377.1 | |||
Depreciation and amortization | 190.9 | 184.4 | 376.3 | 363.8 | |||
Goodwill and intangible asset impairments | — | 302.8 | — | 302.8 | |||
Restructuring and other impairments | 9.3 | 0.7 | 34.0 | 10.2 | |||
Other operating expense (income), net | 29.6 | 3.6 | 48.6 | 21.2 | |||
Total operating expenses | 614.5 | 890.3 | 1,229.0 | 1,506.5 | |||
Income (loss) from operations | 6.9 | (240.0) | (13.9) | (235.0) | |||
Fair value adjustment of warrants | — | — | — | (5.2) | |||
Interest expense, net | 66.6 | 71.1 | 130.9 | 141.3 | |||
Income (loss) before income taxes | (59.7) | (311.1) | (144.8) | (371.1) | |||
Provision (benefit) for income taxes | 12.3 | (6.8) | 31.1 | 8.2 | |||
Net income (loss) | (72.0) | (304.3) | (175.9) | (379.3) | |||
Dividends on preferred shares | — | 12.5 | — | 31.3 | |||
Net income (loss) attributable to ordinary shares | $ (72.0) | $ (316.8) | $ (175.9) | $ (410.6) | |||
Per share: | |||||||
Basic | $ (0.11) | $ (0.46) | $ (0.26) | $ (0.61) | |||
Diluted | $ (0.11) | $ (0.46) | $ (0.26) | $ (0.61) | |||
Weighted average shares used to compute earnings per share: | |||||||
Basic | 681.3 | 685.6 | 685.5 | 676.2 | |||
Diluted | 681.3 | 685.6 | 685.5 | 676.2 | |||
Condensed Consolidated Statements of Cash Flows (Unaudited) | |||
Six Months Ended June 30, | |||
(In millions) | 2025 | 2024 | |
Cash Flows From Operating Activities | |||
Net income (loss) | $ (175.9) | $ (379.3) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 376.3 | 363.8 | |
Share-based compensation | 29.3 | 33.9 | |
Restructuring and other impairments, including goodwill | 2.2 | 301.3 | |
Deferred income taxes | (5.4) | (24.6) | |
Amortization and write-off of debt issuance costs | 7.7 | 7.9 | |
Other operating activities | 45.8 | 14.3 | |
Changes in operating assets and liabilities: | |||
Accounts receivable | 2.2 | 103.2 | |
Prepaid expenses | (1.5) | 1.1 | |
Other assets | 3.1 | (5.4) | |
Accounts payable | (3.3) | (12.2) | |
Accrued expenses and other current liabilities | (36.1) | (38.3) | |
Deferred revenues | 42.6 | (59.7) | |
Operating leases, net | (3.2) | (4.8) | |
Other liabilities | 3.7 | 1.2 | |
Net cash provided by operating activities | 287.5 | 302.4 | |
Cash Flows From Investing Activities | |||
Capital expenditures | (126.9) | (130.3) | |
Payments for acquisitions, net of cash acquired | — | (17.1) | |
Proceeds from divestitures, net of cash divested | — | (19.2) | |
Net cash used for investing activities | (126.9) | (166.6) | |
Cash Flows From Financing Activities | |||
Principal payments on debt | (500.0) | (52.7) | |
Proceeds from issuance of debt | 500.0 | — | |
Payment of debt issuance costs, extinguishment costs, and related fees | (8.5) | (20.1) | |
Repurchases of ordinary shares | (99.5) | — | |
Cash dividends on preferred shares | — | (37.7) | |
Payments related to tax withholding for share-based compensation | (8.1) | (9.9) | |
Other financing activities | 5.6 | (0.4) | |
Net cash used for financing activities | (110.5) | (120.8) | |
Effects of exchange rates | 17.3 | (9.3) | |
Net change in cash and cash equivalents, including restricted cash | 67.4 | 5.7 | |
Cash and cash equivalents, including restricted cash, beginning of period | 295.2 | 370.7 | |
Cash and cash equivalents, including restricted cash, end of period | $ 362.6 | $ 376.4 | |
Supplemental Revenues Information
Annualized contract value ("ACV"), at any point in time, represents the annualized value of all active customer subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the measurement period are renewed at their current price level. Our organic ACV grew
The following tables present our revenues by type and by segment for the periods indicated, as well as the components driving the changes between periods.
Three Months Ended June 30, | Change | % of Change | |||||||||
2025 | 2024 | $ | % | Acquisitions | Disposals | FX | Organic | ||||
Subscription | $ 405.7 | $ 405.6 | $ 0.1 | — % | 0.1 % | (3.1) % | 1.3 % | 1.7 % | |||
Re-occurring | 108.9 | 108.6 | 0.3 | 0.3 % | — % | — % | 2.6 % | (2.3) % | |||
Recurring revenues | 514.6 | 514.2 | 0.4 | 0.1 % | 0.1 % | (2.4) % | 1.6 % | 0.8 % | |||
Transactional | 106.8 | 136.1 | (29.3) | (21.5) % | — % | (21.1) % | 1.0 % | (1.4) % | |||
Revenues | $ 621.4 | $ 650.3 | $ (28.9) | (4.4) % | 0.1 % | (6.4) % | 1.4 % | 0.5 % | |||
Six Months Ended June 30, | Change | % of Change | |||||||||
2025 | 2024 | $ | % | Acquisitions | Disposals | FX | Organic | ||||
Subscription | $ 794.3 | $ 808.7 | $ (14.4) | (1.8) % | 0.2 % | (2.8) % | 0.2 % | 0.6 % | |||
Re-occurring | 214.8 | 211.1 | 3.7 | 1.8 % | — % | — % | 0.4 % | 1.4 % | |||
Recurring revenues | 1,009.1 | 1,019.8 | (10.7) | (1.0) % | 0.2 % | (2.1) % | 0.2 % | 0.7 % | |||
Transactional | 206.0 | 251.7 | (45.7) | (18.2) % | 0.1 % | (16.7) % | 0.2 % | (1.8) % | |||
Revenues | $ 1,215.1 | $ 1,271.5 | $ (56.4) | (4.4) % | 0.1 % | (5.2) % | 0.3 % | 0.4 % | |||
Three Months Ended June 30, | Change | % of Change | |||||||||
2025 | 2024 | $ | % | Acquisitions | Disposals | FX | Organic | ||||
Academia & Government | $ 318.5 | $ 344.5 | $ (26.0) | (7.5) % | — % | (11.0) % | 1.0 % | 2.5 % | |||
Intellectual Property | 202.5 | 201.6 | 0.9 | 0.4 % | 0.2 % | — % | 2.3 % | (2.1) % | |||
Life Sciences & Healthcare | 100.4 | 104.2 | (3.8) | (3.6) % | 0.2 % | (5.3) % | 1.2 % | 0.3 % | |||
Revenues | $ 621.4 | $ 650.3 | $ (28.9) | (4.4) % | 0.1 % | (6.4) % | 1.4 % | 0.5 % | |||
Six Months Ended June 30, | Change | % of Change | |||||||||
2025 | 2024 | $ | % | Acquisitions | Disposals | FX | Organic | ||||
Academia & Government | $ 621.2 | $ 662.2 | $ (41.0) | (6.2) % | — % | (7.9) % | 0.1 % | 1.6 % | |||
Intellectual Property | 395.2 | 402.5 | (7.3) | (1.8) % | 0.2 % | (2.0) % | 0.4 % | (0.4) % | |||
Life Sciences & Healthcare | 198.7 | 206.8 | (8.1) | (3.9) % | 0.5 % | (3.2) % | 0.2 % | (1.4) % | |||
Revenues | $ 1,215.1 | $ 1,271.5 | $ (56.4) | (4.4) % | 0.1 % | (5.2) % | 0.3 % | 0.4 % | |||
Reconciliations to Certain Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three and six months ended June 30, 2025 and 2024 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions, except percentages); (unaudited) | 2025 | 2024 | 2025 | 2024 | |||
Net income (loss) | $ (72.0) | $ (304.3) | $ (175.9) | $ (379.3) | |||
Provision (benefit) for income taxes | 12.3 | (6.8) | 31.1 | 8.2 | |||
Depreciation and amortization | 190.9 | 184.4 | 376.3 | 363.8 | |||
Interest expense, net | 66.6 | 71.1 | 130.9 | 141.3 | |||
Share-based compensation expense | 18.5 | 18.9 | 29.6 | 34.3 | |||
Goodwill and intangible asset impairments | — | 302.8 | — | 302.8 | |||
Restructuring and other impairments | 9.3 | 0.7 | 34.0 | 10.2 | |||
Fair value adjustment of warrants | — | — | — | (5.2) | |||
Transaction related costs | 8.1 | 3.1 | 14.4 | 7.5 | |||
Other(1) | 27.9 | 4.5 | 54.4 | 27.1 | |||
Adjusted EBITDA | $ 261.6 | $ 274.4 | $ 494.8 | $ 510.7 | |||
Net income (loss) margin | (11.6) % | (46.8) % | (14.5) % | (29.8) % | |||
Adjusted EBITDA margin | 42.1 % | 42.2 % | 40.7 % | 40.2 % | |||
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing | |||||||
Adjusted net income and Adjusted diluted EPS
Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the associated income tax impact of such adjustments.
Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.
The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and six months ended June 30, 2025 and 2024 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:
Three Months Ended June 30, | |||||||
2025 | 2024 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and Diluted EPS | $ (72.0) | $ (0.11) | $ (304.3) | $ (0.44) | |||
Amortization related to acquired intangible assets | 137.0 | 0.20 | 139.7 | 0.20 | |||
Share-based compensation expense | 18.5 | 0.03 | 18.9 | 0.03 | |||
Goodwill and intangible asset impairments | — | — | 302.8 | 0.44 | |||
Restructuring and other impairments | 9.3 | 0.01 | 0.7 | — | |||
Transaction related costs | 8.1 | 0.01 | 3.1 | — | |||
Other(1) | 28.0 | 0.05 | 4.5 | — | |||
Income tax impact of related adjustments | (5.6) | (0.01) | (23.2) | (0.03) | |||
Adjusted net income and Adjusted diluted EPS | $ 123.3 | $ 0.18 | $ 142.2 | $ 0.20 | |||
Adjusted weighted average ordinary shares, diluted | 684.6 | 726.8 | |||||
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing | |||||||
Six Months Ended June 30, | |||||||
2025 | 2024 | ||||||
(In millions, except per share amounts); (unaudited) | Amount | Per Share | Amount | Per Share | |||
Net income (loss) and Diluted EPS | $ (175.9) | $ (0.26) | $ (379.3) | $ (0.56) | |||
Amortization related to acquired intangible assets | 273.3 | 0.40 | 278.2 | 0.41 | |||
Share-based compensation expense | 29.6 | 0.04 | 34.3 | 0.05 | |||
Goodwill and intangible asset impairments | — | — | 302.8 | 0.45 | |||
Restructuring and other impairments | 34.0 | 0.05 | 10.2 | 0.02 | |||
Fair value adjustment of warrants | — | — | (5.2) | (0.01) | |||
Transaction related costs | 14.4 | 0.02 | 7.5 | 0.01 | |||
Other(1) | 54.5 | 0.09 | 27.1 | 0.01 | |||
Income tax impact of related adjustments | (10.8) | (0.02) | (29.9) | (0.04) | |||
Adjusted net income and Adjusted diluted EPS | $ 219.1 | $ 0.32 | $ 245.7 | $ 0.34 | |||
Adjusted weighted average ordinary shares, diluted | 689.9 | 727.2 | |||||
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing | |||||||
Free cash flow
Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table presents our calculation of Free cash flow for the three and six months ended June 30, 2025 and 2024 and reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods:
Three Months Ended June 30, | Six Months Ended June 30, | ||||||
(In millions); (unaudited) | 2025 | 2024 | 2025 | 2024 | |||
Net cash provided by operating activities | $ 116.3 | $ 126.2 | $ 287.5 | $ 302.4 | |||
Capital expenditures | (66.0) | (65.9) | (126.9) | (130.3) | |||
Free cash flow | $ 50.3 | $ 60.3 | $ 160.6 | $ 172.1 | |||
Reconciliations to Certain Non-GAAP Measures - 2025 Outlook
Adjusted EBITDA and Adjusted EBITDA margin
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2025 outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(In millions); (unaudited) | Low | High | |
Net income (loss) | $ (333) | $ (257) | |
Provision (benefit) for income taxes | 62 | 66 | |
Depreciation and amortization | 761 | 751 | |
Interest expense, net | 271 | 261 | |
Share-based compensation expense | 71 | 71 | |
Restructuring and other impairments(1) | 39 | 39 | |
Transaction related costs | 15 | 15 | |
Other | 54 | 54 | |
Adjusted EBITDA | $ 940 | $ 1,000 | |
Net income (loss) margin | (14.6) % | (10.7) % | |
Adjusted EBITDA margin | 40.5 % | 42.5 % | |
(1) Reflects restructuring costs expected to be incurred in 2025 associated with the Value Creation Plan. | |||
Adjusted diluted EPS
The following table presents our calculation of Adjusted diluted EPS for the 2025 outlook and reconciles this non-GAAP measure to our Net income (loss) per share for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(Unaudited) | Low | High | |
Net income (loss) | (0.49) | (0.39) | |
Amortization related to acquired intangible assets | 0.80 | 0.80 | |
Share-based compensation expense | 0.10 | 0.10 | |
Restructuring and other impairments(1) | 0.06 | 0.06 | |
Transaction related costs | 0.02 | 0.02 | |
Other | 0.13 | 0.13 | |
Income tax impact of related adjustments | (0.02) | (0.02) | |
Adjusted diluted EPS | $ 0.60 | $ 0.70 | |
Adjusted weighted average ordinary shares, diluted | 685 million | ||
(1) Reflects restructuring costs expected to be incurred in 2025 associated with the Value Creation Plan. | |||
Free cash flow
The following table presents our calculation of Free cash flow for the 2025 outlook and reconciles this non-GAAP measure to our Net cash provided by operating activities for the same period:
Year Ending December 31, 2025 (Forecasted) | |||
(In millions); (unaudited) | Low | High | |
Net cash provided by operating activities | $ 555 | $ 635 | |
Capital expenditures | (255) | (255) | |
Free cash flow | $ 300 | $ 380 | |
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SOURCE Clarivate Plc
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