CLEAR Announces Quarterly Dividend, Special Dividend and Increase to its Share Repurchase Authorization

Rhea-AI Summary

CLEAR (NYSE: YOU) has announced multiple shareholder-friendly initiatives. The Board of Directors declared a quarterly dividend of $0.125 per share and a special cash dividend of $0.27 per share, both payable on March 18, 2025, to holders of Class A and B Common Stock as of March 10, 2025.

The company will fund these dividends through cash distributions from Alclear Holdings, , comprising both mandatory tax and discretionary distributions. Additionally, the Board has authorized a $200 million increase to its existing share repurchase program, bringing the total remaining authorization to approximately $232 million after utilizing about $68 million post-Q324.

Positive

• New quarterly dividend of $0.125 per share established
• Special dividend of $0.27 per share announced
• $200 million increase in share repurchase authorization
• Total buyback capacity increased to $232 million

Negative

• None.

Insights

Financial Analyst

This comprehensive capital return announcement represents a strategic pivot for CLEAR, implementing a multi-pronged approach to shareholder value creation. The combination of regular quarterly dividends ($0.125), special dividend ($0.27), and expanded share repurchase program ($200 million) signals robust cash flow generation and management's confidence in the business model's sustainability.

The dual-track approach is particularly noteworthy: regular dividends provide predictable income streams for yield-focused investors, while the buyback program offers flexibility to opportunistically acquire shares when management believes they're undervalued. The $232 million total buyback authorization represents a significant portion of the company's market capitalization, indicating strong conviction in the stock's value proposition.

The structured distribution through Alclear Holdings , incorporating both mandatory tax and discretionary components, demonstrates sophisticated tax planning that maximizes efficiency for shareholders. The Board's retention of discretion over future dividends maintains strategic flexibility while establishing a framework for consistent capital returns.

Particularly significant is the timing of this announcement, which suggests management views current market conditions as opportune for implementing a comprehensive shareholder return program. The substantial buyback authorization increase, following $68 million in recent repurchases, indicates management's assessment that the stock may be undervalued relative to future growth prospects.

NEW YORK, Feb. 21, 2025 (GLOBE NEWSWIRE) -- Clear Secure, Inc. (NYSE: YOU) ("CLEAR" or the "Company") today announced that its Board of Directors (the “Board”) declared a quarterly dividend of $0.125 per share, and a special cash dividend of $0.27 per share, each payable on March 18, 2025 to holders of record of Class A Common Stock and Class B Common Stock as of the close of business on March 10, 2025.

The Company will fund the payment of the dividends from proportionate cash distributions made by Alclear Holdings, LLC to all of its members, including the Company. The distributions consist of a mandatory tax distribution as well as a discretionary distribution.

In addition, the Company announced that its Board authorized a $200 million increase to its existing Class A Common Stock share repurchase program, resulting in an aggregate remaining authorization of approximately $232 million after using approximately $68 million subsequent to Q324.

The declaration, timing and amount of any future dividends will be subject to the discretion and approval of the Board and will depend on a number of factors, including CLEAR’s results of operations, cash flows, financial position and capital requirements, as well as general business conditions, legal, tax and regulatory restrictions and other factors the Board deems relevant at the time it determines to declare such dividends. The timing and actual number of shares repurchased pursuant the Company’s repurchase program will be determined by management depending on a variety of factors, including stock price, trading volume, market conditions, and other general business considerations.

About CLEAR
CLEAR's mission is to create frictionless experiences. With over 27 million Members and a growing network of partners across the world, CLEAR's identity platform is transforming the way people live, work, and travel. Whether you are traveling, at the stadium, or on your phone, CLEAR connects you to the things that make you, you – making everyday experiences easier, more secure, and friction-free. CLEAR is committed to privacy done right. Members are always in control of their own information, and we never sell member data. For more information, visit clearme.com.

Forward-Looking Statements
This release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that any and such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties, and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including those described in the Company's filings within the Securities and Exchange Commission, including the sections titled "Risk Factors" in our Annual Report on Form 10- K. The Company disclaims any obligation to update any forward-looking statements contained herein.

Media Contact:
CLEAR
media@clearme.com

This press release was published by a CLEAR® Verified individual.

FAQ

When will CLEAR (YOU) pay its quarterly and special dividends?

CLEAR will pay both the quarterly dividend of $0.125 per share and special dividend of $0.27 per share on March 18, 2025, to shareholders of record as of March 10, 2025.

How much is CLEAR's new share repurchase authorization?

CLEAR's Board authorized a $200 million increase to its existing share repurchase program, resulting in a total remaining authorization of approximately $232 million.

What is the total dividend payment CLEAR (YOU) shareholders will receive in March 2025?

CLEAR shareholders will receive a total dividend payment of $0.395 per share, consisting of a $0.125 quarterly dividend and a $0.27 special dividend.

How will CLEAR fund its dividend payments?

CLEAR will fund the dividend payments through proportionate cash distributions from Alclear Holdings, , including both mandatory tax distributions and discretionary distributions.