Clarivate (NYSE: CLVT) posts 2025 loss, lifts cash flow and explores LS&H sale
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Clarivate Plc reported softer 2025 revenue but stronger cash generation and a much smaller net loss, while advancing a major portfolio reshaping. Full-year revenue was $2,455.2 million, down 4.0%, as planned divestitures and weaker transactional activity offset 0.6% recurring organic growth. The net loss narrowed sharply to $201.1 million from $636.7 million, and Adjusted EBITDA slipped to $1,001.8 million from $1,060.4 million.
Free cash flow grew to $365.3 million, helped by disciplined capital spending, and the company repurchased 56.0 million shares in 2025 and reduced total debt to $4,469.9 million. Management launched a sale process for the Life Sciences & Healthcare business and expects 2026 revenue of $2.30–$2.42 billion, with Adjusted EBITDA of $980 million–$1.04 billion, Adjusted diluted EPS of $0.70–$0.80, and free cash flow of $365–$435 million, implying modest organic ACV and recurring revenue growth alongside margin expansion.
Positive
- Improved profitability and cash generation: Net loss narrowed from $636.7 million to $201.1 million in 2025, while free cash flow increased to $365.3 million, supporting both investment and capital returns.
- Deleveraging and shareholder returns: Total debt fell to $4,469.9 million, helped by a $100.0 million accelerated repayment in 2025 and another $100.0 million in January 2026, alongside approximately $225 million of share repurchases in 2025.
- Higher-quality revenue mix and margin outlook: Organic recurring revenue grew and reached 88% of total revenue, and 2026 guidance targets Adjusted EBITDA of $980 million–$1.04 billion with 42.0%–43.5% margins and 10% free cash flow growth at the midpoint.
- Optionality from potential LS&H sale: Pursuit of a sale of the $389.8 million Life Sciences & Healthcare business, with active discussions underway, could unlock proceeds to reduce leverage and sharpen focus on core segments.
Negative
- Top-line and adjusted earnings pressure: 2025 revenue declined 4.0% to $2,455.2 million, while Adjusted net income fell to $468.1 million and Adjusted EBITDA to $1,001.8 million, reflecting divestitures and softer transactional and re-occurring revenues.
- Continuing GAAP losses despite improvements: The company remained loss-making on a GAAP basis, with a 2025 net loss of $201.1 million and 2026 guidance still projecting a net loss between $124 million and $189 million.
- Organic growth still modest: Organic revenue declined 0.1% in 2025, with transactional revenue down 4.8% organically for the year and 11.9% in the fourth quarter, highlighting ongoing demand and volume headwinds, particularly in Intellectual Property.
- Execution risk around strategic review: There is no assurance the Life Sciences & Healthcare sale process will result in a transaction, yet its revenue significance means outcome and timing could materially influence future growth, margins, and leverage.
Insights
Clarivate trades slower growth for better quality revenue, cash, and balance sheet flexibility.
Clarivate is deliberately shrinking low-quality, transactional revenue to emphasize subscriptions and recurring streams. That choice drove a 4.0% revenue decline in 2025 but lifted recurring organic revenue and improved the mix to 88% of total, supporting more predictable cash flows.
The company generated
For
A potential Life Sciences & Healthcare divestiture could materially reshape Clarivate’s profile.
Management is running a sale process for the Life Sciences & Healthcare segment, with multiple interested parties in diligence. This unit generated
The company states that proceeds from a potential sale are anticipated to strengthen the balance sheet through reduced leverage and sharpen focus on Academia & Government and Intellectual Property markets. There is no assurance a deal will occur, and terms, valuation, and structure will determine the ultimate impact if a transaction is announced in a future period.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (date of earliest event reported)
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(44 ) 207-433-4000
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 24, 2026, Clarivate Plc (the “Company”) issued a press release announcing earnings for the fourth quarter ended December 31, 2025. The press release has been furnished with this Form 8-K as Exhibit 99.1 and is posted on the investor relations section of the Company’s website (http://ir.clarivate.com/).
The information in this Item 2.02, including Exhibit 99.1 furnished herewith, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any filing pursuant to the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, except as otherwise expressly stated in such filing.
Item 7.01. Regulation FD Disclosure.
On February 24, 2026, the Company posted to its website supplemental information related to revenue, earnings, and guidance. The supplemental information has been furnished with this Current Report on Form 8-K as Exhibit 99.2 and is posted on the investor relations section of the Company’s website (http://ir.clarivate.com/).
The information in this Item 7.01, including Exhibit 99.2 furnished herewith, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any filing pursuant to the Securities Act or the Exchange Act, except as otherwise expressly stated in such filing.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
| No. | Description | ||||
| 99.1 | Press release issued by Clarivate Plc dated February 24, 2026 | ||||
| 99.2 | Supplemental Information dated February 24, 2026 | ||||
| 104 | The cover page from the Company's Current Report on Form 8-K dated February 24, 2026, formatted in Inline XBRL | ||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| CLARIVATE PLC | |||||
Date: February 24, 2026 | By: /s/ Jonathan M. Collins | ||||
| Name: Jonathan M. Collins | |||||
Executive Vice President & Chief Financial Officer | |||||
Q4 2025 Earnings Call February 24, 2026
Safe Harbor Statement and Non-GAAP Financial Measures © 2026 Clarivate. All rights reserved. 2 Forward-Looking Statements This presentation 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. Forward-looking statements included in this presentation include statements relating to our financial guidance for the fiscal year 2026 and key drivers thereof and underlying assumptions; the impact of our Value Creation Plan and other growth strategies, the global macroeconomic uncertainty and volatility, and the impact of artificial intelligence ("AI") on our business and strategy. 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, the anticipated divestiture of our LS&H business or any other strategic transactions we may explore, 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. Factors that may impact such forward- looking statements include, but are not limited to, our ability to compete in the highly competitive industry in which we operate; our ability to maintain high annual renewal rates; our ability to maintain revenues if our products and services do not achieve and maintain broad market acceptance, or if we are unable to keep pace with or adapt to rapidly changing technology, evolving industry standards, and changing regulatory requirements; reductions in customers’ research budgets or government funding; the success of our Value Creation Plan; our ability to derive fully the anticipated benefits from organic growth, existing or future acquisitions, joint ventures, investments, or dispositions; our exposure to risk from the international scope of our operations; our level of indebtedness; our ability to leverage AI in our products and services; any significant disruption in or unauthorized access to or breaches of our computer systems or those of third parties that we utilize in our operations; and other factors beyond our control. 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 in Item 1A. Risk Factors of our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC, which are also available on our website at www.clarivate.com.
Safe Harbor Statement and Non-GAAP Financial Measures © 2026 Clarivate. All rights reserved. 3 Non-GAAP Financial Measures This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, Adjusted Diluted EPS, Free Cash Flow, and Free Cash Flow Conversion. Non-GAAP financial measures are not recognized terms under GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP. 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 our 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. 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. In the Appendix to this presentation, we provide definitions of these non-GAAP measures and reconciliations to the most directly comparable GAAP measures. Industry and Market Data The market data and other statistical information used throughout this presentation are based on industry publications and surveys, public filings, and various government sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of the included information. We have not independently verified such third-party information, nor have we ascertained the underlying economic assumptions relied upon in those sources, and we are unable to assure you of the accuracy or completeness of such information contained in this presentation. While we are not aware of any misstatements regarding our market, industry, or similar data presented herein, such data involve risks and uncertainties and are subject to change based on various factors.
Agenda 4© 2026 Clarivate. All rights reserved. Business Review Financial Review Q&A Matti Shem Tov Chief Executive Officer Jonathan Collins Executive Vice President and Chief Financial Officer
Matti Shem Tov Chief Executive Officer Business Review
Momentum, Focus and Growth © 2026 Clarivate. All rights reserved. 6 • Delivered our full-year financial guidance with inflecting KPI’s • Value Creation Plan built strong momentum and focus • Accelerated ACV, organic revenue growth, and enhanced Free Cash Flow conversion 2025 Results Demonstrate Value Creation Plan Delivering • Guiding to ACV, recurring revenue, profit margin and FCF growth • Accelerated improvement across all three segments • Leveraging proprietary solutions alongside AI to drive increased customer value and growth 2026 Outlook Projects Continued Solid Momentum • Launched process to sell Life Sciences & Healthcare business • Multiple parties participating currently conducting diligence • No guarantee of an agreement, will update as appropriate • Potential sale to increase focus and strengthen balance sheet Conducted Portfolio Strategic Review
Durable Foundation To Drive Scalable Impact In The AI Era © 2026 Clarivate. All rights reserved. 7 Intelligence embedded across mission critical workflows Leveraging AI to capitalize upon our foundational advantages Decades of investment into proprietary assets creates an enduring advantage Trusted and scaled provider in markets where accuracy and transparency is non-negotiable Non-Proprietary 3% Workflow Solutions 19% Tech-Enabled Services 21% Intelligence Solutions 57% 97% of our revenue1 is generated from proprietary solutions Access Clarivate Intelligence Amplified in the Age of AI Webinar at https://ir.clarivate.com/video-library/2 1 FY2025A revenue, excluding disposals and divestments. 2 None of the information provided on our website is incorporated into, or deemed to be a part of, this presentation or in any other report or document we file with or furnish to the SEC, and any references to our website are intended to be inactive textual references only.
Combining Our Proprietary Assets With Cutting Edge Technology To Deliver Amplified Intelligence © 2026 Clarivate. All rights reserved. 8 PROPRIETARY INTELLIGENCE AMPLIFIED BY AI Clarivate AI Research Assistants Conversational, contextual AI driven search and discovery; a “front door” to our trusted intelligence Clarivate AI Ecosystem Access Extending our gold-standard intelligence across the AI ecosystem through secure integrations such as MCP servers Clarivate AI Workflow Agents AI Agents embedded across customer workflows, serving as “digital analysts”, enabling execution at speed AI Tools Powered by Licensed LLMs, RAG Data Access, and MCP Workflow Integration AI Insight AI Tools +Clarivate Proprietary Assets & Expertise Billions of Interconnected Data Points Decades of Deep Domain Expertise
2025 Results Achieved and Exceeded Guidance © 2026 Clarivate. All rights reserved. 9 Financial Metric 2025 Original Guidance Ranges4 2025 Actuals 1.8%Organic ACV 1.0% 2.0% ~1.5% Recurring Revenue Mix3 83% 87% ~85% 83% 88%5 Adj. EBITDA1 $940m $1,000m~$970m $1,002m Adj. EBITDA Margin1 40.5% 42.5% ~41.5% 40.8% Adj. Diluted EPS1 70₵60₵ ~65₵ 69₵ Free Cash Flow1 $300m $380m ~$340m $365m $2,455Revenues $2,280m $2,400m~$2,340m 0.6%Recurring Organic Growth2 (1.0)% 1.0% ~Flat 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Subscription + Re-occurring order types. 3 (Subscription + Re-occurring) / Total Revenues. 4 2025 guidance ranges issued on February 19, 2025. 5 Organic Recurring Revenue Mix.
Value Creation Plan Driving Focus, Growth and Innovation Product & Agentic AI Accelerated Innovation Invest in proprietary assets and drive development of Agentic-AI capabilities across portfolio Optimize ROI and Support Sales Execution Sales Improved Sales Execution Drive sales execution, customer engagement and retention Increase Organic Growth and Achieve Targets Revenue Business Model Optimization Focus on driving core subscription and re-occurring revenue improving predictability Increase Subscription and Re-occurring Revenue Mix Portfolio Solutions Rationalization Assess strategic alternatives to increase execution focus and optimize capital allocation Unlock Value for Shareholders 10 Value Creation Enablers Talent and Culture Cost Rationalization Enterprise Technology © 2026 Clarivate. All rights reserved.
A&G: Strong Year, Improved Mix, Accelerating Growth © 2026 Clarivate. All rights reserved. 11 Delivered strong performance achieving organic ACV growth over 2%, despite funding headwinds Successfully repositioned business model, increasing recurring organic revenue mix to 93%1 2025 Overview Launched 10 AI assistants and AI- native agentic solutions in 2025, being used by over 4K institutions 97% of revenue2 is generated from proprietary solutions, providing a durable foundation for innovation AI Innovation Expect continued improvement in growth, as AI and product innovation increasingly materializes Improve sales execution supported by a higher recurring revenue mix and operating leverage Outlook Deeply embedded in mission-critical research and library workflows, relied on by 130M students and researchers 1 (Subscription Organic Revenues + Re-occurring Organic Revenues) / Total Organic Revenues. 2 FY2025A revenue, excluding disposals.
IP: Disciplined and Focused Execution with a Clear Path to Growth © 2026 Clarivate. All rights reserved. 12 Delivered 270 bps YoY improvement in re-occurring organic growth, reflecting stronger execution New leadership driving focus and stronger commercial alignment, after challenging few years 2025 Overview Launched 5 AI native products and enhancements in 2025 across product portfolio RiskMark awarded 2025 LegalTech predictive AI solution of the year AI Innovation Expect steady improvement in growth driven by improved commercial execution Increase the pace of innovation through focused AI solutions development Outlook Differentiated, AI and tech-enabled full-lifecycle IP platform with unmatched scale and highest-quality global agent network
LS&H: Achieved Inflection Point, Advancing AI Innovation, Returning Growth © 2026 Clarivate. All rights reserved. 13 Clear inflection point, reversing subscription growth declines across Cortellis, DRG, and MedTech Momentum building across key metrics, reflected in sequential ACV improvement each quarter 2025 Overview 11K global active users leveraging AI research assistants and agentic AI solutions Due to release 10+ AI solutions currently under development in 2026 AI Innovation Expect return to organic revenue growth in 2026, based on strong momentum from 2025 Improve customer retention and accelerate product innovation to drive further scale Outlook Scaled provider of trusted intelligence solutions to the world’s largest pharma and medical device companies
Positive Momentum and Outlook Across Core Financial Metrics © 2026 Clarivate. All rights reserved. 141 Midpoint of FY2026 guidance range. 2 Subscription + Re-occurring order types. 3 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Organic Annual Contract Value Growth ~2.5% ~70 bps Financial Metric 2026E¹ YoY Growth Recurring Organic Growth2 ~1.5% ~90 bps Free Cash Flow3 ~$400M []~$35M | ~10%
Positive Momentum and Outlook Across Core Financial Metrics © 2026 Clarivate. All rights reserved. 151 Midpoint of FY2026 guidance range. 2 Subscription + Re-occurring order types. 3 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Organic Annual Contract Value Growth ~2.5% ~70 bps Financial Metric 2026E¹ YoY Growth Recurring Organic Growth2 ~1.5% ~90 bps Free Cash Flow3 ~$400M []~$35M | ~10%
Jonathan Collins Chief Financial Officer Financial Review
Q4 and FY 2025 Financial Results 17 Changes from Prior Year 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding. © 2026 Clarivate. All rights reserved. $m except per share data Q4 ‘25 Q4 ‘24 Change FY ‘25 FY ‘24 Change Revenues $617 $663 $(46) $2,455 $2,557 $(102) Operating Expenses 576 725 (149) 2,384 2,832 (448) Income / (Loss) from Operations $41 $(62) $103 $71 $(276) $347 Interest Expense, Net 66 70 (4) 265 283 (18) Income Tax Expense (Benefit) (28) 60 (88) 7 83 (76) Net Income / (Loss) $3 $(192) $195 $(201) $(637) $436 Net Income / (Loss) Per Share, basic $0.00 $(0.27) $0.27 $(0.30) $(0.96) $0.66 Adjusted EBITDA1 255 285 (30) 1,002 1,060 (58) Adjusted EBITDA Margin1 41.3% 43.0% (170bps) 40.8% 41.5% (70 bps) Adjusted Diluted EPS1 $0.20 $0.21 $(0.01) $0.69 $0.73 $(0.04) Operating Cash Flow $160 $141 $19 $629 $647 $(18) Capital Spending 71 82 (11) 263 289 (26) Free Cash Flow1 89 59 30 365 358 7 Revenues • Q4 and FY change driven by inorganic disposals and divestitures Net Income / Loss • Q4 and FY improvement over the prior year primarily due to lower non-cash goodwill impairment as well as interest and tax expense Operating Cash Flow • Q4 and FY change from working capital benefit and lower interest and tax, offset by lower Adjusted EBITDA
Changes from Prior Year Q4 2025 Revenues and Adj. EBITDA1 18© 2026 Clarivate. All rights reserved.1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding. Q4 2024 Q4 2025 $663 $617 $285 43.0% $255 41.3% Revenues Adj. EBITDA1 Year + Better - Worse $ millions FX $8 ($2) Organic ($7) ($16) Inorganic Disposals ($43) ($10) Inorganic Divestitures ($4) ($2) Organic • Continued growth in subscription revenues offset by re-occurring and transactional headwinds; higher incentive compensation contributing to profit headwind Inorganic Disposals • Impact from A&G (transactional books and digital collections) and LS&H (real world data reselling) disposals Inorganic Divestitures • ScholarOne divestiture Foreign Exchange • Revenue benefit from translation impact due to weaker USD was offset by transactional gains in ‘24 that did not recur in ‘25 Subscription ~+4 Reoccurring & Transactional ~(11)
Changes from Prior Year FY 2025 Revenues and Adj. EBITDA1 19© 2026 Clarivate. All rights reserved. FY 2024 FY 2025 $2,557 $2,455 $1,060 41.5% $1,002 40.8% Revenues Adj. EBITDA1 Year + Better - Worse $ millions FX $17 $9 Organic ($3) ($23) Inorganic Disposals ($78) ($23) Inorganic Divestitures ($38) ($21) Organic • Subscriptions organic revenue growth, offset by re-occuring and transactional decline Inorganic Disposals • Impact from A&G (transactional books and digital collections) and LS&H (real world data reselling) disposals Inorganic Divestitures • ScholarOne and Valipat divestitures Foreign Exchange • Weaker USD led to top- and bottom-line benefit Recurring2 ~+11 Transactional ~(14) 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Subscription Revenues + Re-occurring Revenues. Note: Amounts in table may not sum due to rounding.
Q4 and FY 2025 Cash Flow 20© 2026 Clarivate. All rights reserved. Changes from Prior Year $m Q4 ‘25 Q4 ‘24 Change FY ‘25 FY ‘24 Change Adj. EBITDA1 $255 $285 $(30) $1,002 $1,060 $(58) One-Time Costs2 (12) (13) 1 (67) (46) (21) Interest (83) (93) 10 (253) (265) 12 Taxes (13) (18) 5 (42) (53) 11 Working Capital 16 (16) 32 12 (23) 35 Other3 (3) (4) 1 (23) (26) 3 Operating Cash Flow 160 141 19 629 647 (18) Capital Spending (71) (82) 11 (263) (289) 26 Free Cash Flow1 $89 $59 $30 $365 $358 $7 Preferred Dividend - - - - (38) 38 Share Repurchase (75) (100) 25 (225) (200) (25) Debt Repayment - (140) 140 (100) (198) 98 M&A (2) 106 (108) 3 55 (52) Other4 (1) (18) 17 (9) (53) 44 Cash Flow $11 $(93) $104 $34 $(76) $110 Free Cash Flow1 • Growth driven by disciplined capital expenditures, working capital benefit, and lower interest and taxes, offset in part by lower Adj. EBITDA Capital Allocation • Utilized Q4 FCF to repurchase another 21.2m shares at an average price of $3.53 reducing share count by 7% last year. Subsequent to year-end, called remaining $100m of bonds due later this year 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Includes restructuring-related severance and transaction cost. 3 Includes impaired contractual costs. 4 Fx, Tax withholding for share-based compensation and refinancing cost. Note: Amounts in table may not sum due to rounding.
FY 2026 Guidance 21© 2026 Clarivate. All rights reserved. Organic ACV • Expect continued acceleration as momentum from Value Creation Plan continues Recurring Organic Growth • Subscription growth acceleration and stable re-occurring revenues Revenues • Decline due entirely to strategic disposals, expect 2026 to be final year of decline Adj. EBITDA / Margin / EPS • Margin expansion driven by organic growth and cost discipline • EPS growth due to share repurchases Free Cash Flow • Growth driven by disciplined capital spending, lower one-time costs and interest +70 bpsOrganic ACV 2% 3% ~2½% Recurring Organic Revenue Mix3 88% 90% ~89% +100 bps Adj. EBITDA1 $980m $1,040m ~$1,010m +1% Adj. EBITDA Margin1 42% 43½% ~42¾% +200 bps Adj. Diluted EPS1 80₵70₵ ~75₵ +9% Free Cash Flow1 $365m $435m ~$400m +10% (4)%Revenues $2,300m $2,420m ~$2,360m +90 bps Recurring Organic Growth2 ¾% 2¼% ~1½% Mid Point4 vs. PY 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Subscription + Re-occurring order types. 3 (Subscription + Re-occurring) / Total Revenues excluding disposals. 4 Mid Point included for illustrative purposes only. Mid Point4Guidance Range
FY 2026 Revenues and Adj. EBITDA1 Outlook 22 2025A 2026T $2,455 ~$2,360 $1,002 40.8% ~$1,010 ~42.8% Revenues Adj. EBITDA1 Year + Better - Worse $ millions FX ~$10 ~$5 © 2026 Clarivate. All rights reserved. Organic ~$25 Inorganic Disposals ~($130) ~($25) Changes from Prior Year Inorganic Divestitures 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding. ~$25 Organic • Recurring revenue growth partially offset by modest transactional decline • Strong profit flow through driven by disciplined cost management Inorganic Disposals • Books transactional revenues gone by mid-year, RWD by end of year Inorganic Divestitures • Guidance does not include potential sale of LS&H business Foreign Exchange • Expect modest benefit associated with weaker USD
FY 2026 Quarterly Phasing © 2026 Clarivate. All rights reserved. 23 Revenue, Organic ACV Growth, Organic Recurring Revenue Growth and Adj. EBITDA % 2025A2024A 0.9% 1.2% 1.3% 1.6% 1.8% 0.1% 0.6% 0.8% 0.3% 0.5% 0.00% 20.00% 40.00% 60.00% 80.00% 100.00% 120.00% 140.00% 160.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 2024A Q1 25 Q2 25 Q3 25 Q4 25 Q1 26E Q2 26E Q3 26E Q4 26E Organic ACV Growth (%) Organic Recurring Revenue Growth (%) Adj. EBITDA Margin (%) 2026E Revenue • Anticipate disproportionate amount of decline over prior year in Q2-Q3 due to disposals Organic ACV • Expect acceleration through the year Organic Recurring Revenue • Q1 ‘25 benefited from USPTO accelerations so Q1 ‘26 will be essentially flat Adj. EBITDA Margin • Normalized pattern with H1 below full year average and H2 above 6391 594 621 623 617 500 520 540 560 580 600 620 640 660 1 2024A represents quarterly average revenue for the year. Revenue ($M) 41.5% 39.3% 42.1% 40.5% 41.3% 36.00% 37.00% 38.00% 39.00% 40.00% 41.00% 42.00% 43.00% 44.00% 45.00% 46.00%
FY 2026 Cash Flow Outlook 24 $m 2026 Outlook 2025 Actuals Change Adj. EBITDA1 ~$1,010 $1,002 ~$5 One-Time Costs2 ~(40) (67) ~25 Interest ~(235) (253) ~20 Taxes ~(50) (42) ~(10) Working Capital ~(20) 12 ~(30) Other3 ~(15) (23) ~10 Operating Cash Flow ~650 629 ~20 Capital Spending ~(250) (263) ~15 Free Cash Flow1 ~$400 $365 ~$35 Share Repurchase ~(400) (225) ~(80) Debt Repayment (100) M&A 3 Other4 ~(15) (9) ~(5) Cash Flow ~$(15) $34 ~$(50) © 2026 Clarivate. All rights reserved. Changes from Prior Year Free Cash Flow1 • Expecting ~10% growth on lower one-time costs, interest, and capital spending driven by efficiencies to be partially offset by higher working capital Capital Allocation • Repaid remaining $100m of 2026 notes in January • Plan to favour deleveraging in deployment of remaining $300m of FCF in the balance of year 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Includes restructuring-related severance and transaction cost. 3 Includes impaired contractual costs. 4 Fx, Tax withholding for share-based compensation and refinancing cost. Note: Amounts in table may not sum due to rounding.
Proven and Consistent Engine For Free Cash Flow Generation © 2026 Clarivate. All rights reserved. 25 6% Free Cash Flow CAGR 2022-25A¹ 36% Avg. FCF Conversion 2022-25A¹ 30% Free Cash Flow Yield 2025A ¹,² 1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Market capitalization of $1.2B as of February 20, 2026. Capital Allocation Debt Repayments Net Leverage ▼ 1x 2022 – Jan 26 Share Repurchases Share Count ▼13% 2022-25A $1.2B $0.7B $1.9B FCF + Divestitures 2022-25A ¹
Q&A Session
Appendix Presentation of Certain Non-GAAP Financial Measures
28© 2026 Clarivate. All rights reserved. Presentation of Certain Non-GAAP Financial 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 acquisition and/or disposal-related transaction costs, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, 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. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted net income and Adjusted diluted EPS Adjusted net income represents net income (loss), adjusted to exclude acquisition and/or disposal-related transaction costs, amortization related to acquired intangible assets, share-based compensation, restructuring expenses, impairments, the impact of certain non-cash fair value adjustments on financial instruments, 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. Free cash flow, Free cash flow conversion, and Free cash flow yield Free cash flow represents Net cash provided by (used for) operating activities less capital expenditures. Free cash flow conversion is calculated by dividing Free cash flow by Adjusted EBITDA. Operating cash flow conversion is calculated by dividing Net cash provided by (used for) operating activities by Net income (loss). Free cash flow yield represents free cash flow for the applicable twelve-month period divided by our equity market capitalization based on the closing share price and ordinary shares outstanding.
29 $m Q4 ‘25 Q4 ’24 FY ’25 FY ’24 Net income (loss) $3.1 $(191.8) $(201.1) $(636.7) Provision (benefit) for income taxes (27.7) 59.6 7.2 82.9 Depreciation and amortization 189.1 186.0 757.2 727.0 Interest expense, net 66.0 69.9 265.4 283.4 Share-based compensation expense 17.4 10.9 63.0 60.6 Goodwill and intangible asset impairments 15.0 224.1 15.0 540.7 Restructuring and other impairments 4.8 5.4 50.7 19.6 Fair value adjustment of warrants — — — (5.2) Transaction related costs 4.0 4.3 22.5 17.9 Other1 (17.1) (83.1) 21.9 (29.8) Adjusted EBITDA $254.6 $285.3 $1,001.8 $1,060.4 Net income (loss) margin 0.5% (28.9)% (8.2)% (24.9)% Adjusted EBITDA margin 41.3% 43.0% 40.8% 41.5% © 2026 Clarivate. All rights reserved. 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 operating performance. The fourth quarter and full year 2024 amount includes a gain of $69.5 and a net gain of $54.7, respectively, from the divestitures completed in 2024. Reconciliation of Non-GAAP Financial Measures Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin
Reconciliation of Non-GAAP Financial Measures 30 Net income (loss) and Net income (loss) per share to Adjusted net income and Adjusted diluted EPS © 2026 Clarivate. All rights reserved. 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 operating performance. The fourth quarter and full year 2024 amount includes a gain of $69.5 and a net gain of $54.7, respectively, from the divestitures completed in 2024. Q4 ‘25 Q4 ‘24 FY ’25 FY ‘24 $m except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income (loss) and Diluted EPS $3.1 $0.00 $(191.8) $(0.27) $(201.1) $(0.30) $(636.7) $(0.92) Amortization related to acquired intangible assets 135.5 0.20 137.2 0.20 545.5 0.81 554.1 0.80 Share-based compensation expense 17.4 0.03 10.9 0.02 63.0 0.09 60.6 0.09 Goodwill and intangible asset impairments 15.0 0.02 224.1 0.32 15.0 0.02 540.7 0.78 Restructuring and other impairments 4.8 0.01 5.4 0.01 50.7 0.08 19.6 0.03 Fair value adjustment of warrants — — — — — — (5.2) (0.01) Transaction related costs 4.0 0.01 4.3 0.01 22.5 0.03 17.9 0.03 Other1 (15.7) (0.02) (83.1) (0.13) 24.8 0.04 (29.8) (0.08) Income tax impact of related adjustments (34.4) (0.05) 38.5 0.05 (52.3) (0.08) 4.1 0.01 Adjusted net income and Adjusted diluted EPS $129.7 $0.20 $145.5 $0.21 $468.1 $0.69 $525.3 $0.73 Adjusted weighted average ordinary shares, diluted 662.3 707.7 679.3 721.5
31© 2026 Clarivate. All rights reserved. $m Q4 ‘25 Q4 ‘24 FY ’25 FY ’24 Net cash provided by operating activities $159.9 $141.3 $628.5 $646.6 Capital expenditures (70.7) (82.2) (263.2) (289.1) Free cash flow $89.2 $59.1 $365.3 $357.5 Operating cash flow conversion 5,158.1% (73.7)% (312.5)% (101.6)% Free cash flow conversion 35.0% 20.7% 36.5% 33.7% Reconciliation of Non-GAAP Financial Measures Net cash provided by operating activities to Free cash flow and Free cash flow conversion
32© 2026 Clarivate. All rights reserved. Year Ending December 31, 2026 (Forecasted) Year Ended December 31, $m Low High 2025 2024 2023 2022 Net income (loss) $(189) $(124) $(201.1) $(636.7) $(911.2) $(3,960.2) Provision (benefit) for income taxes 43 48 7.2 82.9 (101.3) (28.9) Depreciation and amortization 786 786 757.2 727.0 708.3 710.5 Interest expense, net 238 228 265.4 283.4 293.7 270.3 Share-based compensation expense 70 70 63.0 60.6 108.9 102.2 Goodwill and intangible asset impairments — — 15.0 540.7 979.9 4,449.1 Restructuring and other impairments1 25 25 50.7 19.6 40.0 66.7 Fair value adjustment of warrants — — — (5.2) (15.9) (206.8) Transaction related costs 13 13 22.5 17.9 8.2 14.2 Other (6) (6) 21.9 (29.8) 6.6 (304.4) Adjusted EBITDA $980 $1,040 $1,001.8 $1,060.4 $1,117.2 $1,112.7 Net income (loss) margin (8.2)% (5.1)% (8.2)% (24.9)% (34.7)% (148.9)% Adjusted EBITDA margin 42.0% 43.5% 40.8% 41.5% 42.5% 41.8% 1 For the 2026 outlook, reflects restructuring costs expected to be incurred associated with the Value Creation Plan. Reconciliation of Non-GAAP Financial Measures – 2026 Outlook Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin
33© 2026 Clarivate. All rights reserved. Year Ending December 31, 2026 (Forecasted) $m Low High Net income (loss) per share $(0.29) $(0.19) Amortization related to acquired intangible assets 0.84 0.84 Share-based compensation expense 0.11 0.11 Restructuring and other impairments1 0.04 0.04 Transaction related costs 0.02 0.02 Other 0.01 0.01 Income tax impact of related adjustments (0.03) (0.03) Adjusted diluted EPS $0.70 $0.80 Adjusted weighted average ordinary shares, diluted ~650 million Reconciliation of Non-GAAP Financial Measures – 2026 Outlook 1 Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan. Net income (loss) per fully diluted weighted shares outstanding to Adjusted diluted EPS
34 Year Ending December 31, 2026 (Forecasted) Year Ended December 31, $m Low High 2025 2024 2023 2022 Net cash provided by operating activities $615 $685 $628.5 $646.6 $744.2 $509.3 Capital expenditures (250) (250) (263.2) (289.1) (242.5) (202.9) Free cash flow $365 $435 $365.3 $357.5 $501.7 $306.4 Operating cash flow conversion (304.5)% (492.8)% (312.5)% (101.6)% (81.7)% (12.9)% Free cash flow conversion 37.2% 41.8% 36.5% 33.7% 44.9% 27.5% © 2026 Clarivate. All rights reserved. Reconciliation of Non-GAAP Financial Measures – 2026 Outlook Net cash provided by operating activities to Free cash flow and Free cash flow conversion
© 2026 Clarivate Clarivate and its logo, as well as all other trademarks used herein, are trademarks of their respective owners and used under license. 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
FAQ
How did Clarivate (CLVT) perform financially in full-year 2025?
Clarivate reported 2025 revenue of $2,455.2 million, down 4.0% year over year, with organic revenue essentially flat. The net loss improved to $201.1 million from $636.7 million, while Adjusted EBITDA declined to $1,001.8 million and free cash flow rose to $365.3 million.
What were Clarivate’s key fourth quarter 2025 results?
In Q4 2025, Clarivate generated $617.0 million in revenue, a 6.9% decline, mainly from disposals and weaker transactional sales. Net income improved to $3.1 million versus a $191.8 million loss, while Adjusted EBITDA decreased to $254.6 million and Adjusted diluted EPS was $0.20.
What guidance did Clarivate (CLVT) provide for 2026?
For 2026, Clarivate projects revenue of $2.30–$2.42 billion, Adjusted EBITDA of $980 million–$1.04 billion, and Adjusted diluted EPS of $0.70–$0.80. It also guides to free cash flow of $365–$435 million and low-single-digit organic ACV and recurring revenue growth.
What is happening with Clarivate’s Life Sciences & Healthcare business?
Clarivate is pursuing a sale of its Life Sciences & Healthcare segment, which produced $389.8 million of 2025 revenue. The company has hired Morgan Stanley & Co. LLC as financial advisor and is in active discussions with interested parties, but there is no assurance a transaction will occur.
How is Clarivate (CLVT) changing its revenue mix and recurring profile?
Clarivate is emphasizing subscription and re-occurring revenues while reducing transactional exposure. In 2025, organic recurring revenue grew 0.6% and reached 88% of total revenue, up from 80%, reflecting the shift toward a more stable, subscription-led model and away from divested transactional activities.
What were Clarivate’s capital allocation actions in 2025?
In 2025, Clarivate generated $365.3 million in free cash flow, repurchased 56.0 million ordinary shares for about $225 million, and reduced total debt to $4,469.9 million. It also executed a $100.0 million accelerated debt repayment in September and redeemed another $100.0 million of notes in January 2026.
How significant is AI to Clarivate’s strategy and 2025 results?
AI is central to Clarivate’s strategy, supporting its “Value Creation Plan” and product roadmap. In 2025 it launched multiple AI research assistants and agentic AI solutions across segments, aiming to enhance sales, retention, and pricing power, which contributed to 1.8% organic ACV growth and a stronger recurring mix.
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Clarivate Plc
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Information Technology Services
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