Clear Safe (YOU) This autumn 2025 Earnings Transcript

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Or my mother prefers to reach two hours early it doesn’t matter what I inform her. Now you can simply add a concierge at nearly 30 airports. A beloved Clear ambassador can meet you on the curb and take you straight by safety to your lounge or your gate. Stay actions will assist information you step-by-step by your journey. It is a complete reimagining of how an app can rework and join your journey expertise to assist win the day of journey from house to gate and again once more. The speedy growth of our home-to-gate expertise displays our concentrate on the member expertise and future-facing revolutionary tradition. This drives greater NPS, strengthens our model, and will increase long-term retention.

While you present a premium magical expertise, prospects don’t simply keep; they change into evangelists. Strategic companions additionally recognize the significance of a member-obsessed, frictionless journey expertise. I’m happy that we’re lengthening and strengthening our partnership with American Categorical. This has been a fantastic partnership for the previous 5 years, and we sit up for persevering with to construct it from right here. Accelerating progress constructing strong public-private partnership on the federal, state, and native degree can also be creating extra alternatives. We proceed to work with the administration and TSA to modernize journey without charge to taxpayers. While you align private-sector velocity with public-sector scale, outcomes for the American traveler are highly effective.

I like to speak concerning the “and.” Clear Safe, Inc. is a journey powerhouse, and we have gotten a drive in enterprise. ClearOne delivered a record-breaking quarter. That is validation that our principled, multilayered strategy to id is profitable. Working to scale back fraud, waste, and abuse in Medicare by constructing an id interoperability layer is a testomony to our alternative and our technique. As the most important healthcare payer within the U.S., CMS is integrating ClearOne to modernize account creation and fraud prevention for tens of millions of beneficiaries. We’re serving to CMS transfer towards a patient-centered future by offering a safe, one-and-done id layer in one of many world’s most regulated environments.

Past healthcare, we’re additionally seeing a pull from the Fortune 100 to safe their workforce, essential infrastructure, and their property. Many have skilled breaches, information exfiltration, and insider danger. It is a here-and-now drawback that’s multiplying. From telecom giants to essential banking infrastructure, the world’s most refined corporations are selecting ClearOne to safe their workforce life cycle. The fantastic thing about ClearOne is its community depth and seamless integration into present workflows. We don’t ask corporations to vary how they work. We plug into the methods they already use. We confirm the human behind the machine.

We’re delivering complete id integrity; in a world of deepfakes and AI-driven fraud, figuring out who’s who and you might be you is the one factor that issues. As we mentioned 5 years in the past in our S-1, at Clear Safe, Inc., we imagine within the “and.” We are able to ship each development and profitability. We now have performed that. The flow-through of the enterprise from income to free money stream speaks to the ability of the Clear mannequin, and I’m happy with our self-discipline to speed up development and be extremely worthwhile. We now have created the inspiration and leverage for important development forward. At Clear Safe, Inc., we’re constructing the infrastructure for a world the place you might be all the time you.

We entered 2026 from a place of power. We—our fourth quarter acceleration is a direct results of the investments we’ve remodeled the previous few years and the seeds that we planted that are actually rising into forests. We now have the money, the expertise, and the momentum to proceed scaling. With that, I’ll flip it over to Michael.

Michael Z. Barkin: Thanks, Caryn. A key focus for us over the previous 12 months has been enhancing the member expertise, and we’ve made important progress. Our strengthening member expertise is a rising tide that improves member acquisition, conversion, retention, and our model for ClearOne and our journey companions. Moreover, we’ve community growth alternatives each domestically and internationally, and our sturdy partnership with the TSA permits us to work collectively to enhance the journey expertise within the U.S. TSA PreCheck, Concierge, and ClearOne are companies that stay of their early innings and are more and more vital contributors to our total development. Partnerships stay a strategic a part of our enterprise and a sexy member acquisition channel.

We’re happy that we’ve renewed our partnership with American Categorical, providing CLEAR Plus as an embedded profit on the American Categorical shopper, company, small enterprise Platinum playing cards and choose different American Categorical card merchandise. This multiyear renewal displays the worth of CLEAR Plus for American Categorical cardholders and the sturdy partnership that Clear Safe, Inc. and American Categorical have established during the last six years. We sit up for persevering with to offer nice experiences for our American Categorical members. The necessity for safe multilayered id and infrastructure has been amplified, and we’re getting into this chapter from a place of power. Our steadiness sheet is powerful and rising, offering us significant flexibility.

In a quickly evolving id panorama, we imagine we’ve engaging alternatives to develop extra partnerships and make disciplined investments that can deepen our home-to-gate ClearTravel membership expertise, enhance penetration of ClearOne, and form the way forward for the id business. I’ll now flip it over to Jennifer.

Jennifer Hsu: Thanks, Michael. 2025 was a 12 months of disciplined execution and structural enchancment. In This autumn, bookings accelerated to north of 25% year-over-year development, the best degree since This autumn 2023, and adjusted EBITDA margins reached nicely over 30%. In 2025, we generated over $340,000,000 of free money stream and returned over $240,000,000 of capital to shareholders, all whereas investing to place us favorably as a pacesetter in safe id. Our This autumn outcomes mirrored our 2025 initiatives, and we ended the 12 months in a considerably stronger place than we started. We improved the member expertise, accomplished a billing system migration, and made significant progress in opposition to our product and expertise roadmaps.

Our fourth quarter efficiency offers us confidence within the step-change development that we anticipate in 2026 as we proceed to develop margins and generate materially greater ranges of free money stream. Within the fourth quarter, income grew 16.7% 12 months over 12 months to $240,800,000. Complete bookings elevated 25.4% to $287,100,000. For fiscal 12 months 2025, income was $900,800,000, up 16.9%, and complete bookings have been $977,200,000, up 17.2% 12 months over 12 months.

There are a number of structural drivers that can underpin sturdy and more and more worthwhile development in 2026 and past, together with the rising measurement of our member base; enhancements in member expertise and coverage leading to sturdy retention tendencies; engaging partnership economics; a disciplined strategy to pricing; ARPU development by product growth and new companies; in addition to the continued scaling of ClearOne. Following a complete assessment to simplify our reporting, I wish to present an replace on our KPIs. Starting in 2026, we are going to discontinue three metrics: complete cumulative platform makes use of, annual CLEAR Plus gross greenback retention, and annual CLEAR Plus member utilization.

Efficient as of This autumn 2025, we’re renaming complete cumulative enrollments to complete Clear members, with no modifications to the calculation of this metric. Beginning in Q1 2026, the KPIs we are going to report are: complete bookings, complete Clear members, and energetic CLEAR Plus members. This autumn energetic CLEAR Plus members grew to 7,600,000, up 6% 12 months over 12 months, and replicate a one-time cleanup of lapsed accounts as a part of a billing system transformation undertaking undertaken throughout 2025. This had no impression on income, money stream, or another monetary measures. This autumn complete Clear members grew to 38,000,000, up 31.5%, demonstrating the sustained momentum in ClearOne. We had our largest bookings quarter for ClearOne, greater than doubling 12 months over 12 months.

This autumn additionally marked one other document quarter for the most important variety of enterprise prospects signed. This autumn and full 12 months 2025 represented document profitability for Clear Safe, Inc. Our outcomes replicate our capability to drive development and ship sturdy flow-through to the underside line. The structural enhancements we put in place all through 2025 delivered over 33% adjusted EBITDA margins in This autumn, a rise of 870 foundation factors from This autumn 2024, and place us to proceed increasing profitability. In This autumn, price of direct salaries and advantages represented 19.3% of income, an enchancment of roughly 390 foundation factors 12 months over 12 months. We delivered sequential expense leverage in each quarter of 2025, and we anticipate to understand extra effectivity advantages over time.

Our G&A trajectory illustrates the working leverage we will drive whereas additionally investing in strategic priorities. Full-year G&A grew at lower than half the tempo of income, and during the last two years, G&A as a share of income has improved by greater than 10 share factors. In This autumn, we generated $53,900,000 of working earnings and $79,900,000 of adjusted EBITDA, representing a 33.2% adjusted EBITDA margin and eight.7 share factors of margin growth 12 months over 12 months. For the total 12 months 2025, we generated $186,500,000 of working earnings and $262,200,000 of adjusted EBITDA, representing a 29.1% adjusted EBITDA margin, 4.8 share factors of margin growth 12 months over 12 months, and over 50% flow-through. We proceed to ship sturdy free money stream.

For the total 12 months 2025, we generated $372,500,000 of internet money offered by working actions and prudently invested $29,300,000 of capital expenditures, leading to free money stream of $343,100,000, considerably forward of steering. We now have managed dilution persistently and rigorously with stock-based compensation expense as a share of income lowering meaningfully since our IPO to 4.3% in 2025. Coupled with our capital return technique, our complete shares excellent have decreased over time by 14,000,000 shares, or 9%, since our IPO in 2021. We ended 2025 with $703,000,000 of money and marketable securities, and we anticipate to exit 2026 with over $1,000,000,000 in money on our steadiness sheet and no debt, previous to any capital return to shareholders.

Our Board of Administrators authorised a 20% enhance to our common quarterly dividend from $0.125 to $0.15 per share. In 2025, we repurchased 5,300,000 shares for $106,300,000 at a mean worth of $23.86, decreasing complete shares excellent by 3% to 133,200,000 shares. Our Board has additionally licensed a $125,000,000 enhance to our share repurchase program, bringing the entire capability underneath the repurchase authorization to roughly $250,000,000. We are going to proceed to take a disciplined strategy to reinvesting within the enterprise whereas returning capital to shareholders. In 2026, we anticipate accelerating top-line development and margin growth, which is able to translate to important free money stream development.

Anticipate 2026 full-year free money stream of at the very least $440,000,000, which might signify a rise of roughly $100,000,000 and at the very least 28% year-over-year development. Based mostly on prevailing tax charges and our company construction, we anticipate full-year 2026 GAAP P&L taxes to vary between 18–20%. For Q1, we anticipate income of $242,000,000 to $245,000,000 and complete bookings of $248,000,000 to $253,000,000, representing 15.2–20.9% development on the midpoint, respectively. We are going to now open for questions. Thanks. We are going to now be conducting a query and reply session. You could press 2 if you want to take away your query from the queue.

Operator: Keys.

Operator: We ask that analysts restrict themselves to 1 query and a follow-up in order that others may have the chance to take action as nicely. One second whereas we ballot for questions. Our first query comes from Eric Sheridan with Goldman Sachs. Please proceed together with your query.

Eric Sheridan: Thanks a lot for taking the query and thanks for all the small print and the ready remarks. Caryn, I needed to place a finer level on a few of your messaging this morning and higher perceive the way you see your strategic priorities laying out over the following twelve to eighteen months that may both keep or construct on the momentum you may have on the member aspect and the subscription aspect by way of constructing each investments within the enterprise on the tech aspect, in addition to additional connectivity round model and go-to-market technique. Thanks a lot.

Caryn Seidman-Becker: Alright. That was, like, eight questions in a single. I respect that, Eric. So we are going to speak concerning the two core pillars that I talked about as a result of these actually are key drivers for the enterprise this 12 months. When you concentrate on our B2C ClearTravel enterprise, constructing this home-to-gate expertise, proper? Individuals don’t simply need to, , get by the safety lane, which we’re actually doing that higher than ever with greater NPS scores than we’ve had due to the eGates. However driving a predictable, constant, nationwide community and member-centric expertise drives retention, and you might be seeing that come by the fourth quarter numbers. That could be a monetary driver to 2026.

It drives gross provides, it drives conversion, and with, , evangelism comes household connect price and different methods to promote and to companion. And so, , the innovation that we’ve put forth with the app, with the eGate, and extra to return are a key driver to monetary returns to member development and in addition the working leverage and the flow-through that you just see due to the automation when you possibly can enroll in your telephone together with your passport, once we develop our TAM to now 42 Visa Waiver international locations. And by the best way, we’re solely in 75% of the U.S., so community development as nicely. These are huge development drivers on the journey aspect.

And positively, what we talked about on id and being the tip of the spear for safety and the alternatives that AI is presenting for Clear Safe, Inc. each to drive our personal productiveness however actually to drive our ClearOne enterprise. We now have invested in that enterprise, so you might be seeing the outcomes of that funding each from a top-line development contract signed, actually targeted on workforce, healthcare, and GovTech, and we’re uniquely positioned for that.

And so signing extra contracts, internet income retention in that enterprise of stepping into with an even bigger e-book of enterprise this 12 months and having the ability to cross-sell, up-sell, develop that enterprise, have these prospects flip into evangelists, and signal extra new prospects at bigger sizes as a result of, fairly frankly, the disaster in id is rising, are our main drivers this 12 months. A few of which are actually the seeds we planted for the previous few years, after which we’re planting new seeds this 12 months. And you might be seeing that integrated in our free money stream steering, proper, is why I like speaking concerning the “and” as a result of we’ve been investing, we’re investing, and we’re producing stronger free money stream.

Eric Sheridan: Nice. Thanks.

Operator: Our subsequent query comes from Cory Carpenter with JPMorgan. Please proceed together with your query.

Cory Alan Carpenter: Hey, good morning. I needed to ask concerning the authorities shutdowns, perhaps Caryn, simply how did that impression you guys over the last shutdown? And I feel there may be loads of concern that the TSA might shut down any day now. So if that have been to occur, may you simply talk about how that might, , would or wouldn’t impression your service? Then I had a follow-up for Jennifer after. Thanks.

Caryn Seidman-Becker: Yeah. I feel the ability of a public-private partnership, and we have been very clear in our communications this weekend, which is Clear Safe, Inc. is open. And we’re right here to serve our airport companions, our vacationers, and definitely our airline and authorities companions. With a winter stuffed with climate, in order that not solely, , is there the federal government shutdown disruption, however actually with a winter stuffed with climate and, , different journey disruptions, I feel what you might be seeing is a renewed appreciation for the consistency and the reliability of Clear Safe, Inc. by our members and our companions. Journey continues to be sturdy.

You’ve got actually heard that from the journey business with a continued concentrate on premiumization. And so, fairly frankly, I feel the ability of the public-private partnership and our capability to serve members, our capability to workers up, and our capability to serve our companions is extra appreciated and extra vital at this time than ever earlier than.

Cory Alan Carpenter: Thanks. And Jennifer, the free money stream information, it implies a fairly important acceleration this 12 months. May you simply perhaps unpack among the drivers of that? After which in your ready remarks, you talked about, I feel, high line accelerating. Is that particular to you anticipate bookings to speed up this 12 months? Thanks.

Jennifer Hsu: Certain. Hello, Cory. Perhaps I’ll begin with high line. I feel I’d come again to the member expertise, and I feel the enhancements we’ve made there are actually a propellant to actually all our key metrics. That features greater retention, higher member acquisition, stronger NPS. All of that in the end simply drives a extra sturdy top-line development profile for our ClearTravel enterprise. And as you heard Caryn simply say, ClearOne is de facto, we expect, reaching escape velocity. We had one other document bookings quarter. We once more signed our largest variety of new ClearOne companions. So we really feel extremely nicely positioned to capitalize throughout a time when id safety is high of thoughts throughout enterprises.

On the free money stream aspect, as you mentioned, our steering implies continued leverage on a enterprise mannequin that’s already demonstrating extremely sturdy profitability. I feel, importantly, the larger image is that we’re working subscription-based companies with sturdy recurring income in each our B2C ClearTravel enterprise in addition to our B2B ClearOne enterprise enterprise. So when our member expertise is enhancing, that’s driving greater ranges of retention, once more each for our members in ClearTravel in addition to the online income retention from our enterprise companions. So all of that is mostly a “and,” and we imagine will drive higher and higher economics in our enterprise and in the end greater ranges of profitability and flow-through.

Operator: As a reminder, if you want to ask—our subsequent query comes from Dana Telsey with the Telsey Advisory Group. Please proceed together with your query.

Dana Telsey: Hello, good morning everybody, and good to see the strong outcomes. Are you able to speak somewhat bit about—you talked about the American Categorical partnership was prolonged. What’s totally different now concerning the partnership than earlier than? How lengthy is it prolonged for? After which on the B2B enterprise aspect of the enterprise, it was good to see the Sinai affiliation yesterday. What else are you searching for as we glance by this 12 months? Is it extra growth into healthcare than anything? And the way do the margins evaluate on these companies? Thanks.

Michael Z. Barkin: Thanks, Dana. Sure, the settlement with American Categorical extends right into a multiyear settlement. We’re not disclosing particular phrases. However we’re actually excited to proceed to offer our American Categorical card members with the CLEAR Plus embedded profit, which we actually assume aligns the suitable American Categorical expertise with our journey expertise. And we additionally assume the construction of the renewed settlement displays the worth we every convey to the partnership, which in fact has been an extremely useful one for us during the last six years. We anticipate that to proceed over coming years.

So we’re actually excited to have the ability to announce that at this time, and once more not disclosing any particular phrases of that, however transferring ahead with that in a good way.

Caryn Seidman-Becker: And by way of ClearOne, Dana, , Mount Sinai is actually an thrilling companion, and I feel it actually does speak to ecosystems that we’re constructing. We now have a robust community right here in New York by way of the journey enterprise, by way of the sports activities capabilities, and now including healthcare networks on it are a pure development for Clear Safe, Inc., and once more as we flip right into a every day behavior for members. It’s a actually highly effective use case. After we take into consideration healthcare, I feel you will need to discuss CMS, which is an anchor healthcare contract. It’s multiyear in nature.

And as we talked about final quarter, that contract connects to the pledge—I feel final time we talked about 60 corporations which have signed the pledge. I imagine that quantity is, like, up tenfold nearer to 600. And so that’s making a community which is driving a pipeline for us in healthcare. So being a part of Epic within the id toolbox, being a part of CMS on the id interoperability layer, makes it simpler to signal healthcare companions like Mount Sinai as a result of it’s a lot simpler to attach; you might be already embedded in it. So we’re signing extra healthcare companions throughout the nation.

After which the opposite factor is, for the healthcare companions that we’ve, maybe we began with workforce however then add sufferers. Or maybe we began with affected person after which are including workforce. So it actually is that this very thrilling flywheel. And, clearly, killing the clipboard is one thing we’ve been obsessed with for a few years. If you happen to come to our places of work, we even have a sculpture made from outdated clipboards that we made a few years in the past.

However now having the administration additionally aggressively lean into that, , means that there’s a lot of motivation on the federal degree transferring on to the state degree the place there’s a complete rural healthcare initiative that’s mirroring what is going on on the federal degree. So it’s a very thrilling second for Clear Safe, Inc. in healthcare, and fairly frankly, for sufferers and for docs and nurses who work in it.

Operator: Thanks. Our subsequent query comes from Michael Turrin with Wells Fargo. Please proceed together with your query.

Ronit Shah: That is Ronit on for Michael. I simply needed to select aside the form of drivers of bookings. Perhaps for those who may speak by ClearOne versus the form of core CLEAR Plus and the way it impacts bookings, after which how your bookings pipeline seems for 2026?

Jennifer Hsu: Hello. Yeah. I’d say for This autumn, our efficiency was actually sturdy throughout the board. We mentioned we had the best year-on-year bookings development for CLEAR Plus since 2023, and once more, ClearOne had its strongest bookings quarter by fairly a distance. And so the efficiency you noticed on the beat relative to steering was actually power throughout all our companies.

Ronit Shah: Bought it. And only a follow-up. I simply had a query on, like, the current form of TSA impacts. Has that proven in your enterprise? And do you anticipate it to be a ahead tailwind, particularly on, like, the worth prop of Clear?

Caryn Seidman-Becker: I feel, as I talked about somewhat bit earlier, you might be seeing a renewed appreciation of the “and” and the consistency that Clear Safe, Inc. brings. I feel that has been improved by the eGates. And I actually assume, and you’ve got seen this all through the fifteen years, that there are moments of monumental instability within the journey sector; folks have come to depend on Clear Safe, Inc., and it’s moments like that once I assume the appreciation grows. However it’s our job to proceed to develop the shopper expertise in a constant manner. I feel that’s the biggest driver of our long-term sustainable development.

Michael Z. Barkin: And I feel I’d simply add that one of many advantages that we’ve from the member expertise enhancements that we’ve had during the last 12 months in implementing the eGates is that our ambassadors—3,500 sturdy throughout our 60 airports—can more and more concentrate on hospitality and the shopper expertise within the airports. And so whereas there are disruptions in journey, whether or not that’s climate or in any other case, , we actually imagine that a part of our member expertise is that ambassador hospitality, and with the improvements and expertise and enhancements that we’ve made, our ambassadors are more and more capable of concentrate on that, which turns into actually vital in constructing out this home-to-gate expertise and membership.

Caryn Seidman-Becker: We now have all the time believed that it’s expertise and hospitality. And so once we discuss sitting on the intersection of safety and the expertise economic system, that’s massively vital within the journey expertise, which is extremely fragmented, very challenged. And as we head into the world—

Ronit Shah: Nice. Thanks.

Operator: Our subsequent query comes from Wyatt Swanson with D.A. Davidson. Please proceed together with your query.

Michael Z. Barkin: Of final 12 months. So the impression of the eGates remains to be truly comparatively new, and lots of the airports that received eGates got here truly within the later half of the fourth quarter. And in order we proceed to season these, have extra folks expertise that, what we’re seeing is a direct impression on our NPS and lane expertise scores. And we expect what’s going to occur due to that’s, as these expertise items tie in to retention, that we’re beginning to see the early advantages of that.

And so within the steering that Jennifer shared, we actually expect enhancements in retention, which we’re already seeing, and we do see that as a part of the holistic member expertise. And so we’re actually inspired by the early outcomes that we’re seeing from the eGates, and we expect that can solely proceed to develop as an increasing number of of our members expertise these and as we get the protection throughout our community within the coming quarters.

Caryn Seidman-Becker: If I can simply add to that, eGates are an unlock to the home-to-gate expertise. And so we expect holistically as we take a look at each the numbers within the fourth quarter, which I feel confirmed early indicators of impression on the great work that we’ve been doing. However while you take a look at the cell app, while you take a look at Concierge, while you take a look at eGates, while you take a look at the hospitality, and then you definately take a look at our capability to develop our partnerships due to a differentiated premium member expertise, the entire thing drives retention. Drives development advertisements. Drives conversion, drives the willingness to tackle new merchandise, , from Clear.

So, , it’s only a actually highly effective flywheel.

Wyatt Swanson: Bought it. That’s actually useful. After which on the CMS partnership, are you able to discuss, like, why Clear is suited significantly nicely to serve CMS relative to different corporations on the market? After which maybe some particulars as to what the contract construction seems like. I imagine you talked about multiyear, however anything could be useful.

Caryn Seidman-Becker: Proper. So multiyear is what I can say. It is a crucial contract for Clear Safe, Inc. And I like that query of why we’re uniquely positioned. We began in a regulated business. So understanding the significance of privateness, of safety, of compliance, of working in a regulated business, with a trusted shopper model with an embedded base, as we talked about at this time, of just about 40,000,000 shoppers or sufferers. These persons are each sufferers in addition to staff within the healthcare sector. It makes it a pure match.

I don’t need to say that going into an airport feels so much like going right into a hospital, however I’d say that they’re each challenged experiences with a number of stakeholders. And so placing sufferers or vacationers on the heart, , wrapped in compliance and regulation and privateness, is what we’re recognized for. And so I actually assume that this was a, , a pure match and one which additionally permits us to proceed to drive innovation with different companions as we proceed to drive this interoperability layer. And so I simply assume it was hand-in-glove, and it’s a actually thrilling and aligned second.

We led a giant convention—From Pledge to Progress—in December, bringing collectively over 100 healthcare leaders across the nation in addition to authorities. And, , we’re a convener to drive safe, frictionless experiences, which is precisely what this initiative is.

Wyatt Swanson: Okay. Thanks very a lot.

Operator: We now have reached the tip of our question-and-answer session. I’d now like to show the ground again over to Caryn for closing feedback.

Caryn Seidman-Becker: Thanks for becoming a member of our fourth quarter earnings name. As all the time, I’m deeply grateful for our Clear workforce and the Clear ambassadors which are delivering our Home2Gate expertise day-after-day. We now have constructed the inspiration, and we’re nicely positioned to execute in opposition to significant alternatives within the evolving and rising id panorama. Thanks. This concludes at this time’s teleconference. You could disconnect your traces at the moment. Thanks in your participation.

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