Sign in

You're signed outSign in or to get full access.

CS

Clear Secure, Inc. (YOU)·Q2 2025 Earnings Summary

Executive Summary

  • Clear Secure delivered solid Q2 with revenue $219.5M (+17.5% YoY) and Adjusted EBITDA $60.1M (27.4% margin), while operating margin expanded ~170 bps sequentially to 19.4% on NV pod-driven efficiencies .
  • Results beat S&P Global consensus on revenue and S&P Primary EPS; revenue $219.5M vs $215.0M*, EPS (S&P Primary) $0.36 vs $0.31*; company GAAP diluted EPS was $0.26, reflecting definitional differences vs S&P Primary EPS [functions.GetEstimates]*.
  • Q3 guide implies continued double-digit growth: revenue $223–226M and bookings $253–258M; FY25 at least $310M FCF and EBITDA margin expansion reaffirmed; dividend declared $0.125 for Sept 17 .
  • Strategic catalysts: international traveler access (UK/Canada/Australia/NZ), CLEAR Concierge monetization, accelerating TSA PreCheck footprint, and CMS health-tech initiative—expanding TAM and cross-sell vectors .

What Went Well and What Went Wrong

What Went Well

  • Operating leverage and margin expansion: Operating income rose to $42.6M (19.4% margin) with Adjusted EBITDA $60.1M (27.4% margin), aided by NV pods verifying members ~5x faster and driving labor efficiency .
  • Demand outperformed flat traffic: CLEAR+ logged a record travel-volume quarter despite broadly flat industry volumes; Active CLEAR+ Members reached 7.626M (+7.5% YoY) .
  • Execution on growth vectors: TSA PreCheck locations scaled to 231 (Q2-end) with bundling momentum; international traveler enrollment opened (UK, Canada, Australia, NZ); Concierge launched at 14 airports to lift revenue/member .

Management quote: “We delivered strong Q2 results across Members, Bookings and Free Cash Flow… as we continue to build the leading secure identity platform.” — CEO Caryn Seidman Becker .

What Went Wrong

  • Engagement mix still normalizing: Annual CLEAR+ Member Usage declined YoY to 7.0x as TAM broadened to less-frequent travelers (though sequential impact modest) .
  • GDR remains below 2023 levels: Annual CLEAR+ Gross Dollar Retention 87.3%, up 20 bps sequentially but impacted by prior step-function price increases that flow through over 24 months .
  • S&P EBITDA definition below company Adjusted EBITDA: S&P “EBITDA actual” for Q2 registered $46.2M* vs company Adjusted EBITDA $60.1M, reflecting definitional differences and non-GAAP adjustments [functions.GetEstimates]*.

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$186.7 $206.3 $211.4 $219.5
Operating Income ($USD Millions)$30.3 —$37.0 $42.6
Net Income ($USD Millions)$38.6 ——$37.9
Diluted EPS ($)$0.26 ——$0.26
Adjusted EBITDA ($USD Millions)$47.5 —$52.0 $60.1
Operating Margin %——17.7% 19.4%
Net Income Margin %20.7% ——17.3%
Adjusted EBITDA Margin %25.4% —24.7% 27.4%

KPI and Bookings trend

KPIQ2 2024Q3 2024Q4 2024Q1 2025Q2 2025
Total Bookings ($USD Millions)$197.0 $227.5 $228.9 $207.2 $222.9
Active CLEAR+ Members (000s)7,095 7,150 7,315 7,415 7,626
Annual CLEAR+ Gross Dollar Retention (%)89.3% 89.0% 88.5% 87.1% 87.3%
Annual CLEAR+ Member Usage (x)7.4x 7.1x 7.1x 7.1x 7.0x
Total Cumulative Enrollments (000s)24,221 26,453 28,906 31,215 33,472
Total Cumulative Platform Uses (000s)206,673 220,413 234,842 248,895 264,830

Vs S&P Global Consensus (Q2 2025)

MetricConsensusActualSurprise
Revenue ($USD Millions)$215.0*$219.5 +$4.5 (+2.1%)*
EPS (S&P Primary) ($)$0.309*$0.362*+$0.053 (+17%)*
EBITDA (S&P) ($USD Millions)$52.6*$46.2*-$6.1 (-11.6%)*

Values with asterisks retrieved from S&P Global (consensus/actual per SPGI definitions) via GetEstimates.

Non-GAAP notes: Company Adjusted EBITDA ($60.1M; 27.4%) excludes taxes, net interest, D&A, equity comp and other items; Free Cash Flow defined as CFO less capex ($117.9M Q2) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueQ3 2025N/A$223–226M (13.1% YoY at mid) New
Total BookingsQ3 2025N/A$253–258M (12.3% YoY at mid) New
Free Cash FlowFY 2025≥$310M (Q4/Q1) ≥$310M reaffirmed Maintained
Adj. EBITDA MarginFY 2025Expansion expected (Q1) Expansion reaffirmed Maintained
DividendQ3 2025Regular $0.125 (prior cadence) $0.125 payable Sep 17, 2025 Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current (Q2’25)Trend
Next-gen identity (EnVe pods), throughputCompleted rollout; 5x faster; margin leverage Drives lower direct labor; more leverage to come Improving
ePassport / One-step enrollmentU.S. rollout; TAM expansion planned International travelers (UK/CA/AU/NZ) enabled; phone enrollment later in 2025 Expanding
TSA PreCheck network & bundling91 locations; strong upsell 231 locations at Q2-end; bundling “successfully” ramping Scaling
Pricing & retention (GDR)GDR impacted by prior step price hikes; normalization expected GDR 87.3%, +20 bps q/q; July 1 price increase; disciplined strategy Stabilizing
AI & automationEnVe/eGates to automate; AI in workstreams “AI in every workstream” to drive productivity and launches Increasing focus
Regulatory/public-private partnershipsFavorable admin stance; no taxpayer funding Continued Washington engagement; travel experience modernization Supportive
CLEAR1 enterprise tractionGrowing pipeline; Okta integration Record 25+ deals signed; healthcare CMS initiative Accelerating
Macro/travelBullish long-term; 4M pax/day by 2030 Q2 traffic ~flat; CLEAR had record volume quarter Outperform vs traffic

Management Commentary

  • Strategic posture: “We are aligning around technology, efficiency and organizational structure that will deliver the best experience for our members and optimize for members, bookings and free cash flow.” — CEO .
  • International access: “Starting this week, CLEAR Plus will be available to travelers from The U.K., Canada, Australia and New Zealand… unlock an attractive new TAM” — CEO .
  • Product monetization: “Concierge is live in 14 airports… $99 express and $179 gate service… example of our opportunity to drive increasing revenue per member” — CFO .
  • Capital allocation: Returned ~$42.7M in Q2 (repurchase $24.6M; dividends/distributions $18.1M); declared $0.125 dividend .
  • Efficiency drivers: NV verification pods verify ~5x faster; ambassador compensation mix adjusted; G&A ratio improved ~300 bps YoY .

Q&A Highlights

  • International rollout mechanics: One-step ePassport enrollment; same U.S. pricing; partners (airlines/hotels/ride-hail) to aid adoption; initial focus on outbound U.S. lane usage .
  • Pricing cadence and retention: July 1 coordinated increases; strategy shifting to disciplined and consistent approach; early retention tracking “as expected” .
  • Macro/travel backdrop: Despite flat overall traffic (~-0.5 pts in Q2), CLEAR grew members 7.5% YoY; expects Q3 to be smallest net-add quarter due to annual-billing seasonality .
  • Real ID impact: Minimal impact in Q2; Clear ID rollout to serve as digital REAL ID, initially for members, expected for all U.S. travelers this month .
  • CLEAR1 pipeline: Record 25+ deals signed across workforce, healthcare, consumer; growing risk/security demand .

Estimates Context

  • Q2 2025: Revenue beat consensus ($219.5M vs $215.0M*); S&P Primary EPS beat ($0.362* vs $0.309*). Company GAAP diluted EPS was $0.26; delta vs S&P reflects different EPS definitions and normalization [functions.GetEstimates]*.
  • Forward quarters (S&P Global): Q3 2025 revenue $224.8M*, EPS $0.312*; Q4 2025 revenue $235.8M*, EPS $0.391* [functions.GetEstimates]*.

Values with asterisks retrieved from S&P Global.

Guidance and Forward Estimates Tables

Forward consensus (S&P Global)

MetricQ3 2025Q4 2025
Revenue Consensus Mean ($USD Millions)224.8*235.8*
Primary EPS Consensus Mean ($)0.312*0.391*
EBITDA Consensus Mean ($USD Millions)59.4*68.0*

Values with asterisks retrieved from S&P Global.

Company guidance (as provided)

MetricPeriodGuidance
Revenue ($USD Millions)Q3 2025$223–226 (13.1% YoY at mid)
Total Bookings ($USD Millions)Q3 2025$253–258 (12.3% YoY at mid)
Free Cash FlowFY 2025≥$310M reaffirmed
Adjusted EBITDA MarginFY 2025Expansion reaffirmed

Additional Q2 2025 Press Releases (Strategic)

  • CLEAR Concierge launched: $99 Express / $179 Gate Service, live in 14 airports with more coming—adds high-margin ARPU lever .
  • TSA PreCheck expansion: Continued rollout beyond airports, improving distribution and bundling funnel .
  • CMS Health Tech Ecosystem: CLEAR1 positioned as IAL2/AAL2 identity layer; partnerships include Epic, Surescripts, Wellstar, Community Health, UMiami Health, b.well—expanding healthcare use cases .

Key Takeaways for Investors

  • Mix of growth and margin: CLEAR is compounding revenue double-digits while expanding margins via automation (NV pods) and G&A discipline—positioning for sustained EBITDA/FCF growth .
  • Multiple growth vectors: International traveler access, Concierge monetization, and TSA PreCheck scaling provide incremental levers beyond core CLEAR+—likely to support ARPU and TAM expansion .
  • Pricing normalization: Coordinated increases began July 1; management expects a more consistent pricing strategy with GDR stabilization—watch cohort retention and renewal pricing mix through H2 .
  • FY25 outlook intact: Reaffirmed ≥$310M FCF and margin expansion; Q3 seasonally smallest net adds—implies back-half acceleration into Q4, consistent with annual billing dynamics .
  • CLEAR1 momentum: Record enterprise deals and CMS ecosystem role increase visibility in healthcare/workforce identity; potential to diversify revenue mix over time .
  • Trading lens: Consensus beats on revenue and S&P Primary EPS should be supportive; near-term stock narrative likely tied to international uptake, Concierge adoption, PreCheck bundling, and evidence of GDR stabilization [functions.GetEstimates]*.

Values with asterisks retrieved from S&P Global.