# CLARIVATE PLC (CLVT) Informational only - not investment advice. CIK: 0001764046 SIC: 7374 Services-Computer Processing & Data Preparation SIC breadcrumb: [Services](/division/I/) > [Business Services](/major-group/73/) > [SIC 7374 Services-Computer Processing & Data Preparation](/industry/7374/) Latest 10-K filed: 2026-02-24 SEC page: https://www.sec.gov/edgar/browse/?CIK=1764046 Filing source: https://www.sec.gov/Archives/edgar/data/1764046/000176404626000019/clvt-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-24 · accession 0001764046-26-000019 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001764046.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 2,455,200,000 USD | 2025 | verified | | Net income | -201,100,000 USD | 2025 | verified | | Assets | 11,069,400,000 USD | 2025 | verified | | Free cash flow | 365,300,000 USD | 2025 | computed | | Net margin | -8.19% | 2025 | computed | | Operating margin | 2.91% | 2025 | computed | | Revenue YoY | -3.97% | 2025 | computed | | ROE | -4.15% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | CLVT | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -8.2% | 5.8% | 7 | 29 | | Operating margin | 2.9% | 7.7% | 22 | 28 | | Revenue growth | -4.0% | 10.0% | 0 | 30 | | FCF margin | 14.9% | 17.5% | 43 | 29 | | ROE | -4.2% | 14.1% | 8 | 27 | | ROA | -1.8% | 5.0% | 14 | 30 | | Liabilities / equity | 1.29 | 1.28 | 54 | 27 | | Current ratio | 0.84 | 1.64 | 14 | 30 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 7374 Services-Computer Processing & Data Preparation, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2455200000 | USD | 2025 | 2026-02-24 | | Net income | -201100000 | USD | 2025 | 2026-02-24 | | Assets | 11069400000 | USD | 2025 | 2026-02-24 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-24. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001764046.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 917,634,000 | 968,468,000 | 974,345,000 | 1,254,100,000 | 1,876,900,000 | 2,659,800,000 | 2,628,800,000 | 2,556,700,000 | 2,455,200,000 | | Net income | | -263,930,000 | -242,162,000 | -258,633,000 | -350,600,000 | -270,500,000 | -3,960,200,000 | -911,200,000 | -636,700,000 | -201,100,000 | | Operating income | | -147,027,000 | -105,708,000 | -82,486,000 | -36,300,000 | -87,000,000 | -3,925,600,000 | -734,700,000 | -275,600,000 | 71,500,000 | | Diluted EPS | | -160.83 | -1.11 | -0.94 | -0.82 | -0.61 | -6.24 | -1.47 | -0.96 | -0.30 | | Operating cash flow | | 6,667,000 | -26,100,000 | 117,580,000 | 263,500,000 | 323,800,000 | 509,300,000 | 744,200,000 | 646,600,000 | 628,500,000 | | Capital expenditures | | | 45,410,000 | 69,836,000 | 107,700,000 | 118,500,000 | 202,900,000 | 242,500,000 | 289,100,000 | 263,200,000 | | Dividends paid | | | | | 0.00 | 18,900,000 | 75,400,000 | 75,500,000 | 37,700,000 | 0.00 | | Assets | | 4,005,111,000 | 3,709,674,000 | 3,791,371,000 | 14,790,698,000 | 20,183,000,000 | 13,944,900,000 | 12,706,800,000 | 11,490,200,000 | 11,069,400,000 | | Liabilities | | 2,719,005,000 | 2,659,067,000 | 2,542,772,000 | 5,755,908,000 | 8,257,100,000 | 7,132,400,000 | 6,714,500,000 | 6,351,200,000 | 6,226,500,000 | | Stockholders' equity | 1,505,361,000 | 1,286,106,000 | 1,050,607,000 | 1,248,600,000 | 9,034,800,000 | 11,925,900,000 | 6,812,500,000 | 5,992,300,000 | 5,139,000,000 | 4,842,900,000 | | Cash and cash equivalents | 77,136,000 | 53,186,000 | 25,575,000 | 76,100,000 | 257,700,000 | 430,900,000 | 356,800,000 | 370,700,000 | 295,200,000 | 329,200,000 | | Free cash flow | | | -71,510,000 | 47,744,000 | 155,800,000 | 205,300,000 | 306,400,000 | 501,700,000 | 357,500,000 | 365,300,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | -28.76% | -25.00% | -26.54% | -27.96% | -14.41% | -148.89% | -34.66% | -24.90% | -8.19% | | Operating margin | | -16.02% | -10.91% | -8.47% | -2.89% | -4.64% | -147.59% | -27.95% | -10.78% | 2.91% | | Return on equity | | -20.52% | -23.05% | -20.71% | -3.88% | -2.27% | -58.13% | -15.21% | -12.39% | -4.15% | | Return on assets | | -6.59% | -6.53% | -6.82% | -2.37% | -1.34% | -28.40% | -7.17% | -5.54% | -1.82% | | Liabilities / equity | | 2.11 | 2.53 | 2.04 | 0.64 | 0.69 | 1.05 | 1.12 | 1.24 | 1.29 | | Current ratio | | 0.67 | 0.63 | 0.76 | 0.81 | 0.86 | 0.89 | 0.91 | 0.87 | 0.84 | ## As-reported value updates 10 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/CLVT/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-04-29. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001764046.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2020-Q3 | 2020-09-30 | | | -0.10 | reported discrete quarter | | 2020-Q4 | 2020-12-31 | 455,595,000 | -199,144,000 | | derived Q4 = FY annual - nine-month YTD | | 2023-Q3 | 2023-06-30 | | -123,100,000 | | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 647,200,000 | | -0.01 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 683,700,000 | -843,900,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 621,200,000 | -75,000,000 | -0.14 | reported discrete quarter | | 2024-Q2 | 2024-03-31 | | -75,000,000 | | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 650,300,000 | | -0.46 | reported discrete quarter | | 2024-Q3 | 2024-06-30 | | -304,300,000 | | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 622,200,000 | | -0.09 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 663,000,000 | -191,800,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 593,700,000 | -103,900,000 | -0.15 | reported discrete quarter | | 2025-Q2 | 2025-03-31 | | -103,900,000 | | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 621,400,000 | | -0.11 | reported discrete quarter | | 2025-Q3 | 2025-06-30 | | -72,000,000 | | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 623,100,000 | | -0.04 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 617,000,000 | 3,100,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 585,500,000 | -40,200,000 | -0.06 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from CLVT's latest 10-K: [/company/CLVT/business/](/company/CLVT/business/). ## Risk Factors Verbatim Item 1A Risk Factors from CLVT's latest 10-K: [/company/CLVT/risk-factors/](/company/CLVT/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1764046/000176404626000091/clvt-20260630.htm Extracted from a later financial-section MD&A body after Item 2 boundaries were low-confidence. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-07-29 Report date: 2026-06-30 Management’s Discussion and Analysis of Financial Condition and Results of Operations Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion should be read in conjunction with our historical financial statements and related notes included in our annual report on Form 10-K for the year ended December 31, 2025 and the condensed consolidated financial statements and related notes included elsewhere in this quarterly report on Form 10-Q. Certain statements in this section are forward- looking, subject to the risks and uncertainties described in the Cautionary Note Regarding Forward-Looking Statements and in Item 1A. Risk Factors of this quarterly report, as well as the factors described under Item 1A. Risk Factors in our most recently filed annual report on Form 10-K. Overview We are a leading global provider of transformative intelligence. We support the entire innovation lifecycle, from cultivating curiosity to protecting the world’s critical intellectual property assets. Our aim is to fuel the world’s greatest breakthroughs by harnessing the power of human ingenuity. From research and learning to commercialization, we offer intelligence solutions, workflow solutions, and tech-enabled services to customers in the Academia & Government (“A&G”), Intellectual Property (“IP”), and Life Sciences & Healthcare (“LS&H”) end markets, which form the basis of our reportable segment structure. •Intelligence solutions. Continuously enriched, up-to-date knowledge assets, combining expert-curated data, structured taxonomies, and analytical models that transform complex information into actionable insights powered by a unique combination of AI-enabled software and human expertise. •Workflow solutions. Automated, flexible software tools complemented by our enriched data sets and expert analysis tailored to meet specific needs. •Tech-enabled services. We are home to industry specialists, consultants, and data scientists with deep subject-matter expertise and global experience. In July 2026, we announced that we entered into a definitive agreement to sell the LS&H business. We anticipate that the transaction will close by the end of 2026, subject to customary closing conditions, including regulatory approvals and the expiration of applicable waiting periods. Beginning in the third quarter of 2026, the LS&H business will be presented as a discontinued operation. Key Performance Indicators We regularly monitor organic revenue growth, annualized contract value (“ACV”), annual renewal rates, Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow as key performance indicators that we use to evaluate our business and trends, measure performance, prepare financial projections, and make strategic decisions. Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (“non-GAAP”). Although we believe these measures may be useful to investors in evaluating our business, these measures are not a substitute for GAAP financial measures or disclosures. Reconciliations of our non-GAAP measures from the most directly comparable GAAP measures are provided further below. Organic revenue growth We define organic revenue as revenue generated from pricing, up-selling, securing new customers, sales of new or enhanced products, and similar activities. Organic revenues exclude revenues from acquisitions and disposals (including divestitures) completed within the past 12 months and the impact from changes in foreign currency exchange rates (“FX”). We review year-over-year organic revenue growth in our segments as a key measure of our success in addressing customer needs. We also review year-over-year organic revenue growth by transaction type to help us identify and address broad changes in product mix, and by geography to help us identify and address changes and revenue trends by region. Annualized contract value Our 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. We use ACV as a key indicator of the health and trajectory of our core business as well as to assist in the evaluation of underlying sales execution and customer engagement trends. This metric is particularly important to us because the majority of our revenues are generated from subscription-based license agreements. 21 Table of Contents CLARIVATE PLC Management’s Discussion and Analysis of Financial Condition and Results of Operations Actual subscription revenues that we recognize during any 12-month period are likely to differ from ACV at the beginning of that period, sometimes significantly, due to subsequent changes in volume (including upgrades, downgrades, new business, and cancellations) and price, acquisitions, divestitures and disposals, and changes in FX. Our organic ACV grew 1.5% compared to June 30, 2025, primarily driven by improved product pricing. Our total ACV for June 30, 2026, compared to June 30, 2025, increased 3.1%, primarily due to improved product pricing and FX movements. Annual renewal rate Our annual renewal rate, at any point in time, represents (a) the annualized value of all active customer subscription-based license agreements renewed during the measurement period (including the value of any product downgrades), divided by (b) the annualized value of all active subscription-based license agreements that were up for renewal during the measurement period. “Open renewals,” which we define as active customer subscription-based license agreements that were up for renewal during the measurement period but were neither renewed nor canceled, are excluded from both the numerator and denominator of the calculation. Additionally, the impact from product downgrades upon renewal is reflected in the annual renewal calculation, but the impact from product upgrades is not, because upgrades reflect the purchase of additional products and services. The impact of upgrades, new subscriptions, and improved product pricing is reflected in ACV, but not in annual renewal rates. As the majority of our revenues are generated from subscription-based license agreements, we use the annual renewal rate as a key indicator of our ability to retain existing customers, evaluate the execution of our sales strategy and customer engagement trends, and to help analyze our historical results and prepare financial projections. Our annual renewal rate of 91.9% as of June 30, 2026 remained stable compared to December 31, 2025. Adjusted EBITDA and Adjusted EBITDA margin We use Adjusted EBITDA as a basis for evaluating our ongoing operating performance, and we believe it is useful for investors to understand the underlying trends of our operations. 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. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that our projections and estimates will be realized in their entirety or at all. In addition, because of these limitations, Adjusted EBITDA should not be considered as a measure of liquidity or discretionary cash available to us to fund our cash needs, including investing in the growth of our business and meeting our obligations. Our reconciliation between Net income (loss) and Net income (loss) margin and Adjusted EBITDA and Adjusted EBITDA margin is provided further below. Free cash flow We use Free cash flow in our operational and financial decision-making and believe it is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies, and other interested parties to measure the ability of a company to service its debt. Our presentation of Free cash flow should not be considered as a measure of liquidity or discretionary cash available to us to fund our cash needs, including investing in the growth of our business and meeting our obligations. We define Free cash flow as Net cash provided by operating activities less Capital expenditures. Our reconciliation between Net cash provided by operating activities and Free cash flow is provided further below. 22 Table of Contents CLARIVATE PLC Management’s Discussion and Analysis of Financial Condition and Results of Operations Results of Operations [[GREPCENT_TABLE]] [["","Three Months EndedJune 30,","","Six Months EndedJune 30,","","% Change"],["","2026","","2025","","2026","","2025","","QTD","","YTD"],["Revenues","$587.3","","$621.4","","$1,172.8","","$1,215.1","","(5) %","","(3) %"],["Operating expenses:"],["Cost of revenues","185.5","","203.6","","377.6","","410.6","","(9) %","","(8) %"],["Selling, general and administrative costs","181.6","","181.1","","357.9","","359.5","","\u2013 %","","\u2013 %"],["Depreciation and amortization","185.7","","190.9","","369.7","","376.3","","(3) %","","(2) %"],["Goodwill and intangible asset impairments","221.7","","\u2013","","221.7","","\u2013","","N/M","","N/M"],["Restructuring costs","12.1","","9.3","","24.1","","34.0","","30 %","","(29) %"],["Other operating expense (income), net","0.9","","29.6","","(8.2)","","48.6","","N/M","","N/M"],["Total operating expenses","787.5","","614.5","","1,342.8","","1,229.0"],["Income (loss) from operations","(200.2)","","6.9","","(170.0)","","(13.9)"],["Interest expense, net","60.4","","66.6","","119.4","","130.9","","(9) %","","(9) %"],["Income (loss) before income taxes","(260.6)","","(59.7)","","(289.4)","","(144.8)"],["Provision (benefit) for income taxes","8.0","","12.3","","19.4","","31.1","","(35) %","","(38) %"],["Net income (loss)","$(268.6)","","$(72.0)","","$(308.8)","","$(175.9)"],["N/M - Represents a change approximately equal to or in excess of 100% or is not meaningful."]] [[/GREPCENT_TABLE]] In December 2024, the Board approved the wind-down of three product groups within the LS&H and A&G segments, which is continuing into 2026 and partially affects prior year comparability as further discussed below. Revenues The following tables present our revenues by type, segment, and geography, as well as the components driving the changes between periods. Revenues by transaction type [[GREPCENT_TABLE]] [["","Three Months EndedJune 30,","","Change","","% of Change"],["","2026","","2025","","$","","%","","Acquisitions","Disposals","FX","Organic"],["Subscription","$403.3","","$405.7","","$(2.4)","","(0.6) %","","\u2013 %","(1.0) %","(0.3) %","0.7 %"],["Re-occurring","109.3","","108.9","","0.4","","0.4 %","","\u2013 %","\u2013 %","0.4 %","\u2013 %"],["Recurring revenues","512.6","","514.6","","(2.0)","","(0.4) %","","\u2013 %","(0.7) %","(0.2) %","0.5 %"],["Transactional","74.7","","106.8","","(32.1)","","(30.1) %","","\u2013 %","(14.1) %","(0.3) %","(15.7) %"],["Revenues","$587.3","","$621.4","","$(34.1)","","(5.5) %","","\u2013 %","(3.8) %","(0.2) %","(1.5) %"]] [[/GREPCENT_TABLE]] Subscription revenues benefited from organic growth driven by new sales, customer migrations, and pricing actions but decreased overall primarily due to product grou [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1764046/000176404626000019/clvt-20251231.htm Complete FY 2025 MD&A: /company/CLVT/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-02-24 Report date: 2025-12-31 Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion should be read in conjunction with our consolidated financial statements and related notes included elsewhere in this annual report on Form 10-K. Certain statements in this section are forward-looking, subject to the risks and uncertainties described in the Cautionary Note Regarding Forward-Looking Statements and under Item 1A. Risk Factors of this annual report. This section generally discusses our financial condition and results of operations for the years ended December 31, 2025 and 2024, including year-over-year comparisons. Discussion of our financial condition and results of operations for the year ended December 31, 2023, and comparisons between 2024 and 2023, are not included in this annual report and may be found in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our annual report on Form 10-K for the year ended December 31, 2024, filed with the SEC on February 19, 2025. Overview We are a leading global provider of transformative intelligence. We support the entire innovation lifecycle, from cultivating curiosity to protecting the world’s critical intellectual property assets. Our aim is to fuel the world’s greatest breakthroughs by harnessing the power of human ingenuity. From research and learning to commercialization, we offer intelligence solutions, workflow solutions, and tech-enabled services to customers in the Academia & Government (“A&G”), Intellectual Property (“IP”), and Life Sciences & Healthcare (“LS&H”) end markets, which form the basis of our reportable segment structure. •Intelligence solutions. Continuously enriched, up-to-date knowledge assets, combining expert-curated data, structured taxonomies, and analytical models that transform complex information into actionable insights powered by a unique combination of AI-enabled software and human expertise. •Workflow solutions. Automated, flexible software tools complemented by our enriched data sets and expert analysis tailored to meet specific needs. •Tech-enabled services. We are home to industry specialists, consultants, and data scientists with deep subject- matter expertise and global experience. For further information about our business, customers, segments, and people, see Item 1. Business included in Part I of this annual report. Key Performance Indicators We regularly monitor organic revenue growth, annualized contract value, annual renewal rates, Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow as key performance indicators that we use to evaluate our business and trends, measure performance, prepare financial projections, and make strategic decisions. Adjusted EBITDA, Adjusted EBITDA margin, and Free cash flow are financial measures that are not prepared in accordance with U.S. generally accepted accounting principles (“non-GAAP”). Although we believe these measures may be useful to investors in evaluating our business, these measures are not a substitute for GAAP financial measures or disclosures. Reconciliations of our non-GAAP measures to the most directly comparable GAAP measures are provided further below. Organic revenue growth We define organic revenue as revenue generated from pricing, up-selling, securing new customers, sales of new or enhanced products, and similar activities. Organic revenues exclude revenues from acquisitions and disposals (including divestitures) completed within the past 12 months and the impact from changes in foreign currency exchange rates (“FX”). We review year-over-year organic revenue growth in our segments as a key measure of our success in addressing customer needs. We also review year-over-year organic revenue growth by transaction type to help us identify and address broad changes in product mix, and by geography to help us identify and address changes and revenue trends by region. Annualized contract value Our 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. We use ACV as a key indicator of the health and trajectory of our core business as well as to assist in the 26 Table of Contents CLARIVATE PLC Management’s Discussion and Analysis of Financial Condition and Results of Operations evaluation of underlying sales execution and customer engagement trends. This metric is particularly important to us because the majority of our revenues are generated from subscription-based license agreements. Actual subscription revenues that we recognize during any 12-month period are likely to differ from ACV at the beginning of that period, sometimes significantly, due to subsequent changes in volume (including upgrades, downgrades, new business, and cancellations) and price, acquisitions, divestitures and disposals, and changes in FX. Our organic ACV grew 1.8% in 2025, compared to 2024, primarily driven by improved product pricing. Our total ACV for 2025, compared to 2024, declined 1.0% primarily due to the wind-down of certain product groups beginning in the first quarter of 2025. Annual renewal rate Our annual renewal rate, at any point in time, represents (a) the annualized value of all active customer subscription-based license agreements renewed during the measurement period (including the value of any product downgrades), divided by (b) the annualized value of all active subscription-based license agreements that were up for renewal during the measurement period. “Open renewals,” which we define as active customer subscription-based license agreements that were up for renewal during the measurement period but were neither renewed nor canceled, are excluded from both the numerator and denominator of the calculation. Additionally, the impact from product downgrades upon renewal is reflected in the annual renewal calculation, but the impact from product upgrades is not, because upgrades reflect the purchase of additional products and services. The impact of upgrades, new subscriptions, and improved product pricing is reflected in ACV, but not in annual renewal rates. As the majority of our revenues are generated from subscription-based license agreements, we use the annual renewal rate as a key indicator of our ability to retain existing customers, evaluate the execution of our sales strategy and customer engagement trends, and to help analyze our historical results and prepare financial projections. Our annual renewal rate for the years ended December 31, 2025 and 2024 was 92.5% and 91.9%, respectively. Adjusted EBITDA and Adjusted EBITDA margin We use Adjusted EBITDA as a basis for evaluating our ongoing operating performance, and we believe it is useful for investors to understand the underlying trends of our operations. 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. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues. Our presentation of Adjusted EBITDA and Adjusted EBITDA margin should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that our projections and estimates will be realized in their entirety or at all. In addition, because of these limitations, Adjusted EBITDA should not be considered as a measure of liquidity or discretionary cash available to us to fund our cash needs, including investing in the growth of our business and meeting our obligations. For a reconciliation of Adjusted EBITDA and Adjusted EBITDA margin to Net income (loss) and Net income (loss) margin, refer to Adjusted EBITDA and Adjusted EBITDA margin (non-GAAP measures) below. Free cash flow We use Free cash flow in our operational and financial decision-making and believe it is useful to investors because similar measures are frequently used by securities analysts, investors, ratings agencies, and other interested parties to measure the ability of a company to service its debt. Our presentation of Free cash flow should not be considered as a measure of liquidity or discretionary cash available to us to fund our cash needs, including investing in the growth of our business and meeting our obligations. We define Free cash flow as Net cash provided by operating activities less Capital expenditures. For further discussion related to Free cash flow, including a reconciliation to Net cash provided by operating activities, refer to Liquidity and Capital Resources - Cash Flows below. Critical Accounting Policies and Estimates The preparation of the consolidated financial statements in accordance with GAAP requires management to make significant judgments and estimates that affect the amounts reported in the consolidated financial statements. We base our estimates on historical experience and various other assumptions that we believe are reasonable under the circumstances, and we review 27 Table of Contents CLARIVATE PLC Management’s Discussion and Analysis of Financial Condition and Results of Operations these estimates on an ongoing basis. We consider the following accounting policies and associated estimates to be critical to understanding our financial statements because the application of these policies requires management’s subjective or complex judgments about the effects of matters that are inherently uncertain. These significant judgments could have a material impact on our financial statements if actual performance should differ from historical experience or from our initial estimates, or if our assumptions were to change. For further information about our significant accounting policies, including the policies discussed below, see Note 1 - Nature of Operations and Summary of Significant Accounting Policies included in Part II, Item 8 of this annual report. Revenue Recognition Most of our products and services are provided under agreements containing standard terms and conditions. The majority of our revenue is derived from subscription arrangements, which generally are initially deferred and then recognized ratably over the contract term. These arrangements typically do not require any significant judgments or estimates about when revenue should be recognized. A limited number of re-occurring and transaction agreements contain multiple performance obligations. We apply judgment in identifying the separate performance obligations to be delivered under the arrangement and allocating the transaction price based on the estimated standalone selling price of each performance obligation. Goodwill and Indefinite-Lived Intangible Assets Goodwill We perform goodwill impairment testing during the fourth quarter of each year, or more frequently if events or changes in circumstances indicate that carrying value may not be recoverable. In assessing whether a potential impairment event has occurred, we evaluate various factors, many of which are subjective and require significant judgment. Examples of such factors include significant negative industry or economic trends, persistent declines in our market value, significant changes in regulatory requirements or the legal environment, and segment changes. We engage outside experts as deemed necessary to assist in estimating the fair value [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/CLVT/mda/fy2025/ All MD&A years: /company/CLVT/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/CLVT/mda/fy2024/): filed 2025-02-19; accession 0001764046-25-000011 (https://www.sec.gov/Archives/edgar/data/1764046/000176404625000011/clvt-20241231.htm) - [FY 2023 MD&A](/company/CLVT/mda/fy2023/): filed 2024-02-27; accession 0001764046-24-000016 (https://www.sec.gov/Archives/edgar/data/1764046/000176404624000016/clvt-20231231.htm) - [FY 2022 MD&A](/company/CLVT/mda/fy2022/): filed 2023-03-01; accession 0001764046-23-000012 (https://www.sec.gov/Archives/edgar/data/1764046/000176404623000012/clvt-20221231.htm) - [FY 2021 MD&A](/company/CLVT/mda/fy2021/): filed 2022-03-10; accession 0001764046-22-000064 (https://www.sec.gov/Archives/edgar/data/1764046/000176404622000064/clvt-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 7374 Services-Computer Processing & Data Preparation) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity Macro-to-micro threads including this sector: [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/CLVT.md · JSON record: /company/CLVT.json · verified financials: /company/CLVT/financials.json / /company/CLVT/financials.csv · machine TOC for the whole site: /llms.txt