CLARIVATE PLC (CLVT)
SIC breadcrumb: Services > Business Services > SIC 7374 Services-Computer Processing & Data Preparation
SEC company page: https://www.sec.gov/edgar/browse/?CIK=1764046. Latest filing source: 0001764046-26-000019.
Informational only. Descriptive public-record data — not a rating, forecast, or investment advice. See Disclaimer.
At a glance
- Revenue
- 2,455,200,000 USD verified
- Net income
- -201,100,000 USD verified
- Assets
- 11,069,400,000 USD verified
- Free cash flow
- 365,300,000 USD computed
- Net margin
- -8.19% computed
- Operating margin
- 2.91% computed
- Revenue YoY
- -3.97% computed
- ROE
- -4.15% computed
Peer & cluster context
Peer percentile fingerprint
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 | 2,455,200,000 | USD | 2025 | 2026-02-24 |
| Net income | -201,100,000 | USD | 2025 | 2026-02-24 |
| Assets | 11,069,400,000 | 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
| 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 |
Industry Peer Context
Net margin peer context
Operating margin peer context
ROE peer context
ROA peer context
Financial Bridges
Free cash flow = operating cash flow - capital expenditures
Figure provenance: SEC companyfacts FY 2025. Operating cash flow: accession 0001764046-26-000019; concept NetCashProvidedByUsedInOperatingActivities; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities | Capital expenditures: accession 0001764046-26-000019; concept PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:PaymentsToAcquirePropertyPlantAndEquipment | Free cash flow: accession 0001764046-26-000019; concept NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment; source concepts us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment
Financial Charts
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: OperatingIncomeLoss. Source concepts: us-gaap:OperatingIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: NetCashProvidedByUsedInOperatingActivities. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: PaymentsOfDividends. Source concepts: us-gaap:PaymentsOfDividends.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: Assets. Source concepts: us-gaap:Assets.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: Liabilities. Source concepts: us-gaap:Liabilities.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: StockholdersEquity. Source concepts: us-gaap:StockholdersEquity.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: CashAndCashEquivalentsAtCarryingValue. Source concepts: us-gaap:CashAndCashEquivalentsAtCarryingValue.
Figure provenance: SEC companyfacts. Latest point: FY 2025 ended 2025-12-31; accession 0001764046-26-000019; filed 2026-02-24. Concept: NetCashProvidedByUsedInOperatingActivities - PaymentsToAcquirePropertyPlantAndEquipment. Source concepts: us-gaap:NetCashProvidedByUsedInOperatingActivities; us-gaap:PaymentsToAcquirePropertyPlantAndEquipment.
As-reported value updates
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.
| 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 |
Quarterly Charts
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-03-31; accession 0001764046-26-000058; filed 2026-04-29. Concept: RevenueFromContractWithCustomerExcludingAssessedTax. Source concepts: us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-03-31; accession 0001764046-26-000058; filed 2026-04-29. Concept: NetIncomeLoss. Source concepts: us-gaap:NetIncomeLoss.
Figure provenance: SEC companyfacts. Latest point: FY 2026 ended 2026-03-31; accession 0001764046-26-000058; filed 2026-04-29. Concept: EarningsPerShareDiluted. Source concepts: us-gaap:EarningsPerShareDiluted.
Business
Read CLVT's verbatim Item 1 Business section from its latest 10-K: Business.
Risk Factors
Read CLVT's verbatim Item 1A Risk Factors from its latest 10-K: Risk Factors.
Latest quarter (10-Q)
Latest 10-Q source: 0001764046-26-000091.
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.
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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.
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CLARIVATE PLC
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Results of Operations
| 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 | – % | – % | |||||
| Depreciation and amortization | 185.7 | 190.9 | 369.7 | 376.3 | (3) % | (2) % | |||||
| Goodwill and intangible asset impairments | 221.7 | – | 221.7 | – | 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. |
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
| Three Months EndedJune 30, | Change | % of Change | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | $ | % | Acquisitions | Disposals | FX | Organic | |||||
| Subscription | $403.3 | $405.7 | $(2.4) | (0.6) % | – % | (1.0) % | (0.3) % | 0.7 % | ||||
| Re-occurring | 109.3 | 108.9 | 0.4 | 0.4 % | – % | – % | 0.4 % | – % | ||||
| Recurring revenues | 512.6 | 514.6 | (2.0) | (0.4) % | – % | (0.7) % | (0.2) % | 0.5 % | ||||
| Transactional | 74.7 | 106.8 | (32.1) | (30.1) % | – % | (14.1) % | (0.3) % | (15.7) % | ||||
| Revenues | $587.3 | $621.4 | $(34.1) | (5.5) % | – % | (3.8) % | (0.2) % | (1.5) % |
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: 0001764046-26-000019. The complete FY 2025 MD&A is published at /company/CLVT/mda/fy2025/.
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
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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.]
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.
Macro cross-references for CLVT
- PAYEMS - All Employees, Total Nonfarm
- CES0500000003 - Average Hourly Earnings of All Employees, Total Private
- DGS10 - Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity