Information
— Value Creation Plan accelerated organic ACV and drove higher cash flow in 2025 — — Financial outlo...
Original sourceAI Summary
Clarivate plc projects a strong 2026, with nearly 2% organic ACV growth and positive cash flow improvements. The company is strategically focusing on divesting its Life Sciences & Healthcare segment, targeting a leaner and more profitable structure. This proactive approach is expected to enhance financial resilience and shareholder returns.
Sentiment Rationale
Clarivate’s proactive divestment strategy and improving cash flow are likely to enhance investor sentiment, similar to previous instances in tech firms post-divestitures.
Trading Thesis
Long CLVT ahead of expected cash flow improvements and strategic divestitures over the next 12 months.
Market-Moving
- Proceeds from potential divesture of Life Sciences & Healthcare could strengthen balance sheet.
- Expected increase in adjusted EBITDA margins by 200 basis points can boost investor confidence.
- Rising free cash flow may facilitate share buybacks and reinvestments in core businesses.
Key Facts
- Clarivate achieved nearly 2% organic ACV growth in 2025.
- Revenue outlook for 2026 shows continued momentum despite divestitures.
- Company is in talks to sell its Life Sciences & Healthcare business.
- Adjusted EBITDA projected to grow, with margins expanding by 200 basis points.
- Free cash flow expected to rise by 10%, nearing $400 million.
Companies Mentioned
- Morgan Stanley (MS): Acting as financial advisor for Clarivate's divestiture.
Corporate Developments
This article falls under 'Corporate Developments' as it highlights strategic decisions affecting Clarivate's future outlook and financial health.