1. CLVT reported Q2 2025 revenues of $621.4 million, a 4.4% decline. 2. Organic recurring revenue increased by 0.8%, with ACV up 1.3%. 3. Net loss of $72 million shows improvement from last year’s $304.3 million. 4. Share repurchase included 23.2 million ordinary shares at $4.29 each. 5. The 2025 outlook remains reaffirmed with stable expectations for ACV and EBITDA.
Despite a decline in revenue, improvement in net loss indicates financial stabilization. Historically, similar situations led to investor caution rather than optimism.
The report highlights crucial revenue shifts and loss recovery, significant for investor decisions. Negative revenue growth coupled with net loss improvement suggests cautious investor sentiment, impacting strategic planning.
Immediate reactions may reflect current earnings before potential long-term growth can be recognized. Previous earnings reports often lead to short-term stock fluctuations.
Clarivate Plc (NYSE: CLVT) (the "Company" or "Clarivate"), a leading global provider of transformative intelligence, today reported results for the second quarter ended June 30, 2025.
Total revenues for the second quarter of 2025 were $621.4 million, compared to total revenues of $650.3 million for the second quarter of 2024, due to inorganic divestitures and disposals. Organic revenues for the second quarter of 2025 increased 0.5%, compared to the second quarter of 2024, due to a 0.8% increase in organic recurring revenues, partially offset by lower organic transactional revenues. Organic ACV grew 1.3% compared to June 30, 2024, and the mix of organic recurring revenue to total revenue for the first half of this year is now at 88%, an improvement of 800 bps compared to 80% for the prior year ended December 31, 2024.
Net loss for the second quarter of 2025 was $72.0 million, or $0.11 per diluted share, compared to a net loss of $304.3 million, or $0.46 per diluted share, for the second quarter of 2024. Adjusted net income for the second quarter of 2025 was $123.3 million, or $0.18 per diluted share, compared to $142.2 million, or $0.20 per diluted share, for the second quarter of 2024. Adjusted EBITDA for the second quarter of 2025 was $261.6 million, compared to Adjusted EBITDA of $274.4 million for the second quarter of 2024.
Total revenues for the first half of 2025 were $1,215.1 million, compared to total revenues of $1,271.5 million for the first half of 2024, due to inorganic divestitures and disposals. Organic revenues for the first half of 2025 increased 0.4%, compared to the first half of 2024, due to a 0.7% increase in organic recurring revenues, partially offset by lower organic transactional revenues.
Net loss for the first half of 2025 was $175.9 million, or $0.26 per diluted share, compared to a net loss of $379.3 million, or $0.61 per diluted share, for the first half of 2024. Adjusted net income for the first half of 2025 was $219.1 million, or $0.32 per diluted share, compared to $245.7 million, or $0.34 per diluted share, for the first half of 2024. Adjusted EBITDA for the first half of 2025 was $494.8 million, compared to Adjusted EBITDA of $510.7 million for the first half of 2024.
Clarivate generated $287.5 million of operating cash flow and $160.6 million of free cash flow in the first half of 2025 and used approximately $100 million to repurchase 23.2 million ordinary shares at an average price of $4.29 per share.
"We reported solid second quarter performance and delivered growth in our key metrics. We have good momentum underway building off a solid first half of the year," said Matti Shem Tov, Chief Executive Officer. "There are early indications that our Value Creation Plan is driving improved performance and I'm pleased by the way in which the team is coming together to move the business forward."
"Looking ahead, we believe that the enhancements we made to the sales operating model to improve execution, customer engagement, and retention, as well as AI tailwinds benefiting our IP business, will support Clarivate's profitability and value creation."
(In millions, except percentages and per share data), (unaudited)
| Three Months Ended June 30 | Six Months Ended June 30 | |||||
|---|---|---|---|---|---|---|
| 2025 | 2024 | Change | 2025 | 2024 | Change | |
| Revenues | $621.4 | $650.3 | $(28.9) (4.4)% | $1,215.1 | $1,271.5 | $(56.4) (4.4)% |
| Net income (loss) | $(72.0) | $(304.3) | $232.3 (76.3)% | $(175.9) | $(379.3) | $203.4 (53.6)% |
| Adjusted net income(1) | $123.3 | $142.2 | $(18.9) (13.3)% | $219.1 | $245.7 | $(26.6) (10.8)% |
| Adjusted EBITDA(1) | $261.6 | $274.4 | $(12.8) (4.7)% | $494.8 | $510.7 | $(15.9) (3.1)% |
| Diluted EPS | $(0.11) | $(0.46) | $0.35 (76.1)% | $(0.26) | $(0.61) | $0.35 (57.4)% |
| Adjusted diluted EPS(1) | $0.18 | $0.20 | $(0.02) (10.0)% | $0.32 | $0.34 | $(0.02) (5.9)% |
| Net cash provided by operating activities | $116.3 | $126.2 | $(9.9) (7.8)% | $287.5 | $302.4 | $(14.9) (4.9)% |
| Free cash flow(1) | $50.3 | $60.3 | $(10.0) (16.6)% | $160.6 | $172.1 | $(11.5) (6.7)% |
Subscription revenues of $405.7 million were essentially flat. Organic subscription revenues increased 1.7%, primarily due to new sales and price increases.
Re-occurring revenues increased $0.3 million, or 0.3%, to $108.9 million. Organic re-occurring revenues decreased 2.3%, primarily due to timing of IP patent renewal volumes, as organic re-occurring revenues increased 1.4% for the first half of 2025.
Recurring revenues, which consist of subscription and re-occurring revenues, increased 0.8% organically.
Transactional revenues decreased $29.3 million, or 21.5%, to $106.8 million, primarily due to product group wind-downs within A&G. Organic transactional revenues decreased 1.4%.
As of June 30, 2025, cash and cash equivalents of $362.6 million increased $67.4 million compared to December 31, 2024. Total debt outstanding was $4,570.5 million as of June 30, 2025, largely unchanged compared to December 31, 2024.
Net cash provided by operating activities for the first half of 2025 was $287.5 million compared to $302.4 million in the prior year period. Free cash flow for the first half of 2025 was $160.6 million compared to $172.1 million in the prior year period.
"During the first half of 2025, we achieved enhanced performance, primarily driven by growth in organic ACV within the Academia & Government (A&G) and Life Sciences & Healthcare segments and in organic subscription revenue within A&G," said Jonathan Collins, Executive Vice President and Chief Financial Officer. "With revenue for the first half meeting our projections and continued strong cost management, we are reaffirming our outlook for the full year 2025."
Clarivate will host a conference call and webcast today to review the results for the second quarter at 9:00 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.
The live webcast of the earnings call will be accessible through the investor relations section of the Company's website. To join the webcast please visit here.
Interested parties may access the live audio broadcast. U.S. participants may call 800-715-9871; international participants may call +1 646-307-1963 (long-distance charges will apply). The conference ID number is 7007526.
A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call and will remain available for one year.
Clarivate™ is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.