What was the mix of trial vs. full-paying members added during the TSA shutdown, and how will the company retain this cohort?

Jennifer Hsu stated that sustained growth was expected regardless of the shutdown. She expressed confidence in converting trial members acquired during the shutdown into paying customers, as these members experienced CLEAR's value proposition when it was most evident, leading to strong long-term retention prospects. “the members that we acquired during the shutdown, I think, signed up at a period of time when our value proposition was particularly evident. And so I think we feel very good about our ability to retain those members for the long term.”

What is the broader health of the travel environment given oil prices and geopolitical issues, and how has demand looked since TSA wait times normalized after the shutdown?

Caryn Seidman-Becker noted strong top-line growth from other travel companies and steady airport traffic, emphasizing CLEAR's focus on internal drivers like eGate rollout, Concierge expansion, and app enhancements. Jennifer Hsu added that Q2 guidance reflects sustained growth, and strong NPS scores indicate underlying demand not solely dependent on the shutdown. “I think the most important thing for us is the value proposition. So I would say it's a backdrop of fine, strong travel growth.”

Does the strong market signal lead to a reordering of priorities or implications for emphasis on growth relative to incremental margins over the medium term?

Caryn Seidman-Becker confirmed that the company is accelerating investments in product, engineering, brand, marketing, and security. She clarified that these investments are already factored into the strong free cash flow projections, with the goal of establishing CLEAR as the trusted secure identity platform through increased product velocity and better releases. “the free cash flow that you saw and that we projected for the year is inclusive of accelerating investments in product, engineering, brand, marketing and security.”

YOU

Clear Secure (YOU) Q1 FY26 earnings call: guidance and Q&A

Earnings call· Mar 2026 (Q1 FY26)· Information Technology· May 6, 2026

Source: earnings call transcript

Executive summary

Clear Secure, Inc. Q1 FY26 — Record Bookings and Free Cash Flow Driven by Strong Member Growth

Clear Secure delivered record bookings and free cash flow, driven by robust member growth across its CLEAR Travel and CLEAR1 platforms. The company is accelerating investments in product, marketing, and security to capitalize on the increasing demand for trusted identity solutions in a structurally unstable environment, while maintaining strong financial performance and expanding margins. Management highlighted the critical role of identity as foundational infrastructure amidst strained travel systems and escalating AI-driven fraud.

Highlights

Total bookings increased 40.8% year-over-year to $291.7 million.
Free cash flow doubled year-over-year to $185.5 million.
Adjusted EBITDA margin expanded by 7.2 percentage points year-over-year to 31.9%.
Total CLEAR members grew 31.3% year-over-year to 41 million.
CLEAR1 bookings were approximately 5x those of Q1 last year.

Concerns

Structural instability and strain on the national travel system
AI-driven fraud escalating at an exponential rate

Guidance & targets

Category	Target	Timeline	Confidence
Q2 Revenue	$268 million to $271 million high materiality	Q2 · FY26	High
Q2 Total Bookings	$280 million to $285 million high materiality	Q2 · FY26	High
Full-year 2026 Free Cash Flow	at least $465 million high materiality	FY26	High
Adjusted EBITDA margin	expansion medium materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CLEAR Travel The CLEAR Travel business experienced strong momentum, driven by the expansion of eGates and the Concierge service. These initiatives are enhancing the member experience, leading to improved acquisition and retention. The DHS shutdown further highlighted the value proposition of premium products like Concierge. Active CLEAR+ members: 8.2 millionActive CLEAR+ members growth YoY: 13%eGates coverage: over 50%eGates coverage target by Q2 end: over 80%Average wait time for CLEAR Plus members: under 1 minuteNPS: 3-year highConcierge service airports: 32	—	—	—	—
CLEAR1 CLEAR1, the enterprise identity business, achieved significant growth with bookings approximately 5x higher than Q1 last year. This growth is fueled by a record number of large multiyear enterprise contracts and a strategic focus on verticals including healthcare, workforce, consumer, and government. The FedRAMP milestone is expected to unlock further opportunities in the GovTech sector. Total CLEAR members: 41 millionTotal CLEAR members growth YoY: 31.3%CLEAR1 bookings growth YoY: approximately 5x	—	—	—	—

YOU operating KPIs by quarter

YOU operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	This call Mar 2026 Q1 FY26	Jun 2026 Q2 FY26	Change vs prior quarter
Active CLEAR+ Members	7.6M Q4 active CLEAR+ Members grew to 7.6 million, up 6% year-over-year and reflect a onetime cleanup of lapsed accounts as part of a billing system transformation project undertaken during 2025. Source: earnings call transcript	8.2M Total bookings increased 40.8% to $291.7 million and active CLEAR+ members grew to 8.2 million, up 13% year-over-year. Source: earnings call transcript	—	+7.9%
Total CLEAR Members	—	41M We ended this quarter with 41 million total CLEAR members, driving bookings of $292 million and free cash flow of $185 million. Source: earnings call transcript	43.5M The growing demand for our B2B offerings drove 30% year-over-year growth in total CLEAR members, reaching 43.5 million in the second quarter. Source: earnings call transcript	+6.1%
Ambassadors	3,500 And I think I'd just add that one of the benefits that we have from the member experience, improvements that we've had over the last year and implementing the eGates is that our ambassadors, right, 3,500 strong across our 60 airports can increasingly focus on hospitality and the customer experience in the airports. Source: earnings call transcript	3,500+ We stood with our partners supporting them and their families and over 3,500 CLEAR ambassadors worked hand in glove with the TSA to keep travelers moving pre and post security. Source: earnings call transcript	—	—
Airports Concierge	—	32 We are now offering Concierge service in 32 airports and remain in the early innings of scaling Concierge across our network, driving member awareness and adoption. Source: earnings call transcript	39 We expanded our network with Indianapolis and Bentonville representing the two newest CLEAR+ airports, and Concierge expanding to seven additional locations now available in 39 airports. Source: earnings call transcript	+21.9%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Deals & partnerships

CMS (Centers for Medicare & Medicaid Services) Mission to eliminate systemic fraud in Medicare.

CLEAR's work with CMS aims to eliminate systemic fraud, as highlighted in a December GAO report, where 125 insurance policies were connected to a single identity. This supports the White House's executive order on fighting fraud, waste, and abuse.

Risks & headwinds

Structural instability and strain on the national travel system Ongoing

March underscored the immense strain on our national travel system.

Mitigation:CLEAR's role in driving efficiency and throughput through eGates and Concierge, leveraging public-private partnerships with TSA to stabilize travel.

AI-driven fraud escalating at an exponential rate Ongoing

AI-driven fraud is escalating at an exponential rate.

Mitigation:CLEAR1 is establishing total identity integrity, replacing vulnerable legacy systems, and supporting the White House executive order on fighting fraud, waste, and abuse.

What to watch in Q2 FY26

eGates network coverage

by the end of the second quarter

Current over 50%

Target exceed 80%

Why it matters

Expansion of eGates is a key driver for improved customer experience, member acquisition, and retention in the CLEAR Travel segment.

eGates now cover over 50% of our network, and we plan to exceed 80% by the end of the second quarter.

Find out whether YOU delivers this. Inve re-checks your case every morning.

Q&A highlights

Why is CLEAR1 seeing such impressive momentum now, and what differentiates its platform in winning enterprise and government business?

Caryn Seidman-Becker explained that the increasing global issues with cyber and AI-driven fraud have made identity a critical problem. CLEAR's trusted brand, network of 41 million members, and 'total identity integrity' (beyond traditional credentials) differentiate it, especially for complex, high-stakes environments like government and enterprise, where it provides solutions to urgent problems.

“identity has become ever more important in the digital world, and there's now problems looking for our solutions.”

asked by Joshua Reilly · answered by Caryn Seidman-Becker

2 min read 6 chapters

Detailed narrative

Identity as Foundational Infrastructure

Management emphasized that identity is critical infrastructure in a world of strained travel systems and escalating AI-driven fraud. CLEAR positions itself as the trusted secure identity platform, asserting that traditional credentials are obsolete vulnerabilities. The company's multilayered biometric and government-ID approach is presented as essential for ensuring identity integrity in physical, digital, and agentic experiences.

CLEAR Travel Momentum and eGate Expansion

The CLEAR Travel business demonstrated strong momentum, with eGates now covering over 50% of the network and a target to exceed 80% by the end of Q2. This expansion is driving significantly higher NPS scores and reducing average wait times for CLEAR Plus members to under 1 minute. These improvements are contributing to robust member acquisition and enhanced retention rates.

Concierge Service Scaling

Demand for CLEAR Concierge increased dramatically during the quarter, highlighting its value proposition, particularly during the DHS shutdown. This high-margin, high-touch service is currently offered in 32 airports and is aggressively scaling nationwide. Plans include expanding to major cities such as New York, Los Angeles, and San Francisco this year, aiming to drive greater member awareness and adoption.

CLEAR1 Growth and FedRAMP Milestone

CLEAR1, the enterprise identity business, achieved significant growth with bookings approximately 5x those of Q1 last year. This was driven by a record number of large multiyear enterprise contracts and a focused vertical strategy encompassing healthcare, workforce, consumer, and government. The recent FedRAMP milestone is a crucial step towards unlocking the GovTech vertical, supporting initiatives to combat fraud in areas like Medicare.

Accelerated Investments and Financial Discipline

Despite accelerating investments in product, engineering, brand, marketing, and security, the company projects continued adjusted EBITDA margin expansion and increased free cash flow guidance for FY26. This reflects strong operating leverage, with close to 70% adjusted EBITDA flow-through, and a disciplined approach to growth, ensuring financial strength while pursuing strategic initiatives.

Strategic Flexibility with Strong Balance Sheet

Clear Secure ended the quarter with a robust balance sheet, holding $800 million in cash and marketable securities. This strong financial position provides strategic flexibility, enabling the company to capitalize on macro tailwinds and operating strength. Management indicated this optionality allows for continued investment in various ways to support long-term growth.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.