Skip to content
    YOU
    Earnings call· Mar 2026(Q1 FY26)

    Clear Secure Q1 FY26 earnings call YOU

    May 6, 2026 Source

    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

    5

    • 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

    2

    • Structural instability and strain on the national travel system

    • AI-driven fraud escalating at an exponential rate

    Guidance & targets

    4
    CategoryTargetConfidence
    Q2 Revenue
    $268 million to $271 million
    high materiality
    High
    Q2 Total Bookings
    $280 million to $285 million
    high materiality
    High
    Full-year 2026 Free Cash Flow
    at least $465 million
    high materiality
    High
    Adjusted EBITDA margin
    expansion
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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
    		————

    Operational metrics

    8
    Adjusted EBITDA
    $80.6 million
    Q1 FY26

    Represents 31.9% adjusted EBITDA margin and 7.2 percentage points of margin expansion year-over-year.

    Cash and investments balance
    $800 million
    Q1 FY26

    Ended the quarter with $800 million of cash and marketable securities on the balance sheet.

    Operating income
    $62 million
    Q1 FY26

    Generated $62 million of operating income.

    Mobile app adoption
    doubled
    Q1 FY26

    Mobile app adoption has doubled for travelers.

    Mobile app ranking
    #4
    recent

    The reimagined app recently reached #4 in the Travel App Store.

    Signed deals
    almost 2xYoY
    Q1 FY26

    Achieved significant year-over-year growth driven by almost 2x the amount of signed deals.

    Adjusted EBITDA flow-through
    close to 70%
    Q1 FY26

    Driving meaningful operating leverage as we scale with close to 70% adjusted EBITDA flow-through.

    Free cash flow conversion
    highly attractive levels
    Q1 FY26

    Highly attractive levels of free cash flow conversion.

    Industry KPIs

    4
    MetricValueDetails
    Revenue growth$253 millionUSD
    Bookings billings$291.7 millionUSD
    Customer account count41 millionmembers
    Operating FCF margin rule of 4031.9%%

    Deals & partnerships

    1
    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

    2
    Structural instability and strain on the national travel systemOngoing

    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 rateOngoing

    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

    5

    eGates network coverage

    by the end of the second quarter
    Currentover 50%
    Targetexceed 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.

    Q&A highlights

    5

    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 read6 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    06

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.