How does Clear maintain its first-mover advantage and effectively go to market with CLEAR1, given growing corporate budgets for identity platforms?

Market leadership is driven by continuous innovation, as demonstrated by the new Vertex, Apex, and Helix identity framework which raises industry standards. CLEAR1 leverages its embedded network, trusted brand, and partner-centric approach across workforce, GovTech (fighting fraud in federal/state programs), and healthcare verticals. New customer signings and pipeline growth are strong, indicating continued momentum. “The best form of competition is innovation, and we are innovating the living daylights out of identity and security.”

What should be considered regarding the accrual structure for the new Amex agreement, especially with the Q3 payout, and any changes to statement credits or repayments?

The $315 million accrued partnership liability will be paid out in Q3, resulting in negative Q3 free cash flow, but there are no other implications for the current fiscal year. Further details will be shared at an appropriate time. “You saw in our filing, we have about a $315 million accrued partnership liability that will get paid out next quarter in Q3. There are no other implications to this year from a free cash flow perspective, and we can share more at the appropriate time.”

How does Clear view the future trajectory of its adjusted EBITDA margin after exceeding the 35% target, and what are the growth opportunities beyond travel?

While no new specific target was introduced, management sees meaningful upside to current margin levels due to top-line growth outpacing costs and leverage from eGates. Beyond travel, opportunities exist in workforce security, healthcare data interoperability and fraud prevention, and GovTech. Cross-sell and upsell from B2B to B2C are also noted. “We are not introducing a specific new target today, but we do see, I would say, meaningful upside opportunity to our margin levels relative to where we are today.”

YOU

Clear Secure (YOU) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 5, 2026

Source: earnings call transcript

Executive summary

Clear Secure, Inc. Q2 FY26 — Record Free Cash Flow and Margin Expansion

Clear Secure delivered a strong quarter, marked by record free cash flow and significant margin expansion, driven by robust demand across its CLEAR Travel and CLEAR1 platforms. The company continues to invest in its secure identity infrastructure, expanding its network and product offerings while maintaining disciplined operational execution. Management is focused on the Home to Gate strategy for travel and leveraging its identity framework to combat fraud in the GovTech and healthcare verticals, positioning for continued growth and ARPU expansion.

Highlights

Total bookings grew 33% year-over-year to $296 million.
Free cash flow increased 60% year-over-year to a record $189 million.
Adjusted EBITDA margin reached 36.4%, surpassing the 35% IPO target and expanding 900 basis points year-over-year.
Revenue grew 26.6% year-over-year to $277.8 million.
Total CLEAR members grew 30% year-over-year to 43.5 million, driven by CLEAR1 momentum.

Concerns

Q3 free cash flow is expected to be negative due to the settlement of an accrued partnership liability with a credit card partner.

Guidance & targets

Category	Target	Timeline	Confidence
Q3 Revenue	$284 million-$287 million high materiality	Q3 · FY26	High
Q3 Total Bookings	$311 million-$316 million high materiality	Q3 · FY26	High
Full Year Free Cash Flow	at least $480 million high materiality	FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
CLEAR Travel The CLEAR Travel network has expanded significantly since the IPO, with new airports added and Concierge services growing. eGates are driving efficiency and member experience. Mobile app engagement is strong, supporting the Home to Gate strategy. Network expansion: from 38 to 62 airports (since IPO)Active CLEAR+ members: 8.3 millionActive CLEAR+ member growth: 15.2% YoYConcierge locations: 39 airports (up 7 locations)eGates coverage: >70% of networkMobile app monthly users: 1 million (average)	—	—	—	—
CLEAR1 CLEAR1 is experiencing strong momentum across its B2B offerings, driving significant growth in total CLEAR members. The company is seeing increased demand, larger average deal sizes, and expanding relationships with existing partners, particularly in government, healthcare, and workforce verticals. Total CLEAR members: 43.5 millionTotal CLEAR members growth: 30% YoYNew customer signings: >50% sequential increase Q1 to Q2Pipeline growth: >50% quarter-on-quarter	—	—	—	—

YOU operating KPIs by quarter

YOU operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call 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.

Orderbook & backlog

Total bookings $295.9 million Q2 FY26 end

32.8% YoY increase

Product announcements

Product	Type	Timeline
Vertex	launch	—
Apex	launch	—
Helix	launch	—

Deals & partnerships

Newark Airport Concessions partnership

Launched first concessions partnership at Newark, allowing members to order in advance.

Starbucks Concessions pilot

New pilot beginning at LaGuardia, allowing members to order coffee in advance for pickup.

Expedia Partnership to drive awareness

Partnership to drive awareness for Concierge and Home to Gate strategy.

Credit card partner Accrued partnership liability $315 million

Accrued partnership liability with a credit card partner to be settled in Q3.

Risks & headwinds

Accrued partnership liability payout Q3 FY26

$315 million

Mitigation:Reflected in full-year free cash flow guidance; liquidity position provides strategic flexibility.

What to watch in Q3 FY26

Q3 Free Cash Flow

Q3 FY26

Current Negative expected

Target Impact of $315M payout

Why it matters

The settlement of a significant partnership liability is expected to result in negative FCF for the quarter, impacting overall cash generation.

As a reminder, consistent with prior years, we will settle the accrued partnership liability with our credit card partner in the third quarter, resulting in negative Q3 free cash flow.

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

Q&A highlights

How is the Home to Gate strategy evolving, and what are the long-term prospects for Concierge membership adoption and monetization?

Home to Gate aims to simplify the entire travel day, from mobility to concessions, using the mobile app as the central 'glue'. Concierge is in early stages, with significant growth opportunities from expanding to key cities like New York and LA, increased marketing, corporate channels, and partnerships like Expedia and Starbucks. Network completeness is key before significant marketing spend.

“The Home to Gate experience, which really starts with mobile and the ability to calendar sync, which gives us much more visibility into a traveler's day than just waiting for them to show up at the CLEAR lane, allows us to unlock all of these experiences and tie them together in a seamless way for members.”

asked by Eric Sheridan · answered by Caryn Seidman-Becker

2 min read 5 chapters

Detailed narrative

Home to Gate Strategy and Mobile App Engagement

Clear is executing on its 'Home to Gate' strategy, aiming to simplify the entire travel journey beyond just security lanes. The mobile app is central to this, unifying experiences like calendar sync, personalized travel guidance, airport wayfinding, and live updates.

The app is averaging 1 million monthly users, and the company sees significant opportunities to expand services like concessions partnerships, with a pilot launched at Newark and another with Starbucks at LaGuardia. eGates now cover over 70% of the network, providing seamless verification in under five seconds and driving retention and new member acquisition.

CLEAR1 Momentum and Identity Framework

CLEAR1, the B2B offering, is experiencing strong momentum, driving 30% year-over-year growth in total CLEAR members to 43.5 million. The company launched a new identity framework with three proprietary products: Vertex, Apex, and Helix, designed to elevate industry standards for identity verification against modern threats like deep fakes and synthetic identities.

This framework supports growth in GovTech, healthcare, and workforce verticals, with new partner signings increasing over 50% sequentially and pipeline growing over 50% quarter-on-quarter.

Financial Performance and Margin Expansion

The company reported strong financial results, with revenue growing 26.6% to $277.8 million and total bookings increasing 32.8% to $295.9 million. Adjusted EBITDA margin reached 36.4%, exceeding the 35% target set at IPO, reflecting 900 basis points of year-over-year expansion.

This was supported by approximately 70% adjusted EBITDA flow-through and labor efficiencies from eGates, which reduced direct salaries and benefits to 17.3% of revenue, a 450 basis point improvement year-over-year. Free cash flow hit a record $189 million, up 60.3% year-over-year.

Pricing Strategy and ARPU Growth

Clear implemented a standard membership price increase of $10, from $209 to $219, effective July 1st, while family member pricing remained unchanged at $125. Early retention rates have remained healthy following these price adjustments, indicating pricing power. Management believes there are additional pricing opportunities, including measured annual increases, adjustments to discounted tiers, and new pricing structures tied to product and service innovation like Concierge, which will contribute to long-term ARPU growth.

Network Expansion and International Opportunities

The CLEAR Travel network expanded to 62 airports since IPO, with Indianapolis and Bentonville being the newest additions. Concierge services are now available in 39 airports, expanding to seven additional locations this quarter. While focused on domestic network growth, the company is also exploring international expansion, particularly in North America (Canada and Mexico), Western Europe, and South America.

An encouraging start to international expansion is seen through organic growth from international members from 42 visa waiver countries using the U.S. network.

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