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    Earnings call· Jun 2026(Q2 FY26)

    Clear Secure Q2 FY26 earnings call YOU

    Aug 5, 2026 Source

    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

    5

    • 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

    1

    • 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

    3
    CategoryTargetConfidence
    Q3 Revenue
    $284 million-$287 million
    high materiality
    High
    Q3 Total Bookings
    $311 million-$316 million
    high materiality
    High
    Full Year Free Cash Flow
    at least $480 million
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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
    		————

    Operational metrics

    17
    Adjusted EBITDA
    $101.1 million
    Q2 FY26
    Adjusted EBITDA margin
    36.4%900 bps YoY expansion
    Q2 FY26

    Exceeded the 35% target set at the time of IPO.

    Adjusted EBITDA flow-through
    approximately 70%
    Q2 FY26
    Operating income
    $83 million
    Q2 FY26
    Net cash provided by operating activities
    $201.2 million
    Q2 FY26
    Cash and marketable securities balance
    $959 million
    Q2 FY26 end
    Cash and marketable securities per share
    over $7
    Q2 FY26 end
    Direct salaries and benefits as % of revenue
    17.3%450 bps YoY improvement
    Q2 FY26

    Driven by eGates efficiency.

    Share repurchases
    $22 million
    Q3 quarter-to-date

    Repurchased quarter to date in Q3.

    Standard membership price increase
    $10from $209 to $219
    effective July 1st

    Represents an average 4% annualized increase since IPO.

    Family member pricing
    $125unchanged
    current
    CLEAR Travel network expansion
    62 airportsfrom 38 airports
    since IPO

    Includes Indianapolis and Bentonville as newest CLEAR+ airports.

    Concierge locations
    39 airportsup 7 locations
    Q2 FY26

    Concierge remains in its early innings with opportunity to grow.

    eGates coverage
    >70%
    Q2 FY26

    Covers more than 70% of the network.

    Mobile app monthly users
    1 million
    average

    Mobile business is growing rapidly.

    CLEAR1 new customer signings
    >50%sequential increase Q1 to Q2
    Q2 FY26

    Average deal size continues to increase.

    CLEAR1 pipeline growth
    >50%quarter-on-quarter
    Q2 FY26

    Sets up nicely for CLEAR1 performance in the back half of the year.

    Industry KPIs

    9
    MetricValueDetails
    Revenue growth$277.8 millionUSD
    Bookings billings$295.9 millionUSD
    Pricing model mix$219USD
    Customer account count43.5 millionmembers
    Large deal new logo metricsSignificant numberpartners
    Gross retention renewal rateHealthy
    Multi product platform attach1 millionusers
    Operating FCF margin rule of 4036.4%%
    Net revenue net dollar retentionHealthy

    Orderbook & backlog

    1
    Total bookings$295.9 millionQ2 FY26 end

    32.8% YoY increase

    Product announcements

    3
    ProductTypeDetails
    Vertexlaunch
    Apexlaunch
    Helixlaunch

    Deals & partnerships

    4
    Newark AirportConcessions partnership

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

    StarbucksConcessions pilot

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

    ExpediaPartnership to drive awareness

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

    Credit card partnerAccrued partnership liability$315 million

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

    Risks & headwinds

    1
    Accrued partnership liability payoutQ3 FY26

    $315 million

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

    What to watch in Q3 FY26

    5

    Q3 Free Cash Flow

    Q3 FY26
    CurrentNegative expected
    TargetImpact 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

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