How would a potential government shutdown impact CLEAR's service, and what was the impact of past shutdowns?

Caryn stated that CLEAR remains open during disruptions like government shutdowns, emphasizing the value of its public-private partnership. She noted that such events, along with weather disruptions, highlight the renewed appreciation for CLEAR's consistency and reliability, especially with improved eGates and staffing capabilities. “I think the power of a public-private partnership, and we were very clear in our communications this weekend, which is CLEAR is open. And we're here to serve our airport partners, our travelers and certainly, our airline and government partners.”

What are the drivers behind the significant acceleration in free cash flow guidance for 2026, and is top-line acceleration expected?

Jen attributed top-line acceleration to improvements in member experience, leading to higher retention, better member acquisition, and stronger NPS for CLEAR Travel. She also cited CLEAR1 reaching 'escape velocity' with record bookings and new partners. For free cash flow, she highlighted the leverage of their subscription-based model, strong recurring revenue, and reinforcing flywheel effect from improved retention in both B2C and B2B segments. “I think importantly, the bigger picture is that we are operating subscription-based businesses with strong recurring revenue in both our B2C CLEAR Travel business as well as our B2B CLEAR1 enterprise business.”

What are the new terms of the American Express partnership, and what are the expansion plans for the B2B CLEAR1 business, particularly in healthcare, and how do margins compare?

Michael confirmed a multi-year renewal with American Express, continuing the CLEAR+ embedded benefit, but did not disclose specific terms. Caryn discussed CLEAR1's healthcare expansion, citing Mount Sinai as an exciting partner and CMS as an anchor contract driving pipeline. She emphasized CLEAR's unique suitability due to its experience in regulated industries, focus on privacy, and trusted consumer brand. Margins were not explicitly compared between B2C and B2B. “Yes, the agreement with American Express extends into a multiyear agreement. We're not disclosing specific terms, but we are really excited to continue to provide our American Express card members with the CLEAR Plus embedded benefit which we really think aligns, right, the American Express experience with our travel experience.”

YOU

Clear Secure (YOU) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Information Technology· Feb 25, 2026

Source: earnings call transcript

Executive summary

Clear Secure, Inc. Q4 FY25 — Record Bookings and Profitability Drive Strong Free Cash Flow

Clear Secure delivered a strong quarter, marked by accelerating bookings and expanding profitability, driven by improvements in member experience and the growing momentum of its CLEAR1 enterprise business. The company is strategically positioned at the intersection of security and the experience economy, leveraging its trusted identity platform to capitalize on opportunities in both B2C travel and B2B sectors. Management is focused on continued investment in innovation and network expansion while maintaining disciplined capital returns.

Highlights

Q4 total bookings accelerated to $287.1 million, growing over 25% year-over-year, the highest level since Q4 2023.
Adjusted EBITDA margins reached 33.2% in Q4, an increase of 870 basis points from Q4 2024.
Full year 2025 free cash flow was $343.1 million, significantly ahead of guidance.
Total CLEAR Members grew to 38 million, up 31.5% year-over-year.
The Board of Directors approved a 20% increase to the regular quarterly dividend, from $0.125 to $0.15 per share.

Concerns

Identity security threats
Travel disruptions

Guidance & targets

Category	Target	Timeline	Confidence
Full year 2026 Free Cash Flow	at least $440 million high materiality	FY26	High
Full year 2026 GAAP P&L Taxes	18% to 20% medium materiality	FY26	High
Q1 2026 Revenue	$242 million to $245 million high materiality	Q1 · FY26	High
Q1 2026 Total Bookings	$248 million to $253 million high materiality	Q1 · FY26	High
Cash and Marketable Securities Balance	over $1 billion medium materiality	End of FY26	High

Segment performance

Segment	Revenue	YoY	QoQ	Margin
B2C CLEAR Travel Focus on Home to Gate experience, mobile app, Concierge, and eGate rollout drives higher NPS, strengthens brand, and increases long-term retention. Network expansion opportunities domestically and internationally. Active CLEAR+ Members: 7.6 million (up 6% YoY)Total CLEAR Members: 38 million (up 31.5% YoY)	—	—	—	—
B2B CLEAR1 Enterprise Delivered a record-breaking quarter, validating multi-layered identity approach. CMS integration for Medicare fraud prevention and pull from Fortune 100 companies for workforce security are key drivers. Building ecosystems and leveraging existing networks. Bookings: largest quarter everEnterprise customers signed: largest number ever in Q4	—	more than doubling year-over-year (bookings)	—	—

YOU operating KPIs by quarter

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

Orderbook & backlog

Total Bookings $287.1 million Q4 FY25

up 25.4% YoY

Highest level since Q4 2023.

Total Bookings $977.2 million FY25

up 17.2% YoY

CLEAR1 Bookings largest quarter Q4 FY25

more than doubling year-over-year

Product announcements

Product	Type	Timeline
Mobile App	update	—
CLEAR Concierge program	expansion	—
eGate rollout	expansion	—

Deals & partnerships

American Express Multi-year renewal of partnership for CLEAR+ embedded benefit on Platinum cards. multiyear

The partnership offers CLEAR+ as an embedded benefit on American Express consumer, corporate, and small business Platinum cards and select other American Express card products. The renewed agreement reflects mutual value.

CMS (Centers for Medicare & Medicaid Services) Integration of CLEAR1 to modernize account creation and fraud prevention for Medicare beneficiaries. multiyear

CMS, the largest healthcare payer in the U.S., is integrating CLEAR1 as an identity interoperability layer. This is a multi-year anchor healthcare contract that connects to a broader initiative to modernize healthcare identity.

Mount Sinai Affiliation to expand CLEAR's healthcare network.

Mount Sinai is an exciting partner, adding to CLEAR's ecosystem in New York. This partnership is facilitated by CLEAR's existing embeddedness in healthcare identity tools like Epic and its role with CMS.

Risks & headwinds

Identity security threats Ongoing

Identity is under constant siege; AI-driven fraud and Deepfakes.

Mitigation:CLEAR is positioned as the trusted standard and operating system for identity, providing total identity integrity.

Travel disruptions Q4 FY25 (past) and potentially ongoing

Government shutdown disruption, winter weather, and other travel disruptions.

Mitigation:CLEAR's public-private partnership model and enhanced member experience (eGates, Concierge) provide consistency and reliability, making it more appreciated during unstable periods.

What to watch in Q1 FY26

Full year 2026 Free Cash Flow

FY26

Current $343.1 million (FY25)

Target at least $440 million

Why it matters

Free cash flow growth is a key indicator of the company's financial health and ability to fund investments and capital returns.

We expect 2026 full year free cash flow of at least $440 million, which would represent an increase of approximately $100 million and at least 28% year-over-year growth.

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Q&A highlights

How will CLEAR maintain momentum on member and subscription growth over the next 12-18 months, balancing investments with go-to-market strategy?

Caryn highlighted the 'Home to Gate' experience for B2C Travel, focusing on innovation (app, eGates, Concierge) to drive retention, gross adds, and conversion. For CLEAR1, she emphasized leveraging AI opportunities, expanding contracts in workforce, healthcare, and GovTech, and growing net revenue retention. She noted these investments are already yielding results in top-line growth and free cash flow.

“When you think about our B2C CLEAR Travel business, building this Home to Gate experience, right? People don't just want to get through the security lane, which we're certainly doing that better than ever with higher NPS scores than we've had because of the eGate, but driving a predictable, consistent nationwide network and member-centric experience drives retention and you're seeing that come through the fourth quarter numbers, that's a financial driver to 2026.”

asked by Eric Sheridan · answered by Caryn Seidman-Becker

2 min read 5 chapters

Detailed narrative

Home to Gate Experience and Member Engagement

Clear Secure is focused on enhancing the 'Home to Gate' experience for travelers, aiming for a frictionless journey from their front door to the airport gate. This involves innovations like a relaunched mobile app that connects traffic, security lanes, and gate navigation, as well as scaling the CLEAR Concierge program to nearly 30 airports.

These efforts, alongside the eGate rollout, are designed to improve member experience, drive higher NPS, strengthen the brand, and increase long-term retention, contributing to financial performance.

CLEAR1 Enterprise Business Expansion

The CLEAR1 enterprise business achieved a record-breaking quarter, demonstrating the success of its multi-layered identity approach. Key wins include the integration with CMS for Medicare fraud prevention, which serves as an anchor healthcare contract and drives pipeline growth. The company is also seeing increased adoption from Fortune 100 companies across various sectors, including telecom and banking, to secure workforce life cycles and critical infrastructure, leveraging CLEAR1's seamless integration capabilities.

Strategic Partnerships and Public-Private Collaboration

Clear Secure announced a multi-year renewal of its partnership with American Express, continuing to offer CLEAR+ as an embedded benefit for Platinum cardholders. This renewal underscores the value of the partnership established over the past six years. Additionally, the company continues to foster public-private partnerships with entities like the TSA, aiming to modernize travel experiences at no cost to taxpayers, combining private sector speed with public sector scale.

Identity as a Critical Inflection Point

Management emphasized that identity is at a critical inflection point, facing constant threats and increasing complexity due to AI-driven fraud and 'agenetic identity' evolution. Clear Secure positions itself as the trusted standard and operating system for identity, connecting and securing physical and digital worlds.

This strategic focus creates significant opportunities in both its B2C Travel and B2B CLEAR1 segments, addressing a growing market need for secure identity solutions.

Financial Discipline and Capital Returns

Clear Secure demonstrated strong financial discipline, achieving significant free cash flow generation and margin expansion in FY25. The company returned over $240 million of capital to shareholders, including repurchasing 5.3 million shares for $126.3 million. The Board approved a 20% increase in the quarterly dividend and authorized a $125 million increase to the share repurchase program, reflecting a commitment to disciplined capital allocation while investing for future growth.

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