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    Earnings call· Dec 2025(Q4 FY25)

    Clear Secure Q4 FY25 earnings call YOU

    Feb 25, 2026 Source

    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

    5

    • 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

    2

    • Identity security threats

    • Travel disruptions

    Guidance & targets

    5
    CategoryTargetConfidence
    Full year 2026 Free Cash Flow
    at least $440 million
    high materiality
    High
    Full year 2026 GAAP P&L Taxes
    18% to 20%
    medium materiality
    High
    Q1 2026 Revenue
    $242 million to $245 million
    high materiality
    High
    Q1 2026 Total Bookings
    $248 million to $253 million
    high materiality
    High
    Cash and Marketable Securities Balance
    over $1 billion
    medium materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    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)——

    Operational metrics

    17
    Adjusted EBITDA margin
    33.2%up 870 bps YoY
    Q4 FY25

    Represents record profitability for CLEAR.

    Capital Returned to Shareholders
    $240 million
    FY25

    Returned while investing to position as a leader in secure identity.

    Cost of direct salaries and benefits as % of revenue
    19.3%improved by 390 bps YoY
    Q4 FY25

    Demonstrates efficiency benefits.

    G&A growth vs revenue growth
    less than half the pace of revenue
    FY25

    Illustrates operating leverage.

    G&A as % of revenue improvement
    more than 10 percentage points
    Last 2 years

    Improvement over the last two years.

    Operating Income
    $53.9 million
    Q4 FY25

    Part of record profitability for CLEAR.

    Adjusted EBITDA
    $79.9 million
    Q4 FY25

    Part of record profitability for CLEAR.

    Operating Income
    $186.5 million
    FY25

    Full year operating income.

    Adjusted EBITDA
    $262.2 million
    FY25

    Full year adjusted EBITDA.

    Adjusted EBITDA margin
    29.1%up 4.8 percentage points YoY
    FY25

    Full year adjusted EBITDA margin with over 50% flow-through.

    Capital Expenditures
    $29.3 million
    FY25

    Prudently invested.

    Stock-based compensation as % of revenue
    4.3%decreasing meaningfully since IPO
    FY25

    Managed dilution consistently and rigorously.

    Shares outstanding reduction
    14 million shares9%
    Since IPO in 2021

    Total shares outstanding decreased since IPO.

    Cash and marketable securities balance
    $703 million
    End of FY25

    Robust balance sheet providing meaningful flexibility.

    Quarterly Dividend per share
    $0.15up 20% from $0.125
    Quarterly

    Approved by Board of Directors.

    Shares repurchased
    5.3 million shares
    FY25

    Repurchased in 2025, reducing total shares outstanding to 133.2 million shares.

    Share repurchase authorization
    $250 millionincreased by $125 million
    Total capacity

    Board authorized increase to share repurchase program.

    Industry KPIs

    6
    MetricValueDetails
    Capacity CAPEX$29.3 millionUSD
    Revenue growth$240.8 millionUSD
    Bookings billings$287.1 millionUSD
    Customer account count7.6 millionmembers
    Large deal new logo metricslargest numbercustomers
    Operating FCF margin rule of 4033.2%%

    Orderbook & backlog

    3
    Total Bookings$287.1 millionQ4 FY25

    up 25.4% YoY

    Highest level since Q4 2023.

    Total Bookings$977.2 millionFY25

    up 17.2% YoY

    CLEAR1 Bookingslargest quarterQ4 FY25

    more than doubling year-over-year

    Product announcements

    3
    ProductTypeDetails
    Mobile Appupdate
    CLEAR Concierge programexpansion
    eGate rolloutexpansion

    Deals & partnerships

    3
    American ExpressMulti-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 SinaiAffiliation 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

    2
    Identity security threatsOngoing

    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 disruptionsQ4 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

    5

    Full year 2026 Free Cash Flow

    FY26
    Current$343.1 million (FY25)
    Targetat 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

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