Clarivate (CLVT) Q2 2026 earnings summary

Executive summary

• Advanced AI innovation roadmap and launched new AI-native products, driving incremental pipeline and revenue streams.

• Announced agreement to sell Life Sciences & Healthcare segment for $600 million, sharpening focus on core Academia & Government and Intellectual Property businesses, with proceeds to reduce debt.

• Continued disciplined cost management and deleveraging, with $200M+ debt reduction in H1 2026, strengthening the balance sheet.

• Progressed Value Creation Plan, shifting revenue mix toward recurring subscriptions and divesting non-core assets.

• Strategic focus is shifting to core segments, with increased investment in AI-driven innovation and operational streamlining.

Financial highlights

• Q2 2026 revenues were $587.3 million, down 5.5% year-over-year, mainly due to disposals and lower transactional revenues, partially offset by recurring growth.

• Q2 net loss of $268.6 million, driven by a $221.7 million non-cash goodwill impairment related to the LS&H divestiture.

• Adjusted EBITDA for Q2 was $247.2 million (41.6%–42.1% margin), with margin stability year-over-year.

• Free cash flow for H1 2026 was $122.9 million, down 23% year-over-year due to working capital timing and higher incentive payouts.

• Interest expense decreased 9% year-over-year due to lower rates and reduced debt.

Outlook and guidance

• 2026 outlook reaffirmed: revenues (including discontinued ops) $2.30B–$2.42B, adjusted EBITDA $980M–$1.04B, margin 42.0%–43.5%.

• Adjusted diluted EPS expected at $0.70–$0.80, with free cash flow $365M–$435M, impacted by transaction and restructuring costs.

• Organic recurring revenue mix to exceed 92% after LS&H divestiture.

• Sequential improvement in recurring organic growth expected in H2 2026 and into 2027.

• No further acquisitions or divestitures assumed in 2026 outlook.