Clarivate (CLVT) Q3 2026 earnings summary

Executive summary

• Life Sciences & Healthcare sale closed October 6, shifting the portfolio focus to Academia & Government and Intellectual Property; ongoing revenue mix is 93% recurring.

• Q3 organic ACV growth was 1.8%, up 30 bps YoY, and recurring organic revenue growth was 1.3%, up 110 bps YoY; management cited improving momentum.

• Priorities include accelerating sustained organic growth, expanding free cash flow and reducing leverage.

Financial highlights

• Q3 continuing-operations revenue was $481.6M, down 9.2% YoY, mainly from inorganic disposals; total revenue including discontinued operations was $567.9M.

• Continuing-operations Adjusted EBITDA was $218.2M, with a 45.3% margin versus 41.9% a year earlier; total-company Adjusted EBITDA including discontinued operations was $245.3M.

• Q3 continuing-operations net loss was $26.4M versus $24.9M; adjusted diluted EPS was $0.21 versus $0.18.

• Q3 operating cash flow was $166M and free cash flow was $110M; 9M operating cash flow was $399.0M and free cash flow was $233.1M.

• 9M continuing-operations revenue was $1,472.4M, down 4.8%; continuing-operations net loss narrowed to $122.3M from $213.3M.

Outlook and guidance

• FY26 guidance: revenue $1.965B-$1.985B; Adjusted EBITDA $865M-$885M, or 43%-45% margin; adjusted diluted EPS $0.73-$0.77.

• FY26 organic ACV growth is guided at 1.75%-2.25%, recurring organic revenue growth at 1%-1.5%, and free cash flow at $320M-$340M.

• Q4 outlook: revenue $865M-$885M, Adjusted EBITDA $215M-$235M, 44%-46% margin, adjusted diluted EPS $0.14-$0.18, and free cash flow $85M-$105M.

• FY27 perspective: free cash flow of $350M-$400M and net leverage of 3.5x-3.6x, versus ~4x in FY26; full 2027 guidance planned for February.

• FY26 free cash flow reflects working-capital and sale-closing timing; FY26 guidance includes LS&H results for the first nine months and excludes them for Q4.