Clear Secure (YOU) Q1 2025 earnings summary

Executive summary

• Revenue grew 18.1% year-over-year to $211.4 million, driven by a 9.1% increase in Active CLEAR+ Members and higher membership pricing, with total cumulative enrollments reaching 31.2 million, up 42.3% year-over-year.

• Net income rose 20% to $38.6 million, with Adjusted EBITDA up 28% to $52.2 million, reflecting strong operating leverage.

• Ended Q1 with $533 million in cash and marketable securities, no outstanding debt, and returned $168.3 million to shareholders via repurchases and dividends.

• Expanded TSA PreCheck enrollment locations to 165, launched one-step mobile enrollment, and formed new partnerships in healthcare and with DocuSign.

• Rolled out EnVe pods, ePassport, and eGates, with EnVe pods receiving the Red Dot Design Award for innovation.

Financial highlights

• Q1 total bookings reached $207.2 million, up 14.8% year-over-year.

• Free cash flow was $91.3 million, up from $77.6 million in Q1 2024.

• Operating income was $37.4 million (17.7% margin), up 58% year-over-year; adjusted EBITDA was $52.2 million (24.7% margin).

• Net income margin was 18%.

• Active CLEAR+ Members: 7.4 million, up 9.1% year-over-year.

Outlook and guidance

• Q2 2025 revenue expected at $214–$216 million and bookings at $215–$220 million.

• Reaffirmed full-year 2025 free cash flow guidance of at least $310 million.

• Full-year 2025 GAAP tax rate expected between 17%–20%.

• Quarterly dividend of $0.125 per share declared for Q2 2025.

• Sufficient liquidity expected to fund operations, dividends, and share repurchases for at least the next 12 months.