Clear Secure (YOU) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue was $229.2 million, up 16% year-over-year, with bookings of $260.1 million, both exceeding guidance.

• Net income for Q3 2025 was $45.1 million (19.7% margin), and operating income was $52.6 million (23% margin).

• Adjusted EBITDA reached $70.1 million (30.6% margin), up 6.1 percentage points year-over-year.

• Active CLEAR+ Members reached 7.7 million, up 7.5% year-over-year, and total members hit 35.8 million, up 35%.

• Product innovation, including eGates and Concierge, is driving improved member experience and operational efficiency, with international expansion and new enterprise contracts.

Financial highlights

• Q3 2025 revenue: $229.2 million (+16% YoY); bookings: $260.1 million (+14.3% YoY); net income: $45.1 million (19.7% margin); operating income: $52.6 million (23% margin).

• Adjusted EBITDA: $70.1 million (30.6% margin); EPS (basic and diluted): $0.29.

• Gross dollar retention was 86.9%, down 2.1% year-over-year and 40 basis points sequentially.

• Ended Q3 with $75.8 million in cash and $454.9 million in marketable securities.

• Free cash flow for Q3 was $(53.5) million, reflecting a $229 million annual payment to a credit card partner; nine-month free cash flow was $155.7 million.

Outlook and guidance

• Q4 2025 revenue expected at $234–$237 million and bookings at $265–$270 million, representing 14.2% and 16.8% growth at the midpoint.

• Full-year 2025 free cash flow guidance raised to at least $320 million, reflecting incremental CapEx for eGates and tax benefits.

• Continued margin expansion and growth in enrollments, member retention, and partnerships expected for full-year 2025.