Clear Secure (YOU) Q4 2024 earnings summary

Executive summary

• 2024 was a transformational year with accelerated momentum, expanding the secure identity platform, launching new products like NextGen Identity, EnVes, and TSA PreCheck Enrollment, and entering new markets such as healthcare and enterprise security.

• Revenue grew 20.7% year-over-year to $206.3M in Q4 2024; full-year revenue up 25.6% to $770.5M.

• Active CLEAR Plus members rose 8.9% year-over-year to 7.3M; cumulative enrollments surpassed 28.9M.

• Leadership transition: Michael Barkin appointed President and Jen Hsu as CFO, with Ken Cornick stepping down from operational roles but remaining as an advisor.

• CLEAR Plus now covers 73% of airport volume with 166 lanes, and member experience has improved significantly with faster throughput and operational efficiencies.

Financial highlights

• Q4 revenue grew 21% year-over-year; total bookings up 17%, driven by member growth, pricing, and strong retention.

• Full-year adjusted EBITDA margin reached 24%, up over 1,000 basis points year-over-year.

• Free cash flow for 2024 was $284 million, up 42% year-over-year; year-end cash and equivalents totaled $613M.

• Q4 net income was $116.6M, with EPS of $1.07 (basic) and $0.83 (diluted); full-year net income reached $225.3M.

• One-time non-cash net gain of $75 million recognized from a tax receivable agreement true-up.

Outlook and guidance

• 2025 expected to deliver strong top-line growth, continued margin expansion, and free cash flow of at least $310 million, including $30 million in incremental cash taxes and EnV spend.

• Q1 2025 revenue guidance: $207–$209 million; total bookings: $202–$204 million.

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

• Disproportionate share of 2025 net adds expected in Q2 and Q4, with lowest in Q1 and Q3 due to annual billing and seasonal travel demand.