Clear Secure (YOU) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 established the company as a trusted secure identity provider with nearly 40 million members and strong positioning in both physical and digital identity markets.

• Achieved record full-year profitability and free cash flow, with accelerating top-line growth in Q4 2025.

• Major growth in both B2C travel and B2B enterprise (CLEAR1), with record bookings and profitability, driven by innovation, partnerships, and expansion in regulated sectors like healthcare.

• Renewed key partnerships and expanded airport and retail presence, including eGates rollout and CLEAR Concierge service.

• Strategic focus on enhancing the Home to Gate travel experience and scaling CLEAR1 for enterprise and healthcare, supported by technology investments and public-private partnerships.

Financial highlights

• Q4 2025 revenue grew 16.7% year-over-year to $240.8 million; full-year revenue reached $900.8 million, up 16.9%.

• Q4 bookings increased 25.4% to $287.1 million; full-year bookings were $977.2 million, up 17.2%.

• Q4 adjusted EBITDA margin exceeded 33%, up 870 basis points year-over-year; full-year adjusted EBITDA was $262.2 million (29.1% margin).

• Generated $343.1 million in free cash flow for 2025, significantly ahead of guidance.

• Ended 2025 with $703 million in cash and marketable securities and no debt.

Outlook and guidance

• 2026 guidance: free cash flow of at least $440 million, representing at least 28% year-over-year growth.

• Q1 2026 revenue expected at $242–$245 million and bookings at $248–$253 million, reflecting 15.2% and 20.9% growth at the midpoint, respectively.

• Expect to exit 2026 with over $1 billion in cash on the balance sheet.

• Full-year 2026 GAAP P&L tax rate projected between 18% and 20%.