Clearwater Analytics (CWAN) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $217.5M, up 72% year-over-year, with annualized recurring revenue (ARR) at $841M, up 77% year-over-year.

• Adjusted EBITDA for Q4 was $74.1M, up 78% year-over-year, with a margin of 34.1%.

• Net loss for Q4 was $12.5M, compared to net income of $420.3M in Q4 2024; non-GAAP net income was $44.4M, up 31% year-over-year.

• Operating cash flow for Q4 was $55.3M, enabling $17M in debt repayment.

• Significant AI-driven operational efficiencies, with non-GAAP gross margin at a record 79.2%.

Financial highlights

• Q4 gross profit was $146.2M (GAAP gross margin 67.2%), up from $92.9M (73.5%) in Q4 2024.

• Non-GAAP gross profit was $172.2M (79.2% margin), up from $99.7M (78.8%) in Q4 2024.

• Net loss per share was $0.04; non-GAAP net income per share was $0.15.

• Cash, cash equivalents, and investments totaled $91.2M as of Dec 31, 2025; total debt was $822.6M.

• Free cash flow for Q4 was $52.3M.

Outlook and guidance

• No forward-looking guidance provided due to pending acquisition; transaction expected to close in Q2 2026.