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Clearwater Analytics Announces Second Quarter 2025 Financial Results

Quarterly Revenue of $181.9 Million, Up 70% Year-Over-Year
Annualized Recurring Revenue of $783.5 Million, Up 83% Year-Over-Year
Adjusted EBITDA of $58.3 Million, Up 74% Year-Over-Year

BOISE, Idaho, CHICAGO, NEW YORK, LONDON and HONG KONG — August 6, 2025 — Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“Clearwater Analytics” or the “Company”), the most comprehensive technology platform for investment management, today announced its financial results for the quarter ended June 30, 2025.

“Q2 was very successful, both for our standalone business and as an integrated company. Most encouraging were our meetings with clients across multiple countries, where we found near unanimous excitement and support for what we are building and how it could help transform our industry. We have moved expeditiously to reorganize the company for the next growth phase, and in doing that, we have already achieved our $20 million synergy target a full year ahead of schedule. Our strong metric-driven focus on client delight has already started to bear fruit, as evidenced by our combined non-GAAP gross margin of 77.4% for the quarter,” said Sandeep Sahai, CEO of Clearwater Analytics. “Our core business continues its strong growth trajectory with revenues growing 22% in the quarter, with the gross margin of our platform exceeding 80%, a long-term target we had hoped to achieve in a few years. We are delighted to welcome Germany’s largest public insurer, Versicherungskammer Group, to the Clearwater community. Their implementation of our combined Clearwater, Enfusion and Beacon solutions will serve as a powerful validation of our integrated platform strategy. Additionally, we are thrilled that our APAC team secured a significant mandate from one of the largest banks in the world to provide client reporting globally, further demonstrating our expanding international footprint.”


Second Quarter 2025 Financial Results Summary

•Revenue: Total revenue for the second quarter of 2025 was $181.9 million, an increase of 70.4%, from $106.8 million in the second quarter of 2024. Revenue from the core Clearwater business was $130.6 million, an increase of 22% from the second quarter of 2024.

•Gross Profit: Gross profit for the second quarter of 2025 increased to $118.5 million, which equates to a 65.1% GAAP gross margin, compared with gross profit of $76.9 million and GAAP gross margin of 72.0% in the second quarter of 2024. Non-GAAP gross profit for the second quarter of 2025 was $140.8 million, which equates to a 77.4% non-GAAP gross margin, compared with non-GAAP gross profit of $82.7 million and non-GAAP gross margin of 77.5% in the second quarter of 2024.

•Net Income/(Loss): Net loss for the second quarter of 2025 was $24.2 million, compared with net income of $0.3 million in the second quarter of 2024. Non-GAAP net income for the second quarter of 2025 increased to $34.8 million, an increase of 29.7% from $26.8 million in the second quarter of 2024.

•Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2025 was $58.3 million, an increase of 74.3%, from $33.4 million in the second quarter of 2024. Adjusted EBITDA margin for the second quarter of 2025 was 32.1%, an increase of 70 basis points over the second quarter of 2024.

•Cash Flows: Operating cash flows for the second quarter of 2025 were $47.1 million. Free cash flows for the second quarter of 2025 were $44.1 million, an increase of 4.0% over the second quarter of 2024.

•Net Loss Per Share and Non-GAAP Net Income Per Share: Net loss per basic and diluted share was $0.09 in the second quarter of 2025. Non-GAAP net income per basic share was $0.13, and non-GAAP net income per diluted share was $0.12 in the second quarter of 2025.



•Cash, cash equivalents, and investments were $71.9 million as of June 30, 2025. Total debt, net of debt issuance cost, was $878.1 million as of June 30, 2025.

Second Quarter 2025 Key Metrics Summary

•Annualized Recurring Revenue: As of June 30, 2025, annualized recurring revenue (“ARR”) reached $783.5 million, an increase of 83% from $427.2 million as of June 30, 2024.

ARR is calculated at the end of a period by dividing the recurring revenue in the last month of such period by the number of days in the month and multiplying by 365.

•Gross Revenue Retention Rate: As of June 30, 2025, the gross revenue retention rate was 98%, compared to 99% as of June 30, 2024.

Gross revenue retention rate represents annual contract value (“ACV”) at the beginning of the 12-month period ended on the reporting date less client attrition over the prior 12-month period, divided by ACV at the beginning of the 12-month period, expressed as a percentage. ACV is comprised of annualized recurring revenue plus contracted-not-billed revenue, which represents the estimated annual contracted revenue for new and existing client opportunities prior to revenue recognition.

•Net Revenue Retention Rate: As of June 30, 2025, the net revenue retention rate was 110%, compared to 110% as of June 30, 2024. Clearwater’s core business net revenue retention remained at 114% as of June 30, 2025.

Net revenue retention rate is the percentage of recurring revenue from clients on the platform for 12 months and includes changes from the addition, removal, or value of assets on our platform, contractual changes that have an impact to annualized recurring revenues and lost revenue from client attrition.
Recent Business Highlights

•Clearwater Analytics announced the 2025 Insurance Investment Outsourcing Report (IIOR), revealing a record $4.5 trillion in unaffiliated general account insurance assets under management (AUM) – up 24% year-over-year. Investment consultant assets under advisement grew to $2 trillion. The IIOR profiles over 100 investment managers and consultants, showcases emerging strategies across public and private markets, and provides expert perspectives to help insurers make informed decisions about investment management strategies and technology requirements.

•The Company announced a strategic partnership with Bloomberg, a milestone that supports our growth strategy and expands our reach among the world’s largest investment firms. The bi-directional integration between Bloomberg AIM and Clearwater will eliminate manual workflows and deliver a seamless front-to-back experience. This collaboration reinforces Clearwater’s open, interoperable platform strategy—integrating with the systems clients prefer while providing scalable middle- and back-office capabilities. It strengthens our competitive position and broadens the range of operating models we support.

•The Company announced that:
◦Versicherungskammer Group (VKB), Germany’s largest public insurer, selected Clearwater Analytics’ platform to power their middle, back office and risk functions.
◦Long-time client Wayne Cooperative Insurance expanded its relationship with Clearwater to include performance attribution and risk analytics to drive improved returns and reduced risk exposure.
◦Danish pension provider, Norli Liv & Pension, part of the Norli group, selected Clearwater to modernize its investment accounting, reporting, and compliance operations and benefit from a single, consolidated view of all in-house and outsourced chief investment officer managed holdings across its public and private asset classes.
◦Pool Re, the UK’s terrorism reinsurer overseeing more than £7.2 billion in assets, selected Clearwater's risk products to modernize its investment management infrastructure.
◦HG Re Ltd. selected Clearwater to enhance its investment performance measurement and risk analytics capabilities, support data-driven investment decisions, and improve portfolio oversight.

•The Company expanded its footprint within existing clients and added marquee clients such as: Agile Investment Management, Arthrosi Therapeutics, Axonic Insurance Services, Black Swift Group, Centennial Government Advisors, Communities Foundation of Texas, Fondo de Garantias de Instituciones Financieras, Hawaii Community Foundation, Hildene Capital Management, Hoisington Investment Management Company, IAG Asset


Management Limited, Kathrein Privatbank Aktiengesellschaft, Knight Management Company, Liberty Media Corporation, Los Angeles Capital Management, Missouri Farm Bureau, OFI Invest Asset Management, PacificSource Health Plans, Prudent Man Advisors, Turks and Caicos Islands National Insurance Board, and University of the Pacific.

•The Company was recognized by CNBC and Statista, Inc. on CNBC’s list of the World’s Top Fintech Companies 2025. The Company is the Hong Kong winner of the InsuranceAsia News Country Award for Excellence 2025 in the Most Innovative Product/Service category.

Guidance for Clearwater Analytics:
Third Quarter 2025
Revenue$203 million to $204 million
Year-over-Year Growth %~75% to 76%
Adjusted EBITDA~$65 million
Adjusted EBITDA Margin %~32%
Interest Expense~$16 million

Consolidated Guidance for Clearwater Analytics:
Full Year 2025
Revenue$726 million to $732 million
Year-over-Year Growth %~61% to 62%
Adjusted EBITDA$232 million to $237 million
Adjusted EBITDA Margin %~32%
Total equity-based compensation expense and related payroll taxes (including one-time charges) ~$135 million
~18% of revenues
Depreciation and Amortization~$86 million
Interest Expense~$48 million

Certain components of the guidance given above are provided on a non-GAAP basis only without providing a reconciliation to guidance provided on a GAAP basis. Information is presented in this manner because the preparation of such a reconciliation could not be accomplished without “unreasonable efforts.” The Company does not have access to certain information that would be necessary to provide such a reconciliation, including non-recurring items that are not indicative of the Company’s ongoing operations. The Company does not believe that this information is likely to be significant to an assessment of the Company’s ongoing operations.
Conference Call Details

Clearwater Analytics will hold a conference call and webcast on August 6, 2025, at 5:00 p.m. Eastern time to discuss second quarter 2025 financial results, provide a general business update, and respond to analyst questions.
A live webcast of the call will also be available on the Company’s investor relations website. Please visit investors.clearwateranalytics.com at least fifteen minutes prior to the start of the event to register, download and install any necessary audio software.
If you are unable to participate live, a replay of the webcast will be available following the conference call on the Company’s investor relations website, along with the earnings press release, and related financial tables.
About Clearwater Analytics 

Clearwater Analytics (NYSE: CWAN) is transforming investment management with the industry’s most comprehensive cloud-native platform for institutional investors across global public and private markets. While legacy systems create risk, inefficiency, and data fragmentation, Clearwater’s single-instance, multi-tenant architecture delivers real-time data and AI-driven insights throughout the investment lifecycle. The platform eliminates information silos by integrating portfolio management, trading, investment accounting, reconciliation, regulatory reporting, performance, compliance, and risk analytics in one unified system. Serving leading insurers, asset managers, hedge funds, banks, corporations, and governments, Clearwater supports over $8.8 trillion in assets globally. Learn more at clearwateranalytics.com.



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Investor Contact:
Michael Chen | +1 917-843-0445 | investors@clearwateranalytics.com
Media Contact:
Claudia Cahill | +1 703-728-1221 | press@clearwateranalytics.com
Use of non-GAAP Information

This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow.

The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.

The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, transaction expenses, impairment and other charges. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.
Use of Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “aim,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Company’s control, that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties may cause actual results to differ materially from Clearwater Analytics’ current expectations and include, but are not limited to, the Company’s ability to successfully integrate the operations and technology of its recently completed acquisitions of Enfusion, Beacon and Bistro (the “Recent Acquisitions”) with those of the Company and to obtain third party data rights, retain and incentivize the employees of the Recent Acquisitions following the close of the Recent Acquisitions, retain the Recent Acquisitions’ clients, repay debt incurred in connection with the Recent Acquisitions and meet financial covenants to be imposed in connection with such debt, risks that synergies and growth from the Recent Acquisitions may not be fully realized or may take longer to realize than expected, the Company's ability to keep pace with rapid technological change and market developments, including artificial intelligence, competitors in its industry, the possibility that market volatility, a downturn in economic conditions or other factors may cause negative trends or fluctuations in the value of the assets on the Company’s platform, the Company's ability to manage growth, the Company’s ability to attract and retain skilled employees, the possibility that the Company’s solutions fail to perform


properly, disruptions and failures in the Company's and third parties’ computer equipment, cloud-based services, electronic delivery systems, networks and telecommunications systems and infrastructure, the failure to protect the Company, its customers’ and/or its vendors’ confidential information and/or intellectual property, claims of infringement of others’ intellectual property, factors related to the Company's ownership structure as well as other risks and uncertainties detailed in Clearwater Analytics’ periodic public filings with the U.S. Securities and Exchange Commission (the “SEC”), including but not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 26, 2025 (as amended by Amendment No. 1 thereto, filed with the SEC on March 7, 2025), and in other periodic reports filed by the Company with the SEC. These filings are available at www.sec.gov and on the Company’s website.

Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release and should not be relied upon as representing the Company’s expectations or beliefs as of any date subsequent to the time they are made. The Company does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of the Company.
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Clearwater Analytics Holdings, Inc.
Consolidated Balance Sheets
(In thousands, except share amounts and per share amounts, unaudited)
June 30December 31
20252024
Assets
Current assets:
Cash and cash equivalents$68,404 $177,350 
Short-term investments3,518 78,139 
Accounts receivable, net148,020 106,151 
Prepaid expenses and other current assets37,656 23,006 
Total current assets257,598 384,646 
Property, equipment and software, net24,554 14,797 
Operating lease right-of-use assets, net43,657 24,797 
Deferred contract costs, non-current7,926 7,013 
Debt issuance costs - line of credit3,874 339 
Deferred tax assets, net669,660 602,500 
Other non-current assets6,159 3,340 
Intangible assets, net740,534 30,868 
Goodwill1,267,261 70,971 
Long-term investments— 30,301 
Total assets$3,021,223 $1,169,572 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$6,141 $2,934 
Accrued expenses and other current liabilities79,238 55,654 
Deferred revenue20,811 7,329 
Notes payable, current portion6,000 2,750 
Operating lease liability, current portion15,463 8,350 
Tax receivable agreement liability— 35 
Total current liabilities127,653 77,052 
Notes payable, less current maturities and unamortized debt issuance costs872,096 43,164 
Operating lease liability, less current portion31,311 17,655 
Other long-term liabilities2,193 1,470 
Total liabilities1,033,253 139,341 
Stockholders' Equity
Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 287,637,289 shares issued and outstanding as of June 30, 2025, 212,857,580 shares issued and outstanding as of December 31, 2024
288 213 
Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 4,506,422 share issued and outstanding as of June 30, 2025, no shares issued and outstanding as of December 31, 2024
5 — 
Class C common stock, par value $0.001 per share; 452,622,413 shares authorized, no shares issued and outstanding as of June 30, 2025, 500,000,000 shares authorized, 12,542,110 shares issued and outstanding as of December 31, 2024
— 13 
Class D common stock, par value $0.001 per share; 369,916,245 shares authorized, no shares issued and outstanding as of June 30, 2025, 500,000,000 shares authorized, 22,243,668 shares issued and outstanding as of December 31, 2024
— 22 
Additional paid-in-capital1,688,311 725,174 
Accumulated other comprehensive income (loss)8,286 (1,113)
Retained earnings270,689 283,946 
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.1,967,579 1,008,255 
Non-controlling interests20,391 21,976 
Total stockholders' equity1,987,970 1,030,231 
Total liabilities and stockholders' equity$3,021,223 $1,169,572 


Clearwater Analytics Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended
June 30,		Six Months Ended
June 30,
2025202420252024
Revenue$181,937 $106,791 $308,801 $209,510 
Cost of revenue(1)
63,423 29,890 97,347 58,069 
Gross profit118,514 76,901 211,454 151,441 
Operating expenses:
Research and development(1)
49,755 35,360 87,154 73,036 
Sales and marketing(1)
39,221 15,169 58,853 31,480 
General and administrative(1)
44,118 22,528 72,945 43,248 
Total operating expenses133,094 73,057 218,952 147,764 
Income (loss) from operations(14,580)3,844 (7,498)3,677 
Interest expense13,464 1,082 14,383 2,181 
Tax receivable agreement expense— 5,915 — 6,201 
Other income, net(1,546)(3,508)(3,869)(7,197)
Income (loss) before income taxes(26,498)355 (18,012)2,492 
Provision for (benefit from) income taxes(2,347)79 (797)(19)
Net income (loss)(24,151)276 (17,215)2,511 
Less: Net income (loss) attributable to non-controlling interests(926)706 (663)1,044 
Net income (loss) attributable to Clearwater Analytics Holdings, Inc.$(23,225)$(430)$(16,552)$1,467 
Net income (loss) per share attributable to Class A and Class D common stockholders stock:
Basic$(0.09)$(0.00)$(0.07)$0.01 
Diluted$(0.09)$(0.00)$(0.07)$0.01 
Weighted average shares of Class A and Class D common stock outstanding:
Basic270,632,308218,349,567254,070,446215,804,515
Diluted270,632,308218,349,567254,070,446254,208,965

(1)Amounts include equity-based compensation as follows:
Cost of revenue$4,619 $3,273 $8,083 $6,419 
Operating expenses:
Research and development8,792 9,182 17,490 18,093 
Sales and marketing10,182 2,692 14,191 6,513 
General and administrative13,955 9,711 21,496 18,058 
Total equity-based compensation expense$37,548 $24,858 $61,260 $49,083 


Clearwater Analytics Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands, unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
OPERATING ACTIVITIES
Net income (loss)$(24,151)$276 $(17,215)$2,511 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization23,606 2,941 26,752 5,491 
Noncash operating lease cost4,643 2,312 7,018 4,545 
Equity-based compensation37,548 24,858 61,260 49,083 
Amortization of deferred contract acquisition costs1,753 1,196 3,103 2,413 
Amortization of debt issuance costs, included in interest expense747 70 816 140 
Debt extinguishment cost419 — 419 — 
Deferred tax benefit(1,741)(970)(491)(1,992)
Accretion of discount on investments— (602)(284)(1,177)
Realized (gain) loss on investments— 24 (112)24 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net15,641 (42)10,345 (4,718)
Prepaid expenses and other assets(8,846)3,105 (11,422)(1,093)
Deferred contract acquisition costs(3,363)(1,024)(3,356)(1,771)
Accounts payable1,768 271 850 335 
Accrued expenses and other liabilities75 5,256 (5,049)(4,183)
Tax receivable agreement liability— 6,199 (35)4,355 
Other long-term liabilities(1,018)— (1,018)— 
Net cash provided by operating activities47,081 43,870 71,581 53,963 
INVESTING ACTIVITIES
Purchases of property, equipment and software(2,987)(1,454)(4,455)(2,947)
Purchases of intangible assets (184)— (184)— 
Purchase of held to maturity investments— (3,009)(4,686)(3,009)
Purchases of available-for-sale investments— (35,493)— (67,390)
Proceeds from sale of available-for-sale investments— — 89,479 — 
Proceeds from maturities of investments4,175 38,307 20,375 59,842 
Acquisition of businesses, net of cash acquired(1,074,783)(40,121)(1,074,783)(40,121)
Payment of asset acquisition holdback liability(10,000)— (10,000)— 
Payment of initial direct costs for operating leases(89)(104)(89)(104)
Net cash used in investing activities(1,083,868)(41,874)(984,343)(53,729)
FINANCING ACTIVITIES
Proceeds from exercise of options168 5 168 109 
Taxes paid related to net share settlement of equity awards(4,937)(4,307)(29,339)(33,081)
Proceeds from borrowings, net of payment of debt issuance costs926,634 — 924,475 — 
Repayments of borrowings(96,375)— (97,063)(688)
Payment of business acquisition holdback liability— — — (780)
Proceeds from employee stock purchase plan3,316 2,795 3,316 2,795 
Payment of tax distributions— — — (8)
Net cash provided by (used in) financing activities828,806 (1,507)801,557 (31,653)
Effect of exchange rate changes on cash and cash equivalents1,226 (38)2,259 (251)
Change in cash and cash equivalents during the period(206,755)451 (108,946)(31,670)
Cash and cash equivalents, beginning of period275,159 189,644 177,350 221,765 
Cash and cash equivalents, end of period$68,404 $190,095 $68,404 $190,095 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest$473 $851 $1,755 $1,762 
Cash paid for income taxes$273 $144 $856 $590 


NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of property, equipment and software included in accounts payable and accrued expense$64 $55 $64 $55 
Acquisition of Bistro intangible assets paid in common stock$— $— $102,729 $— 
Business acquisition liability included in accrued expenses and other liabilities$3,122 $— $3,122 $— 
Tax distributions payable to Continuing Equity Owners included in accrued expenses$13 $3,209 $13 $3,209 


Clearwater Analytics Holdings, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In thousands, unaudited)
Three Months Ended June 30,
20252024
(in thousands, except percentages)
Net income (loss)$(24,151)(13%)$276 0%
Adjustments:
Interest expense13,464 7%1,082 1%
Depreciation and amortization23,606 13%2,941 3%
Equity-based compensation expense and related payroll taxes38,843 21%25,151 24%
Tax receivable agreement expense— 0%5,915 6%
Transaction expenses(1)
10,433 6%875 1%
Amortization of prepaid management fees and reimbursable expenses10 0%637 2%
Provision for (benefit from) income tax expense(2,347)(1%)79 0%
Other income, net(1,546)(1%)(3,508)(3%)
Adjusted EBITDA$58,312 32%$33,448 31%
Revenue$181,937 100%$106,791 100%
Six Months Ended June 30,
20252024
(in thousands, except percentages)
Net income (loss)$(17,215)(6%)$2,511 1%
Adjustments:
Interest expense14,383 5%2,181 1%
Depreciation and amortization26,752 9%5,491 3%
Equity-based compensation expense and related payroll taxes66,405 22%53,632 26%
Tax receivable agreement expense— 0%6,201 3%
Transaction expenses(1)
17,713 6%1,678 1%
Amortization of prepaid management fees and reimbursable expenses10 0%1,172 2%
Provision for (benefit from) income tax expense(797)0%(19)0%
Other income, net(3,869)(1%)(7,197)(3%)
Adjusted EBITDA$103,382 33%$65,650 31%
Revenue$308,801 100%$209,510 100%
(1) Transaction expenses primarily consist of severance costs, transaction related bonuses, professional & legal fees and administrative costs for closed acquisitions.



Clearwater Analytics Holdings, Inc.
Reconciliation of Free Cash Flow
(In thousands, unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Net cash provided by operating activities$47,081 $43,870 $71,581 $53,963 
Less: Purchases of property, equipment and software2,987 1,454 4,455 2,947 
Free Cash Flow$44,094 $42,416 $67,126 $51,016 


Clearwater Analytics Holdings, Inc.
Reconciliation of Non-GAAP Information
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended June 30,Six Months Ended June 30,
2025202420252024
Revenue$181,937 $106,791 $308,801 $209,510 
Gross profit$118,514 $76,901 $211,454 $151,441 
Adjustments:
Equity-based compensation expense and related payroll taxes4,797 3,318 9,171 6,840 
Depreciation and amortization17,478 2,494 20,242 4,596 
Gross profit, non-GAAP$140,789 $82,713 $240,867 $162,877 
As a percentage of revenue, non-GAAP77%77%78%78%
Cost of Revenue$63,423 $29,890 $97,347 $58,069 
Adjustments:
Equity-based compensation expense and related payroll taxes4,797 3,318 9,171 6,840 
Depreciation and amortization17,478 2,494 20,242 4,596 
Cost of revenue, non-GAAP$41,148 $24,078 $67,934 $46,633 
As a percentage of revenue, non-GAAP23%23%22%22%
Research and development$49,755 $35,360 $87,154 $73,036 
Adjustments:
Equity-based compensation expense and related payroll taxes8,984 9,306 18,811 21,180 
Depreciation and amortization392 164 514 365 
Research and development, non-GAAP$40,379 $25,890 $67,829 $51,491 
As a percentage of revenue, non-GAAP22%24%22%25%
Sales and marketing$39,221 $15,169 $58,853 $31,480 
Adjustments:
Equity-based compensation expense and related payroll taxes10,314 2,772 15,314 6,941 
Depreciation and amortization4,916 155 5,069 290 
Sales and marketing, non-GAAP$23,991 $12,242 $38,470 $24,249 
As a percentage of revenue, non-GAAP13%11%12%12%
General and administrative$44,118 $22,528 $72,945 $43,248 
Adjustments:
Equity-based compensation expense and related payroll taxes14,748 9,755 23,109 18,671 
Depreciation and amortization820 128 927 240 
Amortization of prepaid management fees and reimbursable expenses10 637 10 1,172 
Transaction expenses10,433 875 17,713 1,678 
General and administrative, non-GAAP$18,107 $11,133 $31,186 $21,487 


As a percentage of revenue, non-GAAP10%10%10%10%
Income (loss) from operations$(14,580)$3,844 $(7,498)$3,677 
Adjustments:
Equity-based compensation expense and related payroll taxes38,843 25,151 66,405 53,632 
Depreciation and amortization23,606 2,941 26,752 5,491 
Amortization of prepaid management fees and reimbursable expenses10 637 10 1,172 
Transaction expenses10,433 875 17,713 1,678 
Income from operations, non-GAAP$58,312 $33,448 $103,382 $65,650 
As a percentage of revenue, non-GAAP32%31%33%31%
Net income (loss)$(24,151)$276 $(17,215)$2,511 
Adjustments:
Equity-based compensation expense and related payroll taxes38,843 25,151 66,405 53,632 
Depreciation and amortization23,606 2,941 26,752 5,491 
Tax receivable agreement expense— 5,915 — 6,201 
Amortization of prepaid management fees and reimbursable expenses10 637 10 1,172 
Transaction expenses10,433 875 17,713 1,678 
Tax impacts of adjustments to net income (loss) (1)
(13,946)(8,968)(24,014)(17,667)
Net income, non-GAAP$34,795 $26,827 $69,651 $53,018 
As a percentage of revenue, non-GAAP19%25%23%25%
Net income per share - basic, non-GAAP$0.13 $0.12 $0.27 $0.25 
Net income per share - diluted, non-GAAP$0.12 $0.10 $0.24 $0.21 
Weighted-average common shares outstanding - basic270,632,308218,349,567254,070,446215,804,515
Weighted-average common shares outstanding - diluted288,379,436256,090,273285,036,703254,208,965
(1)The non-GAAP effective tax rate was 25% for the three and six months ended June 30, 2025 and 2024, respectively, and has been used to adjust the provision for income taxes for non-GAAP net income and non-GAAP basic and diluted net income per share.