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CWAN Announces Third Quarter 2025 Financial Results

Quarterly Revenue of $205.1 Million, Up 77% Year-Over-Year
Adjusted EBITDA of $70.7 Million, Up 84% Year-Over-Year
Operating Cash Flows of $49.0 Million Enabled Repayment of $40 Million of Debt

BOISE, Idaho — November 5, 2025 — Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“CWAN” or the “Company”), the most comprehensive technology platform for investment management, today announced its financial results for the quarter ended September 30, 2025.

“Q3 was our first quarter as an integrated company and we demonstrated strong execution and financial performance, with quarterly revenue of $205.1 million, up 77% year-over-year. Our single instance, single security master architecture allows Gen AI models and agents to learn very quickly, helping us drive very strong growth in unit economics. Non-GAAP gross margin for the combined business was 78.5%, reaching an important milestone meaningfully before our earlier expectations. Adjusted EBITDA was approximately $71 million, up 84% year-over-year,” said Sandeep Sahai, CEO at CWAN. “The integration continues to be ahead of schedule, and we have impressive proof points across all fronts. We secured marquee wins with insurance, hedge funds, asset management and asset owners globally that chose CWAN in competitive processes against legacy providers. Clients are enthusiastic about our ability to provide an open, modular platform and are genuinely excited about the transformative power of Gen AI that we can bring to them. Our clients are already experiencing transformative results using over 800 AI agents, including 90% reductions in manual reconciliation effort and 80% faster report generation. With Gen AI agents learning from our proprietary data, we expect to lead in insights and agentic reporting, significantly altering the efficiency of the investment management industry.”

Third Quarter 2025 Financial Results Summary

•Revenue: Total revenue for the third quarter of 2025 was $205.1 million, an increase of 77.1%, from $115.8 million in the third quarter of 2024.

•Gross Profit: Gross profit for the third quarter of 2025 increased to $134.5 million, which equates to a 65.6% GAAP gross margin, compared with gross profit of $84.5 million and GAAP gross margin of 72.9% in the third quarter of 2024. Non-GAAP gross profit for the third quarter of 2025 was $161.0 million, which equates to a 78.5% non-GAAP gross margin, compared with non-GAAP gross profit of $90.9 million and non-GAAP gross margin of 78.5% in the third quarter of 2024.

•Net Income/(Loss): Net loss for the third quarter of 2025 was $10.5 million, compared with net income of $4.8 million in the third quarter of 2024. Non-GAAP net income for the third quarter of 2025 increased to $40.6 million, an increase of 31.2% from $31.0 million in the third quarter of 2024.

•Adjusted EBITDA: Adjusted EBITDA for the third quarter of 2025 was $70.7 million, an increase of 84.5%, from $38.3 million in the third quarter of 2024. Adjusted EBITDA margin for the third quarter of 2025 was 34.5%, an increase of 140 basis points over the third quarter of 2024.

•Cash Flows: Operating cash flows for the third quarter of 2025 were $49.0 million. Free cash flows for the third quarter of 2025 were $44.9 million.

•Net Loss Per Share and Non-GAAP Net Income Per Share: Net loss per basic and diluted share was $0.04 in the third quarter of 2025. Non-GAAP net income per basic share was $0.14, and non-GAAP net income per diluted share was $0.14 in the third quarter of 2025.

•Cash, cash equivalents, and investments were $64.1 million as of September 30, 2025. Total debt, net of debt issuance cost, was $838.9 million as of September 30, 2025.






Third Quarter 2025 Key Metrics Summary

•Annualized Recurring Revenue: As of September 30, 2025, annualized recurring revenue (“ARR”) reached $807.5 million, an increase of 77% from $456.9 million as of September 30, 2024. Organic ARR excluding acquisitions was $534.4 million, a sequential increase of $21.7 million from June 30, 2025.

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 September 30, 2025, the gross revenue retention rate was 98%.

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 September 30, 2025, the net revenue retention rate was 108%.

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

•CWAN hosted its annual user conference Connect ’25 from September 15-17 at the Boise Centre, where over 500 customers gathered to learn about the Company’s front-to-back investment management platform. The Company announced significantly enhanced capabilities for its Alternative Assets Solution that directly addresses the scalability and compliance challenges facing the $2.5 trillion private credit market. The new capabilities automate bespoke loan structures, accelerate fund research with AI, synchronize data across asset owners and managers, and consolidate mortgage reporting — enabling institutions to scale allocations to private credit and private funds with greater speed and confidence.

•At CWAN Connect ’25, the Company announced the winners of its Client Excellence Awards, highlighting the individuals, teams and firms who are setting new standards in investment management operations through transformational technology and operational breakthroughs. Company winners included ERAC, a heritage GE company; Midwest Holding; Prosperity Asset Management; U.S. Bank, N.A.; and Welton Investment Partners. This year’s excellence award winners included individuals from Arch Capital Group, Nationwide, and Shelter Mutual Insurance Company.

•On September 3rd, 2025, at our Investor Day, we announced a $100 million share buyback. We repurchased $8.9 million of CWAN shares in the quarter.

•Texas Treasury Safekeeping Trust Company selected CWAN in a competitive process against multiple legacy providers to manage a multi-billion dollar endowment portfolio, validating the strategic value of our products, including CWAN LPx and Fund Accounting. Our differentiated approach to addressing the complexities of alternative assets was pivotal in this decision, demonstrating our ability to analyze and report on a diverse range of investment types within a single platform.

•The Latin American Reserve Fund (FLAR) is a regional financial institution created by several Latin American countries to strengthen the economic and financial stability of its member nations, supporting central banks through credit facilities, international reserve management, and the promotion of sound economic policies. FLAR chose CWAN for our value proposition and FLAR’s commitment to the continuous improvement of its processes, including the management of its providers and the use of technology.

•CWAN announced that:
◦It partnered with J.P. Morgan Asset Management to launch an automated cash management solution for hedge funds. The new integration connects Enfusion by CWAN and Morgan Money® to optimize yield, diversification, and liquidity control for hedge fund clients.
◦T. Rowe Price has successfully implemented the CWAN platform to support its stable value operations, achieving significant improvements across participant service and operations.



◦Prosperity Life Group and its insurance-focused asset manager, Prosperity Asset Management, has expanded its use of the CWAN platform to support their continued growth in mortgage assets, particularly complex residential tranche loans (RTLs).
◦McCormick & Company has adopted CWAN’s commercial paper (CP) workflow solution to streamline short-term capital raising and improve oversight of its program.
◦U.S Bank N.A., in partnership with CWAN, launched a compliance solution for government clients, delivering CWAN’s compliance solution as a standalone option. The partnership provides government clients with a streamlined approach to enhance oversight, ensure accurate reporting, and meet regulatory requirements.
◦Agile Investment Management, LLC selected CWAN’s integrated risk and performance attribution solution, demonstrating the power of CWAN’s unified ecosystem by combining Enfusion by CWAN’s front-office strength with the platform’s institutional-grade risk and performance analytics.

•CWAN strengthened its board by appointing two new independent board members to accelerate international growth and innovation: Dr. Mukesh Aghi, former CEO of several technology companies and the current CEO of the U.S.-India Strategic Partnership Forum, and Bas NieuweWeme, former Global CEO of Aegon Asset Management.


Consolidated Guidance for CWAN:
Fourth Quarter 2025
Revenue$216 million to $217 million
Year-over-Year Growth %71% to 72%
Adjusted EBITDA$73 million
Adjusted EBITDA Margin %34%

Consolidated Guidance for CWAN:
Full Year 2025
Revenue$730 million to $731 million
Year-over-Year Growth %62%
Adjusted EBITDA$247 million
Adjusted EBITDA Margin %34%

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

CWAN will hold a conference call and webcast on November 5, 2025, at 5:00 p.m. Eastern time to discuss third 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.cwan.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 CWAN

CWAN (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, CWAN’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, CWAN supports over $10 trillion in assets globally. Learn more at www.cwan.com.

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Investor Contact:
Kamil Mielczarek | +1 208-510-6856 | investors@cwan.com
Media Contact:
Claudia Cahill | +1 703-728-1221 | press@cwan.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 CWAN’s current expectations and include, but are not limited to, the Company’s ability to successfully integrate the operations and technology of its acquisitions of Enfusion, Beacon and Bistro (the “Acquisitions”) with those of the Company and to obtain third party data rights, retain and incentivize the employees of the Acquisitions following the close of the Acquisitions, retain the Acquisitions’ clients, repay debt incurred in connection with the Acquisitions and meet financial covenants to be imposed in connection with such debt, risks that synergies and growth from the 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 CWAN’s 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)
September 30December 31
20252024
Assets
Current assets:
Cash and cash equivalents$60,750 $177,350 
Short-term investments3,398 78,139 
Accounts receivable, net152,791 106,151 
Prepaid expenses and other current assets33,871 23,006 
Total current assets250,810 384,646 
Property, equipment and software, net26,262 14,797 
Operating lease right-of-use assets, net40,315 24,797 
Deferred contract costs, non-current9,551 7,013 
Debt issuance costs - line of credit3,670 339 
Deferred tax assets, net671,801 602,500 
Intangible assets, net714,118 30,868 
Goodwill1,267,108 70,971 
Long-term investments— 30,301 
Other non-current assets6,877 3,340 
Total assets$2,990,512 $1,169,572 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$3,316 $2,934 
Accrued expenses and other current liabilities83,610 55,654 
Deferred revenue17,152 7,329 
Notes payable, current portion8,000 2,750 
Operating lease liability, current portion15,537 8,350 
Tax receivable agreement liability— 35 
Total current liabilities127,615 77,052 
Notes payable, less current maturities and unamortized debt issuance costs830,869 43,164 
Operating lease liability, less current portion28,448 17,655 
Other long-term liabilities2,029 1,470 
Total liabilities988,961 139,341 
Stockholders' Equity
Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 288,280,392 shares issued and outstanding as of September 30, 2025, 212,857,580 shares issued and outstanding as of December 31, 2024288 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 September 30, 2025; and no share issued and outstanding as of December 31, 20245 — 
Class C common stock, par value $0.001 per share; 452,622,413 shares authorized, no share issued and outstanding as of September 30, 2025; and 500,000,000 shares authorized, 12,542,110 shares issued and outstanding December 31, 2024— 13 
Class D common stock, par value $0.001 per share; 369,916,245 shares authorized, no share issued and outstanding as of September 30, 2025; 500,000,000 shares authorized, 22,243,668 shares issued and outstanding as of December 31, 2024— 22 
Additional paid-in-capital1,712,800 725,174 
Accumulated other comprehensive income (loss)7,448 (1,113)
Retained earnings261,009 283,946 
Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.1,981,550 1,981,550 1,008,255 
Non-controlling interests20,001 21,976 
Total stockholders' equity2,001,551 2,001,551 1,030,231 
Total liabilities and stockholders' equity$2,990,512 $1,169,572 



Clearwater Analytics Holdings, Inc.
Consolidated Statements of Operations
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended
September 30,		Nine Months Ended
September 30,
2025202420252024
Revenue$205,110 $115,828 $513,911 $325,338 
Cost of revenue(1)
70,638 31,357 167,984 89,426 
Gross profit134,472 84,471 345,927 235,912 
Operating expenses:
Research and development(1)
52,065 36,618 139,219 109,654 
Sales and marketing(1)
44,471 17,889 103,323 49,369 
General and administrative(1)
31,382 22,626 104,328 65,873 
Total operating expenses127,918 77,133 346,870 224,896 
Income (loss) from operations6,554 7,338 (943)11,016 
Interest expense16,119 1,076 30,502 3,256 
Tax receivable agreement expense— 5,344 — 11,545 
Other (income) expense, net439 (3,365)(3,429)(10,560)
Income (loss) before income taxes(10,004)4,283 (28,016)6,775 
Provision for (benefit from) income taxes510 (486)(287)(505)
Net income (loss)(10,514)4,769 (27,729)7,280 
Less: Net income (loss) attributable to non-controlling interests(179)1,140 (988)2,184 
Net income (loss) attributable to Clearwater Analytics Holdings, Inc.$(10,335)$3,629 $(26,741)$5,096 
Net income (loss) per share attributable to Class A and Class D common stockholders stock:
Basic$(0.04)$0.02 $(0.10)$0.02 
Diluted$(0.04)$0.02 $(0.10)$0.02 
Weighted average shares of Class A and Class D common stock outstanding:
Basic287,979,411219,009,124265,498,307216,880,515
Diluted287,979,411231,467,214265,498,307227,768,434

(1)Amounts include equity-based compensation as follows:
Cost of revenue$4,398 $3,460 $12,480 $9,879 
Operating expenses:
Research and development7,097 8,674 24,588 26,767 
Sales and marketing12,680 3,905 26,870 10,418 
General and administrative9,295 9,937 30,792 27,995 
Total equity-based compensation expense$33,470 $25,976 $94,730 $75,059 



Clearwater Analytics Holdings, Inc.
Consolidated Statements of Cash Flows
(In thousands, unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
OPERATING ACTIVITIES
Net income (loss)$(10,514)$4,769 $(27,729)$7,280 
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization29,300 3,239 56,052 8,730 
Noncash operating lease cost5,281 2,345 12,299 6,900 
Equity-based compensation33,470 25,976 94,730 75,059 
Amortization of deferred contract acquisition costs3,338 1,160 7,125 3,573 
Amortization of debt issuance costs, included in interest expense977 70 1,793 209 
Debt extinguishment cost— — 419 — 
Deferred tax benefit(2,239)(1,084)(2,730)(3,076)
Accretion of discount on investments— (556)(284)(1,732)
Realized (gain) loss on investments— — (112)24 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable, net(4,771)(3,157)5,574 (7,875)
Prepaid expenses and other assets2,802 3,654 (8,620)2,561 
Deferred contract acquisition costs(4,671)(1,645)(8,711)(3,416)
Accounts payable(2,815)1,306 (1,965)1,586 
Accrued expenses and other liabilities(1,101)8,001 (6,150)3,763 
Tax receivable agreement liability— 5,579 (35)9,934 
Other long-term liabilities(73)— (1,091)— 
Net cash provided by operating activities48,984 49,657 120,565 103,520 
INVESTING ACTIVITIES
Purchases of property, equipment and software(4,057)(1,546)(8,512)(4,437)
Purchases of intangible assets (55)— (239)— 
Purchase of held to maturity investments— — (4,686)(3,009)
Purchases of available-for-sale investments— (26,578)— (93,968)
Proceeds from sale of available-for-sale investments— — 89,479 — 
Proceeds from maturities of investments— 27,025 20,375 86,867 
Acquisition of businesses, net of cash acquired— — (1,074,783)(40,121)
Payment of asset acquisition holdback liability— — (10,000)— 
Payment of initial direct costs for operating leases— — (89)(104)
Net cash used in investing activities(4,112)(1,099)(988,455)(54,772)
FINANCING ACTIVITIES
Proceeds from exercise of options— 101 168 210 
Taxes paid related to net share settlement of equity awards(2,893)(9,582)(32,232)(42,663)
Repurchase of common stock(8,503)— (8,503)— 
Proceeds from borrowings, net of payment of debt issuance costs— — 924,475 — 
Repayments of borrowings(40,000)(1,375)(137,063)(2,062)
Payment of business acquisition holdback liability— — — (780)
Proceeds from employee stock purchase plan— — 3,316 2,795 
Payment of tax distributions— (17)— (25)
Net cash provided by (used in) financing activities(51,396)(10,873)750,161 (42,525)
Effect of exchange rate changes on cash and cash equivalents(1,130)914 1,129 706 
Change in cash and cash equivalents during the period(7,654)38,599 (116,600)6,929 
Cash and cash equivalents, beginning of period68,404 190,095 177,350 221,765 
Cash and cash equivalents, end of period$60,750 $228,694 $60,750 $228,694 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid for interest$15,137 $865 $16,892 $2,627 



Cash paid for income taxes$310 $589 $1,166 $1,179 
NON-CASH INVESTING AND FINANCING ACTIVITIES
Purchase of property, equipment and software included in accounts payable and accrued expense$54 $25 $54 $25 
Acquisition of Bistro intangible assets paid in common stock$— $— $102,729 $— 
Repurchase of common stock included in accrued expenses and other liabilities$360 $— $360 $— 
Business acquisition liability included in accrued expenses and other liabilities$62 $— $62 $— 
Tax distributions payable to Continuing Equity Owners included in accrued expenses$2 $3,889 $2 $3,889 



Clearwater Analytics Holdings, Inc.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(In thousands, unaudited)
Three Months Ended September 30,
20252024
(in thousands, except percentages)
Net income (loss)$(10,514)(5%)$4,769 4%
Adjustments:
Interest expense16,119 8%1,076 1%
Depreciation and amortization29,300 14%3,239 3%
Equity-based compensation expense and related payroll taxes34,330 17%26,907 23%
Tax receivable agreement expense— —%5,344 5%
Transaction expenses(1)
549 0%248 0%
Amortization of prepaid management fees and reimbursable expenses— —%608 0%
Provision for (benefit from) income tax expense510 0%(486)0%
Other (income) expense, net439 0%(3,365)(3%)
Adjusted EBITDA$70,733 34%$38,340 33%
Revenue$205,110 100%$115,828 100%
Nine Months Ended September 30,
20252024
(in thousands, except percentages)
Net income (loss)$(27,729)(5%)$7,280 2%
Adjustments:
Interest expense30,502 6%3,256 1%
Depreciation and amortization56,052 11%8,730 3%
Equity-based compensation expense and related payroll taxes100,735 20%80,540 25%
Tax receivable agreement expense— —%11,545 3%
Transaction expenses(1)
18,263 3%1,926 1%
Amortization of prepaid management fees and reimbursable expenses10 0%1,780 0%
Provision for (benefit from) income tax expense(287)0%(505)0%
Other (income) expense, net(3,429)(1%)(10,560)(3%)
Adjusted EBITDA$174,117 34%$103,992 32%
Revenue$513,911 100%$325,338 100%
(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 September 30,Nine Months Ended September 30,
2025202420252024
Net cash provided by operating activities$48,984 $49,657 $120,565 $103,520 
Less: Purchases of property, equipment and software4,057 1,546 8,512 4,437 
Free Cash Flow$44,927 $48,111 $112,053 $99,083 



Clearwater Analytics Holdings, Inc.
Reconciliation of Non-GAAP Information
(In thousands, except share amounts and per share amounts, unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Revenue$205,110 $115,828 $513,911 $325,338 
Gross profit$134,472 $84,471 $345,927 $235,912 
Adjustments:
Equity-based compensation expense and related payroll taxes4,646 3,743 13,817 10,583 
Depreciation and amortization21,873 2,702 42,115 7,298 
Gross profit, non-GAAP$160,991 $90,916 $401,859 $253,793 
As a percentage of revenue, non-GAAP78%78%78%78%
Cost of Revenue$70,638 $31,357 $167,984 $89,426 
Adjustments:
Equity-based compensation expense and related payroll taxes4,646 3,743 13,817 10,583 
Depreciation and amortization21,873 2,702 42,115 7,298 
Cost of revenue, non-GAAP$44,119 $24,912 $112,052 $71,545 
As a percentage of revenue, non-GAAP22%22%22%22%
Research and development$52,065 $36,618 $139,219 $109,654 
Adjustments:
Equity-based compensation expense and related payroll taxes7,426 9,085 26,237 30,265 
Depreciation and amortization472 215 986 580 
Research and development, non-GAAP$44,167 $27,318 $111,996 $78,809 
As a percentage of revenue, non-GAAP22%24%22%24%
Sales and marketing$44,471 $17,889 $103,323 $49,369 
Adjustments:
Equity-based compensation expense and related payroll taxes12,806 4,052 28,121 10,994 
Depreciation and amortization6,054 174 11,123 464 
Sales and marketing, non-GAAP$25,611 $13,663 $64,079 $37,911 
As a percentage of revenue, non-GAAP12%12%12%12%
General and administrative$31,382 $22,626 $104,328 $65,873 
Adjustments:
Equity-based compensation expense and related payroll taxes9,452 10,027 32,560 28,698 
Depreciation and amortization901 148 1,828 388 
Amortization of prepaid management fees and reimbursable expenses— 608 10 1,780 
Transaction expenses549 248 18,263 1,926 
General and administrative, non-GAAP$20,480 $11,595 $51,667 $33,081 



As a percentage of revenue, non-GAAP10%10%10%10%
Income (loss) from operations$6,554 $7,338 $(943)$11,016 
Adjustments:
Equity-based compensation expense and related payroll taxes34,330 26,907 100,735 80,540 
Depreciation and amortization29,300 3,239 56,052 8,730 
Amortization of prepaid management fees and reimbursable expenses— 608 10 1,780 
Transaction expenses549 248 18,263 1,926 
Income from operations, non-GAAP$70,733 $38,340 $174,117 $103,992 
As a percentage of revenue, non-GAAP34%33%34%32%
Net income (loss)$(10,514)$4,769 $(27,729)$7,280 
Adjustments:
Equity-based compensation expense and related payroll taxes34,330 26,907 100,735 80,540 
Depreciation and amortization29,300 3,239 56,052 8,730 
Tax receivable agreement expense— 5,344 — 11,545 
Amortization of prepaid management fees and reimbursable expenses— 608 10 1,780 
Transaction expenses549 248 18,263 1,926 
Tax impacts of adjustments to net income (loss) (1)
(13,034)(10,157)(37,048)(27,824)
Net income, non-GAAP$40,631 $30,958 $110,283 $83,977 
As a percentage of revenue, non-GAAP20%27%21%26%
Net income per share - basic, non-GAAP$0.14 $0.14 $0.42 $0.39 
Net income per share - diluted, non-GAAP$0.14 $0.12 $0.39 $0.33 
Weighted average common shares outstanding - basic287,979,411219,009,124265,498,307216,880,515
Weighted average common shares outstanding - diluted299,021,144258,965,226282,426,706255,291,333
(1)The non-GAAP effective tax rate was 25% for the three and nine months ended September 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.