Open the filing on EDGARClarivate Reports First Quarter 2026 Results Selected Financial Information Reaffirms outlook for 2026 (forward-looking statement) Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are Condensed Consolidated Balance Sheets (Unaudited) Condensed Consolidated Statements of Operations (Unaudited) Condensed Consolidated Statements of Cash Flows (Unaudited) Supplemental Revenues Information Three Months Ended March 31,(In millions, except percentages); (unaudited)20262025Net income (loss)$(40.2) $(103.9) Provision (benefit) for income taxes11.4 18.8 Depreciation and amortization184.0 185.4 Interest expense, net59.0 64.3 Share-based compensation expense14.6 11.1 Restructuring costs12.0 24.7 Transaction related costs8.2 6.3 Other(1)(7.8) 26.5 Adjusted EBITDA$241.2 $233.2 Net income (loss) margin(6.9)%(17.5)%Adjusted EBITDA margin41.2%39.3% Free cash flow Free cash flow provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be (In millions, except percentages and per share data), (unaudited)Three Months EndedMarch 31,Change20262025$%Revenues$585.5 $593.7 $(8.2) (1.4) %Net income (loss)$(40.2) $(103.9) $63.7 61.3 %Adjusted net income(1)$119.3 $95.8 $23.5 24.5 %Adjusted EBITDA(1)$241.2 $233.2 $8.0 3.4 %Diluted EPS$(0.06) $(0.15) $0.09 60.0 %Adjusted diluted EPS(1)$0.18 $0.14 $0.04 28.6 %Net cash provided by operating activities$134.7 $171.2 $(36.5) (21.3) %Free cash flow(1)$78.9 $110.3 $(31.4) (28.5) % Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table The following table presents our calculation of Free cash flow for the 2026 outlook and reconciles this non-GAAP (In millions)March 31, 2026December 31, 2025ASSETSCurrent assets:Cash and cash equivalents, including restricted cash$242.2 $329.2 Accounts receivable, net882.9 821.7 Prepaid expenses109.1 94.2 Other current assets66.9 64.9 Total current assets1,301.1 1,310.0 Property and equipment, net50.9 52.7 Other intangible assets, net7,863.7 8,008.1 Goodwill1,566.6 1,566.7 Other non-current assets85.8 68.1 Deferred income taxes16.5 17.2 Operating lease right-of-use assets42.5 46.6 Total assets$10,927.1 $11,069.4 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable$135.7 $150.6 Accrued compensation100.6 146.7 Accrued expenses and other current liabilities286.3 273.0 Current portion of deferred revenues1,000.4 878.6 Current portion of operating lease liability17.6 18.4 Current portion of long-term debt1.5 101.5 Total current liabilities1,542.1 1,568.8 Long-term debt4,281.6 4,321.5 Other non-current liabilities75.9 86.2 Deferred income taxes205.0 212.1 Operating lease liabilities33.7 37.9 Total liabilities6,138.3 6,226.5 Commitments and contingenciesShareholders' equity:Ordinary Shares, no par value; unlimited shares authorized; 639.2 and 640.7 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively12,801.3 12,810.6 Accumulated other comprehensive loss(457.7) (453.1) Accumulated deficit(7,554.8) (7,514.6) Total shareholders' equity4,788.8 4,842.9 Total liabilities and shareholders' equity$10,927.1 $11,069.4 Three Months Ended March 31,(In millions, except per share data)20262025Revenues$585.5 $593.7 Operating expenses:Cost of revenues192.1 207.0 Selling, general and administrative costs176.3 178.4 Depreciation and amortization184.0 185.4 Restructuring costs12.0 24.7 Other operating expense (income), net(9.1) 19.0 Total operating expenses555.3 614.5 Income (loss) from operations30.2 (20.8) Interest expense, net59.0 64.3 Income (loss) before income taxes(28.8) (85.1) Provision (benefit) for income taxes11.4 18.8 Net income (loss)$(40.2) $(103.9) Per share:Basic$(0.06) $(0.15) Diluted$(0.06) $(0.15) Weighted average shares used to compute earnings per share:Basic640.7 689.8 Diluted640.7 689.8 Three Months Ended March 31,(In millions)20262025Cash Flows From Operating ActivitiesNet income (loss)$(40.2) $(103.9) Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization184.0 185.4 Share-based compensation14.2 10.7 Amortization and write-off of debt issuance costs3.3 2.9 Other operating activities(16.8) 21.6 Changes in operating assets and liabilities:Accounts receivable(62.3) (33.6) Prepaid expenses(15.2) (14.7) Other assets(8.7) 1.9 Accounts payable(14.5) (5.8) Accrued expenses and other current liabilities(34.8) (3.9) Deferred revenues129.3 111.3 Operating leases, net(0.8) (1.5) Other liabilities(2.8) 0.8 Net cash provided by operating activities134.7 171.2 Cash Flows From Investing ActivitiesCapital expenditures(55.8) (60.9) Net cash used for investing activities(55.8) (60.9) Cash Flows From Financing ActivitiesPrincipal payments on debt(138.5) - Repurchases of ordinary shares(18.1) (50.0) Payments related to tax withholding for share-based compensation(5.3) (6.4) Other financing activities(0.4) (0.2) Net cash used for financing activities(162.3) (56.6) Effects of exchange rates(3.6) 5.1 Net change in cash and cash equivalents, including restricted cash(87.0) 58.8 Cash and cash equivalents, including restricted cash, beginning of period329.2 295.2 Cash and cash equivalents, including restricted cash, end of period$242.2 $354.0 - Value Creation Plan delivering accelerated organic revenue growth - The full-year outlook presented below assumes no further acquisitions, divestitures, or other unanticipated events. Annualized contract value (“ACV”), at any point in time, represents the annualized value of all active customer construed as an inference that our future results will be unaffected by any of the adjusted items, or that any presents our calculation of Free cash flow for the three months ended March 31, 2026 and 2025 and reconciles measure to our Net cash provided by operating activities for the same period: subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the Full Year 2026 OutlookOrganic ACV2.0% to 3.0%Recurring Organic Revenue Growth0.75% to 2.25%Revenues$2.30B to $2.42BAdjusted EBITDA(1)$980M to $1.04BAdjusted EBITDA Margin(1)42.0% to 43.5%Adjusted Diluted EPS(1)(2)$0.70 to $0.80 Free Cash Flow(1)$365M to $435M - Utilized solid free cash flow generation to deleverage - projections and estimates will be realized in their entirety or at all. this non-GAAP measure to Net cash provided by operating activities for the same periods: Year Ending December 31, 2026(Forecasted)(In millions); (unaudited)LowHighNet cash provided by operating activities$615$685Capital expenditures(250)(250)Free cash flow$365$435 measurement period are renewed at their current price level. Our organic ACV grew 1.6% compared to March 31,
- Reaffirms 2026 financial outlook - Forward-Looking Statements Three Months Ended March 31,(In millions); (unaudited)20262025Net cash provided by operating activities$134.7 $171.2 Capital expenditures(55.8) (60.9) Free cash flow$78.9 $110.3 2025, primarily driven by improved product pricing. Our total ACV for March 31, 2026, compared to March 31, London, UK -- April 29, 2026 Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading global 2025, increased 3.2%, primarily due to improved product pricing and FX movements. This release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or provider of transformative intelligence, today reported results for the first quarter ended March 31, 2026. projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking The following tables present our revenues by type and by segment for the periods indicated, as well as the statements” within the meaning of the “safe harbor provisions” of the Private Securities Litigation Reform Act of components driving the changes between periods. Executive Commentary 1995. These forward-looking statements include all matters that are not historical facts, including statements (In millions, except percentages); (unaudited)Three Months EndedMarch 31,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicSubscription$397.5 $388.6 $8.9 2.3 % - %(1.3) %1.9 %1.7 %Re-occurring108.6 105.9 2.7 2.5 % - %(0.1) %4.2 %(1.6) %Recurring revenues506.1 494.5 11.6 2.3 % - %(1.1) %2.4 %1.0 %Transactional79.4 99.2 (19.8) (20.0) % - %(19.3) %1.3 %(2.0) %Revenues$585.5 $593.7 $(8.2) (1.4) % - %(4.2) %2.2 %0.6 % relating to our intentions, beliefs, or current expectations concerning, among other things, the anticipated Matti Shem Tov, Chief Executive Officer: Reconciliations to Certain Non-GAAP Measures - 2026 Outlook divestiture of our LS&H business or any other strategic transactions we may explore, anticipated cost savings, “We are off to a solid start to 2026, with first‑quarter results demonstrating tangible progress against the Value results of operations, financial condition, liquidity, capital allocation plans and share repurchases, foreign Creation Plan we launched in early 2025. Execution of the VCP is strengthening the quality and durability of our Adjusted EBITDA and Adjusted EBITDA margin exchange impacts, prospects, growth, strategies, and the markets in which we operate, our financial guidance for Notes to press release performance. We are simplifying and optimizing our business model, improving commercial effectiveness, and The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2026 the fiscal year 2026 and key drivers thereof and underlying assumptions, the impact or anticipated benefits of our (1)Non-GAAP measure. Please see “Reconciliations to Certain Non-GAAP Measures” in this release for important disclosures and reconciliations of accelerating innovation across the portfolio. Together, these actions are expanding margins, increasing free cash outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the Value Creation Plan and other growth strategies, the global macroeconomic uncertainty and volatility, the impact these financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release. (1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing flow generation, and improving the consistency of our results. AI is becoming a meaningful enabler of this same period: (2)Adjusted diluted EPS for 2026 is calculated based on approximately 650 million fully diluted adjusted weighted average ordinary shares outstanding. of artificial intelligence (“AI”) on our business and strategy, and the timing of any of the foregoing. These operating performance. Media Contact: progress, embedded in our products to enhance customer workflows and decision‑making, and deployed First Quarter 2026 Commentary forward-looking statements can generally be identified by the use of forward-looking terminology, including the Year Ending December 31, 2026(Forecasted)(In millions); (unaudited)LowHighNet income (loss)$(189)$(124)Provision (benefit) for income taxes4348Depreciation and amortization786786Interest expense, net238228Share-based compensation expense7070Restructuring costs(1)2525Transaction related costs1313Other(6)(6)Adjusted EBITDA$980$1,040Net income (loss) margin(8.2)%(5.1)%Adjusted EBITDA margin42.0%43.5% Adjusted net income and Adjusted diluted EPS internally to drive efficiency and scalability. With a more focused strategy and continued execution discipline, we Conference Call and Webcast Amy Bourke-Waite, Senior Director, Communications & Brand terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” “plans,” “may,” “will,” or Subscription revenues were $397.5 million, compared to $388.6 million in the prior year period. Organic remain confident in our ability to deliver sustainable growth and long‑term value for shareholders.” Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible newsroom@clarivate.com (In millions, except percentages); (unaudited)Three Months EndedMarch 31,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicAcademia & Government$295.0 $302.7 $(7.7) (2.5) % - %(6.2) %1.7 %2.0 %Intellectual Property197.2 192.7 4.5 2.3 % - % - %3.6 %(1.3) %Life Sciences & Healthcare93.3 98.3 (5.0) (5.1) % - %(6.9) %1.0 %0.8 %Revenues$585.5 $593.7 $(8.2) (1.4) % - %(4.2) %2.2 %0.6 % “should” or, in each case, their negative or other variations or comparable terminology. Such forward-looking Clarivate will host a conference call and webcast today to review the results for the first quarter at 9:30 a.m. subscription revenues increased 1.7%, driven by new customer wins and pricing. assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value Jonathan Collins, Executive Vice President and Chief Financial Officer: statements are based on available current market material and management’s expectations, beliefs, and forecasts Eastern Time. The webcast is open to all interested parties and may include forward-looking information. Investor Relations Contact: Re-occurring revenues were $108.6 million, compared to $105.9 million in the prior year period. Organic re- adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign concerning future events impacting us. These forward-looking statements involve a number of risks and “We generated solid free cash flow of $79 million in the first quarter, reflecting strong Adjusted EBITDA The live webcast of the earnings call will be accessible through the investor relations section of the Company’s occurring revenues declined 1.6%, primarily due to lower IP segment volumes. Mark Donohue, Vice President, Investor Relations currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance and continued financial discipline. During the quarter, we used free cash flow and excess cash on website. To join the webcast please visit https://events.q4inc.com/attendee/839803049. investor.relations@clarivate.com we do not consider indicative of our ongoing operating performance and the associated income tax impact of such Total recurring revenues, consisting of subscription and re-occurring revenues, increased 1.0% organically, performance to be materially different from those expressed or implied by these forward-looking statements. hand to retire $143 million of debt, further strengthening our balance sheet. Based on our first‑quarter 215.243.2202 adjustments. Interested parties may access the live audio broadcast. U.S. participants may call 800-715-9871; international compared to the prior year period, reflecting continued progress toward a more stable and predictable revenue These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors in performance and continued execution under the Value Creation Plan, we are reaffirming our full‑year 2026 Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. participants may call +1 646-307-1963 (long-distance charges will apply). The conference ID number is 3598988. profile. our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission outlook, including expectations for margin expansion and approximately $400 million of free cash flow.” The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are (“SEC”). There can be no assurance that future developments affecting us will be those that we have anticipated. A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion Transactional revenues were $79.4 million compared to $99.2 million in the prior year period, reflecting the Reconciliations to Certain Non-GAAP Measures dilutive. First Quarter 2026 Results Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, of the live call and will remain available for one year. impact of disposals in A&G and LS&H segments. Organic transactional revenues declined 2.0%, primarily due to actual results may vary in material respects from those projected in these forward-looking statements. We do not The following table presents our calculation of Adjusted net income and Adjusted diluted EPS for the three Total revenues for the first quarter 2026 were $585.5 million, compared to total revenues of $593.7 million in the lower A&G activity. Adjusted EBITDA and Adjusted EBITDA margin Use of Non-GAAP Financial Measures undertake any obligation to update or revise any forward-looking statements, whether as a result of new months ended March 31, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and first quarter 2025, reflecting the impact of inorganic disposals. On an organic basis, revenues improved 0.6%, as Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and Balance Sheet and Cash Flow information, future events or otherwise, except as may be required under applicable securities laws. Please consult diluted EPS for the same periods: This release contains financial measures that have not been prepared in accordance with U.S. generally accepted 1.7% organic subscription growth was partially offset by organic re-occurring and transactional revenues. amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring our public filings with the SEC, which are also available on our website at www.clarivate.com. Three Months Ended March 31,20262025(In millions, except per share amounts); (unaudited)AmountPer ShareAmountPer ShareNet income (loss) and Diluted EPS$(40.2) $(0.06) $(103.9) $(0.15) Amortization related to acquired intangible assets135.4 0.21 136.3 0.20 Share-based compensation expense14.6 0.02 11.1 0.02 Restructuring costs12.0 0.02 24.7 0.04 Transaction related costs8.2 0.01 6.3 0.01 Other(1)(6.2) (0.01) 26.5 0.03 Income tax impact of related adjustments(4.5) (0.01) (5.2) (0.01) Adjusted net income and Adjusted diluted EPS$119.3 $0.18 $95.8 $0.14 Adjusted weighted average ordinary shares, diluted647.3 695.2 accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, As of March 31, 2026, cash and cash equivalents were $242.2 million, a decrease of $87.0 million compared to expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or Organic ACV increased 1.6% compared to March 31, 2025, reflecting continued progress toward a more Adjusted diluted EPS, and Free cash flow. Non-GAAP financial measures are not recognized terms under GAAP, December 31, 2025. About Clarivate disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that sustainable, subscription-led revenue base. (1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan. are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss Total debt outstanding was $4,326.8 million as of March 31, 2026, a decrease of $143.1 million compared to the are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, Net loss for the first quarter 2026 improved to $40.2 million, or $0.06 per diluted share, compared to a net loss of for the period determined in accordance with GAAP or operating cash flows determined in accordance with Adjusted diluted EPS prior year, driven by a $100.0 million accelerated debt repayment completed in January 2026, fully redeeming the performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted workflow solutions and expert services in the areas of Academia & Government, Intellectual Property, and Life $103.9 million, or $0.15 per diluted share, in the first quarter 2025. Adjusted net income was $119.3 million, or GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial The following table presents our calculation of Adjusted diluted EPS for the 2026 outlook and reconciles this non- senior secured notes due November 2026, as well as the retirement of $42.6 million aggregate principal of the EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues. Sciences & Healthcare. For more information, please visit www.clarivate.com. $0.18 per diluted share, compared to $95.8 million, or $0.14 per diluted share, in the first quarter 2025. Adjusted measures or results of operations calculated or determined in accordance with GAAP. GAAP measure to our Net income (loss) per share for the same period: senior secured notes due 2028 and senior notes due 2029 through a series of debt repurchases completed in March The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three EBITDA improved to $241.2 million, compared to $233.2 million in the first quarter 2025. We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating 2026 at an approximate 10% discount to par. Year Ending December 31, 2026(Forecasted)(Unaudited)LowHighNet income (loss)$(0.29)$(0.19)Amortization related to acquired intangible assets0.840.84Share-based compensation expense0.110.11Restructuring costs(1)0.040.04Transaction related costs0.020.02Other0.010.01Income tax impact of related adjustments(0.03)(0.03)Adjusted diluted EPS$0.70$0.80Adjusted weighted average ordinary shares, diluted~650 million months ended March 31, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and Clarivate generated $134.7 million of operating cash flow and $78.9 million of free cash flow during the first performance of our business, to assess performance for employee compensation purposes, and to decide how to Net income (loss) margin for the same periods: Net cash provided by operating activities for the three months ended March 31, 2026 was $134.7 million quarter of 2026. allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable compared to $171.2 million in the prior year period. Free cash flow was $78.9 million compared to $110.3 million indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also in the prior year period. believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. Further, (1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing these measures can be useful in evaluating our performance against our peer companies because we believe they operating performance. provide users with valuable insight into key components of our GAAP financial disclosure. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
(1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan. 1 2 3 4 5 6 7 8 9 10 11