Open the filing on EDGARClarivate Reports Second Quarter 2026 Results Reaffirms outlook for 2026 (forward-looking statement) Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are Supplemental Revenues Information Reconciliations to Certain Non-GAAP Measures The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and Reconciliations to Certain Non-GAAP Measures - 2026 Outlook Free cash flow Condensed Consolidated Balance Sheets - Unaudited Condensed Consolidated Statements of Operations - Unaudited Condensed Consolidated Statements of Cash Flows - Unaudited provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be six months ended June 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and Selected Financial Information - Delivers continued progress on strategic and financial priorities through Value Creation Plan - The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events. (In millions)June 30, 2026December 31, 2025ASSETSCurrent assets:Cash and cash equivalents, including restricted cash$217.7 $329.2 Accounts receivable, net827.9 821.7 Prepaid expenses107.1 94.2 Other current assets61.5 64.9 Total current assets1,214.2 1,310.0 Property and equipment, net49.5 52.7 Other intangible assets, net7,734.3 8,008.1 Goodwill1,344.9 1,566.7 Other non-current assets86.5 68.1 Deferred income taxes17.9 17.2 Operating lease right-of-use assets38.8 46.6 Total assets$10,486.1 $11,069.4 LIABILITIES AND SHAREHOLDERS' EQUITYCurrent liabilities:Accounts payable$152.9 $150.6 Accrued compensation99.0 146.7 Accrued expenses and other current liabilities268.5 273.0 Current portion of deferred revenues897.0 878.6 Current portion of operating lease liability16.7 18.4 Current portion of long-term debt1.6 101.5 Total current liabilities1,435.7 1,568.8 Long-term debt4,209.3 4,321.5 Other non-current liabilities75.8 86.2 Deferred income taxes197.9 212.1 Operating lease liabilities29.9 37.9 Total liabilities5,948.6 6,226.5 Commitments and contingenciesShareholders' equity:Ordinary Shares, no par value; unlimited shares authorized; 639.7 and 640.7 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively12,815.2 12,810.6 Accumulated other comprehensive loss(454.3) (453.1) Accumulated deficit(7,823.4) (7,514.6) Total shareholders' equity4,537.5 4,842.9 Total liabilities and shareholders' equity$10,486.1 $11,069.4 Three Months Ended June 30,Six Months Ended June 30,(In millions, except per share data)2026202520262025Revenues$587.3 $621.4 $1,172.8 $1,215.1 Operating expenses:Cost of revenues185.5 203.6 377.6 410.6 Selling, general and administrative costs181.6 181.1 357.9 359.5 Depreciation and amortization185.7 190.9 369.7 376.3 Goodwill and intangible asset impairments221.7 - 221.7 - Restructuring costs12.1 9.3 24.1 34.0 Other operating expense (income), net0.9 29.6 (8.2) 48.6 Total operating expenses787.5 614.5 1,342.8 1,229.0 Income (loss) from operations(200.2) 6.9 (170.0) (13.9) Interest expense, net60.4 66.6 119.4 130.9 Income (loss) before income taxes(260.6) (59.7) (289.4) (144.8) Provision (benefit) for income taxes8.0 12.3 19.4 31.1 Net income (loss)$(268.6) $(72.0) $(308.8) $(175.9) Per share:Basic$(0.42) $(0.11) $(0.48) $(0.26) Diluted$(0.42) $(0.11) $(0.48) $(0.26) Weighted average shares used to compute earnings per share:Basic639.4681.3640.0685.5Diluted639.4681.3640.0685.5 Six Months Ended June 30,(In millions)20262025Cash Flows From Operating ActivitiesNet income (loss)$(308.8) $(175.9) Adjustments to reconcile net income (loss) to net cash provided by operating activities:Depreciation and amortization369.7 376.3 Share-based compensation29.4 29.3 Goodwill and intangible asset impairments221.7 - Deferred income taxes(11.3) (5.4) Amortization and write-off of debt issuance costs6.6 7.7 Other operating activities(14.0) 48.0 Changes in operating assets and liabilities:Accounts receivable(11.3) 2.2 Prepaid expenses(13.3) (1.5) Other assets(5.0) 3.1 Accounts payable3.2 (3.3) Accrued expenses and other current liabilities(54.3) (36.1) Deferred revenues24.4 42.6 Operating leases, net(1.9) (3.2) Other liabilities(1.7) 3.7 Net cash provided by operating activities233.4 287.5 Cash Flows From Investing ActivitiesCapital expenditures(110.5) (126.9) Net cash used for investing activities(110.5) (126.9) Cash Flows From Financing ActivitiesPrincipal payments on debt(211.1) (500.0) Proceeds from issuance of debt - 500.0 Payment of debt issuance and extinguishment costs - (8.5) Repurchases of ordinary shares(18.1) (99.5) Payments related to tax withholding for share-based compensation(6.6) (8.1) Other financing activities4.6 5.6 Net cash used for financing activities(231.2) (110.5) Effects of exchange rates(3.2) 17.3 Net change in cash and cash equivalents, including restricted cash(111.5) 67.4 Cash and cash equivalents, including restricted cash, beginning of period329.2 295.2 Cash and cash equivalents, including restricted cash, end of period$217.7 $362.6 The following table presents our calculation of Free cash flow for the 2026 outlook and reconciles this non-GAAP Annualized contract value (“ACV”), at any point in time, represents the annualized value of all active customer Adjusted EBITDA and Adjusted EBITDA margin Adjusted EBITDA and Adjusted EBITDA margin construed as an inference that our future results will be unaffected by any of the adjusted items, or that any diluted EPS for the same periods: measure to our Net cash provided by operating activities for the same period: subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the
- Sharpens focus and enhances financial profile with previously announced Life Sciences & (In millions, except percentages and per share data), (unaudited)Three Months EndedJune 30,ChangeSix Months EndedJune 30,Change20262025$%20262025$%Revenues$587.3 $621.4 $(34.1) (5.5)%$1,172.8 $1,215.1 $(42.3) (3.5)%Net income (loss)$(268.6) $(72.0) $(196.6) N/M$(308.8) $(175.9) $(132.9) (75.6)%Adjusted net income(1)$123.1 $123.3 $(0.2) (0.2)%$242.4 $219.1 $23.3 10.6%Adjusted EBITDA(1)$247.2 $261.6 $(14.4) (5.5)%$488.4 $494.8 $(6.4) (1.3)%Diluted EPS$(0.42) $(0.11) $(0.31) N/M$(0.48) $(0.26) $(0.22) (84.6)%Adjusted diluted EPS(1)$0.19$0.18$0.015.6%$0.38$0.32$0.0618.8%Net cash provided by operating activities$98.7$116.3$(17.6)(15.1)%$233.4$287.5$(54.1)(18.8)%Free cash flow(1)$44.0$50.3$(6.3)(12.5)%$122.9$160.6$(37.7)(23.5)% Full Year 2026 OutlookACV Organic Growth2.0% to 3.0%Recurring Organic Revenue Growth0.75% to 2.25%Revenues, Including Discontinued Operations(1)$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 $435M projections and estimates will be realized in their entirety or at all. Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and Three Months Ended June 30,20262025(In millions, except per share amounts); (unaudited)AmountPer ShareAmountPer ShareNet income (loss) and Diluted EPS$(268.6)$(0.42)$(72.0)$(0.11)Amortization related to acquired intangible assets135.30.21137.00.20Share-based compensation expense15.10.0218.50.03Goodwill and intangible asset impairments221.70.35 - - Restructuring costs12.10.029.30.01Transaction related costs10.20.028.10.01Other(1)4.3 - 28.00.05Income tax impact of related adjustments(7.0)(0.01)(5.6)(0.01)Adjusted net income and Adjusted diluted EPS$123.1$0.19$123.3$0.18Adjusted weighted average ordinary shares, diluted642.7684.6 The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2026 measurement period are renewed at their current price level. Our organic ACV grew 1.5% compared to June 30, Healthcare segment divestiture - Year Ending December 31, 2026(Forecasted)(In millions); (unaudited)LowHighNet cash provided by operating activities$610$680Capital expenditures(245)(245)Free cash flow$365$435 amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the Forward-Looking Statements 2025, primarily driven by improved product pricing. Our total ACV for June 30, 2026, compared to June 30,
- Reaffirms 2026 financial outlook - expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or same period: 2025, increased 3.1%, primarily due to improved product pricing and FX movements. This release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that Year Ending December 31, 2026(Forecasted)(In millions); (unaudited)Low HighNet income (loss)$(418)$(353)Provision (benefit) for income taxes4545Depreciation and amortization760760Interest expense, net242237Share-based compensation expense7070Goodwill and intangible asset impairments222222Restructuring costs(1)3535Transaction related costs3535Other(11)(11)Adjusted EBITDA$980$1,040Net income (loss) margin(18.2)%(14.6)%Adjusted EBITDA margin42.0%43.5% London, UK -- July 29, 2026 Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading global projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking The following tables present our revenues by type and segment, as well as the components driving the changes are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating provider of transformative intelligence, today reported results for the second quarter ended June 30, 2026. statements” within the meaning of the “safe harbor provisions” of the Private Securities Litigation Reform Act of between periods. performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted 1995. These forward-looking statements include all matters that are not historical facts, including statements Executive Commentary EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.
Revenues by transaction type
relating to our intentions, beliefs, or current expectations concerning, among other things, the divestiture of our The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three Revenues, including discontinued operations Matti Shem Tov, Chief Executive Officer: Life Sciences & Healthcare business or any other strategic transactions we may explore, the anticipated use of (In millions, except percentages); (unaudited)Three Months EndedJune 30,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicSubscription$403.3$405.7$(2.4)(0.6)% - %(1.0)%(0.3)%0.7%Re-occurring109.3108.90.40.4% - % - %0.4% - %Recurring revenues512.6514.6(2.0)(0.4)% - %(0.7)%(0.2)%0.5%Transactional74.7106.8(32.1)(30.1)% - %(14.1)%(0.3)%(15.7)%Revenues$587.3$621.4$(34.1)(5.5)% - %(3.8)%(0.2)%(1.5)% and six months ended June 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) proceeds from the divestiture of our Life Sciences & Healthcare business, anticipated cost savings or other “The Value Creation Plan continues to drive meaningful progress, as we execute against our strategic priorities Revenues, including discontinued operations represents total company revenues including those attributable to and Net income (loss) margin for the same periods: benefits, results of operations, financial condition, liquidity, capital allocation plans and share repurchases, foreign and strengthen Clarivate’s foundation for organic growth acceleration. During the quarter, we expanded organic discontinued operations, which will begin to be reported in the third quarter for the LS&H segment. Notes to press release exchange impacts, prospects, growth and shareholder value, strategies, and the markets in which we operate, our recurring revenue, advanced our AI innovation roadmap, maintained disciplined cost management, and Three Months Ended June 30,Six Months Ended June 30,(In millions, except percentages); (unaudited)2026202520262025Net income (loss)$(268.6)$(72.0)$(308.8)$(175.9)Provision (benefit) for income taxes8.012.319.431.1Depreciation and amortization185.7190.9369.7376.3Interest expense, net60.466.6119.4130.9Share-based compensation expense15.118.529.729.6Goodwill and intangible asset impairments221.7 - 221.7 - Restructuring costs12.19.324.134.0Transaction related costs10.28.118.414.4Other(1)2.627.9(5.2)54.4Adjusted EBITDA$247.2$261.6$488.4$494.8Net income (loss) margin(45.7)%(11.6)%(26.3)%(14.5)%Adjusted EBITDA margin42.1%42.1%41.6%40.7% (1) Non-GAAP measure. Please see “Reconciliations to Certain Non-GAAP Measures” in this release for important disclosures and reconciliations of these The following table presents our calculation of Revenues, including discontinued operations and reconciles this financial guidance for the fiscal year 2026 and key drivers thereof and underlying assumptions, the impact or strengthened our balance sheet through deleveraging. Together, with the recently announced divestiture of the financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release. non-GAAP measure to our Revenues, excluding discontinued operations for the same period: anticipated benefits of our Value Creation Plan and other growth strategies, the global macroeconomic uncertainty Life Sciences & Healthcare segment, these actions are creating a more focused company with greater financial (2) Adjusted diluted EPS for 2026 is calculated based on approximately 650 million fully diluted adjusted weighted average ordinary shares outstanding. and volatility, the impact of artificial intelligence (“AI”) on our business and strategy, and the timing of any of the flexibility, a higher recurring revenue mix, and a clear path to deliver long-term value to shareholders.” Year Ending December 31, 2026(Forecasted)(In millions); (unaudited)LowHighRevenues, including discontinued operations$2,300$2,420Revenues attributable to discontinued operations(360)(380)Revenues$1,940$2,040 Conference Call and Webcast (1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing foregoing. These forward-looking statements can generally be identified by the use of forward-looking Second Quarter 2026 Commentary operating performance.
Jonathan Collins, Executive Vice President and Chief Financial Officer:
terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,” Clarivate will host a conference call and webcast today to review the results for the second quarter at 9:30 a.m. Six Months Ended June 30,20262025(In millions, except per share amounts); (unaudited)AmountPer ShareAmountPer ShareNet income (loss) and Diluted EPS$(308.8)$(0.48)$(175.9)$(0.26)Amortization related to acquired intangible assets270.70.42273.30.40Share-based compensation expense29.70.0529.60.04Goodwill and intangible asset impairments221.70.35 - - Restructuring costs24.10.0434.00.05Transaction related costs18.40.0314.40.02Other(1)(1.9)(0.01)54.50.09Income tax impact of related adjustments(11.5)(0.02)(10.8)(0.02)Adjusted net income and Adjusted diluted EPS$242.4$0.38$219.1$0.32Adjusted weighted average ordinary shares, diluted645.0689.9 Subscription revenues decreased $2.4 million, or 0.6%, to $403.3 million, primarily due to product group wind- “Our second quarter results reflect continued financial discipline and execution. In the first half of 2026, we “plans,” “may,” “will,” or “should” or, in each case, their negative or other variations or comparable terminology. Eastern Time. The webcast is open to all interested parties and may include forward-looking information. (In millions, except percentages); (unaudited)Six Months EndedJune 30,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicSubscription$800.8$794.3$6.50.8% - %(1.2)%0.8%1.2%Re-occurring217.9214.83.11.4% - %(0.1)%2.3%(0.8)%Recurring revenues1,018.71,009.19.61.0% - %(0.8)%1.1%0.7%Transactional154.1206.0(51.9)(25.2)% - %(16.3)%0.5%(9.4)%Revenues$1,172.8$1,215.1$(42.3)(3.5)% - %(4.1)%1.0%(0.4)% downs within LS&H. Organic subscription revenues increased 0.7%, primarily due to new sales and price expanded our profit margin and reduced debt by more than $200 million through strong free cash flow generation Such forward-looking statements are based on available current market material and management’s expectations, The live webcast of the earnings call will be accessible through the investor relations section of the Company’s increases. and opportunistic debt repurchases. Combined with our reaffirmed full-year outlook, these results demonstrate the beliefs, and forecasts concerning future events impacting us. These forward-looking statements involve a number website. To join the webcast please visit https://events.q4inc.com/attendee/248169870. resilience of our business model and our commitment to strengthening Clarivate’s financial profile while of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual Re-occurring revenues increased $0.4 million, or 0.4%, to $109.3 million, primarily due to foreign exchange maintaining the flexibility to invest in our highest-value growth opportunities.” results or performance to be materially different from those expressed or implied by these forward-looking (1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan. Interested parties may access the live audio broadcast. U.S. participants may call 833-461-5787; international benefit. statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Adjusted diluted EPS participants may call +1 585-542-9983 (long-distance charges will apply). The conference ID number is Second Quarter 2026 Results Recurring revenues, which consist of subscription and re-occurring revenues, increased 0.5% organically. Factors in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange 248169870. Media Contact: The following table presents our calculation of Adjusted diluted EPS for the 2026 outlook and reconciles this non- Total revenues were $587.3 million, compared to total revenues of $621.4 million for the second quarter of 2025, Commission (“SEC”). There can be no assurance that future developments affecting us will be those that we have Transactional revenues decreased $32.1 million, or 30.1%, to $74.7 million, primarily due to product group wind- A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion GAAP measure to our Net income (loss) per share for the same period: Amy Bourke-Waite, Senior Director, Communications & Brand primarily due to inorganic divestitures and disposals. Organic revenues decreased 1.5% as organic subscription anticipated. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove downs within A&G. Organic transactional revenues decreased 15.7%, primarily due to lower activity across all of the live call and will remain available for one year. newsroom@clarivate.com growth of 0.7% was offset by lower organic transactional revenues. incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Year Ending December 31, 2026(Forecasted)(Unaudited)LowHighNet income (loss) per share$(0.64)$(0.54)Amortization related to acquired intangible assets0.830.83Share-based compensation expense0.110.11Goodwill and intangible asset impairments0.340.34Restructuring costs(1)0.050.05Transaction related costs0.050.05Other(0.01)(0.01)Income tax impact of related adjustments(0.03)(0.03)Adjusted diluted EPS$0.70$0.80Adjusted weighted average ordinary shares, diluted~650 million segments, driven in part by customer migrations to subscription offerings.
Revenues by segment
Forward-looking statements notice
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of Use of Non-GAAP Financial Measures Organic ACV grew 1.5% compared to June 30, 2025, reflecting continued progress toward a more sustainable, Investor Relations Contact: Balance Sheet and Cash Flow (1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing new information, future events, or otherwise, except as may be required under applicable securities laws. Please operating performance. (In millions, except percentages); (unaudited)Three Months EndedJune 30,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicAcademia & Government$300.3$318.5$(18.2)(5.7)% - %(5.9)%(0.1)%0.3%Intellectual Property198.3202.5(4.2)(2.1)% - % - %0.2%(2.3)%Life Sciences & Healthcare88.7100.4(11.7)(11.7)% - %(5.4)%(1.1)%(5.2)%Revenues$587.3$621.4$(34.1)(5.5)% - %(3.8)%(0.2)%(1.5)% subscription-led revenue base. This release contains financial measures that have not been prepared in accordance with U.S. generally accepted Mark Donohue, Vice President, Investor Relations consult our public filings with the SEC, which are also available on our website at www.clarivate.com. As of June 30, 2026, cash and cash equivalents of $217.7 million decreased $111.5 million compared to Adjusted net income and Adjusted diluted EPS accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, investor.relations@clarivate.com Net loss was $268.6 million, or $0.42 per diluted share, compared to a net loss of $72.0 million, or $0.11 per December 31, 2025. About Clarivate Adjusted diluted EPS, Free cash flow, and Revenues, including discontinued operations. Non-GAAP financial diluted share, for the second quarter of 2025, driven by a $221.7 million non-cash goodwill impairment charge. (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 Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible operating performance. measures are not recognized terms under GAAP, are not measures of financial condition or liquidity, and should Total debt outstanding was $4,251.5 million as of June 30, 2026, a decrease of $218.4 million compared to the Adjusted net income was $123.1 million, or $0.19 per diluted share, compared to $123.3 million, or $0.18 per Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or prior year, driven by a $100.0 million accelerated debt repayment completed in January 2026, fully redeeming the Free cash flow diluted share, for the second quarter of 2025. Adjusted EBITDA was $247.2 million, compared to Adjusted workflow solutions and expert services in the areas of Academia & Government, Intellectual Property, and Life adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in senior secured notes due November 2026, as well as the retirement of $117.6 million aggregate principal of the EBITDA of $261.6 million for the second quarter of 2025. Sciences & Healthcare. For more information, please visit www.clarivate.com. currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table isolation from, or as a substitute for, financial measures or results of operations calculated or determined in senior secured notes due 2028 and senior notes due 2029 through a series of debt repurchases at an approximate we do not consider indicative of our ongoing operating performance and the associated income tax impact of such presents our calculation of Free cash flow for the three and six months ended June 30, 2026 and 2025 and First Half 2026 Results accordance with GAAP. 6% discount to par. adjustments. reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods: (In millions, except percentages); (unaudited)Six Months EndedJune 30,Change% of Change20262025$%AcquisitionsDisposalsFXOrganicAcademia & Government$595.3$621.2$(25.9)(4.2)% - %(6.1)%0.7%1.2%Intellectual Property395.5395.20.30.1% - % - %1.9%(1.8)%Life Sciences & Healthcare182.0198.7(16.7)(8.4)% - %(6.0)%(0.1)%(2.3)%Revenues$1,172.8$1,215.1$(42.3)(3.5)% - %(4.1)%1.0%(0.4)% Total revenues were $1,172.8 million, compared to total revenues of $1,215.1 million for the first six months of We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating Net cash provided by operating activities for the first six months of 2026 was $233.4 million compared to $287.5 Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. Three Months Ended June 30,Six Months Ended June 30,(In millions); (unaudited)2026202520262025Net cash provided by operating activities$98.7$116.3$233.4$287.5Capital expenditures(54.7)(66.0)(110.5)(126.9)Free cash flow$44.0 $50.3$122.9 $160.6 2025, primarily due to inorganic divestitures and disposals. Organic revenues decreased 0.4%, as a 0.7% increase performance of our business, to assess performance for employee compensation purposes, and to decide how to million in the prior year period. Free cash flow for the first six months of 2026 was $122.9 million compared to The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are in organic recurring revenues (subscription and re-occurring) was offset by lower organic transactional revenues. allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable $160.6 million in the prior year period. dilutive. indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also (1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan. Net loss was $308.8 million, or $0.48 per diluted share, compared to a net loss of $175.9 million, or $0.26 per believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP diluted share, for the first six months of 2025, driven by a $221.7 million non-cash goodwill impairment charge in measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of the second quarter of 2026. Adjusted net income was $242.4 million, or $0.38 per diluted share, compared to companies comparable to us, many of which present non-GAAP measures when reporting their results. Further, $219.1 million, or $0.32 per diluted share, for the first six months of 2025. Adjusted EBITDA was $488.4 million, these measures can be useful in evaluating our performance against our peer companies because we believe they compared to Adjusted EBITDA of $494.8 million for the first six months of 2025. provide users with valuable insight into key components of our GAAP financial disclosure. However, non-GAAP Clarivate generated $233.4 million of operating cash flow and $122.9 million of free cash flow during the first six measures have limitations as analytical tools and because not all companies use identical calculations, our months of 2026. presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. 1 2 3 4 5 6 7 8 9 10 11 12