10-Q · April 29, 2026
Clarivate's Q1 2026 results showed a slight revenue decline of 1.4% year-over-year, totaling $585.5 million, while net losses improved to $40.2 million from $103.9 million in the prior year. Despite ongoing…
Earnings analysis · 10-Q
CLVT earnings analysis
Filed July 29, 2026 · Our reading of the company's report
The latest report
Clarivate’s Q2 revenue declined 5.5% year over year to $587.3M, with all segments lower and transactional revenue down 30.1%. Cost discipline lifted gross margin to 68.4% and adjusted EBITDA margin held at 42.1%, but a…
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Clarivate’s Q2 revenue declined 5.5% year over year to $587.3M, with all segments lower and transactional revenue down 30.1%. Cost discipline lifted gross margin to 68.4% and adjusted EBITDA margin held at 42.1%, but a $221.7M LS&H goodwill impairment produced a $268.6M GAAP net loss and a -34.1% operating margin. Cash generation remained positive, though first-half free cash flow fell 23% to $122.9M, while the planned LS&H divestiture introduces execution and reporting-transition risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
What stood out
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Revenue declined 5.5%, led by transactions
Q2 revenue was $587.3M, down $34.1M, or 5.5%, from $621.4M a year earlier. The decline was concentrated in transactional revenue, which fell $32.1M, or 30.1%, to $74.7M.
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Gross margin expanded 120 basis points
Gross margin expanded to 68.4% from 67.2% a year ago, as cost of revenues fell 9% to $185.5M versus a 5.5% revenue decline. Management attributed the cost reduction to product wind-downs and improved cost management.
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Underlying subscription metrics remained resilient
Adjusted EBITDA was $247.2M versus $261.6M, while adjusted EBITDA margin held at 42.1%. Organic ACV increased 1.5% year over year and total ACV increased 3.1%, primarily from pricing and FX.
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Cash conversion remained positive despite decline
Operating cash flow was $233.4M for the first six months, with capital expenditures of $110.5M and free cash flow of $122.9M. Capex represented 9.4% of six-month revenue of $1.173B.
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Debt reduction lowered interest expense
Clarivate repurchased and retired $117.6M carrying value of notes for $111.1M cash during the first six months, generating a $5.9M net gain on extinguishment. Interest expense declined 9% to $60.4M in Q2.
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LS&H divestiture reshapes reported business
The company entered an agreement in July 2026 to sell LS&H and anticipates closing by the end of 2026; LS&H will be presented as discontinued operations beginning in Q3 2026.
What to watch
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LS&H impairment drove substantial GAAP loss
GAAP operating loss was $200.2M, versus $6.9M of operating income a year ago, after a $221.7M non-cash goodwill impairment in LS&H. Net loss widened to $268.6M from $72.0M.
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All three operating segments declined
Every segment contracted: A&G fell $18.2M (5.7%) to $300.3M, IP fell $4.2M (2.1%) to $198.3M, and LS&H fell $11.7M (11.7%) to $88.7M. Management cited product-group wind-downs and lower transactional activity.
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Working-capital timing reduced cash flow
First-half operating cash flow decreased $54.1M (19%) to $233.4M and free cash flow decreased $37.7M (23%) to $122.9M, as seasonal working-capital outflows more than offset improved operating results.
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Leverage remains material
Debt remained substantial at $4.224B at June 30, 2026, compared with $217.7M of cash. While available revolver capacity was $768.6M, the company requires significant cash resources for debt service, working capital, and product development.
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No formal risk-factor update; sale execution remains
Item 1A states there were no material changes to risk factors from the December 31, 2025 Form 10-K. However, the announced LS&H sale is expected to close by the end of 2026 and remains subject to regulatory approvals and other customary conditions.
Management's outlook
The 10-Q MD&A does not provide quantitative revenue or EPS guidance. Management states it anticipates the LS&H sale will close by the end of 2026, subject to customary conditions, and expects the Value Creation Plan to continue throughout 2026 and into 2027.
Earlier filings 4
10-K · February 24, 2026
Clarivate positions itself as a leading provider of AI-enabled, subscription and re-occurring intelligence solutions across Academia & Government, Intellectual Property, and Life Sciences & Healthcare, serving more than…
10-Q · July 30, 2025
Clarivate reported revenue of $621.4M for Q2 (June 30, 2025), a sequential increase from ~$594.0M but down vs. Q2 2024. Operating performance improved materially — income from operations was $6.9M vs an operating loss…
10-Q · May 8, 2024
Clarivate reported Q1 revenue of $621.2M, down modestly from $629.1M a year ago, while GAAP diluted EPS was $(0.14) (net loss $75.0M). Gross profit improved (revenues $621.2M less cost of revenues $217.8M = $403.4M) but…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.