CLEAR Announces First Quarter 2026 Financial Results
First Quarter Financial Highlights
(percentage change is expressed as year-over-year, unless otherwise specified)
- Revenue of
$253.0 million was up 19.7%; Total Bookings of$291.7 million increased 40.8% - Operating income of
$62.0 million , representing a 24.5% operating income margin - Net income of
$56.4 million , representing a 22.3% net income margin - Adjusted EBITDA of
$80.6 million , representing a 31.9% Adjusted EBITDA margin and 720 basis points of year-over-year margin expansion - Earnings per Common Share Basic and Diluted of
$0.39 and$0.38 , respectively - Net cash provided by operating activities of
$190.4 million ; Free Cash Flow of$185.5 million
Operational Achievements
- Total CLEAR Members grew to 41.0 million, up 31.3% year-over-year and Active CLEAR+ Members grew to 8.2 million, up 13.0% year-over-year
- 60 CLEAR+ airports, and 277 retail locations with TSA PreCheck® Enrollment Provided by CLEAR as of
March 31, 2026 - eGates launched across 43 airports as of today; on track for network wide rollout in 2026
- CLEAR Concierge, a premium, personalized on-demand airport service now offered at 32 airports
- CLEAR1 delivered another record quarter, with bookings increasing approximately fivefold year-over-year, underscoring its strong growth trajectory
Capital Allocation Activities
- Approximately
$56.4 million returned to shareholders in the first quarter of 2026, related to our regular quarterly dividend of$0.15 per share, a special dividend of$0.20 per share, distributions and$1.2 million share repurchases -
Clear Secure, Inc. announced today that its Board of Directors has declared a quarterly cash dividend of$0.15 per share, payable onJune 24, 2026 to shareholders of record of Class A Common Stock and Class B Common Stock as of the close of business onJune 10, 2026
Second Quarter and Full Year 2026 Guidance
- Second quarter 2026 Revenue of
$268-271 million , representing 22.8% year-over-year growth at the midpoint - Second quarter 2026 Total Bookings of
$280-285 million , representing 26.7% year-over-year growth at the midpoint - Full Year 2026 Free Cash Flow guidance increased from at least
$440 million to at least$465 million , representing at least 35.5% year-over-year growth
"The seeds we planted to build the world's most trusted, secure identity platform are taking hold at a critical moment. As structural instability rises, travel systems are under strain and AI-driven fraud accelerates, identity is no longer a feature, it is foundational. Our record first quarter reflects the strength of our platform, combining scale, security and frictionless experiences, positioning CLEAR to define the standard for trusted identity in this new era,"said
Conference Call Details
CLEAR will host a conference call to discuss these results at
About CLEAR
The mission of CLEAR, the secure identity company, is to strengthen security and create frictionless experiences. With over 41 million Members and a growing network of partners across the world, CLEAR's secure identity platform is transforming the way people live, work, and travel. Whether you are traveling, at the stadium, or on your phone, CLEAR connects you to the things that make you, you—making everyday experiences easier, more secure, and friction-free. CLEAR is committed to privacy done right. Members are always in control of their own information, and we do not sell biometric or sensitive personal data. For more information, visit clearme.com.
Key Performance Indicators
|
|
Q1 2025 |
Q2 2025 |
Q3 2025 |
Q4 2025 |
Q1 2026 |
|
Total Bookings (in millions) |
$ 207.2 |
$ 222.9 |
$ 260.1 |
$ 287.1 |
$ 291.7 |
|
Total CLEAR Members (in thousands) |
31,215 |
33,472 |
35,751 |
37,998 |
40,986 |
|
Active CLEAR+ Members (in thousands) |
7,229 |
7,227 |
7,399 |
7,616 |
8,167 |
Definitions of Key Performance Indicators
To evaluate performance of the business, we utilize a variety of other non-GAAP financial reporting and performance measures. These key measures include Total Bookings, Total CLEAR Members, and Active CLEAR+ Members.
Total Bookings
Total Bookings represent our total revenue plus the change in deferred revenue during the period. Total Bookings in any particular period reflect sales to new and renewing CLEAR+ subscribers plus any accrued billings to partners. Management believes that Total Bookings is an important measure of the current health and growth of the business and views it as a leading indicator.
Total CLEAR Members
We define Total CLEAR Members as the cumulative number of Members that have registered for the CLEAR platform since inception as of the end of the period. This includes Members who have enrolled through CLEAR+, trials, single-use product purchases, other non-paid uses of the CLEAR platform, and associated family accounts. Total CLEAR Members exclude members who are solely marketing opt-ins and purged accounts, and are adjusted to remove identified duplicate non-paid accounts. Management views this metric as an important tool to analyze the efficacy of our growth and marketing initiatives as new Members are potentially a current and leading indicator of revenues.
Active CLEAR+ Members
We define Active CLEAR+ Members as the number of members with an active CLEAR+ subscription as of the end of the period. This includes CLEAR+ members who have an activated payment method, plus associated family accounts and is inclusive of Members who are in a trial or in a billing grace period. Management views this as an important tool to measure the growth of its CLEAR+ product.
Prior period Active CLEAR+ Members have been recast to reflect the removal of certain lapsed accounts identified in connection with a billing system transformation project undertaken during 2025. This recast had no impact on our consolidated financial statements or non-GAAP financial measures. There has been no other change in the calculation of Active CLEAR+ Members.
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|
|
|
|
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Assets |
|
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ 170,675 |
|
$ 85,734 |
|
Marketable securities |
629,401 |
|
614,439 |
|
Accounts receivable |
1,062 |
|
1,925 |
|
Prepaid revenue share fee |
28,629 |
|
29,679 |
|
Prepaid expenses and other current assets |
35,088 |
|
32,837 |
|
Total current assets |
864,855 |
|
764,614 |
|
Property and equipment, net |
57,862 |
|
59,331 |
|
Right of use asset, net |
98,803 |
|
100,048 |
|
Intangible assets, net |
2,641 |
|
2,753 |
|
|
62,684 |
|
62,684 |
|
Restricted cash |
2,851 |
|
2,764 |
|
Other assets |
332,492 |
|
311,198 |
|
Total assets |
$ 1,422,188 |
|
$ 1,303,392 |
|
Liabilities and stockholders' equity |
|
|
|
|
Current liabilities: |
|
|
|
|
Accounts payable |
$ 6,469 |
|
$ 7,156 |
|
Accrued liabilities |
298,606 |
|
236,543 |
|
Deferred revenue |
554,894 |
|
516,201 |
|
Total current liabilities |
859,969 |
|
759,900 |
|
Other long term liabilities |
348,585 |
|
339,107 |
|
Total liabilities |
1,208,554 |
|
1,099,007 |
|
Commitments and contingencies |
|
|
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|
Class A Common Stock, |
1 |
|
1 |
|
Class B Common Stock, |
— |
|
— |
|
Class |
— |
|
— |
|
Class D Common Stock, |
— |
|
— |
|
Accumulated other comprehensive income |
(315) |
|
840 |
|
|
— |
|
— |
|
Retained earnings |
123,417 |
|
119,791 |
|
Additional paid-in capital |
62,245 |
|
57,102 |
|
Total stockholders' equity attributable to |
185,348 |
|
177,734 |
|
Non-controlling interest |
28,286 |
|
26,651 |
|
Total stockholders' equity |
213,634 |
|
204,385 |
|
Total liabilities and stockholders' equity |
$ 1,422,188 |
|
$ 1,303,392 |
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Three months ended |
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2026 |
|
2025 |
|
Revenue |
$ 253,003 |
|
$ 211,368 |
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|
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Operating expenses: |
|
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|
Cost of revenue share fee |
36,878 |
|
29,567 |
|
Cost of direct salaries and benefits |
48,252 |
|
50,742 |
|
Research and development |
19,451 |
|
18,999 |
|
Sales and marketing |
15,954 |
|
13,386 |
|
General and administrative |
63,637 |
|
54,738 |
|
Depreciation and amortization |
6,830 |
|
6,532 |
|
Operating income |
62,001 |
|
37,404 |
|
|
|
|
|
|
Other income (expense): |
|
|
|
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Interest income, net |
6,761 |
|
6,153 |
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Other income, net |
1,983 |
|
448 |
|
Income before tax |
70,745 |
|
44,005 |
|
Income tax expense |
(14,361) |
|
(5,422) |
|
Net income |
56,384 |
|
38,583 |
|
Less: net income attributable to non-controlling interests |
17,589 |
|
13,178 |
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Net income attributable to |
$ 38,795 |
|
$ 25,405 |
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|
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Net income per share of Class A Common Stock and Class B Common Stock (Note 14) |
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Net income per common share basic, Class A |
$ 0.39 |
|
$ 0.26 |
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Net income per common share basic, Class B |
$ 0.39 |
|
$ 0.26 |
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Net income per common share diluted, Class A |
$ 0.38 |
|
$ 0.26 |
|
Net income per common share diluted, Class B |
$ 0.38 |
|
$ 0.26 |
|
Weighted-average shares of Class A Common Stock outstanding, basic |
99,206,588 |
|
95,323,648 |
|
Weighted-average shares of Class B Common Stock outstanding, basic |
307,343 |
|
677,234 |
|
Weighted-average shares of Class A Common Stock outstanding, diluted |
101,047,591 |
|
96,840,018 |
|
Weighted-average shares of Class B Common Stock outstanding, diluted |
307,343 |
|
677,234 |
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Three months ended |
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2026 |
|
2025 |
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Operating activities: |
|
|
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Net income |
$ 56,384 |
|
$ 38,583 |
|
Adjustments to reconcile net income to net cash provided from operating activities: |
|
|
|
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Depreciation of property and equipment |
6,718 |
|
5,432 |
|
Amortization of intangible assets |
112 |
|
1,100 |
|
Noncash lease expense |
1,572 |
|
1,606 |
|
Equity-based compensation |
11,311 |
|
7,798 |
|
Deferred income tax |
7,749 |
|
(790) |
|
Amortization of revolver loan costs |
33 |
|
32 |
|
Premium amortization and (discount accretion), net on marketable securities |
(350) |
|
256 |
|
Changes in operating assets and liabilities: |
|
|
|
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Accounts receivable |
863 |
|
(1) |
|
Prepaid expenses and other assets |
(2,741) |
|
2,738 |
|
Prepaid revenue share fee |
1,050 |
|
(429) |
|
Accounts payable |
(1,776) |
|
(7,721) |
|
Accrued and other long term liabilities |
72,123 |
|
55,683 |
|
Deferred revenue |
38,693 |
|
(4,256) |
|
Operating lease liabilities |
(1,385) |
|
(1,684) |
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Net cash provided by operating activities |
$ 190,356 |
|
$ 98,347 |
|
|
|
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Investing activities: |
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|
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Purchases of marketable securities |
(286,945) |
|
(97,381) |
|
Sales of marketable securities |
270,415 |
|
197,748 |
|
Purchases of property and equipment |
(4,873) |
|
(7,084) |
|
Net cash (used in) provided by investing activities |
$ (21,403) |
|
$ 93,283 |
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|
|
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|
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Financing activities: |
|
|
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|
Repurchase of Class A Common Stock |
(1,238) |
|
(101,740) |
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Payment of dividend |
(15,064) |
|
(11,720) |
|
Payment of special dividend |
(20,105) |
|
(25,316) |
|
Distributions to members |
(4,948) |
|
(5,011) |
|
Tax distribution to members |
(15,078) |
|
(24,542) |
|
Payment of taxes on net settled stock-based awards |
(13,245) |
|
(2,621) |
|
Payments under tax receivable agreements |
(14,254) |
|
(334) |
|
Net cash used in financing activities |
$ (83,932) |
|
$ (171,284) |
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|
|
|
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|
Net increase in cash, cash equivalents, and restricted cash |
85,021 |
|
20,346 |
|
Cash, cash equivalents, and restricted cash, beginning of period |
88,498 |
|
70,348 |
|
Exchange rate effect on cash and cash equivalents, and restricted cash |
7 |
|
(11) |
|
Cash, cash equivalents, and restricted cash, end of period |
$ 173,526 |
|
$ 90,683 |
Non-GAAP Financial Measures
In addition to our results as determined in accordance with GAAP, we disclose Adjusted EBITDA, Adjusted EBITDA Margin, and Free Cash Flow as non-GAAP financial measures that management believes provide useful information to investors. These measures are not financial measures calculated in accordance with GAAP and should not be considered as a substitute for net income, net income margin, net cash provided by (used in) operating activities or any other operating performance measure calculated in accordance with GAAP, and may not be comparable to a similarly titled measure reported by other companies. Our Non-GAAP financial measures are expressed in thousands, unless otherwise indicated. We periodically reassess the components of our Non-GAAP adjustments for changes in how we evaluate our performance and changes in how we make financial and operational decisions to ensure the adjustments remain relevant and meaningful.
Adjusted EBITDA and Adjusted EBITDA Margin
We define Adjusted EBITDA as net income adjusted for income taxes, interest (income), net, depreciation and amortization, impairment and losses on asset disposals, equity-based compensation expense, net other (income) expense excluding sublease rental income, acquisition-related costs and changes in fair value of contingent consideration. We define Adjusted EBITDA Margin as Adjusted EBITDA expressed as percentage of revenue. Adjusted EBITDA and Adjusted EBITDA Margin are important financial measures used by management and our board of directors ("Board") to evaluate business performance. We believe Adjusted EBITDA and Adjusted EBITDA Margin assist investors in evaluating the performance of the Company's core operations by excluding certain items that impact the comparability of results from period to period.
Free Cash Flow
We define Free Cash Flow as net cash (used in) provided by operating activities adjusted for purchases of property. We believe Free Cash Flow provides useful information to management and investors about the Company's liquidity and cash flow trends. With regards to our CLEAR+ subscription service, we generally collect cash from our Members upfront for annual subscriptions. As a result, when the business is growing Free Cash Flow can be a real time indicator of the current trajectory of the business.
See below for reconciliations of these non-GAAP financial measures to their most comparable GAAP measures.
Cautionary Note Concerning Forward-Looking Statements
This release may contain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, statements regarding the Company's financial position, capital structure, business strategy and plans and objectives of management for future operations, as well as statements regarding business momentum, growth, anticipated demand for our products and services and our business prospects during 2026, as well as expected impacts from our pricing actions, and our guidance for the First quarter and full year 2026. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "guidance," "intend," "may," "plan," "potential," "predict," "project," "seek," "should," "target," "will" or "would" or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words.
The forward-looking statements contained in this release are based on current expectations and beliefs concerning future developments and their potential effects on the Company. Investors are cautioned that any and such forward looking statement are not guarantees of future performance or results and involve risks and uncertainties (some of which are beyond the Company's control), and that actual results, developments and events may differ materially from those in the forward-looking statements as a result of various factors, including but not limited to: risks relating to adding and retaining Members and partners, including Active CLEAR+ Members, or failing to increase the utilization of our platform; our inability to meet stakeholder expectations or maintain the value and reputation of our brand; failure to successfully compete, and the highly competitive market in which we operate; risks associated with the increased adoption of new technological solutions and services, including First-party identity verification solutions and credential authentication solutions; public confidence in, and acceptance of, identity platforms and biometrics generally, and our platform specifically; failure to successfully implement strategies to increase adoption of our platform or expand into new verticals; risks associated with our commercial agreements and strategic alliances, as well as potential indemnification obligations and certain of our agreements with First parties; risks related to the dependence of portions of our business and results of operations on concessionaire agreements; risks associated with our growth and ability to develop and introduce platform features and offerings, and the need for adequate research and development resources; risks associated with any decline or disruption in the travel industry or a general economic downturn; risks related to our need for additional capital to support our business growth and objectives, and risks that this capital may not be available to us on reasonable terms (or at all) and may result in shareholder dilution; risks associated with acquisitions and other strategic transactions; the need for high-quality personnel; risks associated with the complexity of our platform, including the negative impacts of any errors, system failures or the successful implementation of upgrades or new technology; the risk that our marketing efforts may not be effective; risks associated with changes in the Internet browsers and mobile device accessibility of Members; the ability to maintain our corporate culture; risks associated with payment processing; potential adverse impacts of climate change; our limited experience operating outside of
Reconciliation of Net Income to Adjusted EBITDA and Net Income Margin to Adjusted EBITDA Margin:
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Three months ended |
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|
(In thousands) |
2026 |
|
2025 |
|
Net income |
$ 56,384 |
|
$ 38,583 |
|
Income tax expense |
14,361 |
|
5,422 |
|
Interest (income), net |
(6,761) |
|
(6,153) |
|
Other (income), net |
(1,538) |
|
(4) |
|
Depreciation and amortization |
6,830 |
|
6,532 |
|
Equity-based compensation expense |
11,311 |
|
7,798 |
|
Adjusted EBITDA |
$ 80,587 |
|
$ 52,178 |
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Revenue |
$ 253,003 |
|
$ 211,368 |
|
Net income Margin |
22.3 % |
|
18.3 % |
|
Adjusted EBITDA Margin |
31.9 % |
|
24.7 % |
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow:
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Three months ended |
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(In thousands) |
2026 |
|
2025 |
|
Net cash provided by operating activities |
$ 190,356 |
|
$ 98,347 |
|
Purchases of property and equipment |
(4,873) |
|
(7,084) |
|
Free Cash Flow |
$ 185,483 |
|
$ 91,263 |
Investor Contact
CLEAR
Media Contact
CLEAR
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SOURCE CLEAR
