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Clarivate Q1 2025 Earnings Report
Clarivate reported its first quarter 2025 financial results, showing a decrease in total revenues but an increase in organic recurring revenues, alongside a net loss and significant operating cash flow.
Key Takeaways
Clarivate reported total revenues of $593.7 million for the first quarter of 2025, a decrease from $621.2 million in the prior year. The company experienced a net loss of $103.9 million, or $0.15 per diluted share, and generated $171.2 million in operating cash flow. Despite the revenue decline, organic recurring revenues increased by 0.6%, driven by higher IP patent renewal volumes.
Total revenues for Q1 2025 decreased by 4.4% to $593.7 million, primarily due to inorganic divestitures and foreign currency impacts.
The company reported a net loss of $103.9 million in Q1 2025, compared to a net loss of $75.0 million in Q1 2024.
Adjusted EBITDA for Q1 2025 was $233.2 million, a slight decrease from $236.3 million in the prior year.
Clarivate generated strong operating cash flow of $171.2 million and free cash flow of $110.3 million, and repurchased $50.0 million of ordinary shares.
Clarivate
Clarivate
Clarivate Revenue by Segment
Clarivate Revenue by Geographic Location
Revenue by Segment
Subscription Revenue
CapyFin.comRe-occurring Revenue
CapyFin.comTransactional Revenue
CapyFin.comRevenue by Geographic Location
Academia & Government Revenue
CapyFin.comIntellectual Property Revenue
CapyFin.comLife Sciences & Healthcare Revenue
CapyFin.com Forward Guidance
Clarivate reaffirmed its full year 2025 outlook, expecting continued organic growth and strong financial performance, with specific ranges provided for key metrics.
Positive Outlook
- Organic ACV is projected to grow between 1.0% and 2.0%.
- Revenues are expected to be between $2.28 billion and $2.40 billion.
- Adjusted EBITDA is forecasted to be between $940 million and $1.00 billion.
- Adjusted EBITDA Margin is anticipated to be between 40.5% and 42.5%.
- Free Cash Flow is projected to be between $300 million and $380 million.
Challenges Ahead
- Recurring Organic Revenue Growth is projected to be between (1.0)% and 1.0%, indicating potential for decline.
- The outlook assumes no further acquisitions or divestitures, which could impact actual results.
- Unanticipated events could affect the realization of the projections.
- Adjusted Diluted EPS is projected to be between $0.60 and $0.70, which is a wide range.
- The company's total debt outstanding was $4,570.8 million as of March 31, 2025, which is a significant liability.