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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.
Revenue by Segment
Revenue by Geographic Location
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.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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