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Dec 31, 2025
Clarivate Q4 2025 Earnings Report
Clarivate Q4 2025 Earnings Report
Key Takeaways
Clarivate reported Q4 2025 revenue of $617 million, a decline of 6.9% compared to the prior year, primarily due to divestitures. However, the company returned to profitability with a net income of $3.1 million and announced a strategic pivot to sell its Life Sciences & Healthcare business to focus on Intellectual Property and Academia segments.
Returned to GAAP profitability in Q4 with net income of $3.1 million compared to a significant loss in the prior year.
Announced the formal pursuit of a sale for the Life Sciences & Healthcare (LS&H) segment to reduce leverage.
Organic Annualized Contract Value (ACV) grew 1.8% for the full year, indicating improving subscription momentum.
Repurchased 56 million shares during 2025 for approximately $225 million, demonstrating active capital allocation.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Clarivate expects continued momentum in 2026 with a focus on margin expansion and free cash flow growth despite lower reported revenue due to divestitures.
Positive Outlook
- Projected organic ACV growth of 2.0% to 3.0%.
- Adjusted EBITDA margin expansion of approximately 200 basis points.
- Free cash flow estimated to rise by roughly 10% to nearly $400 million at midpoint.
- Expected growth in recurring organic revenue.
- Continued shift toward a higher-margin subscription-led revenue base.
Challenges Ahead
- Total reported revenue for 2026 is expected to be lower due to strategic divestitures.
- Transactional revenues remain under pressure from divestitures and disposals.
- Ongoing restructuring costs associated with the Value Creation Plan.
- Potential risks associated with the sale process of the LS&H business.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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