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Jun 30, 2025
Clearwater Q2 2025 Earnings Report
Clearwater Analytics announced its second quarter 2025 financial results, reporting significant revenue and ARR growth, alongside increased adjusted EBITDA and non-GAAP net income.
Key Takeaways
Clearwater Analytics delivered a strong second quarter in 2025, with total revenue increasing by over 70% year-over-year to $181.9 million. The company also saw substantial growth in Annualized Recurring Revenue (ARR), which reached $783.5 million, up 83% from the previous year. Adjusted EBITDA grew by 74.3% to $58.3 million, and non-GAAP net income increased by 29.7% to $34.8 million, demonstrating robust financial performance and successful integration efforts.
Total revenue for Q2 2025 was $181.9 million, marking a 70.4% increase year-over-year.
Annualized Recurring Revenue (ARR) reached $783.5 million as of June 30, 2025, an 83% increase from the prior year.
Adjusted EBITDA for the quarter was $58.3 million, up 74.3% year-over-year, with an adjusted EBITDA margin of 32.1%.
Non-GAAP net income increased by 29.7% to $34.8 million, while GAAP net loss was $24.2 million.
Revenue by Segment
Forward Guidance
Clearwater Analytics provided strong guidance for both the third quarter and full year 2025, projecting continued revenue growth and healthy adjusted EBITDA margins.
Positive Outlook
- Third quarter 2025 revenue is projected to be between $203 million and $204 million, representing 75% to 76% year-over-year growth.
- Full year 2025 revenue is expected to be between $726 million and $732 million, indicating 61% to 62% year-over-year growth.
- Third quarter 2025 Adjusted EBITDA is anticipated to be approximately $65 million, with a margin of around 32%.
- Full year 2025 Adjusted EBITDA is projected to be between $232 million and $237 million, maintaining a margin of approximately 32%.
- The company has already achieved its $20 million synergy target a full year ahead of schedule.
Challenges Ahead
- Total equity-based compensation expense and related payroll taxes for the full year 2025 are estimated at approximately $135 million, or 18% of revenues.
- Depreciation and Amortization for the full year 2025 is projected to be approximately $86 million.
Historical Earnings Impact
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