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Dec 31, 2025
Clearwater Q4 2025 Earnings Report
Clearwater Analytics Holdings, Inc. announced its financial results for the fourth quarter ended December 31, 2025, reporting strong revenue growth and improved profitability.
Key Takeaways
Clearwater Analytics delivered a strong end to 2025 with Q4 revenue of $217.5 million, up 72% year-over-year. The company achieved a record Non-GAAP gross margin of 79.2% and Adjusted EBITDA of $74.1 million, an increase of 78% year-over-year, driven by GenAI investments and internal efficiencies. The company also announced a definitive agreement to be acquired for approximately $8.4 billion.
Fourth quarter 2025 revenue increased by 72% year-over-year to $217.5 million.
Adjusted EBITDA grew by 78% year-over-year to $74.1 million, with an Adjusted EBITDA margin of 34.1%.
Non-GAAP gross margin reached a record 79.2%, reflecting meaningful internal efficiencies from GenAI investments.
The company entered into a definitive agreement to be acquired for approximately $8.4 billion, with stockholders receiving $24.55 per share in cash.
Forward Guidance
Due to the pending acquisition by an investor group, Clearwater Analytics will not provide forward-looking guidance.
Positive Outlook
- The proposed acquisition values the company at approximately $8.4 billion, offering a significant return to stockholders.
- The transaction is expected to close in the second quarter of 2026, providing a clear path forward for the company.
- The company's strong Q4 performance and strategic investments in AI position it well for future growth under new ownership.
- The integration of Enfusion, Beacon, and the core platform with AI is expected to enhance operational agility and transparency.
- Continued expansion of the client base, including multiple 7-figure deals, demonstrates the strength of their solutions.
Challenges Ahead
- The company will not host an earnings conference call or webcast, limiting direct engagement with investors.
- The pending acquisition means no forward-looking guidance will be provided, creating uncertainty about future financial performance.
Historical Earnings Impact
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