Clarivate Reports Fourth Quarter and Full Year 2025 Results
18.03.2026 - 03:34:41 | prnewswire.co.ukUse of Non-GAAP Financial Measures
This release contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted diluted EPS, and Free cash flow. Non-GAAP financial measures are not recognized terms under GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP.
We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating performance of our business, to assess performance for employee compensation purposes, and to decide how to allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. Further, these measures can be useful in evaluating our performance against our peer companies because we believe they provide users with valuable insight into key components of our GAAP financial disclosure. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.
Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.
Forward-Looking Statements
This release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," or "should" or, in each case, their negative or other variations or comparable terminology. These forward-looking statements include all matters that are not historical facts, and include statements regarding our intentions, beliefs, or current expectations concerning, among other things, the anticipated divestiture of our LS&H business or any other strategic transactions we may explore, anticipated cost savings, results of operations, financial condition, liquidity, prospects, growth, strategies, anticipated transactions, and the markets in which we operate. Such forward-looking statements are based on available current market material and management's expectations, beliefs, and forecasts concerning future events impacting us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC, which are also available on our website at www.clarivate.com.
About Clarivate
Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government, Intellectual Property, and Life Sciences & Healthcare. For more information, please visit www.clarivate.com.
Consolidated Balance Sheets (Unaudited)
As of December 31,
(in millions)
2025
2024
ASSETS
Current assets:
Cash and cash equivalents, including restricted cash
$ 329.2
$ 295.2
Accounts receivable, net
821.7
798.3
Prepaid expenses
94.2
85.9
Other current assets
64.9
65.2
Total current assets
1,310.0
1,244.6
Property and equipment, net
52.7
53.5
Other intangible assets, net
8,008.1
8,441.2
Goodwill
1,566.7
1,566.6
Other non-current assets
68.1
82.2
Deferred income taxes
17.2
48.5
Operating lease right-of-use assets
46.6
53.6
Total assets
$ 11,069.4
$ 11,490.2
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 150.6
$ 124.5
Accrued compensation
146.7
119.2
Accrued expenses and other current liabilities
273.0
308.8
Current portion of deferred revenues
878.6
859.1
Current portion of operating lease liability
18.4
20.6
Current portion of long-term debt
101.5
1.3
Total current liabilities
1,568.8
1,433.5
Long-term debt
4,321.5
4,518.7
Other non-current liabilities
86.2
72.5
Deferred income taxes
212.1
273.3
Operating lease liabilities
37.9
53.2
Total liabilities
6,226.5
6,351.2
Commitments and contingencies
Shareholders' equity:
Ordinary Shares, no par value; unlimited shares authorized; 640.7 and 691.4 shares issued
and outstanding as of December 31, 2025 and December 31, 2024, respectively
12,810.6
12,978.8
Accumulated other comprehensive loss
(453.1)
(526.3)
Accumulated deficit
(7,514.6)
(7,313.5)
Total shareholders' equity
4,842.9
5,139.0
Total liabilities and shareholders' equity
$ 11,069.4
$ 11,490.2
Consolidated Statements of Operations (Unaudited)
Three Months Ended December 31,
Year Ended December 31,
(In millions, except per share data)
2025
2024
2025
2024
Revenues
$ 617.0
$ 663.0
$ 2,455.2
$ 2,556.7
Operating expenses:
Cost of revenues
204.8
227.7
833.6
869.2
Selling, general and administrative costs
179.1
180.8
708.6
727.6
Depreciation and amortization
189.1
186.0
757.2
727.0
Goodwill and intangible asset impairments
15.0
224.1
15.0
540.7
Restructuring and other impairments
4.8
5.4
50.7
19.6
Other operating expense (income), net
(17.2)
(98.7)
18.6
(51.8)
Total operating expenses
575.6
725.3
2,383.7
2,832.3
Income (loss) from operations
41.4
(62.3)
71.5
(275.6)
Fair value adjustment of warrants
—
—
—
(5.2)
Interest expense, net
66.0
69.9
265.4
283.4
Income (loss) before income taxes
(24.6)
(132.2)
(193.9)
(553.8)
Provision (benefit) for income taxes
(27.7)
59.6
7.2
82.9
Net income (loss)
3.1
(191.8)
(201.1)
(636.7)
Dividends on preferred shares
—
—
—
31.3
Net income (loss) attributable to ordinary shares
$ 3.1
$ (191.8)
$ (201.1)
$ (668.0)
Per share:
Basic
$ 0.00
$ (0.27)
$ (0.30)
$ (0.96)
Diluted
$ 0.00
$ (0.27)
$ (0.30)
$ (0.96)
Weighted average shares used to compute earnings per share:
Basic
654.2
702.8
673.3
693.6
Diluted
662.3
702.8
673.3
693.6
Consolidated Statements of Cash Flows (Unaudited)
Year Ended December 31,
(In millions)
2025
2024
Cash Flows From Operating Activities
Net income (loss)
$ (201.1)
$ (636.7)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
757.2
727.0
Share-based compensation
63.1
59.9
Restructuring and other impairments, including goodwill
18.6
540.3
Gain on sale from divestitures
—
(54.7)
Deferred income taxes
(41.5)
21.2
Amortization and write-off of debt issuance costs
14.3
16.4
Other operating activities
14.4
(1.9)
Changes in operating assets and liabilities:
Accounts receivable
(5.0)
92.6
Prepaid expenses
(7.5)
1.5
Other assets
3.2
(0.8)
Accounts payable
22.8
(15.0)
Accrued expenses and other current liabilities
(11.3)
3.8
Deferred revenues
(2.6)
(106.2)
Operating leases, net
(5.4)
(9.6)
Other liabilities
9.3
8.8
Net cash provided by operating activities
628.5
646.6
Cash Flows From Investing Activities
Capital expenditures
(263.2)
(289.1)
Payments for acquisitions, net of cash acquired
—
(32.0)
Proceeds from divestitures, net of cash divested
—
84.4
Net cash used for investing activities
(263.2)
(236.7)
Cash Flows From Financing Activities
Principal payments on debt
(600.0)
(198.1)
Proceeds from issuance of debt
500.0
—
Payment of debt issuance and extinguishment costs
(9.4)
(20.1)
Repurchases of ordinary shares
(224.5)
(200.0)
Cash dividends on preferred shares
—
(37.7)
Payments related to tax withholding for share-based compensation
(10.4)
(15.6)
Other financing activities
1.2
1.4
Net cash used for financing activities
(343.1)
(470.1)
Effects of exchange rates
11.8
(15.3)
Net change in cash and cash equivalents, including restricted cash
34.0
(75.5)
Cash and cash equivalents, including restricted cash, beginning of period
295.2
370.7
Cash and cash equivalents, including restricted cash, end of period
$ 329.2
$ 295.2
Supplemental Cash Flow Information:
Cash paid for interest
$ 256.3
$ 265.3
Cash paid for income tax
$ 42.1
$ 52.9
Supplemental Revenues Information
Annualized contract value ("ACV"), at any point in time, represents the annualized value of all active customer subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the measurement period are renewed at their current price level. Our organic ACV grew 1.8% in 2025, compared to 2024, primarily driven by improved product pricing. Our total ACV for 2025, compared to 2024, declined 1.0% primarily due to the wind-down of certain product groups beginning in the first quarter of 2025.
The following tables present our revenues by type and by segment for the periods indicated, as well as the components driving the changes between periods.
Three Months Ended
December 31,
Change
% of Change
2025
2024
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$ 405.8
$ 407.0
$ (1.2)
(0.3) %
— %
(2.4) %
1.1 %
1.0 %
Re-occurring
114.1
112.0
2.1
1.9 %
— %
0.1 %
3.0 %
(1.2) %
Recurring revenues
519.9
519.0
0.9
0.2 %
— %
(1.8) %
1.5 %
0.5 %
Transactional
97.1
144.0
(46.9)
(32.6) %
— %
(21.3) %
0.6 %
(11.9) %
Revenues
$ 617.0
$ 663.0
$ (46.0)
(6.9) %
— %
(7.0) %
1.3 %
(1.2) %
Year Ended
December 31,
Change
% of Change
2025
2024
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$ 1,605.5
$ 1,626.8
$ (21.3)
(1.3) %
0.1 %
(2.7) %
0.5 %
0.8 %
Re-occurring
434.2
429.8
4.4
1.0 %
— %
— %
1.4 %
(0.4) %
Recurring revenues
2,039.7
2,056.6
(16.9)
(0.8) %
0.1 %
(2.2) %
0.7 %
0.6 %
Transactional
415.5
500.1
(84.6)
(16.9) %
0.1 %
(12.6) %
0.4 %
(4.8) %
Revenues
$ 2,455.2
$ 2,556.7
$ (101.5)
(4.0) %
0.1 %
(4.7) %
0.7 %
(0.1) %
Three Months Ended
December 31,
Change
% of Change
2025
2024
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$ 312.3
$ 342.9
$ (30.6)
(8.9) %
— %
(10.9) %
0.9 %
1.1 %
Intellectual Property
206.4
209.1
(2.7)
(1.3) %
— %
— %
2.5 %
(3.8) %
Life Sciences & Healthcare
98.3
111.0
(12.7)
(11.4) %
— %
(9.9) %
0.4 %
(1.9) %
Revenues
$ 617.0
$ 663.0
$ (46.0)
(6.9) %
— %
(7.0) %
1.3 %
(1.2) %
Year Ended
December 31,
Change
% of Change
2025
2024
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$ 1,266.0
$ 1,326.4
$ (60.4)
(4.6) %
— %
(6.7) %
0.5 %
1.6 %
Intellectual Property
799.4
811.4
(12.0)
(1.5) %
0.1 %
(1.0) %
1.3 %
(1.9) %
Life Sciences & Healthcare
389.8
418.9
(29.1)
(6.9) %
0.2 %
(6.0) %
0.3 %
(1.4) %
Revenues
$ 2,455.2
$ 2,556.7
$ (101.5)
(4.0) %
0.1 %
(4.7) %
0.7 %
(0.1) %
Reconciliations to Certain Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the fourth quarter and full year ended December 31, 2025 and 2024 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:
Three Months Ended December 31,
Year Ended December 31,
(In millions, except percentages); (unaudited)
2025
2024
2025
2024
Net income (loss)
$ 3.1
$ (191.8)
$ (201.1)
$ (636.7)
Provision (benefit) for income taxes
(27.7)
59.6
7.2
82.9
Depreciation and amortization
189.1
186.0
757.2
727.0
Interest expense, net
66.0
69.9
265.4
283.4
Share-based compensation expense
17.4
10.9
63.0
60.6
Goodwill and intangible asset impairments
15.0
224.1
15.0
540.7
Restructuring and other impairments
4.8
5.4
50.7
19.6
Fair value adjustment of warrants
—
—
—
(5.2)
Transaction related costs
4.0
4.3
22.5
17.9
Other(1)
(17.1)
(83.1)
21.9
(29.8)
Adjusted EBITDA
$ 254.6
$ 285.3
$ 1,001.8
$ 1,060.4
Net income (loss) margin
0.5 %
(28.9) %
(8.2) %
(24.9) %
Adjusted EBITDA margin
41.3 %
43.0 %
40.8 %
41.5 %
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. The fourth quarter and full year 2024 includes a gain of $69.5 and a net gain of $54.7, respectively, from the divestitures completed in 2024.
Adjusted net income and Adjusted diluted EPS
Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the associated income tax impact of such adjustments.
Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.
The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the fourth quarter and full year ended December 31, 2025 and 2024 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:
Three Months Ended December 31,
2025
2024
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$ 3.1
$ 0.00
$ (191.8)
$ (0.27)
Amortization related to acquired intangible assets
135.5
0.20
137.2
0.20
Share-based compensation expense
17.4
0.03
10.9
0.02
Goodwill and intangible asset impairments
15.0
0.02
224.1
0.32
Restructuring and other impairments
4.8
0.01
5.4
0.01
Transaction related costs
4.0
0.01
4.3
0.01
Other(1)
(15.7)
(0.02)
(83.1)
(0.13)
Income tax impact of related adjustments
(34.4)
(0.05)
38.5
0.05
Adjusted net income and Adjusted diluted EPS
$ 129.7
$ 0.20
$ 145.5
$ 0.21
Adjusted weighted average ordinary shares, diluted
662.3
707.7
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. The fourth quarter 2024 includes a gain of $69.5 from the ScholarOne divestiture.
Year Ended December 31,
2025
2024
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$ (201.1)
$ (0.30)
$ (636.7)
$ (0.92)
Amortization related to acquired intangible assets
545.5
0.81
554.1
0.80
Share-based compensation expense
63.0
0.09
60.6
0.09
Goodwill and intangible asset impairments
15.0
0.02
540.7
0.78
Restructuring and other impairments
50.7
0.08
19.6
0.03
Fair value adjustment of warrants
—
—
(5.2)
(0.01)
Transaction related costs
22.5
0.03
17.9
0.03
Other(1)
24.8
0.04
(29.8)
(0.08)
Income tax impact of related adjustments
(52.3)
(0.08)
4.1
0.01
Adjusted net income and Adjusted diluted EPS
$ 468.1
$ 0.69
$ 525.3
$ 0.73
Adjusted weighted average ordinary shares, diluted
679.3
721.5
(1) Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. The 2024 amount includes a net gain of $54.7 from divestitures.
Free cash flow
Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table presents our calculation of Free cash flow for the fourth quarter and full year ended December 31, 2025 and 2024 and reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods:
Three Months Ended December 31,
Year Ended December 31,
(In millions); (unaudited)
2025
2024
2025
2024
Net cash provided by operating activities
$ 159.9
$ 141.3
$ 628.5
$ 646.6
Capital expenditures
(70.7)
(82.2)
(263.2)
(289.1)
Free cash flow
$ 89.2
$ 59.1
$ 365.3
$ 357.5
Reconciliations to Certain Non-GAAP Measures - 2026 Outlook
Adjusted EBITDA and Adjusted EBITDA margin
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2026 outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same period:
Year Ending December 31, 2026
(Forecasted)
(In millions); (unaudited)
Low
High
Net income (loss)
$ (189)
$ (124)
Provision (benefit) for income taxes
43
48
Depreciation and amortization
786
786
Interest expense, net
238
228
Share-based compensation expense
70
70
Restructuring and other impairments(1)
25
25
Transaction related costs
13
13
Other
(6)
(6)
Adjusted EBITDA
$ 980
$ 1,040
Net income (loss) margin
(8.2) %
(5.1) %
Adjusted EBITDA margin
42.0 %
43.5 %
(1) Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan.
Adjusted diluted EPS
The following table presents our calculation of Adjusted diluted EPS for the 2026 outlook and reconciles this non-GAAP measure to our Net income (loss) per share for the same period:
Year Ending December 31, 2026
(Forecasted)
(Unaudited)
Low
High
Net income (loss)
$ (0.29)
$ (0.19)
Amortization related to acquired intangible assets
0.84
0.84
Share-based compensation expense
0.11
0.11
Restructuring and other impairments(1)
0.04
0.04
Transaction related costs
0.02
0.02
Other
0.01
0.01
Income tax impact of related adjustments
(0.03)
(0.03)
Adjusted diluted EPS
$ 0.70
$ 0.80
Adjusted weighted average ordinary shares, diluted
~650 million
(1) Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan.
Free cash flow
The following table presents our calculation of Free cash flow for the 2026 outlook and reconciles this non-GAAP measure to our Net cash provided by operating activities for the same period:
Year Ending December 31, 2026
(Forecasted)
(In millions); (unaudited)
Low
High
Net cash provided by operating activities
$ 615
$ 685
Capital expenditures
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