Clarivate Plc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.67%.
Did CLVT Beat Earnings? Q2 2025 Results
Clarivate delivered a clean beat to open the second half of 2025, with second-quarter adjusted diluted EPS of $0.18 edging past the $0.17 consensus by 3.39%, while revenue of $621.40 million topped estimates by 5.44%, even as headline sales slipped 4.4% year-over-year due to deliberate divestitures and product disposals rather than underlying weakness. The more meaningful story sits beneath the reported decline: organic revenues grew 0.5% and organic recurring revenues rose 0.8%, with the recurring mix improving to 88% for the first half of 2025, up 800 basis points from full-year 2024, reflecting the company's ongoing repositioning toward higher-quality subscription revenue. Academia & Government continued to lead with 2.5% organic growth in Q2 despite U.S. government funding pressures, while the Intellectual Property segment returned to organic recurring revenue growth. Adjusted EBITDA margins held firm at 42.1%. Management reaffirmed full-year 2025 guidance, now expecting revenue toward the top end of the $2.28 billion to $2.40 billion range, with recurring organic growth trending into the upper half of the 1.0%-to-2.0% organic ACV target.
- Organic subscription revenue growth of 1.7% driven by new sales and price increases
- Organic ACV growth of 1.3% primarily driven by price increases
- Improvement in recurring revenue mix to 88% of total organic revenue in H1 2025, up 800 bps from FY2024
- Renewal rate improved to 93%, up 100 bps year-over-year
- Strong cost management and discipline contributing to margin stability
- A&G segment delivering 2.5% organic revenue growth in Q2
- IP segment return to organic re-occurring revenue growth in H1 from patent annuity recovery
“We reported solid second quarter performance and delivered growth in our key metrics. We have good momentum underway building off a solid first half of the year.”
Clarivate CEO, on the earnings call
Forward Guidance & Outlook
Clarivate reaffirmed its full-year 2025 outlook: Organic ACV growth of 1.0% to 2.0%; Recurring organic revenue growth of (1.0)% to 1.0% (current indication approximately 0.5%); Revenues of $2.28B to $2.40B (expected toward top end of range); Adjusted EBITDA of $940M to $1.00B with margins of 40.5% to 42.5%; Adjusted diluted EPS of $0.60 to $0.70; Free cash flow of $300M to $380M. Management expects revenue toward the top end as the rate of decline from disposals is slower, USD is weaker, and organic growth is stronger than originally expected. Recurring organic growth is anticipated in the upper half of the guidance range based on H1 results. The company expects to complete its strategic alternatives review and share outcomes with year-end results.
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Figures from SEC filings and company reports. Not investment advice.