YOU — Clear Secure, Inc.

Summary of Clear Secure, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $240.8 million, up 16.7% year-over-year.
• Total Bookings: $287.1 million, a 25.4% increase year-over-year.
• Full-Year Revenue: $900.8 million, up 16.9%.
• Full-Year Total Bookings: $977.2 million, up 17.2%.
• Adjusted EBITDA Margin: 33.2% in Q4, up 870 basis points year-over-year; 29.1% for the full year, up 4.8 percentage points.
• Free Cash Flow: $343.1 million for the year, significantly ahead of guidance.
• Cash and Marketable Securities: $703 million at year-end, projected to exceed $1 billion by the end of 2026.
• Dividend Increase: 20% increase in quarterly dividend from $0.125 to $0.15 per share.

2. Strategic Updates and Business Highlights

• Member Growth: Total Clear members grew to 38 million, a 31.5% increase year-over-year; active CLEAR Plus members reached 7.6 million, up 6%.
• Partnerships: Extended multiyear agreement with American Express, enhancing member benefits and integration.
• ClearOne Performance: Achieved record bookings and signed the largest number of enterprise customers, indicating strong demand in the B2B sector.
• Innovation Focus: Launched a revamped mobile app and expanded the Clear Concierge program to enhance the travel experience.
• Public-Private Partnerships: Continued collaboration with TSA and government entities to modernize travel processes.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipate full-year revenue growth and margin expansion, with free cash flow projected to reach at least $440 million, a 28% year-over-year increase.
• Q1 2026 Guidance: Expected revenue between $242 million and $245 million, and total bookings between $248 million and $253 million, reflecting 15.2% to 20.9% growth.

4. Challenges and Points of Concern

• Government Shutdown Risks: Potential impacts from government shutdowns were discussed, though management expressed confidence in their ability to maintain operations and service.
• Market Competition: The identity security landscape is rapidly evolving, with increasing competition and threats from fraud and data breaches.
• Operational Risks: The need for continuous innovation and member experience improvements to sustain growth and retention amid a challenging travel environment.

5. Notable Q&A Insights

• Strategic Priorities: Management emphasized the importance of enhancing the member experience and leveraging technology to drive growth in both B2C and B2B segments.
• Impact of eGates: Early positive feedback on eGates was noted, with expectations for improved retention and member satisfaction as more users experience the technology.
• Healthcare Partnerships: The CMS contract was highlighted as a significant opportunity, leveraging Clear's expertise in regulated environments to enhance identity security in healthcare.

Overall, Clear Secure, Inc. demonstrated strong financial performance in Q4 2025, with significant growth in revenue and bookings, a focus on strategic partnerships, and a commitment to enhancing member experiences. However, potential risks from government actions and competitive pressures remain areas to monitor as the company moves into 2026.