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Clearwater Analytics Holdings, Inc.

CWAN

Clearwater Analytics Holdings, Inc. • NYSE
$22.06 ▲ 1.52% (+0.33)
Market Cap $6.36 B
52w High $32.00
52w Low $15.73
Dividend Yield 0%
P/E 14.14
Volume 1.68M
Outstanding Shares 288.15M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $205.11M ▲ $127.918M ▼ $-10.335M ▲ -5.039% ▲ $-0.04 ▲ $35.415M ▲
Q2-2025 $181.937M ▲ $133.094M ▲ $-23.225M ▼ -12.765% ▼ $-0.086 ▼ $10.572M ▲
Q1-2025 $126.864M ▲ $85.858M ▼ $6.51M ▼ 5.131% ▼ $0.027 ▼ $10.228M ▲
Q4-2024 $126.465M ▲ $91.686M ▲ $419.282M ▲ 331.54% ▲ $1.85 ▲ $4.669M ▼
Q3-2024 $115.828M $77.133M $3.629M 3.133% $0.017 $10.577M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $64.148M ▼ $2.991B ▼ $988.961M ▼ $1.982B ▲
Q2-2025 $71.922M ▼ $3.021B ▲ $1.033B ▲ $1.968B ▲
Q1-2025 $282.854M ▲ $1.285B ▲ $142.715M ▲ $1.116B ▲
Q4-2024 $255.489M ▼ $1.17B ▲ $139.341M ▼ $1.008B ▲
Q3-2024 $305.828M $623.453M $169.834M $403.247M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-10.514M ▲ $48.984M ▲ $-4.112M ▲ $-51.396M ▼ $-7.654M ▲ $44.872M ▲
Q2-2025 $-24.151M ▼ $47.081M ▲ $-1.084B ▼ $828.806M ▲ $-206.755M ▼ $44.094M ▲
Q1-2025 $6.936M ▼ $24.5M ▲ $99.525M ▲ $-27.249M ▼ $97.809M ▲ $23.032M ▲
Q4-2024 $419.486M ▲ $-29.199M ▼ $-876K ▲ $-19.143M ▼ $-51.344M ▼ $-30.021M ▼
Q3-2024 $4.769M $49.557M $-1.043M $-10.872M $38.599M $48.067M

Revenue by Products

Product Q1-2025Q2-2025Q3-2025
Reportable Segment
Reportable Segment
 $130.00M ▲$180.00M ▲$210.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has grown steadily each year, showing that Clearwater is successfully winning more business and expanding with existing clients. Gross profit has risen broadly in line with sales, indicating a software-like model with attractive underlying economics. At the same time, operating profit has hovered close to breakeven, occasionally slightly negative or slightly positive. This suggests the company is still investing heavily in growth, sales, and product development rather than optimizing for near‑term margins. The most recent year shows a sharp jump in reported net income and earnings per share that is out of proportion to the gradual trend in operating performance. That pattern often points to one‑off accounting items or non‑operating gains rather than a sudden structural change in profitability. Underlying, recurring profitability still looks modest, but directionally improving over time.

Balance Sheet

Balance Sheet The balance sheet has strengthened meaningfully over the period. Total assets have grown several times over, reflecting both organic growth and the build‑out of the platform and customer base. Cash balances are healthy and relatively stable, supporting ongoing investment and providing a cushion against volatility. Debt levels are small compared with the asset base and have become less important over time, reducing financial risk. Shareholders’ equity has moved from negative to clearly positive and has grown strongly since the IPO. This shift signals a transition from a more leveraged, early‑stage structure to a more solid, equity‑funded profile with greater balance sheet flexibility.

Cash Flow

Cash Flow Clearwater generates positive cash from its core operations, and that cash generation has gradually improved over the years. Even when accounting profits were thin or slightly negative, the business still produced cash, which is a reassuring sign of an underlying, cash‑generative SaaS model. Free cash flow closely tracks operating cash flow because the company requires relatively little capital spending to grow. This “asset‑light” profile means a large share of cash coming in can, in principle, be directed to product development, sales, or strategic initiatives rather than heavy physical investment. One nuance: cash flow growth has been steadier and more modest than the jump in recent reported earnings, reinforcing the view that some of the latest profit improvement may be driven by non‑cash or non‑recurring items.

Competitive Edge

Competitive Edge Clearwater operates in a specialized corner of financial technology: investment accounting, reporting, and analytics. This is a complex, high‑stakes function for clients, which naturally leads to high switching costs once a system is in place and fully integrated. The company’s cloud‑native, single‑instance platform and long‑standing relationships with large cloud providers give it an edge versus legacy, on‑premise competitors. It can update all customers at once, maintain a single source of truth for data, and scale more efficiently. Client retention appears very strong, and the ability to expand revenue from existing customers suggests a sticky product with room for upselling. At the same time, Clearwater faces a competitive landscape that includes large incumbents, other fintech platforms, and new AI‑powered entrants. Its moat rests heavily on embedded workflows, data integration, and its reputation for accuracy and reliability—areas where missteps could erode trust.

Innovation and R&D

Innovation and R&D Innovation is a central theme for Clearwater. The company has gone beyond traditional software enhancements and is deeply integrating generative AI into both client‑facing tools and internal operations. Client‑side, its intelligent console effectively acts as an AI assistant for users, allowing natural‑language queries and more intuitive navigation of complex investment data and reports. Internally, tools like the Crystal assistant are designed to boost employee productivity, letting the company handle more assets and complexity without adding equivalent headcount. Its architecture—a single, cloud‑native, multi‑tenant platform—makes it easier to roll out new features and AI capabilities quickly to all customers. Partnerships with major data and cloud players, and acquisitions like Enfusion, broaden its offering into risk, portfolio analytics, and a more end‑to‑end solution. The opportunity is to turn these innovations into durable differentiation; the risk is that AI is an arms race, and sustained leadership will require continued, disciplined investment and execution.

Summary

Overall, Clearwater Analytics looks like a scaling, high‑retention SaaS business in a niche but mission‑critical area of financial services. The income statement shows steady revenue growth with improving, but still relatively thin, operating profitability, and a recent jump in reported earnings that likely includes non‑recurring effects. The balance sheet has transitioned from early‑stage and somewhat stretched to solid and equity‑rich, with modest debt. Cash flow is positive and growing, with low capital intensity, which is a strong feature of the model. Competitively, Clearwater appears to enjoy meaningful switching costs, strong client loyalty, and a modern technical foundation that contrast with many legacy providers. Its AI‑driven innovation strategy, cloud‑native architecture, and ecosystem partnerships could deepen its moat if executed well. Key things to watch going forward include: whether operating margins expand in a more sustained, cash‑backed way; how effectively the company continues to integrate AI into practical client outcomes; and how it navigates competitive pressures in a rapidly evolving fintech and AI landscape.

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