Clearwater Analytics Holdings, Inc. Class A ( (CWAN) ) has released its Q1 earnings. Here is a breakdown of the information Clearwater Analytics Holdings, Inc. Class A presented to its investors.
Clearwater Analytics Holdings, Inc., a leader in providing cloud-native investment management solutions, operates within the financial technology sector, offering comprehensive data and analytics services to institutional investors worldwide.
In its first quarter of 2025, Clearwater Analytics reported record revenue of $126.9 million, marking a 24% increase year-over-year. The company also achieved an adjusted EBITDA of $45.1 million, reflecting a significant 40% growth compared to the previous year.
Key financial highlights include a gross revenue retention rate of 98% and a net revenue retention rate of 114%, indicating strong client retention and expansion. The company’s annualized recurring revenue reached $493.9 million, up 23% from the prior year, showcasing robust growth in its subscription-based model. Additionally, Clearwater’s acquisitions of Enfusion, Beacon, and Bistro are set to enhance its platform capabilities and market reach.
Clearwater’s strategic focus on expanding its client base and improving operational efficiencies has resulted in a notable increase in free cash flow, which surged by 168% year-over-year. The company’s gross margins have also improved, nearing its target of 80%, while research and development spending has been optimized.
Looking ahead, Clearwater Analytics remains committed to its long-term goals, with expectations of continued revenue growth and margin expansion. The company aims to leverage its recent acquisitions to further solidify its position as a comprehensive solution provider in the investment management industry.