Clarivate (CLVT) AI Stock Analysis

• Market Cap: $1.55B
• Dividend Yield: N/A
• Average Volume (3M): 5.54M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -2.96%
• EPS Growth: 71.30%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.20
• Shares Outstanding: 661,435,060
• 10 Day Avg. Volume: 6,775,614
• 30 Day Avg. Volume: 5,535,747
• PEG Ratio: 0.16
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.92
• P/FCF Ratio: 3.58
• Enterprise Value/Market Cap: 3.67
• Enterprise Value/Revenue: 2.28
• Enterprise Value/Gross Profit: 3.47
• Enterprise Value/Ebitda: 7.90
• 1Y Price Target: $3.50
• Price Target Upside: 48.94% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $2.50 ▲(6.38% Upside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

CLVT scores mid-range primarily due to improving financial execution and strong cash generation, reinforced by constructive 2026 guidance (margin expansion and higher free cash flow). The score is held back by weak technical trends, ongoing net losses/negative ROE with material leverage, and limited valuation support given a negative P/E and no dividend.

Positive Factors

High Gross Margin

A 65.76% gross margin reflects strong pricing power and the scalability of Clarivate's data-and-software subscription model. High gross margin provides durable room to fund R&D and AI initiatives while absorbing sales and support costs, supporting long-term operating leverage as recurring revenue scales.

Recurring Revenue & Retention

Improving ACV (+1.6%) alongside a 93% renewal rate shows a sticky, subscription-driven revenue base across academia, government and life sciences. Strong retention and predictable contract values underpin stable cash flows and long-term customer lifetime value that fund product investment and margin expansion.

Capital Structure Simplification

Redeeming $100M of notes and sizable share repurchases materially reduce leverage and simplify the capital structure. Lower debt and demonstrated buybacks increase financial flexibility to invest in product/AI development, lower interest burden, and improve resilience to shocks over a multi-quarter horizon.

Negative Factors

Sustained Net Losses

Persistent negative net and EBIT margins show Clarivate struggles to convert high gross margins into operating profitability. Continued losses limit retained earnings, constrain reinvestment capacity, and increase reliance on capital actions to support growth, posing a multi-quarter hurdle to durable profitability.

Weak Organic Revenue Momentum

Flat organic revenue and only modest TTM growth (~3.6%) suggest limited expansion beyond renewals. Without stronger net-new acquisition or product-led upsell, scaling subscription revenue and capturing benefits from AI/product investments may be slow, constraining sustainable margin improvement and long-term growth.

Weak Cash Generation & Returns

Declining free cash flow growth and negative ROE indicate cash generation is not yet offsetting losses and shareholder returns. Weaker FCF trends reduce internal funding for innovation and increase sensitivity to financing costs, limiting the company's ability to self-fund strategic initiatives over several quarters.

Clarivate Business Overview & Revenue Model

Company Description

Clarivate Plc, an information services and analytics company, provides structured information and analytics for discovery, protection, and commercialization of scientific research, innovations, and brands. It offers Web of Science products and services, such as Web of Science, InCites, Journal Citation Reports, EndNote, ScholarOne, Converis, Publons, and Kopernio to organizations that plan, fund, implement, and utilize research; and Life Sciences products, including Cortellis and Newport Integrity for pharmaceutical and biotechnology companies to support research, market intelligence, and competitive monitoring in connection with the development and commercialization of new drugs. The company also provides Derwent products, which include Derwent Innovation, Techstreet, and IP Professional Services that enables its customers to evaluate the novelty of potential new products, confirm freedom to operate with respect to their product design, help them secure patent protection, assess the competitive technology landscape, and ensure that their products comply with required industry standards; CompuMark products, such as trademark screening, searching, and watching products and services for businesses and law firms; and MarkMonitor products, which helps enterprises to establish, manage, optimize, and protect their online presence. It serves government and academic institutions, life science companies, and research and development corporations in the Americas, the Middle East, Africa, Europe, and the Asia Pacific. The company was formerly known as Clarivate Analytics Plc and changed its name to Clarivate Plc in May 2020. Clarivate Plc is headquartered in London, the United Kingdom.

How the Company Makes Money

Clarivate generates revenue through a diverse model that includes subscription fees for access to its proprietary databases and analytical tools, transactional sales for specific reports and services, and licensing agreements. The company has key revenue streams from its subscription-based offerings that provide recurring revenue, primarily from academic institutions, government agencies, and corporations seeking to enhance their research capabilities. Additionally, Clarivate benefits from partnerships with universities, research organizations, and corporations that rely on its insights for innovation and intellectual property management. The company's growth is also supported by its continuous investment in technology and data analytics, allowing it to expand its product offerings and improve customer engagement.

Clarivate Financial Statement Overview

Summary

Financials are improving but still mixed. Profitability trends strengthened (EBITDA margin rebounded and net losses narrowed) and cash generation is a standout (strong operating and sharply higher free cash flow). Offsetting this are slightly declining revenue, continued net losses/negative ROE, and meaningful leverage (with debt coverage still limited).

Income Statement

Profitability has improved meaningfully versus prior years: EBITDA margin rebounded to ~33.8% in 2025 from ~17.9% in 2024, and net losses narrowed to about -8.2% of revenue (from roughly -24.9% in 2024 and worse before that). Gross margins are consistently strong around ~64–66%, supporting earnings potential. The main weakness is that revenue has been slightly declining (down ~1.8% in 2025 after a small decline in 2024), and the company remains unprofitable on the bottom line.

Balance Sheet

Leverage looks manageable but meaningful: debt-to-equity is ~0.93 in 2025 (roughly similar to 2024), indicating a notable debt load relative to equity. Equity remains sizable (~$4.8B) against total assets (~$11.1B), which provides balance-sheet support. The key drawback is continued negative returns on equity (about -4.2% in 2025), reflecting ongoing net losses and limiting the balance sheet’s ability to compound value.

Cash Flow

Cash generation is a clear strength. Operating cash flow was solid at ~$629M in 2025, and free cash flow rose sharply to ~$629M (up ~87.5% year over year), indicating stronger cash conversion and improved flexibility for debt reduction or reinvestment. A weakness is that operating cash flow covers less than half of total debt (coverage ratio ~0.40 in 2025), meaning deleveraging would likely take time without further improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.50B	2.46B	2.56B	2.63B	2.66B	1.88B
Gross Profit	1.64B	1.62B	1.69B	1.72B	1.71B	1.25B
EBITDA	721.90M	828.70M	456.60M	-10.50M	-3.01B	532.15M
Net Income	-396.00M	-201.10M	-636.70M	-911.20M	-3.96B	-270.50M
Balance Sheet
Total Assets	11.23B	11.07B	11.49B	12.71B	13.94B	20.18B
Cash, Cash Equivalents and Short-Term Investments	318.70M	329.20M	295.20M	370.70M	348.80M	587.61M
Total Debt	4.48B	4.48B	4.59B	4.81B	5.10B	5.61B
Total Liabilities	6.32B	6.23B	6.35B	6.71B	7.13B	8.26B
Stockholders Equity	4.90B	4.84B	5.14B	5.99B	6.81B	11.93B
Cash Flow
Free Cash Flow	335.20M	628.50M	357.50M	501.70M	306.40M	205.30M
Operating Cash Flow	609.90M	628.50M	646.60M	744.20M	509.30M	323.80M
Investing Cash Flow	-171.10M	-263.20M	-236.70M	-237.40M	57.30M	-4.04B
Financing Cash Flow	-504.80M	-343.10M	-470.10M	-496.50M	-759.20M	4.03B

Clarivate Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLVT, the sentiment is Neutral. The current price of 2.35 is above the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.84, and below the 200-day MA of 3.72, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 51.53 is Neutral, neither overbought nor oversold. The STOCH value of 35.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CLVT.

Clarivate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	76 Outperform	$4.90B	20.60	25.96%	―	14.43%	29.86%
G	73 Outperform	$6.54B	11.99	22.37%	1.41%	7.40%	-14.45%
CTSH	71 Outperform	$29.20B	13.40	15.16%	1.46%	7.44%	-4.57%
EPAM	68 Neutral	$7.12B	19.13	10.34%	―	14.26%	-15.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IT	61 Neutral	$10.38B	15.26	86.85%	―	5.24%	-16.05%
CLVT	54 Neutral	$1.55B	-4.11	-7.60%	―	-2.96%	71.30%

Clarivate Corporate Events

Clarivate Advances Subscription Model, Explores Life Sciences Divestiture

On February 24, 2026, Clarivate reported fourth-quarter and full-year 2025 results showing lower reported revenue due to divestitures but improving quality of earnings, with organic ACV up 1.8%, recurring organic revenue growing and the mix of recurring revenue rising to 88% of total. Net loss narrowed sharply in 2025 to $201.1 million from $636.7 million a year earlier, supported by stronger free cash flow of $365.3 million and $225 million of share buybacks, as management highlighted progress on its Value Creation Plan and disciplined cost control.

The company also disclosed it is pursuing a sale of its Life Sciences & Healthcare segment and is in active talks with potential buyers, a move aimed at sharpening its focus on academia, government and intellectual property markets while using anticipated proceeds to reduce leverage. For 2026, Clarivate projected continued growth in organic ACV and recurring revenues, margin expansion and roughly 10% higher free cash flow even though reported revenue will fall following strategic divestitures, signaling an ongoing shift toward a more sustainable subscription-led model and balance sheet strengthening.

The most recent analyst rating on (CLVT) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Clarivate Shares AI-Focused Intelligence Webinar With Investors

On February 3, 2026, Clarivate made available on the investor relations section of its website a video webinar titled “Intelligence Amplified in the Age of AI,” along with related presentation materials, as part of its communications to investors and other stakeholders. The company emphasized that the materials are being furnished for informational purposes under securities regulations and are not deemed formally filed or incorporated into other regulatory documents, underscoring their status as supplemental rather than binding disclosures for compliance and liability purposes.

The most recent analyst rating on (CLVT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Clarivate redeems notes, advances capital allocation strategy

On January 30, 2026, Clarivate’s subsidiary Camelot Finance S.A. fully redeemed the remaining $100 million principal amount of its 4.50% senior secured notes due 2026 at par plus accrued interest, funded with cash on hand, and subsequently satisfied and discharged the related indenture, releasing the company from most obligations under the instrument. The redemption, together with Clarivate’s repurchase of approximately 56 million ordinary shares for $225 million over the course of 2025 (including 21 million shares for $75 million in the fourth quarter), underscores the group’s ongoing effort to simplify its capital structure, reduce debt, enhance financial flexibility and return capital to shareholders as part of a disciplined capital allocation strategy.

The most recent analyst rating on (CLVT) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.