Clearwater Analytics Holdings (CWAN)
NYSE:CWAN
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Clearwater Analytics Holdings
(NYSE:CWAN)
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Rating:71Outperform
Price Target:
$26.00
▲(8.11% Upside)
Action:UpgradedDate:03/21/26
The score is driven mainly by strong cash-flow fundamentals and the announced take-private merger, which meaningfully supports the near-term setup. These positives are tempered by inconsistent GAAP profitability, increased leverage, and only neutral technical momentum, while valuation looks weak due to the negative P/E.
Positive Factors
Free Cash Flow Generation
Strong cash generation in 2025 (OCF ~$176M, FCF ~$164M) shows durable cash conversion for a SaaS business. Material free cash flow supports organic R&D, integration of acquisitions, and reduces near-term reliance on external financing, bolstering multi‑month operational flexibility.
Negative Factors
Inconsistent GAAP Profitability
GAAP profitability has been volatile, with 2025 swinging back to a net loss and prior years showing swings (an unusually large 2024 profit appears non‑recurring). This earnings volatility undermines predictability of margins and complicates long‑range planning and performance benchmarking.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Strong cash generation in 2025 (OCF ~$176M, FCF ~$164M) shows durable cash conversion for a SaaS business. Material free cash flow supports organic R&D, integration of acquisitions, and reduces near-term reliance on external financing, bolstering multi‑month operational flexibility.
Read all positive factors
Clearwater Analytics Holdings (CWAN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.16B
Dividend YieldN/A
Average Volume (3M)4.59M
Price to Earnings (P/E)―
Beta (1Y)0.74
Revenue Growth50.91%
EPS Growth54812.50%
CountryUS
Employees1,915
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.15
Shares Outstanding296,510,070
10 Day Avg. Volume4,661,569
30 Day Avg. Volume4,588,483
Financial Highlights & Ratios
PEG Ratio1.57
Price to Book (P/B)3.24
Price to Sales (P/S)8.95
P/FCF Ratio39.82
Enterprise Value/Market Cap1.11
Enterprise Value/Revenue10.84
Enterprise Value/Gross Profit16.10
Enterprise Value/Ebitda82.16
Forecast
1Y Price Target
$24.55Price Target Upside2.08% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.7
Revenue Forecast (FY)$945.06M
Clearwater Analytics Holdings Business Overview & Revenue Model
Company Description
Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional ...
How the Company Makes Money
Clearwater primarily makes money by selling access to its software platform as a subscription-based service (SaaS). Customers pay recurring fees to use Clearwater’s investment accounting and analytics capabilities, typically under multi-period con...
Clearwater Analytics Holdings Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyClearwater Analytics Holdings Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong positive performance for CWAN, with significant revenue and ARR growth driven by successful acquisitions and strategic integration of businesses. There are challenges in maintaining consistent ARR growth and net revenue retention, but the company's advancements in Generative AI and its expansion efforts demonstrate a solid competitive position.Positive Updates
Record Revenue and ARR Growth
CWAN delivered revenues of $205.1 million, marking a 77% year-over-year growth. Annualized recurring revenue (ARR) also grew by 77% year-over-year, reaching $807.5 million.
Negative Updates
Lower Net Revenue Retention
Net revenue retention decreased slightly to 108% from 110% in Q2, driven by lower contributions from AUM growth and asset-based upsells.
Read all updates
Q3-2025 Updates
Positive
Negative
Record Revenue and ARR Growth
CWAN delivered revenues of $205.1 million, marking a 77% year-over-year growth. Annualized recurring revenue (ARR) also grew by 77% year-over-year, reaching $807.5 million.
Read all positive updates
Company Guidance
During CWAN's Q3 2025 earnings call, several key metrics were highlighted, showcasing the company's strong performance and strategic growth initiatives. Revenue for the quarter reached $205.1 million, reflecting a 77% year-on-year growth. Annualized Recurring Revenue (ARR) also increased by 77% year-over-year, hitting $807.5 million. The company's adjusted EBITDA was $70.7 million, up from $58.3 million in Q2, with a margin of 34.5%, which improved by 240 basis points from the previous quarter. Gross revenue retention stood at an impressive 98%, while net revenue retention was slightly lower at 108% due to a decrease in contributions from asset-based upsells. Gross margins for the integrated business were 78.5%, and for the core Clearwater steady-state clients, they reached 82%. The company's Total Addressable Market (TAM) has expanded to $23 billion, and significant growth was noted across various segments, including asset management, which now accounts for the largest share of bookings. CWAN is also leveraging Generative AI to enhance efficiency and client offerings, contributing to a significant reduction in manual reconciliation and faster financial reporting cycles. Looking ahead, CWAN expects Q4 2025 revenue of $216-$217 million, representing a 71-72% year-on-year growth, and full-year 2025 revenue of $730-$731 million, with a full-year adjusted EBITDA margin of 34%.Clearwater Analytics Holdings Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
54
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 731.37M | 451.80M | 368.17M | 303.43M | 252.02M |
| Gross Profit | 492.15M | 328.82M | 261.04M | 215.64M | 184.16M |
| EBITDA | 113.63M | 24.41M | -6.82M | 10.26M | 31.95M |
| Net Income | -38.81M | 424.38M | -21.63M | -7.97M | -8.21M |
Balance Sheet | |||||
| Total Assets | 3.03B | 1.17B | 558.74M | 481.94M | 344.36M |
| Cash, Cash Equivalents and Short-Term Investments | 91.25M | 255.49M | 296.22M | 255.61M | 254.60M |
| Total Debt | 882.89M | 71.92M | 72.08M | 76.60M | 53.91M |
| Total Liabilities | 1.00B | 139.34M | 149.09M | 143.56M | 82.49M |
| Stockholders Equity | 2.02B | 1.01B | 354.33M | 269.52M | 196.87M |
Cash Flow | |||||
| Free Cash Flow | 164.34M | 69.06M | 78.98M | 50.25M | -1.67M |
| Operating Cash Flow | 175.90M | 74.32M | 84.60M | 58.01M | 3.36M |
| Investing Cash Flow | -988.13M | -55.65M | -95.06M | -76.55M | -5.03M |
| Financing Cash Flow | 725.41M | -61.67M | -19.29M | 16.23M | 195.29M |
Clearwater Analytics Holdings Technical Analysis
Positive
24.05
Price Trends
23.52
Positive
23.23
Positive
21.41
Positive
Market Momentum
0.17
Negative
67.25
Neutral
92.04
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CWAN, the sentiment is Positive. The current price of 24.05 is above the 20-day moving average (MA) of 23.65, above the 50-day MA of 23.52, and above the 200-day MA of 21.41, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 67.25 is Neutral, neither overbought nor oversold. The STOCH value of 92.04 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CWAN.
Clearwater Analytics Holdings Risk Analysis
Clearwater Analytics Holdings disclosed 54 risk factors in its most recent earnings report. Clearwater Analytics Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Clearwater Analytics Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.16B | -168.64 | -2.19% | ― | 50.91% | 54812.50% | |
67 Neutral | $2.99B | 86.24 | 8.62% | ― | 13.93% | ― | |
66 Neutral | $1.69B | 26.41 | 7.96% | ― | 1.47% | 1077.70% | |
66 Neutral | $1.70B | -156.46 | -5.49% | ― | 17.11% | -19.12% | |
62 Neutral | $5.48B | -101.06 | -8.52% | ― | 22.69% | -32.47% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $316.09M | -15.25 | -22.88% | ― | 13.09% | 32.34% |
* Technology Sector Average
CWAN
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Clearwater Analytics Holdings Corporate Events
M&A Transactions
Clearwater Analytics Ends Go-Shop, Confirms GT Silver Merger
Neutral
Jan 23, 2026
On January 23, 2026, the go-shop period under Clearwater Analytics Holdings’ previously announced merger agreement with GT Silver BidCo, Inc. and its wholly owned merger subsidiary expired, following a market check run by the company’s...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.