Clear Secure (YOU) AI Stock Analysis

• Market Cap: $3.24B
• Dividend Yield: 2.05%
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.57
• Revenue Growth: 21.59%
• EPS Growth: 223.84%
• Country: US
• Employees: 4,022
• Sector: Technology
• Sector Strength: 84
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 92,266,335
• 10 Day Avg. Volume: 1,209,683
• 30 Day Avg. Volume: 1,713,456
• PEG Ratio: 3.63
• Price to Book (P/B): 7.74
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.51
• Enterprise Value/Market Cap: 0.72
• Enterprise Value/Revenue: 0.78
• Enterprise Value/Gross Profit: 4.69
• Enterprise Value/Ebitda: 4.10
• 1Y Price Target: $31.50
• Price Target Upside: 29.31% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $27.00 ▲(10.84%Upside)

Clear Secure's overall stock score reflects its strong financial performance and positive earnings call highlights. The technical analysis indicates potential short-term bearish trends, while valuation remains attractive. Attention to balance sheet improvements and monitoring macro risks are advisable.

Positive Factors

Member Experience

The company is positioning for a stronger member experience with new workflows and the EnVe pod system rolled out to their 59 airport locations.

Revenue Generation

Clear Secure, Inc. has started charging United Premier 1K members for CLEAR+, which is expected to generate additional revenue.

Negative Factors

Bookings Guidance

Shares are trading lower post the print as consensus bookings is likely re-set modestly lower for FY25.

Leadership Changes

Ken Cornick, President and CFO, announced his resignation in conjunction with the Q4 call.

Clear Secure Business Overview & Revenue Model

Company Description

Clear Secure, Inc. provides a member-centric secure identity platform in the United States. The company's secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking. It also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR app, a consumer-facing digital product that facilitates new user enrollment and member engagement from their mobile device. In addition, the company provides Reserve powered by CLEAR, a virtual queuing technology that provides users with the choice of how they queue either at home or on the move; and Atlas Certified, an automated solution to verify professional licenses and certification data across industries by communicating with certifying organizations for on-demand, current, and trusted data. The company was founded in 2010 and is headquartered in New York, New York.

How the Company Makes Money

Clear Secure, Inc. generates revenue primarily through its subscription-based model. Individuals pay a recurring fee for membership, which grants them expedited entry at airports and other venues using the company's biometric identity verification platform. Additional revenue streams include partnerships with airports, airlines, and event operators who integrate Clear's technology to improve their customer experience. The company may also earn from corporate memberships and collaborations with government entities for identity management solutions.

Clear Secure Financial Statement Overview

Summary

Clear Secure demonstrates strong financial health with robust revenue growth and profitability, supported by efficient cash management. The company faces potential risks due to moderate leverage and declining equity ratios, but overall maintains a solid financial position.

Income Statement

Clear Secure has demonstrated impressive revenue growth with a consistent upward trajectory from $230.8M in 2020 to $802.8M in TTM 2025. The company has also shown strong profitability with a net profit margin of 21.9% in TTM 2025, improving from negative margins in previous years. The gross profit margin has remained robust, at 62.2% in TTM 2025, indicating efficient cost management. The EBITDA margin of 20.4% in TTM 2025 reflects healthy operational performance. Overall, the income statement indicates strong growth and profitability.

Balance Sheet

Clear Secure maintains a stable balance sheet with a debt-to-equity ratio of 1.02 in TTM 2025, indicating a moderate level of leverage. The equity ratio has decreased to 10.5% in TTM 2025, suggesting a potential risk in financial stability due to a decline in equity value. However, the company has managed to maintain a positive return on equity of 151.1% in TTM 2025, showcasing effective utilization of equity to generate profits.

Cash Flow

Clear Secure has shown robust operating cash flow, increasing to $313.7M in TTM 2025. The free cash flow has also grown significantly to $297.6M in TTM 2025, reflecting efficient cash management. The operating cash flow to net income ratio of 1.78 indicates strong cash conversion efficiency. The free cash flow to net income ratio of 1.69 further supports the company's ability to generate cash relative to its profits. These metrics suggest a healthy cash flow situation.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
802.81M	770.49M	613.58M	437.43M	253.95M	230.80M
	Gross Profit
499.56M	489.34M	382.11M	276.38M	149.02M	157.08M
	EBIT
136.91M	123.19M	20.14M	-129.06M	-114.93M	-18.93M
	EBITDA
163.83M	149.67M	41.79M	-94.94M	-102.58M	-9.51M
	Net Income Common Stockholders
176.28M	169.68M	28.11M	-115.44M	-115.17M	-9.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
529.88M	609.50M	723.10M	704.75M	615.34M	154.04M
	Total Assets
1.11B	1.19B	1.05B	1.04B	812.75M	232.27M
	Total Debt
119.57M	121.25M	127.38M	130.11M	0.00	0.00
	Net Debt
32.01M	54.36M	69.48M	91.17M	-280.11M	-116.23M
	Total Liabilities
985.35M	956.99M	675.78M	526.60M	273.28M	149.91M
	Stockholders Equity
116.69M	198.35M	233.33M	291.06M	277.61M	82.36M
Cash Flow		Free Cash Flow
297.57M	283.67M	198.90M	136.40M	40.74M	-29.26M
	Operating Cash Flow
313.68M	295.68M	225.03M	168.31M	69.71M	-12.34M
	Investing Cash Flow
180.83M	113.78M	-15.51M	-359.59M	-403.20M	-21.58M
	Financing Cash Flow
-471.56M	-401.55M	-216.01M	-48.87M	503.40M	-63.05M

Clear Secure Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.36
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YOU, the sentiment is Negative. The current price of 24.36 is below the 20-day moving average (MA) of 25.07, below the 50-day MA of 25.19, and below the 200-day MA of 26.92, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 44.16 is Neutral, neither overbought nor oversold. The STOCH value of 9.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for YOU.

Clear Secure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	75 Outperform	$3.24B	13.07	124.77%	2.05%	21.59%	223.84%
FRSH	74 Outperform	$4.56B	―	-6.85%	―	20.46%	39.37%
GRND	73 Outperform	$4.60B	―	-63.52%	―	30.08%	-196.62%
FROG	68 Neutral	$4.75B	―	-10.47%	―	21.66%	-50.24%
Sector *	62 Neutral	$11.96B	10.09	-7.50%	3.10%	7.33%	-8.11%
ALIT	59 Neutral	$2.84B	―	-0.82%	3.04%	-26.04%	85.84%
GBTG	58 Neutral	$2.95B	―	-3.84%	―	4.82%	73.90%

Clear Secure Corporate Events

Clear Secure Announces Leadership Changes Amid Strong Growth

On February 20, 2025, Clear Secure announced the resignation of Kenneth Cornick as President and CFO, effective March 31, 2025, with Michael Barkin and Jennifer Hsu appointed as his successors. The company reported strong financial performance in Q4 2024, with a 20.7% increase in revenue and significant growth in member enrollments, positioning itself for continued expansion in 2025.