Clear Secure (YOU) AI Stock Analysis

• Market Cap: $4.96B
• Dividend Yield: 2.06%
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): 20.0
• Beta (1Y): 0.63
• Revenue Growth: 19.85%
• EPS Growth: 135.66%
• Country: US
• Employees: 4,022
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Application
• EPS (TTM): 0.37
• Shares Outstanding: 95,330,540
• 10 Day Avg. Volume: 1,373,315
• 30 Day Avg. Volume: 1,696,250
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.43
• Enterprise Value/Revenue: 2.58
• Enterprise Value/Gross Profit: 4.09
• Enterprise Value/Ebitda: 12.21
• 1Y Price Target: $35.20
• Price Target Upside: -5.73% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 82 Outperform
• Price Target: $43.00 ▲(15.16% Upside)

Clear Secure's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic expansion. Technical analysis supports a bullish outlook, though valuation suggests moderate growth expectations are priced in.

Positive Factors

Revenue Growth

Clear Secure's strong revenue growth indicates robust demand for its services and successful market penetration, supporting long-term business expansion.

Global Expansion

Expanding into international markets increases Clear Secure's addressable market, enhancing growth prospects and competitive positioning globally.

Strategic Partnerships

The partnership with Fidelity National Financial diversifies Clear Secure's application of its technology, potentially opening new revenue streams and strengthening its market position.

Negative Factors

Flat Travel Environment

A stagnant travel industry could limit Clear Secure's growth in its primary market, necessitating diversification or innovation to sustain momentum.

Higher Cash Taxes

Increased tax liabilities could constrain Clear Secure's cash flow, impacting its ability to reinvest in growth initiatives and maintain financial flexibility.

Equity Financing Risk

A low equity ratio increases reliance on debt, which could pose financial risks if interest rates rise or if the company faces operational challenges.

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 generates revenue primarily through subscription fees paid by customers for its identity verification services. Users can sign up for a Clear membership, which allows them to use the expedited security lanes at airports and other participating venues. Additionally, the company has established partnerships with various airports, airlines, and event venues, which pay for the integration of Clear's technology into their operations. These partnerships often include revenue-sharing agreements, where Clear earns a portion of the fees collected from customers using its service. Furthermore, Clear may also generate revenue through data analytics services and partnerships with other companies looking to enhance their security and identification processes.

Clear Secure Financial Statement Overview

Summary

Clear Secure exhibits strong financial health with impressive revenue growth, profitability, and cash flow generation capabilities. The company's stable income statement and robust cash flow metrics are offset by a moderate balance sheet with potential risks in leverage and equity stability. Overall, Clear Secure is in a strong financial position, although attention to balance sheet improvements would be beneficial.

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	835.53M	770.49M	613.58M	437.43M	253.95M	230.80M
Gross Profit	526.00M	489.34M	382.11M	276.38M	149.02M	157.08M
EBITDA	176.37M	149.67M	41.79M	-94.94M	-102.58M	-9.51M
Net Income	176.88M	169.68M	28.11M	-115.44M	-115.17M	-9.31M
Balance Sheet
Total Assets	1.18B	1.19B	1.05B	1.04B	812.75M	232.27M
Cash, Cash Equivalents and Short-Term Investments	605.73M	609.50M	723.10M	704.75M	615.34M	154.04M
Total Debt	115.01M	121.25M	127.38M	130.11M	0.00	0.00
Total Liabilities	1.05B	956.99M	675.78M	526.60M	273.28M	149.91M
Stockholders Equity	121.34M	198.35M	233.33M	291.06M	277.61M	82.36M
Cash Flow
Free Cash Flow	305.45M	283.67M	198.90M	136.40M	40.74M	-29.26M
Operating Cash Flow	322.07M	295.68M	225.03M	168.31M	69.71M	-12.34M
Investing Cash Flow	103.94M	113.78M	-15.51M	-359.59M	-403.20M	-21.58M
Financing Cash Flow	-376.71M	-401.55M	-216.01M	-48.87M	503.40M	-63.05M

Clear Secure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 37.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YOU, the sentiment is Positive. The current price of 37.34 is above the 20-day moving average (MA) of 35.52, above the 50-day MA of 32.35, and above the 200-day MA of 26.91, indicating a bullish trend. The MACD of 1.28 indicates Positive momentum. The RSI at 68.45 is Neutral, neither overbought nor oversold. The STOCH value of 85.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YOU.

Clear Secure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YOU	82 Outperform	$4.96B	20.01	128.70%	2.06%	19.85%	135.66%
QTWO	70 Outperform	$5.13B	1,340.62	0.92%	―	13.34%	―
BILL	69 Neutral	$5.19B	482.28	0.59%	―	13.36%	―
ZETA	66 Neutral	$4.84B	―	-8.21%	―	40.60%	79.56%
WK	65 Neutral	$4.34B	―	99.24%	―	19.02%	27.64%
OS	64 Neutral	$4.61B	―	-88.48%	―	24.72%	-3760.98%
Sector *	61 Neutral	$36.85B	12.13	-10.22%	1.85%	8.52%	-7.53%