Clear Secure (YOU) AI Stock Analysis

• Market Cap: $3.84B
• Dividend Yield: 2.58%
• Average Volume (3M): 1.47M
• Price to Earnings (P/E): 15.5
• Beta (1Y): 0.56
• Revenue Growth: 21.59%
• EPS Growth: 223.84%
• Country: US
• Employees: 4,022
• Sector: Technology
• Sector Strength: 91
• Industry: Software - Application
• EPS (TTM): 0.34
• Shares Outstanding: 92,266,335
• 10 Day Avg. Volume: 1,255,661
• 30 Day Avg. Volume: 1,467,464
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 2.65
• Enterprise Value/Gross Profit: 4.26
• Enterprise Value/Ebitda: 12.98
• 1Y Price Target: $29.71
• Price Target Upside: 3.02% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• Rating: 78 Outperform
• Price Target: $29.00 ▲(0.55%Upside)

Clear Secure's overall stock score is primarily supported by its strong financial performance and positive earnings call insights. While technical indicators suggest caution due to overbought conditions, the valuation remains attractive. The company demonstrates solid growth and strategic potential, though it faces some risks related to retention and macroeconomic factors.

Positive Factors

Customer Retention

Improving customer experience and subsequent higher net member retention are expected to develop.

Financial Performance

Strong cash flow and stable retention trends position for ongoing capital returns to shareholders via dividends and buybacks.

Revenue Growth

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

Negative Factors

Investor Sentiment

Shares could rally due to a significant beat on Q2 bookings given high short interest and negative investor sentiment.

Leadership Change

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

Stock Performance

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

Clear Secure Business Overview & Revenue Model

Company Description

Clear Secure, Inc. is a technology company specializing in identity verification solutions. The company operates in the security and identity management sectors, providing services that expedite the verification process for individuals across various environments, including airports and sporting events. Clear Secure’s core product is its biometric identity platform, which leverages fingerprint, iris, and facial recognition technologies to streamline access and enhance security for its members.

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 impressive revenue growth, profitability, and cash flow generation. Despite potential risks in leverage and equity stability, the company's stable income statement and robust cash flow highlight a strong 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	770.49M	613.58M	437.43M	253.95M	230.80M
Gross Profit	489.34M	382.11M	276.38M	149.02M	157.08M
EBITDA	149.67M	41.79M	-94.94M	-102.58M	-9.51M
Net Income	169.68M	28.11M	-115.44M	-115.17M	-9.31M
Balance Sheet
Total Assets	1.19B	1.05B	1.04B	812.75M	232.27M
Cash, Cash Equivalents and Short-Term Investments	609.50M	723.10M	704.75M	615.34M	154.04M
Total Debt	121.25M	127.38M	130.11M	0.00	0.00
Total Liabilities	956.99M	675.78M	526.60M	273.28M	149.91M
Stockholders Equity	198.35M	233.33M	291.06M	277.61M	82.36M
Cash Flow
Free Cash Flow	283.67M	198.90M	136.40M	40.74M	-29.26M
Operating Cash Flow	295.68M	225.03M	168.31M	69.71M	-12.34M
Investing Cash Flow	113.78M	-15.51M	-359.59M	-403.20M	-21.58M
Financing Cash Flow	-401.55M	-216.01M	-48.87M	503.40M	-63.05M

Clear Secure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.84
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 28.84 is below the 20-day moving average (MA) of 29.49, above the 50-day MA of 27.28, and above the 200-day MA of 26.62, indicating a neutral trend. The MACD of 0.62 indicates Positive momentum. The RSI at 49.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.70 is Positive, 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	78 Outperform	$3.84B	15.47	124.77%	2.58%	21.59%	223.84%
FROG	68 Neutral	$4.80B	―	-10.47%	―	21.66%	-50.24%
FRSH	66 Neutral	$3.70B	―	-5.23%	―	19.78%	47.51%
GBTG	62 Neutral	$2.92B	―	-3.84%	―	4.82%	73.90%
Sector *	62 Neutral	$34.80B	6.83	-11.92%	2.06%	6.36%	-8.52%
ALIT	58 Neutral	$2.75B	―	-0.82%	2.35%	-26.04%	85.84%
GRND	58 Neutral	$3.41B	―	-63.52%	―	30.08%	-196.62%

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.