Clear Secure (YOU) AI Stock Analysis

• Market Cap: $4.77B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.45M
• Price to Earnings (P/E): 18.8
• Beta (1Y): 0.34
• Revenue Growth: 17.83%
• EPS Growth: 118.70%
• Country: US
• Employees: 4,022
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.39
• Shares Outstanding: 97,432,380
• 10 Day Avg. Volume: 1,420,207
• 30 Day Avg. Volume: 1,449,661
• PEG Ratio: 0.03
• Price to Book (P/B): 12.61
• Price to Sales (P/S): 3.25
• P/FCF Ratio: 8.82
• Enterprise Value/Market Cap: 0.60
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 14.47
• 1Y Price Target: $38.71
• Price Target Upside: 7.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.18
• Revenue Forecast (FY): $895.88M

• Rating: 77 Outperform
• Price Target: $47.00 ▲(31.10% Upside)

Clear Secure's strong financial performance and positive earnings call are the most significant factors contributing to its stock score. While technical indicators suggest potential overbought conditions, the company's robust growth and efficient operations support a favorable outlook. Valuation is fair, providing a balanced view of growth and income potential.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand for Clear Secure's services, enhancing its market position and supporting long-term financial health.

Strategic Partnerships

The partnership with CMS expands Clear Secure's reach into healthcare, diversifying revenue streams and strengthening its identity verification platform.

Margin Expansion

Margin expansion reflects operational efficiency and cost management, contributing to sustainable profitability and competitive advantage.

Negative Factors

Gross Dollar Retention Decline

A decline in gross dollar retention suggests potential customer churn, which could impact future revenue stability and growth.

Negative Free Cash Flow

Negative free cash flow indicates challenges in cash generation, which may affect the company's ability to invest in growth opportunities.

Equity Financing Risk

Low equity financing increases reliance on debt, potentially limiting financial flexibility and increasing vulnerability to interest rate changes.

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 through subscription fees charged to users who enroll in its identity verification services. Additionally, the company partners with airports, sports venues, and other organizations, often receiving a fee for each user that utilizes its services at their locations. This partnership model not only expands Clear's user base but also allows it to secure contracts that ensure a steady income stream. Furthermore, Clear may also explore additional monetization avenues, such as data analytics services or partnerships that enhance security solutions for various sectors.

Clear Secure Financial Statement Overview

Summary

Clear Secure exhibits strong financial health with consistent revenue and profit growth, efficient cash flow management, and a balanced approach to leveraging. Robust profitability and cash generation are evident, though attention is needed to maintain cost efficiency and manage debt levels.

Income Statement

Clear Secure has demonstrated strong revenue growth with a TTM (Trailing-Twelve-Months) revenue increase of 4.08% and consistent improvement in profitability metrics. The gross profit margin remains robust at 62.95%, and the net profit margin is healthy at 21.17%. The EBIT and EBITDA margins have also shown positive trends, indicating efficient operational management. However, the slight decline in gross profit margin from the previous year suggests potential cost pressures.

Balance Sheet

The company's balance sheet reflects a moderate debt-to-equity ratio of 0.95, indicating a balanced approach to leveraging. The return on equity is impressive at 125.15%, showcasing effective use of equity to generate profits. However, the equity ratio of 10.28% suggests a relatively low proportion of equity financing, which could pose risks if debt levels increase.

Cash Flow

Clear Secure's cash flow performance is strong, with a free cash flow growth rate of 2.65% and a high free cash flow to net income ratio of 94.84%, indicating efficient cash generation relative to profits. The operating cash flow to net income ratio of 42.97% suggests solid cash flow management, though there is room for improvement in converting net income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	866.30M	770.49M	613.58M	437.43M	253.95M	230.80M
Gross Profit	550.78M	489.34M	382.11M	276.38M	149.02M	157.08M
EBITDA	199.21M	149.67M	41.79M	-110.27M	-102.58M	-9.51M
Net Income	181.69M	169.68M	28.11M	-65.57M	-36.08M	-9.31M
Balance Sheet
Total Assets	1.13B	1.19B	1.05B	1.04B	812.75M	232.27M
Cash, Cash Equivalents and Short-Term Investments	530.64M	609.50M	723.10M	704.75M	615.34M	154.04M
Total Debt	0.00	121.25M	127.38M	130.11M	0.00	0.00
Total Liabilities	959.75M	956.99M	675.78M	526.60M	273.28M	149.91M
Stockholders Equity	148.57M	198.35M	233.33M	291.06M	277.61M	82.36M
Cash Flow
Free Cash Flow	289.58M	283.67M	198.90M	136.40M	40.74M	-29.26M
Operating Cash Flow	310.64M	295.68M	225.03M	168.31M	69.71M	-12.34M
Investing Cash Flow	38.77M	113.78M	-15.51M	-359.59M	-403.20M	-21.58M
Financing Cash Flow	-307.27M	-401.55M	-216.01M	-48.87M	503.40M	-63.05M

Clear Secure Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 35.85
• 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 35.85 is below the 20-day moving average (MA) of 36.15, above the 50-day MA of 34.56, and above the 200-day MA of 30.39, indicating a neutral trend. The MACD of 0.64 indicates Positive momentum. The RSI at 48.96 is Neutral, neither overbought nor oversold. The STOCH value of 5.39 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	77 Outperform	$4.77B	18.80	130.93%	2.11%	17.83%	118.70%
QTWO	75 Outperform	$4.66B	153.84	5.68%	―	13.93%	―
BILL	74 Outperform	$5.53B	-202.68	0.30%	―	11.63%	50.72%
ZETA	67 Neutral	$5.09B	-178.29	-3.92%	―	35.87%	85.20%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OS	59 Neutral	$4.60B	-40.20	-20.63%	―	24.19%	58.84%
WK	52 Neutral	$4.91B	-104.51	―	―	19.86%	8.58%

Clear Secure Corporate Events

Clear Secure Reports Strong Q3 2025 Growth

Clear Secure, Inc., a leading secure identity company, specializes in enhancing security and creating seamless experiences for its members across various platforms, including travel and enterprise solutions.

Clear Secure, Inc. Reports Strong Q3 Growth

Clear Secure, Inc. recently held its earnings call, revealing a generally positive outlook despite some minor challenges. The company reported significant growth in revenue and membership, a successful rollout of the eGate system, and strong performance from CLEAR1. Although there were slight declines in gross dollar retention and negative free cash flow due to a large annual payment, the overall sentiment remains optimistic, bolstered by expanding international markets and improving margins.