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Clear Secure (YOU)
NYSE:YOU
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Clear Secure
(NYSE:YOU)
Rating:78Outperform
Price Target:
$39.00
▲(7.26% Upside)
Positive Factors
Financial Performance
Solid execution has led to more sustainable results than investors expected.
Revenue Growth
The company continues to make progress on CLEAR1 and PreCheck beginning to contribute a more material portion of the bookings and revenue.
Negative Factors
Bookings Guidance
Shares are trading lower post the print as consensus bookings is likely re-set modestly lower for FY25.
Executive Changes
Ken Cornick, President and CFO, announced his resignation in conjunction with the Q4 call.
Clear Secure (YOU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.83B
Dividend Yield2.05%
Average Volume (3M)1.67M
Price to Earnings (P/E)19.5
Beta (1Y)0.61
Revenue Growth19.85%
EPS Growth135.66%
CountryUS
Employees4,022
SectorTechnology
Sector Strength85
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.37
Shares Outstanding95,330,540
10 Day Avg. Volume1,584,970
30 Day Avg. Volume1,668,327
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.45
Enterprise Value/Revenue2.58
Enterprise Value/Gross Profit4.09
Enterprise Value/Ebitda12.21
Forecast
1Y Price Target
$33.67Price Target Upside-7.40% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering9
Clear Secure Business Overview & Revenue Model
Company DescriptionClear 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 MoneyClear 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 Earnings Call Summary
Earnings Call Date:Aug 05, 2025
(Q2-2025)
| % Change Since: 21.24%|
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for CLEAR, driven by strong financial performance, membership growth, and successful expansion into international markets. Despite the flat travel environment, the company has introduced new services and continues to improve efficiency and profitability.Q2-2025 Updates
Positive Updates
Strong Financial Performance
Second quarter revenue reached $219.5 million, marking a 17.5% growth year-over-year. Total bookings were $222.9 million, showing a 13.1% increase, and free cash flow was $117.9 million.
Growth in Membership
Active CLEAR Plus members grew to 7.6 million, up 7.5% year-over-year. Total members increased to 33.5 million, up 38.2% from the previous year.
Expansion of Global Reach
CLEAR Plus is now available to travelers from the U.K., Canada, Australia, and New Zealand, expanding the total addressable market.
Introduction of New Services
Launch of CLEAR Concierge, a premium service offering assistance from curbside to gate, and updates to the enrollment process with ePassport capability for one-step enrollment.
Profitability and Efficiency Improvements
Achieved $42.6 million in operating income with a 19.4% margin, a 300 basis points expansion. Adjusted EBITDA was $60.1 million with a 27.4% margin.
Negative Updates
Flat Travel Environment
Despite record travel volumes for CLEAR, the overall travel industry faced a broadly flat environment, affecting potential growth opportunities.
Higher Cash Taxes Impacting Free Cash Flow Growth
Higher cash taxes after utilizing most of the NOL balance in 2024 affected year-over-year free cash flow growth.
Company Guidance
During CLEAR's Fiscal Second Quarter 2025 Conference Call, the company provided guidance for the upcoming quarter and year. They expect Q3 revenue to range between $223 million and $226 million, with total bookings anticipated between $253 million and $258 million, representing growth rates of 13.1% and 12.3% at the midpoint, respectively. For the full year, CLEAR reaffirmed their guidance of at least $310 million in free cash flow and anticipate expanding adjusted EBITDA margins year-over-year. The call highlighted CLEAR's strategic focus on product innovation and expanding membership, including the rollout of CLEAR Plus to international travelers from the U.K., Canada, Australia, and New Zealand, and the introduction of their premium CLEAR Concierge service. The company also noted a strong financial performance in Q2, reporting $219.5 million in revenue, marking a 17.5% growth, and $117.9 million in free cash flow. Active CLEAR Plus members increased to 7.6 million, up 7.5% year-over-year, with gross dollar retention at 87.3%.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.85
Very Positive
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.75
Positive
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.80
Positive
| 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
Positive
36.36
Price Trends
29.67
Positive
27.46
Positive
26.45
Positive
Market Momentum
1.54
Negative
76.09
Negative
85.39
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 36.36 is above the 20-day moving average (MA) of 32.25, above the 50-day MA of 29.67, and above the 200-day MA of 26.45, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 76.09 is Negative, neither overbought nor oversold. The STOCH value of 85.39 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for YOU.
Clear Secure Risk Analysis
Clear Secure disclosed 52 risk factors in its most recent earnings report. Clear Secure 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
Clear Secure Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.83B | 19.48 | 128.70% | 2.05% | 19.85% | 135.66% | |
71 Outperform | $5.49B | ― | -11.15% | ― | 21.97% | -69.32% | |
69 Neutral | $4.07B | ― | -5.23% | ― | 19.78% | 47.51% | |
64 Neutral | $3.96B | ― | -4.72% | ― | 3.61% | -44.99% | |
61 Neutral | $35.49B | 7.54 | -10.73% | 1.90% | 8.85% | -10.46% | |
50 Neutral | $3.03B | ― | -76.08% | ― | 28.35% | 24.57% | |
46 Neutral | $2.09B | ― | -29.09% | 3.10% | -19.48% | -398.43% |
* Technology Sector Average
Performance Comparison
YOU
Clear Secure
36.36
8.30
29.58%
FROG
JFrog
47.50
20.90
78.57%
ALIT
Alight
3.87
-3.33
-46.25%
GBTG
Global Business Travel Group
8.26
1.17
16.50%
GRND
Grindr
15.61
3.27
26.50%
FRSH
Freshworks
13.97
1.83
15.07%
Clear Secure Corporate Events
Executive/Board ChangesFinancial Disclosures
Clear Secure Announces Leadership Changes Amid Strong Growth
Positive
Feb 26, 2025
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.
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.