Clear Secure (YOU) AI Stock Analysis

• Market Cap: $4.65B
• Dividend Yield: 2.11%
• Average Volume (3M): 1.49M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.40
• 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: 1,374,384
• 30 Day Avg. Volume: 1,488,228
• 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: 0.62
• Enterprise Value/Revenue: 3.33
• Enterprise Value/Gross Profit: 5.23
• Enterprise Value/Ebitda: 14.47
• 1Y Price Target: $38.71
• Price Target Upside: 10.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8
• EPS Forecast (FY): 1.27
• Revenue Forecast (FY): $1.01B

• Rating: 73 Outperform
• Price Target: $39.00 ▲(11.68% Upside)

The score is driven primarily by strong financial performance (high margins and strong TTM free cash flow with good conversion), supported by a constructive earnings update with raised full-year free cash flow guidance. These positives are tempered by mixed/neutral technical momentum and a growth profile that has moderated recently, while valuation looks reasonable rather than clearly discounted.

Positive Factors

Cash Generation

Clear reliably converts profits into cash: strong TTM operating cash flow and FCF with FCF ~0.93x net income. Durable cash generation underpins reinvestment in product rollouts, supports guidance increases (FCF $320M), and provides flexibility for growth or buybacks.

High Profitability Margins

Subscription and partnership model yields very high gross and healthy net margins, indicating scalable unit economics. Margin profile enabled adjusted EBITDA expansion to ~30.6%, supporting durable cash flow and capacity to invest in product and enterprise sales without eroding profitability.

Product & Enterprise Traction

Successful eGate rollout and record CLEAR1 enterprise signings strengthen competitive moats by improving user experience and expanding B2B revenue channels. These product-led gains and enterprise traction support stickier adoption and scalable corporate contracts over the medium term.

Negative Factors

Revenue Growth Deceleration

The business is shifting from hyper-growth to a more mature growth profile, with TTM revenue growth slowing to low-single-digits. This structural deceleration reduces the pace at which scale advantages compound and limits medium-term upside compared with prior expansion phases.

Customer Retention Weakness

A declining gross dollar retention rate signals increasing churn or lower spend per retained customer. For a subscription-led model, weaker retention pressures lifetime value, raises required acquisition to sustain growth, and can materially affect durable revenue predictability.

Thin Equity Cushion

While reported debt is low, a small and shrinking equity base reduces balance-sheet shock absorption and increases earnings volatility per share. This limits capital flexibility for large investments or M&A and makes capital structure more sensitive to adverse shocks over the medium term.

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: Neutral
• Last Price: 34.92
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For YOU, the sentiment is Neutral. The current price of 34.92 is below the 20-day moving average (MA) of 35.64, below the 50-day MA of 35.62, and above the 200-day MA of 31.03, indicating a neutral trend. The MACD of -0.33 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 28.13 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for YOU.

Clear Secure Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BILL	74 Outperform	$4.67B	―	0.30%	―	11.63%	50.72%
YOU	73 Outperform	$4.65B	18.31	130.93%	2.11%	17.83%	118.70%
ZETA	70 Outperform	$4.98B	-174.50	-3.92%	―	35.87%	85.20%
OS	64 Neutral	$5.76B	-50.32	-20.63%	―	24.19%	58.84%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QTWO	57 Neutral	$4.07B	134.33	5.68%	―	13.93%	―
WK	52 Neutral	$4.81B	-102.44	―	―	19.86%	8.58%