CLARIVATE PLC (CLVT): Results of Operations and Financial Condition
CLARIVATE PLC (CLVT) filed an SEC Form 8-K — Results of Operations and Financial Condition. 1 Clarivate Reports Second Quarter 2026 Results — Delivers continued progress on strategic and financial priorities through Value Creation Plan — — Sharpens focus and enhances financial profile with previously announced Life Sciences & Healthcare segment divestiture — — Reaffirms
How this was made
The 30-second read
Why it matters
Q2 shows lower total and organic revenues, but organic ACV growth and recurring revenue stability, alongside meaningful deleveraging and reaffirmed full-year targets for ACV growth, recurring revenue growth, adjusted EBITDA, adjusted EPS, and free cash flow.
Market read
Traders can update models using the provided Q2 datapoints and the explicit 2026 guidance ranges, especially around recurring growth and free cash flow.
What to watch
Investors may underweight the magnitude of debt reduction and the specific drivers of subscription vs transactional trends (product group wind-downs and customer migrations to subscription offerings).
Clarivate Reports Second Quarter 2026 Results — Delivers continued progress on strategic and financial priorities through Value Creation Plan
Organic subscription and ACV growth, adjusted diluted EPS growth, debt reduction, and reaffirmed full-year outlook were offset by lower reported revenue, lower Adjusted EBITDA, lower operating cash flow and free cash flow, and a larger GAAP net loss driven by a $221.7 million non-cash goodwill impairment charge.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenuesGAAP | $587.3 million | – | (5.5)% |
| Organic revenuesother | (1.5)% | – | (1.5)% |
| Organic subscription growthother | 0.7% | – | 0.7% |
| Organic ACV growthother | 1.5% | – | 1.5% |
| Net lossGAAP | $268.6 million | – | N/M |
| Diluted EPSGAAP | $0.42 per diluted share | – | N/M |
| Adjusted net incomenon-GAAP | $123.1 million | – | (0.2)% |
| Adjusted diluted EPSnon-GAAP | $0.19 per diluted share | – | 5.6% |
| Adjusted EBITDAnon-GAAP | $247.2 million | – | (5.5)% |
| Net cash provided by operating activitiesGAAP | $98.7 million | – | (15.1)% |
| Free cash flownon-GAAP | $44.0 million | – | (12.5)% |
| Total revenues, first six months of 2026GAAP | $1,172.8 million | – | (3.5)% |
| Organic revenues, first six months of 2026other | (0.4)% | – | (0.4)% |
| Organic recurring revenues growth, first six months of 2026other | 0.7% | – | 0.7% |
| Net loss, first six months of 2026GAAP | $308.8 million | – | (75.6)% |
| Diluted EPS, first six months of 2026GAAP | $0.48 per diluted share | – | (84.6)% |
| Adjusted net income, first six months of 2026non-GAAP | $242.4 million | – | 10.6% |
| Adjusted diluted EPS, first six months of 2026non-GAAP | $0.38 per diluted share | – | 18.8% |
| Adjusted EBITDA, first six months of 2026non-GAAP | $488.4 million | – | (1.3)% |
| Net cash provided by operating activities, first six months of 2026GAAP | $233.4 million | – | (18.8)% |
| Free cash flow, first six months of 2026non-GAAP | $122.9 million | – | (23.5)% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Subscription revenuesPrimarily due to product group wind-downs within LS&H; organic subscription revenues increased 0.7%, primarily due to new sales and price increases. | $403.3 million | – | 0.6% |
| Re-occurring revenuesPrimarily due to foreign exchange benefit. | $109.3 million | – | 0.4% |
| Transactional revenuesPrimarily due to product group wind-downs within A&G. Organic transactional revenues decreased 15.7%, primarily due to lower activity across all segments, driven in part by customer migrations to subscription offerings. | $74.7 million | – | (30.1)% |
Full Year 2026 outlook
- Revenue$2.30B to $2.42B
- NoteACV Organic Growth: 2.0% to 3.0%
- NoteRecurring Organic Revenue Growth: 0.75% to 2.25%
- NoteAdjusted EBITDA: $980M to $1.04B
- NoteAdjusted EBITDA Margin: 42.0% to 43.5%
- NoteAdjusted Diluted EPS: $0.70 to $0.80
- NoteFree Cash Flow: $365M to $435M
- NoteThe full year outlook assumes no further acquisitions, divestitures, or unanticipated events.
What drove it
- Reported revenue declines were primarily due to inorganic divestitures and disposals.
- Organic subscription revenue growth was driven primarily by new sales and price increases.
- Organic ACV grew 1.5% compared to June 30, 2025.
- Recurring revenues increased 0.5% organically.
- Lower organic transactional revenues reflected lower activity across all segments and customer migrations to subscription offerings.
- The GAAP net loss was driven by a $221.7 million non-cash goodwill impairment charge.
- The Company cited the previously announced divestiture of the Life Sciences & Healthcare segment as creating a more focused company with greater financial flexibility and a higher recurring revenue mix.
Concerns
- Organic revenues decreased 1.5% in the second quarter and 0.4% in the first six months of 2026.
- Transactional revenues decreased $32.1 million, or 30.1%, to $74.7 million, while organic transactional revenues decreased 15.7%.
- Second-quarter Adjusted EBITDA decreased $14.4 million, or 5.5%, to $247.2 million.
- First-half operating cash flow and free cash flow declined from the prior-year period.
- GAAP net loss widened to $268.6 million in the second quarter, driven by the $221.7 million non-cash goodwill impairment charge.
- Full-year outlook assumes no further acquisitions, divestitures, or unanticipated events.
What to watch
- Progress toward full-year ACV Organic Growth of 2.0% to 3.0%.
- Progress toward full-year Recurring Organic Revenue Growth of 0.75% to 2.25%.
- The trajectory of organic transactional revenues and customer migrations to subscription offerings.
- Execution of the Life Sciences & Healthcare segment divestiture and the anticipated impact on the Company's financial profile.
- Delivery against full-year Adjusted EBITDA of $980M to $1.04B and Free Cash Flow of $365M to $435M.
- Continued debt reduction and use of proceeds from the Life Sciences & Healthcare divestiture.
Balance sheet and cash flow
- Cash and cash equivalents of $217.7 million as of June 30, 2026, decreased $111.5 million compared to December 31, 2025.
- Total debt outstanding was $4,251.5 million as of June 30, 2026, a decrease of $218.4 million compared to the prior year.
- A $100.0 million accelerated debt repayment was completed in January 2026, fully redeeming the senior secured notes due November 2026.
- The Company retired $117.6 million aggregate principal of the senior secured notes due 2028 and senior notes due 2029 through debt repurchases at an approximate 6% discount to par.
- Net cash provided by operating activities for the first six months of 2026 was $233.4 million compared to $287.5 million in the prior year period.
- Free cash flow for the first six months of 2026 was $122.9 million compared to $160.6 million in the prior year period.
Analysis
Clarivate reported second-quarter revenue of $587.3 million, compared to $621.4 million in the second quarter of 2025. The Company attributed the reported decline primarily to inorganic divestitures and disposals. Organic revenues decreased 1.5%, although organic subscription revenues increased 0.7% and organic ACV grew 1.5% compared to June 30, 2025. The result points to continued progress in the subscription base, but lower transactional activity remained a meaningful offset.
Revenue mix continued to shift toward recurring offerings. Subscription revenues were $403.3 million and re-occurring revenues were $109.3 million, while recurring revenues increased 0.5% organically. Transactional revenues fell to $74.7 million, with the Company citing product group wind-downs within A&G, lower activity across all segments, and customer migrations to subscription offerings. Subscription revenue also reflected product group wind-downs within LS&H, despite organic growth from new sales and price increases.
GAAP profitability was materially affected by a $221.7 million non-cash goodwill impairment charge. Net loss was $268.6 million, or $0.42 per diluted share, compared with a net loss of $72.0 million, or $0.11 per diluted share, in the prior-year quarter. On a non-GAAP basis, adjusted net income was $123.1 million and adjusted diluted EPS was $0.19 per diluted share, compared with $123.3 million and $0.18 per diluted share, respectively. Adjusted EBITDA declined to $247.2 million from $261.6 million.
Cash generation was lower year over year. Second-quarter net cash provided by operating activities was $98.7 million and free cash flow was $44.0 million. For the first six months of 2026, operating cash flow was $233.4 million and free cash flow was $122.9 million, both below the prior-year period. Management nonetheless used cash flow and debt repurchases to reduce total debt outstanding to $4,251.5 million, including a $100.0 million accelerated repayment and retirement of $117.6 million aggregate principal through repurchases at an approximate 6% discount to par.
Clarivate reaffirmed its full-year 2026 outlook, including revenue of $2.30B to $2.42B, Adjusted EBITDA of $980M to $1.04B, adjusted diluted EPS of $0.70 to $0.80, and free cash flow of $365M to $435M. The outlook assumes no further acquisitions, divestitures, or unanticipated events. The key operating question is whether subscription and recurring growth can accelerate sufficiently to offset the decline in transactional revenues while the Company executes the previously announced Life Sciences & Healthcare segment divestiture.
Management, verbatim
The Value Creation Plan continues to drive meaningful progress, as we execute against our strategic priorities and strengthen Clarivate’s foundation for organic growth acceleration. During the quarter, we expanded organic recurring revenue, advanced our AI innovation roadmap, maintained disciplined cost management, and strengthened our balance sheet through deleveraging. Together, with the recently announced divestiture of the Life Sciences & Healthcare segment, these actions are creating a more focused company with greater financial flexibility, a higher recurring revenue mix, and a clear path to deliver long-term value to shareholders.
Matti Shem Tov, Chief Executive Officer
Our second quarter results reflect continued financial discipline and execution. In the first half of 2026, we expanded our profit margin and reduced debt by more than $200 million through strong free cash flow generation and opportunistic debt repurchases. Combined with our reaffirmed full-year outlook, these results demonstrate the resilience of our business model and our commitment to strengthening Clarivate’s financial profile while maintaining the flexibility to invest in our highest-value growth opportunities.
Jonathan Collins, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- GAAP gross profit and gross margin for the second quarter of 2026
- GAAP operating income or loss for the second quarter of 2026
- Non-GAAP operating income for the second quarter of 2026
- Actual Adjusted EBITDA margin for the second quarter of 2026
- Tax rate for the second quarter of 2026
- Reportable segment revenue and growth by operating segment
- Prior-quarter comparisons for reported metrics
- Cash and cash equivalents balance as of December 31, 2025
- Prior-year total debt outstanding balance
- Share repurchases, dividends, or other shareholder capital returns
- Prior outlook needed to compare actual results with prior guidance
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Clarivate’s Value Creation Plan is paired with a previously announced Life Sciences & Healthcare segment divestiture and a shift toward a more subscription-led revenue base.
Ticker impact
Clarivate reports Q2 2026 results, including a $221.7M non-cash goodwill impairment and reaffirmed 2026 outlook after a Life Sciences & Healthcare divestiture.
Likely choppy reaction: investors may focus on organic revenue softness and impairment, offset by reaffirmed ACV/recurring growth and free-cash-flow range.
The filing provides concrete datapoints (revenue decline, organic trends, impairment, FCF, debt reduction) and explicit 2026 ranges, but no new deal terms beyond previously announced divestiture.
Market effects
Signals ongoing subscription-led revenue transition and cost discipline in enterprise intelligence/software, with divestiture-driven portfolio reshaping.
Limited direct regional read-through; Clarivate’s global revenue base makes the impact more company-specific than country-specific.
May influence sentiment toward other knowledge-intelligence and research-software peers that are also shifting toward recurring revenue and deleveraging.
Counterpoint
The impairment-driven GAAP loss may be less informative than cash generation, but the organic revenue decline and transactional weakness could indicate demand softness that guidance may not fully capture.
Key entities
- issuerClarivate Plc
Reports Q2 2026 results, impairment, cash flow, and reaffirmed 2026 outlook tied to its Value Creation Plan and divestiture focus.
