CLEAR Secure (NYSE:YOU) Posts Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Key Points

• Q3 results beat expectations: CLEAR Secure reported EPS of $0.52 versus $0.48 consensus and revenue of $292.9 million, up 27.8% year over year. Adjusted EBITDA rose to $103.9 million, with a 35.5% margin.
• Growth and outlook remain strong: Active CLEAR+ members grew 14.5% to 8.5 million, while CLEAR1 bookings nearly tripled year over year. The company raised its 2026 free-cash-flow outlook to at least $490 million and expects Q4 revenue of $299 million to $302 million.
• Cash flow and bookings warrant attention: Q3 free cash flow was negative $103.8 million, largely due to a roughly $315 million partnership-liability settlement. Q4 bookings growth is expected to slow from Q3, and quarterly liability payments are expected to resume in Q1 2027.

CLEAR Secure (NYSE:YOU - Get Free Report) released its earnings results on Wednesday. The company reported $0.52 earnings per share for the quarter, topping the consensus estimate of $0.48 by $0.04, FiscalAI reports. CLEAR Secure had a return on equity of 71.51% and a net margin of 14.78%. The business had revenue of $292.85 million during the quarter, compared to the consensus estimate of $286.65 million. During the same period last year, the company earned $0.29 earnings per share. The business's revenue for the quarter was up 27.8% compared to the same quarter last year.

Here are the key takeaways from CLEAR Secure's conference call:

• Q3 revenue rose 27.8% year over year to $292.9 million, while bookings increased 24.4% to $323.5 million. Adjusted EBITDA was $103.9 million, a 35.5% margin and nearly five percentage points of year-over-year expansion.
• CLEAR Travel continued to grow, with active CLEAR+ members up 14.5% to 8.5 million; management attributed momentum to improved travel experiences and network expansion. The company is also testing more personalized packages and pricing, though it described these efforts as early.
• CLEAR1 bookings were nearly three times their year-ago level, with the company citing an expanded multi-year CMS partnership, a VA pilot, nine new health-system partners, and a record quarter for partner expansions. Management sees further cross-sell and new-customer potential, while noting that large contract timing can make results lumpy.
• Clear raised its 2026 free cash flow outlook to at least $490 million, representing at least 42.8% year-over-year growth. It said Q3 free cash flow was negative $103.8 million primarily because of a roughly $315 million partnership-liability settlement, with no further such payments expected in fiscal 2026.
• Q4 guidance implies bookings growth of 17.6% at the midpoint, below Q3’s 24.4% growth, and excludes potential large CLEAR1 contracts because their timing is difficult to predict. The company also expects quarterly payments on its partnership liability to begin in Q1 2027.

CLEAR Secure Stock Performance

YOU stock traded up $11.10 during trading on Wednesday, reaching $58.86. The company had a trading volume of 4,988,145 shares, compared to its average volume of 1,654,193. The company has a market cap of $7.96 billion, a price-to-earnings ratio of 39.87 and a beta of 0.99. CLEAR Secure has a twelve month low of $30.76 and a twelve month high of $69.07. The firm has a 50-day simple moving average of $43.10 and a 200-day simple moving average of $47.62.

Insider Buying and Selling at CLEAR Secure

In other CLEAR Secure news, EVP Kyle McLaughlin sold 4,499 shares of the firm's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $44.47, for a total value of $200,070.53. Following the completion of the transaction, the executive vice president owned 29,519 shares of the company's stock, valued at approximately $1,312,709.93. This trade represents a 13.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, President Michael Barkin sold 11,444 shares of the firm's stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $45.00, for a total transaction of $514,980.00. Following the completion of the transaction, the president directly owned 11,550 shares of the company's stock, valued at approximately $519,750. This represents a 49.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 18,047 shares of company stock worth $808,615. 29.70% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several equities research analysts have weighed in on YOU shares. Needham & Company LLC restated a "buy" rating and issued a $70.00 target price on shares of CLEAR Secure in a research note on Wednesday, October 7th. Weiss Ratings upgraded CLEAR Secure from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, October 8th. JPMorgan Chase & Co. began coverage on CLEAR Secure in a research report on Monday, August 24th. They issued an "overweight" rating and a $55.00 price objective for the company. DA Davidson dropped their target price on CLEAR Secure from $55.00 to $45.00 and set a "neutral" rating on the stock in a research note on Friday, September 11th. Finally, The Goldman Sachs Group set a $70.00 target price on CLEAR Secure in a research note on Monday, July 20th. Five analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $58.29.

Key Stories Impacting CLEAR Secure

Here are the key news stories impacting CLEAR Secure this week:

• Positive Sentiment: Q3 revenue rose 27.8% year over year to $292.9 million, topping analyst expectations of $286.7 million. Diluted EPS was $0.52 versus the $0.48 consensus; adjusted EPS was also reported above Zacks’ estimate. CLEAR Q3 2026 results
• Positive Sentiment: Profitability improved alongside growth: operating income was $82.9 million, while adjusted EBITDA reached $103.9 million, with its margin expanding 490 basis points year over year. CLEAR also reported 30.7% growth in total members and 14.5% growth in active CLEAR+ members. CLEAR Q3 2026 results
• Positive Sentiment: Q4 revenue guidance of $299 million to $302 million implies 24.8% year-over-year growth at the midpoint. CLEAR also raised its 2026 free-cash-flow outlook to at least $490 million from at least $480 million. Q4 revenue guidance
• Positive Sentiment: The board authorized an additional $175 million for share repurchases, bringing remaining authorization to about $254.4 million, and declared a $0.15-per-share quarterly dividend. CLEAR Q3 2026 results
• Neutral Sentiment: Operating cash flow and free cash flow were negative in Q3, reflecting an approximately $315 million settlement of accrued partnership liabilities. The company characterized this as a significant factor in the quarter and still raised its full-year free-cash-flow forecast. CLEAR Q3 2026 results

CLEAR Secure Company Profile

CLEAR Secure, Inc provides identity verification and secure access services through its CLEAR platform. The company uses biometric authentication and other identity technologies to help verify individuals and streamline access to participating locations and services.

Its consumer offerings include CLEAR Plus, a membership service that allows enrolled members to verify their identities at participating airports, and CLEAR Reserve, which enables travelers to reserve a time to proceed through select airport security checkpoints.

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