YOU Q1 2025 Earnings

Call Details

• Call Title: Clear Secure Q1 2025 Earnings Call
• Date: May 8, 2025 at 12:00 PM UTC
• Management Team:
  • Caryn Seidman Becker (Co-Founder, Chair and Chief Executive Officer)
  • Michael Barkin (President)
  • Jennifer Hsu (Chief Financial Officer)

Call Summary

Financial Performance

• Total members on the CLEAR network ended the quarter at 31.2 million, up 42.3% year-over-year.
• Total bookings were $207 million in Q1, representing 14.8% year-over-year growth at the reported midpoint.
• Free cash flow was $91 million in Q1, representing 17.6% year-over-year growth.
• Operating income was $37 million, representing a 17.7% operating margin on a GAAP basis.
• Adjusted EBITDA was $52 million, representing a 24.7% adjusted EBITDA margin on a non-GAAP basis.
• Cash and marketable securities ended the quarter at $533 million after returning $168 million to shareholders, comprised of approximately $102 million in repurchases and $67 million in dividends and distributions.

Guidance

• Q2 revenue is expected to be $214 million to $216 million, with total bookings expected to be $215 million to $220 million.
• The company stated that these Q2 bookings ranges represent 15.1% and 10.4% growth at the midpoint for revenue and bookings respectively compared to the prior year period.
• Free cash flow guidance for full-year 2025 was reaffirmed at at least $310 million.
• Full-year 2025 GAAP tax rate expectation was reiterated in the range of 17% to 20%.
• Management said it widened the bookings range by one percentage point to account for external variability including Real ID implementation and macro volatility.
• Guidance commentary emphasized visibility on free cash flow despite booking range widening and cited levers that preserve FCF under different macro outcomes.