YOU Q2 2025 Earnings

Call Details

• Call Title: Clear Secure Q2 2025 Earnings Call
• Date: August 5, 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

• The company reported $219.5M of revenue in Q2 2025, representing 17.5% growth versus the comparable period of fiscal 2024.
• Total bookings were $222.9M in the quarter, representing 13.1% growth year-over-year.
• The company generated $117.9M of free cash flow in Q2, which was up 7.1% year-over-year, and net cash provided by operating activities was $123M, up 7.3% year-over-year.
• Active Clear Plus members totaled 7.6M, up 7.5% year-over-year, and total Clear platform members ended the quarter at 33.5M, up 38.2% year-over-year.
• Operating income was $42.6M, representing a 19.4% operating margin, and adjusted EBITDA was $60.1M, representing a 27.4% adjusted EBITDA margin (adjusted EBITDA is a non-GAAP measure).
• The company held $609M of cash and marketable securities at quarter end and returned $42.7M of capital to shareholders during the quarter, including $24.6M of repurchases and $18.1M of dividends and distributions.

Guidance

• Q3 revenue guidance is $223M to $226M, and Q3 total bookings guidance is $253M to $258M, which the company said represent 13.1% and 12.3% growth at the midpoints respectively.
• The company reaffirmed full-year free cash flow guidance of at least $310M.
• The company expects Q3 to be the smallest net adds contributor in 2025 due to annual-biller renewal timing and seasonal travel demand.
• The company reiterated an expectation of expanding adjusted EBITDA margins year-over-year for the full year.
• The company implemented price increases effective July 1, raising standard pricing from $199 to $209 and family pricing from $119 to $125, and stated that pricing impacts gross dollar retention over a 24-month period.
• The company stated that the majority of CapEx for the MVPOD rollout is behind them and that higher cash taxes in 2025 after exhausting most NOLs in 2024 are a headwind to year-over-year free cash flow comparisons.