Core Insights - Clearwater Analytics (CWAN) has experienced a significant decline in share price over the past year, despite strong growth figures in the fintech sector [1] - The acquisition and integration of Enfusion has positioned CWAN as a serious player in the SaaS market [1] Company Performance - CWAN's share price has been negatively impacted, reflecting broader trends in the fintech sector where valuations remain suppressed [1] - The company is demonstrating strong growth metrics, indicating potential resilience and opportunity for recovery [1] Industry Context - The fintech sector, particularly SaaS and cloud businesses, is characterized by active developments and substantial growth opportunities [1]

Core Viewpoint - Taylor Wimpey is experiencing a sales slowdown due to uncertainty in the housing market ahead of the November Budget, leading to a decline in share price and sales rates [2][3][7]. Sales Performance - The weekly net private sales rate per outlet decreased to 0.63 from 0.71 compared to the same period in 2024 [2]. - Excluding bulk sales, the sales rate fell to 0.61 from 0.68 [3]. - For the year to date, the overall sales rate slightly decreased to 0.72 from 0.73, while the rate excluding bulk deals remained stable at 0.68 [4]. Cancellation Rates - The cancellation rate increased to 16% from 15% [5]. Order Book and Financials - As of 9 November, the forward order book contained 7,253 homes, down from 7,771 homes the previous year, with a total value of £2.1 billion, lower than £2.2 billion previously [5]. - The company expects to generate an operating profit of approximately £424 million, an increase from £416.2 million last year [8]. Landbank and Strategic Position - The short-term landbank stood at 75,000 plots at the end of October, down from 76,000 at the same time in 2024, while the strategic land pipeline remained unchanged at 135,000 plots [5]. Market Conditions and Outlook - The CEO highlighted that market conditions are challenging due to uncertainty ahead of the UK Budget and ongoing affordability pressures, but expressed confidence in the company's ability to deliver profitable growth and maximize shareholder returns [7]. - Taylor Wimpey maintained its guidance for the full year, expecting to build between 10,400 and 10,800 new homes, compared to 10,593 in 2024 [7].

Core Insights - Donovan Jones is an IPO research specialist with 15 years of experience in identifying high-quality IPO opportunities [1] - He leads the investing group IPO Edge, which provides actionable information on growth stocks, including first-look IPO filings and an IPO calendar [1] Group 1 - IPO Edge offers a comprehensive database of U.S. IPOs and a guide to IPO investing, covering the entire IPO lifecycle from filing to listing [1] - The platform includes previews on upcoming IPOs and tracks significant dates such as quiet period and lockup expiration [1]

Core Insights - Clearwater Analytics reported quarterly earnings of $0.14 per share, missing the Zacks Consensus Estimate of $0.15 per share, but showing an increase from $0.12 per share a year ago [1][2] - The company posted revenues of $205.11 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 0.62% and significantly up from $115.83 million year-over-year [3] - The stock has underperformed, losing approximately 36.9% since the beginning of the year, while the S&P 500 has gained 15.1% [4] Earnings Performance - The earnings surprise for the recent quarter was -6.67%, following a previous quarter where the earnings were also below expectations with a surprise of -7.69% [2] - Over the last four quarters, Clearwater Analytics has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2][3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.14 on revenues of $216.31 million, and for the current fiscal year, it is $0.55 on revenues of $728.95 million [8] - The estimate revisions trend for Clearwater Analytics was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Industry Context - Clearwater Analytics operates within the Zacks Internet - Software industry, which is currently ranked in the top 34% of over 250 Zacks industries, suggesting a favorable industry outlook [9] - The performance of Clearwater Analytics may be influenced by the overall industry trends, as the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [9]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $205.1 million, reflecting a 77% year-on-year growth [4][20] - Annualized recurring revenue (ARR) reached $807.5 million, also up 77% year-over-year [4][20] - Adjusted quarterly EBITDA was $70.7 million, up from $58.3 million in Q2, with an EBITDA margin of 34.5%, an increase from 32.1% in Q2 [4][5][27] - Gross revenue retention (GRR) for the combined company was 98% [5][21] - Gross margin for the integrated business was 78.5%, with core Clearwater's steady-state clients achieving 82% gross margin [5][25] Business Line Data and Key Metrics Changes - Core Clearwater business grew approximately 21% year-to-date compared to last year [8] - Infusion is expected to grow 12% for the year, with strong booking execution in Q2 and Q3 [8] - Beacon continues to perform well, contributing to overall growth [8] - The hedge fund market was a key contributor to revenue upside, with significant growth in bookings across various sectors [9][20] Market Data and Key Metrics Changes - The total addressable market (TAM) has grown to approximately $23 billion, balanced across geographies and markets [6][8] - Growth in Q3 bookings was evenly spread across insurance, asset management, asset owners, and hedge funds [9] - The company signed a global multi-billion hedge fund client, indicating strong market demand [9] Company Strategy and Development Direction - The company aims to build an integrated, open, modular, and extensible front-to-back platform, which is expected to disrupt the industry [15][18] - Generative AI is seen as a key technological advancement, with the company leveraging it to improve margins and operational efficiency [16][18] - The company plans to roll out a new pricing model for Infusion starting January 1, 2026, aligning value with pricing for clients [39][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and growth trajectory, with a strong pipeline for Q4 and beyond [20][29] - The company anticipates continued growth driven by cross-selling opportunities and the integration of new acquisitions [11][28] - Management highlighted the importance of maintaining high gross retention rates and the potential for net revenue retention to reach 115% [22][21] Other Important Information - The company has made significant progress in integrating the businesses acquired, with a focus on enhancing product offerings and client solutions [19][29] - Recent board appointments and leadership hires are expected to strengthen the company's strategic direction [19] Q&A Session Summary Question: What segments of the market are seeing elevated strength? - Management noted strong growth in alternatives, risk, and insurance sectors, with hedge funds also performing well in Q2 and Q3 [31][32][33] Question: How does the ARR growth of 17% reconcile with core business growth? - Management explained that larger deals create lumpiness in ARR, but overall revenue and organic ARR growth were strong [34][35] Question: What is the expected timing for the new pricing model for Infusion? - The new pricing model will be rolled out for new clients starting January 1, 2026, with existing clients to follow [39][40] Question: How is the international business performing? - The international business metrics remained consistent with previous quarters, contributing positively to overall performance [49][50] Question: What is the adoption rate of combined company assets? - Asset management has become the largest booking industry, with significant traction in risk-related offerings and alternatives [51][52]

Financial Data and Key Metrics Changes - The company reported Q3 2025 revenues of $205.1 million, representing a 77% year-over-year growth, with annual recurring revenue (ARR) reaching $807.5 million, also up 77% year-over-year [5][31] - Adjusted EBITDA for Q3 was $70.7 million, up from $58.3 million in Q2, with an EBITDA margin of 34.5%, an increase from 32.1% in Q2 [5][41] - Gross revenue retention (GRR) for the combined company was 98%, indicating strong client retention [7][33] Business Line Data and Key Metrics Changes - Core Clearwater business grew approximately 21% year-to-date compared to last year, while Infusion is expected to grow 12% for the year [12][17] - The integrated business achieved gross margins of 78.5%, with steady state clients reaching 82% gross margin in Q3 [7][40] - The company noted a 70% year-over-year increase in bookings for core cross-sell modules, including LPX, MLX, and Prism [36][98] Market Data and Key Metrics Changes - The total addressable market (TAM) has grown to approximately $23 billion, with significant opportunities across various geographies and markets [10][11] - The hedge fund market showed strong performance, contributing to revenue upside, with a balanced growth across North America, Europe, and Asia [14][51] - The company signed a global multibillion hedge fund client, indicating strong demand in the hedge fund sector [14][51] Company Strategy and Development Direction - The company aims to build an integrated, open, modular, and extensible platform to disrupt the industry and enhance operational efficiency for clients [22][29] - Generative AI is seen as a key technological advancement, with the company leveraging it to improve gross margins and operational processes [23][28] - The strategic acquisitions of Infusion, Beacon, and Bistro are expected to enhance the company's market position and cross-selling capabilities [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, citing a strong pipeline and increased client engagement [45][46] - The company anticipates continued growth in the core Clearwater business and expects to see acceleration in ARR in Q4 2025 [59][78] - Management highlighted the importance of aligning pricing with value for clients, particularly in the context of the new commercial model for Infusion [66][68] Other Important Information - The company has made significant progress in integrating the acquired businesses, with a focus on enhancing product offerings and client solutions [30][102] - The company is actively working on a new pricing model for Infusion, expected to roll out for new clients starting January 1, 2026 [66][68] - The company reported a strong pipeline for cross-selling opportunities, particularly in risk and alternative assets [36][91] Q&A Session Summary Question: Can you provide an update on market segments showing strength? - Management noted that alternatives and risk offerings are driving significant growth, with a 70% year-over-year increase in bookings for core cross-sell modules [49][51] Question: How does the ARR growth of 17% reconcile with core business momentum? - Management explained that larger deals create lumpiness in ARR, but they expect acceleration in Q4 [53][59] Question: What is the expected timing for the new pricing model for Infusion? - The new pricing model is set to roll out for new clients starting January 1, 2026, with existing clients to follow [66][68] Question: How is the integration of the VKB deal progressing? - Integration is on track, with expectations to go live by mid-next year [102] Question: How much of new bookings is driven by alternative assets? - Alternative assets now account for over 35% of bookings, up from 24-25% previously [107]

Business Overview - CWAN aims to be the world's most trusted and comprehensive technology platform simplifying the investment lifecycle[14] - CWAN's platform offers a single, integrated solution for various stages of the investment lifecycle, including investment research, portfolio construction, risk evaluation, and regulatory reporting[24] - CWAN's architecture is open and extensible, creating a network that includes research, pre-trade compliance, OEMS/PMS, IABOR, risk & performance, reconciliation, and reporting[27] - CWAN addresses the complexity arising from numerous data sources (3,500+), security types (~140), accounting bases (35+), active securities (1 million+), and custodian feeds (2,400+)[28] Financial Performance - CWAN boasts a strong gross revenue retention rate of 98%[16,44,49] - CWAN's Q3 2025 EBITDA margin is 34%[16,44] - CWAN has 110 clients with over $1 million in ARR as of H1 2025[16,17,44] - CWAN's Q3 2025 Adjusted EBITDA is $71 million, representing a 34% Adjusted EBITDA margin[76] - CWAN's nine months ended Sept 30, 2025 Excess Free Cashflow is $112 million, which is 22% of revenue[60] Growth Strategy - CWAN's net revenue retention rate is 108% as of September 30, 2025[40] - Approximately half of CWAN's total addressable market (TAM) is located outside North America[40] - CWAN's gross margin is expected to continuously improve, with a target of ~82%+ in the long term[53]

Financial Performance - Revenue for Q3 2025 reached $205,110,000, a 77% increase from $115,828,000 in Q3 2024[24] - Gross profit for Q3 2025 was $134,472,000, compared to $84,471,000 in Q3 2024, reflecting a 59% increase[24] - Operating expenses for Q3 2025 totaled $127,918,000, up from $77,133,000 in Q3 2024, representing a 66% increase[24] - Net loss for Q3 2025 was $10,514,000, compared to a net income of $4,769,000 in Q3 2024[24] - The company reported a comprehensive loss of $11,365,000 for Q3 2025, compared to a comprehensive income of $9,039,000 in Q3 2024[26] - Net income for the nine months ended September 30, 2025, was a loss of $27.729 million, compared to a profit of $7.280 million in 2024[35] - Consolidated net loss for the three months ended September 30, 2025, was $(10,514) thousand, compared to net income of $4,769 thousand for the same period in 2024[107] - The company reported a net loss of $27,729,000 for the nine months ended September 30, 2025, compared to a net income of $7,280,000 for the same period in 2024[92] Assets and Liabilities - Total assets as of September 30, 2025, were $2,990,512,000, significantly up from $1,169,572,000 as of December 31, 2024[22] - Total liabilities increased to $988,961,000 as of September 30, 2025, compared to $139,341,000 at the end of 2024[22] - Cash and cash equivalents decreased to $60,750,000 from $177,350,000 as of December 31, 2024[22] - Accounts receivable, net, increased to $152,791,000 as of September 30, 2025, from $106,151,000 at the end of 2024[66] - Prepaid expenses and other current assets totaled $33,871,000 as of September 30, 2025, compared to $23,006,000 at the end of 2024[67] Equity and Stock - The total stockholders' equity attributable to Clearwater Analytics Holdings, Inc. increased to $1,981,550,000 from $1,008,255,000 as of December 31, 2024[22] - The company issued 3,833,333 shares of common stock, contributing $4,000,000 to additional paid-in capital[28] - The balance of shares withheld for net share settlement and other adjustments was $(264,336,000)[30] - The company has authorized a Share Repurchase Program to repurchase up to $100.0 million of Class A common stock, with no fixed expiration date[102] - As of September 30, 2025, a total of 7,092,009 shares of Class A common stock were available for issuance under the Employee Stock Purchase Plan (ESPP)[99] Cash Flow - Operating cash flow for the nine months ended September 30, 2025, was $120.565 million, an increase from $103.520 million in 2024[35] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $120.6 million, an increase from $103.5 million in the same period of 2024, reflecting a growth of approximately 16.5%[169][170] - Net cash used in investing activities was $988.5 million for the nine months ended September 30, 2025, primarily due to acquisitions totaling $1,074.8 million, compared to $54.8 million in the same period of 2024[171][172] - Net cash provided by financing activities was $750.2 million for the nine months ended September 30, 2025, significantly higher than the $42.5 million used in financing activities in the same period of 2024[173][174] Acquisitions - The total merger consideration for the acquisition of Enfusion, Inc. was $1.4 billion, net of cash acquired[51] - The company completed acquisitions of Beacon and Enfusion on April 30 and April 21, 2025, respectively, to enhance its investment management solutions[122] - The acquisition of Beacon Platform Inc. resulted in a total merger consideration of $487,738,000, with goodwill recorded at $337,928,000[56] - The Bistro Asset Acquisition was completed for $112.7 million, with identified intangible assets valued at $112,733,000[64] - Acquisition-related costs for the nine months ended September 30, 2025, were $4.1 million, with no costs incurred in the previous year[58] Research and Development - Research and development expenses for Q3 2025 were $52,065,000, up from $36,618,000 in Q3 2024, a 42% increase[24] - The company plans to invest in research and development to maintain its technological advantage, even if it results in higher expenses relative to revenue growth[129] - Research and development expenses accounted for 25% of revenue for the three months ended September 30, 2025, down from 32% in 2024[157] Client Growth and Retention - Clearwater Analytics manages over $8.8 trillion of global invested assets for over 1,400 clients as of December 31, 2024[117] - The company maintained a gross revenue retention rate of at least 98% in 26 of the last 27 quarters, with net revenue retention rates between 108% and 114% in 2025[125][144] - Annualized recurring revenue increased by 76.7% from September 30, 2024, to September 30, 2025, driven by client growth and asset onboarding[142] - The company expects revenue growth as clients transition from onboarding to steady state, with revenues and gross margins expected to increase over time[125] Debt and Financing - The company entered into a 2025 Credit Agreement providing $800 million in term loans and $200 million in revolving commitments, with initial cash proceeds of $800 million received[71][72] - The interest rates for the 2025 Term Loans are based on a SOFR rate plus an applicable margin of 2.25%, with a potential decrease of 0.25% if certain secured net leverage levels are achieved[74] - A hypothetical increase or decrease in SOFR of 100 basis points would result in an annual change of $8.6 million in interest expense under the 2025 Credit Agreement as of September 30, 2025[182] Employee Compensation - Employee compensation expense for the three months ended September 30, 2025, was $88,971 thousand, up from $49,932 thousand in the same period in 2024[107] - Total equity-based compensation expense for the three months ended September 30, 2025, was $33,470,000, up from $25,976,000 in 2024[152] - Equity-based compensation expenses totaled $33,648,000, indicating a significant investment in employee incentives[30] Other Financial Metrics - Adjusted EBITDA for the three months ended September 30, 2025, was $70,733,000, which is 34% of revenue, compared to $38,340,000 or 33% of revenue in 2024[151] - The effective tax rate for the three months ended September 30, 2025, was (5.1%), compared to (11.3%) for the same period in 2024[111] - The company recognized a debt extinguishment loss of $0.4 million related to the prior credit agreement in interest expense[79]

Financial Performance - Quarterly revenue for Q3 2025 was $205.1 million, representing a 77% increase year-over-year from $115.8 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $70.7 million, up 84.5% from $38.3 million in Q3 2024, with an adjusted EBITDA margin of 34.5%[3] - Annualized recurring revenue (ARR) reached $807.5 million as of September 30, 2025, a 77% increase from $456.9 million a year earlier[4] - Non-GAAP net income for Q3 2025 was $40.6 million, a 31.2% increase from $31.0 million in Q3 2024[3] - Revenue for Q3 2025 reached $205,110,000, a 77% increase from $115,828,000 in Q3 2024[23] - Gross profit for Q3 2025 was $134,472,000, compared to $84,471,000 in Q3 2024, reflecting a 59% increase[23] - Operating cash flow for the nine months ended September 30, 2025, was $120,565 thousand, an increase from $103,520 thousand in 2024[25] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $174,117,000, representing a 67% increase compared to $103,992,000 in 2024[33] - Free cash flow for the three months ended September 30, 2025, was $44,927,000, slightly down from $48,111,000 in 2024[30] - The company reported a net income loss of $27,729,000 for the nine months ended September 30, 2025, compared to a profit of $7,280,000 in 2024[33] Expenses and Losses - Operating expenses totaled $127,918,000 in Q3 2025, up from $77,133,000 in Q3 2024, representing a 66% increase[23] - Net loss for Q3 2025 was $10,514,000, compared to a net income of $4,769,000 in Q3 2024[23] - Research and development expenses for Q3 2025 were $52,065,000, up from $36,618,000 in Q3 2024, a 42% increase[23] - Sales and marketing expenses rose to $44,471,000 in Q3 2025, compared to $17,889,000 in Q3 2024, an increase of 148%[23] - The company reported a basic net loss per share of $0.04 for Q3 2025, compared to a net income per share of $0.02 in Q3 2024[23] - The company incurred equity-based compensation of $33,470 thousand for the three months ended September 30, 2025, compared to $25,976 thousand in 2024[25] - Interest expense for the nine months ended September 30, 2025, was $30,502,000, compared to $3,256,000 in 2024, indicating a significant increase[33] Cash Flow and Investments - Operating cash flows for Q3 2025 were $49.0 million, enabling the repayment of $40 million of debt[3] - Cash used in investing activities for the nine months ended September 30, 2025, was $988,455 thousand, significantly higher than $54,772 thousand in 2024[25] - Cash and cash equivalents decreased to $60,750,000 from $177,350,000 as of December 31, 2024[21] - Cash and cash equivalents at the end of the period were $60,750 thousand, down from $228,694 thousand at the end of the same period in 2024[25] - Cash paid for interest was $15,137 thousand for the three months ended September 30, 2025, compared to $865 thousand in 2024[26] Strategic Developments - CWAN announced a revenue guidance of $730 million to $731 million for the full year 2025, reflecting a year-over-year growth of 62%[7] - The company hosted its annual user conference, Connect '25, showcasing enhanced capabilities for its Alternative Assets Solution targeting the $2.5 trillion private credit market[5] - CWAN repurchased $8.9 million of its shares as part of a $100 million share buyback program announced on September 3, 2025[5] - The company secured a multi-billion dollar endowment portfolio management contract with Texas Treasury Safekeeping Trust Company, validating its strategic product value[5] Balance Sheet - Total assets as of September 30, 2025, were $2,990,512,000, significantly up from $1,169,572,000 as of December 31, 2024[21] - Total liabilities increased to $988,961,000 as of September 30, 2025, compared to $139,341,000 at the end of 2024[21] - The company reported depreciation and amortization of $29,300 thousand for the three months ended September 30, 2025, compared to $3,239 thousand in 2024[25] - The company reported a deferred tax benefit of $(2,239) thousand for the three months ended September 30, 2025[25]

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is one of the best stocks to buy with over 50% upside potential. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) received a rating update from Oppenheimer analyst Brian Schwartz on October 28. The analyst maintained a Buy rating on the stock and set a price target of $36. Is Clearwater Analytics Holdings Inc. (CWAN) the Best Low Beta Tech Stock to Buy According to Analysts? In a separate update, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and J.P. Morga ...