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]

Core Insights - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is identified as a stock with over 50% upside potential, receiving a Buy rating from Oppenheimer analyst Brian Schwartz with a price target set at $36 [1] - The company announced an integration with J.P. Morgan Asset Management that transforms cash management for hedge funds, enhancing operational efficiency [2][3] Company Overview - Clearwater Analytics Holdings, Inc. provides web-based investment portfolio accounting, reporting, and reconciliation services, with operations segmented into the United States and the Rest of the World [4] Recent Developments - The integration with J.P. Morgan's trading platform allows clients to manage investments and monitor idle cash through a single automated workflow, offering multiple currency and fund provider options [3]

Core Insights - Scalar Gauge Management has completely exited its position in Clearwater Analytics Holdings, selling 524,244 shares for an estimated transaction value of $11.5 million in the third quarter [1][2][6] Company Overview - Clearwater Analytics Holdings reported a total revenue of $551.1 million and a net income of $406.4 million for the trailing twelve months (TTM) [4] - The company's shares closed at $18.41, reflecting a one-year price change of approximately -19% [4] Performance Context - Clearwater Analytics has experienced a significant decline in share price, down 29% over the past year, contrasting sharply with the S&P 500's gain of nearly 17% during the same period [3][7] - The company reported second-quarter revenue of $181.9 million but incurred a net loss of $24.2 million, missing analyst expectations [7] Market Sentiment - Scalar Gauge Management's exit from Clearwater Analytics is indicative of a broader trend of pulling back from software companies that have struggled with earnings momentum, particularly in the SaaS sector [6][7] - The firm noted that small- and mid-cap software valuations have compressed below 2022 levels, despite improvements in profitability, suggesting a cautious approach until market sentiment stabilizes [7]

Group 1 - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is identified as a stock with exponential growth potential heading into 2026, with a "Buy" rating and a price target of $27.00 from Morgan Stanley analyst Michael Infante [1] - The company is expected to see an increase in organic net new Annual Recurring Revenue (ARR) due to large deals and improved sales efficiency post-integration [1] - Clearwater Analytics continues to trade at an attractive valuation compared to competitors, benefiting from faster revenue growth and margin expansion [2] Group 2 - T. Rowe Price Associates, Inc. has successfully implemented the CWAN platform for stable value operations, enhancing its capabilities [3] - Clearwater Analytics provides software-as-a-service solutions for automated investment data aggregation, reconciliation, accounting, and reporting, and has recently acquired Enfusion, Beacon, and Bistro assets to broaden its product offerings [3] - The integration of these new assets is a key focus for Clearwater, although it is expected to have a dilutive impact on the company's financial profile, which led to an 18% drop in share price [3]

Core Viewpoint - Clearwater Analytics (CWAN) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the consensus outlook being crucial for assessing the company's earnings picture [1] Earnings Expectations - The consensus EPS estimate for Clearwater Analytics is $0.15 per share, reflecting a year-over-year increase of +25% [3] - Revenues are anticipated to reach $203.84 million, which is a 76% increase from the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has been revised down by 10.35% over the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [4] - Clearwater Analytics has an Earnings ESP of -14.47%, suggesting that the Most Accurate Estimate is lower than the Zacks Consensus Estimate [12] Historical Performance - In the last reported quarter, Clearwater Analytics was expected to post earnings of $0.13 per share but actually reported $0.12, resulting in a surprise of -7.69% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Comparison with Industry Peers - Flywire (FLYW), another player in the Zacks Internet - Software industry, is expected to report EPS of $0.19 for the same quarter, indicating a year-over-year decline of -36.7% [18] - Flywire's revenues are projected to be $179.54 million, up 18.6% from the previous year, with a significant revision of the consensus EPS estimate down by 500% over the last 30 days [19] - Flywire has a positive Earnings ESP of +29.23%, indicating a higher likelihood of beating the consensus EPS estimate [19]

Group 1 - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is recognized as one of the 12 best fintech stocks to buy according to analysts [1] - T. Rowe Price Associates, Inc. has successfully implemented the CWAN platform, which supports their stable value operations [1] - T. Rowe Price manages $1.73 trillion in client assets as of August 31, 2025 [1] Group 2 - The CWAN platform is designed to create an integrated investment management technology solution for clients [2] - T. Rowe Price has experienced significant improvements in participant service and operations through the CWAN platform, enhancing productivity and reducing risks [2] Group 3 - Clearwater Analytics is a software and financial technology company providing a cloud-native platform for institutional investors across global public and private markets [3]

Core Insights - Clearwater Analytics Holdings Inc. (NYSE:CWAN) is recognized as a promising investment opportunity in the technology sector, particularly due to its recent focus on the $2.5 trillion private credit market [1][2]. Group 1: Company Developments - The company has introduced enhancements to its Alternative Assets Solutions aimed at addressing challenges in the private credit market, including automating loan structures and accelerating fund research through AI [2][3]. - The Private Credit Management enhancement will integrate accounting workflows to eliminate manual processes, while the Fund Research feature will utilize AI to reduce document review cycles, ensuring real-time data accuracy through Asset Sync [3]. Group 2: Market Context - The private credit market is becoming increasingly central to institutional portfolios, indicating a shift from a niche allocation to a mainstream investment strategy [3]. - Clearwater Analytics provides a cloud-based Software-as-a-Service (SaaS) platform that supports institutional investors in managing their entire investment lifecycle, including data aggregation, accounting, compliance, performance, risk analytics, and trading [4].

Core Viewpoint - Investors in the Internet - Software sector should consider 8x8 (EGHT) and Clearwater Analytics (CWAN) as potential value opportunities, with EGHT currently presenting a stronger case for investment [1]. Group 1: Zacks Rank and Earnings Outlook - 8x8 has a Zacks Rank of 2 (Buy), indicating a favorable outlook, while Clearwater Analytics has a Zacks Rank of 3 (Hold), suggesting a less favorable position [3]. - The earnings outlook for 8x8 has likely improved more significantly than that of Clearwater Analytics recently, which is a key consideration for value investors [3]. Group 2: Valuation Metrics - 8x8 has a forward P/E ratio of 6.69, significantly lower than Clearwater Analytics' forward P/E of 31.43, indicating that 8x8 may be undervalued [5]. - The PEG ratio for 8x8 is 0.77, while Clearwater Analytics has a PEG ratio of 1.57, further suggesting that 8x8 offers better value based on expected earnings growth [5]. - 8x8's P/B ratio is 2.22 compared to Clearwater Analytics' P/B of 2.61, reinforcing the notion that 8x8 is more attractively priced relative to its book value [6]. Group 3: Overall Value Grades - Based on various valuation metrics, 8x8 holds a Value grade of A, while Clearwater Analytics has a Value grade of F, indicating a significant disparity in perceived value between the two stocks [6]. - The combination of Zacks Rank and Style Scores suggests that value investors are likely to favor 8x8 over Clearwater Analytics at this time [6].

Group 1 - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is considered a strong buy stock by Wall Street, with a bullish rating reiterated by analyst Dylan Becker from William Blair [1][2] - The optimistic rating is based on the company's future potential and strategic positioning, particularly highlighted during the Clearwater Connect 2025 conference, which showcased the vision for an end-to-end platform for investment management [2] - Clearwater Analytics provides web-based investment portfolio accounting, reporting, and reconciliation services, with operations divided into the United States and the Rest of the World [3] Group 2 - The company is positioned to address the increasing complexity in asset management, which is a key factor in its positive outlook [2] - While Clearwater Analytics shows potential, some analysts suggest that certain AI stocks may offer greater upside potential and less downside risk [4]

Core Insights - Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is identified as one of the best low-priced growth stocks currently available for investment [1][2] - The company has demonstrated robust revenue growth, particularly in its cloud-native SaaS segment, which achieved a 22% year-over-year organic growth rate [3] - Recent strategic acquisitions, including Enfusion and Beacon, are expected to enhance the company's market position and overall performance [2] Group 1 - Riverbridge Partners LLC acquired 1,610,240 shares of Clearwater Analytics, amounting to an investment of $35,313,000, representing approximately 0.57% ownership in the company [1] - The cloud-native SaaS segment generated $130.6 million in revenue, surpassing an 80% gross margin milestone ahead of schedule [3] - Clearwater Analytics is recognized for its Software-as-a-Service platform that provides investment data aggregation, reconciliation, accounting, and reporting services [4] Group 2 - The company's strategic initiatives and early synergy capture are contributing to its bullish outlook despite facing near-term uncertainties [2] - Clearwater Analytics was founded in 2004 and is based in Idaho, focusing on delivering exceptional value through its services [4]