Core Points - CLEAR is enhancing the affordability and accessibility of TSA PreCheck® enrollment through a limited-time promotion, offering a Buy One, Get One $15 Off deal for families enrolling together [1][2][3] - The Families on the Fly campaign by TSA aims to simplify travel for families, featuring dedicated family-friendly security lanes and enrollment promotions [3][4] - CLEAR is also participating in the Serve with Honor, Travel with Ease initiative, providing discounted TSA PreCheck® fees for military spouses and free enrollment for Gold Star families [5] Company Initiatives - The promotion runs until October 31, 2025, allowing new applicants to save $15 on the second person's TSA PreCheck® enrollment fee when enrolling together [2][4] - CLEAR emphasizes the importance of TSA PreCheck® in improving the airport experience by allowing travelers to keep shoes, belts, and light jackets on during security checks [6][7] - CLEAR's mission focuses on enhancing security while creating seamless travel experiences, with over 33 million members and a growing network of partners [8][9] Industry Context - TSA PreCheck® is a Trusted Traveler program under the Department of Homeland Security, facilitating expedited screening for low-risk travelers, with over 22 million active members since its launch in December 2013 [7] - The program is available at over 200 airports and involves more than 90 participating airlines, highlighting its widespread adoption and relevance in the travel industry [7]

Core Points - CLEAR has expanded its CLEAR+ service to include travelers from the UK, Canada, Australia, and New Zealand, enhancing the airport experience for international travelers [1][3] - The service allows travelers to enroll online or in person, providing immediate access to over 150 CLEAR lanes in U.S. airports, thereby reducing airport stress [2] - CLEAR has over 33 million members, with more than 7.6 million in the CLEAR+ network, and operates in 59 airports across the U.S., positioning itself as a trusted partner for travelers [3][5] Company Overview - CLEAR's mission focuses on strengthening security and creating frictionless experiences for its users, transforming how people travel and interact in various environments [5] - The company emphasizes privacy, ensuring that members control their own information and that biometric or sensitive personal data is not sold [5]

Core Viewpoint - Clear Secure (YOU) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism regarding Clear Secure's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, the earnings estimate is $0.27 per share, a decrease of 10.0% from the previous year, but the Zacks Consensus Estimate has increased by 5.94% over the last 30 days with no negative revisions [5]. - For the full year, the earnings estimate stands at $1.07 per share, representing a 40.6% decline from the previous year, yet there has been a positive trend in estimate revisions with three estimates moving up and no negative revisions [6]. Zacks Rank and Performance - Clear Secure has achieved a Zacks Rank 1 (Strong Buy) due to favorable estimate revisions, indicating strong potential for outperformance [7]. - Historically, Zacks Rank 1 stocks have generated an average annual return of +25% since 2008, suggesting a strong track record of success [3]. - The stock has appreciated by 11.7% over the past four weeks, indicating investor confidence in its earnings growth prospects [8].

Core Insights - Nordic and CLEAR have formed a partnership to enhance healthcare information security and streamline access for patients and providers [1][3] - The collaboration aims to address the challenges healthcare organizations face in modernizing their systems while ensuring security and efficiency [1][3] Company Overview - Nordic is a global health and technology consulting company with over 3,300 professionals, supporting more than 700 healthcare organizations worldwide [4] - CLEAR is a secure identity company that provides a reusable identity platform, CLEAR1, compliant with NIST IAL2/AAL2 standards [2] Partnership Details - The partnership will leverage CLEAR's identity platform to simplify and secure user experiences for both patients and providers [1][2] - The goal is to reduce administrative workloads and cybersecurity risks associated with manual identity verification processes [1][3] Benefits of the Collaboration - Patients will experience streamlined access to health information and services without repeated identity checks [3] - Providers can quickly verify individuals, allowing them to focus on delivering care without administrative delays [3]

Core Insights - CLEAR is expanding its identity verification capabilities through integration with Epic's EpicCare Link, aimed at enhancing account creation and recovery workflows for community health providers [1][4][5] - The integration is part of CLEAR's broader strategy to secure every access point in the healthcare journey, providing seamless identity experiences for both patients and providers [3][6] - CLEAR's identity verification integration for MyChart is also under development, expected to be available with the November 2025 version of Epic [2] Integration Details - The integration will allow users to verify their identity through a secure, self-service process, eliminating the need for manual reviews and paper forms, thus reducing administrative burdens [4][5] - CLEAR's platform supports IAL2 standards and advanced verification protocols, ensuring compliance and security while modernizing access experiences [5][6] Market Position - CLEAR has over 33 million members and is positioned as a foundational identity layer for healthcare, helping health systems modernize infrastructure and reduce risks [6][8] - The integration with Epic is expected to streamline patient check-in processes and enhance the overall efficiency of healthcare organizations [3][4]

Financial Data and Key Metrics Changes - The company reported revenue of $219.5 million, representing a 17.5% growth year-over-year [16] - Total bookings reached $222.9 million, reflecting a 13.1% increase [16] - Free cash flow was $117.9 million, showing a 37.1% year-over-year growth [23] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.6 million, up 7.5% year-over-year [17] - The TSA PreCheck business expanded significantly, operating 231 enrollment locations, nearly double the count from the previous quarter [18] - Gross dollar retention improved to 87.3%, up 20 basis points sequentially [18] Market Data and Key Metrics Changes - Total members reached 33.5 million, an increase of 38.2% year-over-year [20] - The company signed over 25 ClearOne deals in Q2, marking a record for both the number of deals and aggregate contract value [20] Company Strategy and Development Direction - The company is focused on expanding its Clear Plus service to international travelers, enhancing its total addressable market (TAM) [7][17] - Clear Concierge, a premium on-demand service, is being introduced to improve member experience and increase revenue per member [8][19] - The company aims to modernize the travel experience through partnerships with the TSA and the aviation community, emphasizing public-private partnerships [8][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's trajectory, noting record travel volume despite a flat overall travel environment [60] - The administration's focus on improving airport experiences aligns with the company's goals, providing opportunities for innovation and modernization [41][43] - The company anticipates continued growth in adjusted EBITDA margins and free cash flow for the full year [24] Other Important Information - The company is now a certified REAL ID issuer, allowing travelers to meet federal identification standards through the Clear app [10][11] - The introduction of Clear ID aims to create a mobile-first identity credential recognized beyond travel [11] Q&A Session Summary Question: International enrollment process and requirements - The enrollment process for international travelers will mirror the domestic one-step enrollment, utilizing e-passport capabilities [28] Question: Impact of recent price increases on retention - Retention has been as expected following the recent coordinated price increases, with a focus on optimizing bookings [34][35] Question: Administration's focus on airport experience improvements - The administration is focused on security, traveler delight, and public-private partnerships, which positions the company favorably [41][43] Question: Drivers behind gross dollar retention increase - Gross dollar retention increased due to retention and pricing impacts, with no significant effect from Real ID in the quarter [45] Question: Adoption expectations for international travelers - Pricing for international travelers will remain the same as in the U.S., with significant opportunities for adoption through partnerships [50][51] Question: Travel demand outlook for the second half of the year - The company remains optimistic about travel demand, expecting to penetrate both domestic and international markets [60][61]

Financial Data and Key Metrics Changes - The company reported revenue of $219.5 million, representing a 17.5% growth year-over-year [17] - Total bookings reached $222.9 million, reflecting a 13.1% increase [17] - Free cash flow was $117.9 million, marking a 7.3% year-over-year growth [24] Business Line Data and Key Metrics Changes - Active Clear Plus members grew to 7.6 million, up 7.5% year-over-year [17] - The TSA PreCheck business expanded significantly, operating 231 enrollment locations, nearly double the count from the previous quarter [18] - Gross dollar retention improved to 87.3%, up 20 basis points sequentially [18] Market Data and Key Metrics Changes - Total members reached 33.5 million, a 38.2% increase year-over-year [21] - The company signed over 25 ClearOne deals in Q2, achieving record numbers in both the number of deals and aggregate contract value [21] Company Strategy and Development Direction - The company is focused on expanding its Clear Plus service to international travelers, enhancing its total addressable market (TAM) [7][17] - Clear Concierge, a premium on-demand service, is being introduced to improve member experience and increase revenue per member [20] - The company aims to modernize the travel experience through partnerships with TSA and the aviation community, emphasizing public-private partnerships [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the travel industry's trajectory, noting that despite flat travel volumes, Clear achieved record travel volume [62] - The administration's focus on improving airport experiences aligns with the company's goals, and management is excited about potential partnerships to drive innovation [42][43] - The company anticipates expanding adjusted EBITDA margins year-over-year and reaffirmed free cash flow guidance of at least $310 million for the year [25] Other Important Information - The company is now a certified REAL ID issuer, allowing travelers to meet federal identification standards through the Clear app [11][12] - The operating income was $42.6 million, representing a 19.4% operating margin, with significant margin expansion [22] Q&A Session Summary Question: Can you provide more details on the international opportunity and enrollment process? - The enrollment process for international travelers will mirror the domestic one-step enrollment, utilizing e-passport capabilities [27] Question: How do you expect retention to be affected by the recent price increases? - Retention has been as expected following the July 1 price increase, with a more coordinated pricing strategy in place [33][34] Question: What is the administration focused on regarding airport experience improvements? - The administration is focused on security, traveler delight, and modernizing airports through public-private partnerships, which positions Clear favorably [41][43] Question: What factors contributed to the increase in gross dollar retention? - The increase in gross dollar retention was influenced by retention and pricing actions, with a modest benefit from the previous quarter's ID upgrades [45] Question: How does the company view the macro environment and travel demand for the second half of the year? - The company remains optimistic about travel demand, noting that it continues to penetrate the U.S. travel population effectively [62]

Financial Performance - Revenue for the three months ended June 30, 2025, was $219,467,000, an increase from $186,745,000 in the same period of 2024 [167]. - Revenue for the three months ended June 30, 2025, increased by $32.7 million, or 18%, to $219.5 million compared to $186.7 million in 2024, driven by a 7% increase in CLEAR+ Members and higher membership prices [183]. - For the six months ended June 30, 2025, revenue rose by $65.0 million, or 18%, to $430.8 million from $365.8 million in 2024, attributed to the same factors as the quarterly results [185]. - Adjusted EBITDA for the three months ended June 30, 2025, was $60,060,000, compared to $47,452,000 for the same period in 2024, reflecting strong operational performance [167]. - Free Cash Flow for the three months ended June 30, 2025, was $117,921,000, compared to $110,144,000 for the same period in 2024, indicating positive cash generation [168]. Membership Growth - Total Bookings increased by $25.9 million, or 13%, for the three months ended June 30, 2025, compared to the same period in 2024, driven by growth in Active CLEAR+ Members and price increases [150]. - Total Cumulative Enrollments reached 33,472 as of June 30, 2025, representing a 38% increase from 24,221 in 2024, attributed to CLEAR1 and CLEAR+ Member enrollments [153]. - Active CLEAR+ Members rose by 7% to 7,626 as of June 30, 2025, up from 7,095 as of June 30, 2024, driven by new members from airports and partner channels [158]. Engagement Metrics - Total Cumulative Platform Uses increased to 264,830 as of June 30, 2025, a 28% rise from 206,673 in 2024, indicating higher engagement levels among Members [155]. - Total Cumulative Platform Uses increased by 28% to 264,830 as of June 30, 2025, compared to 206,673 as of June 30, 2024 [156]. - Annual CLEAR+ Member Usage decreased by 5% to 7.0x as of June 30, 2025, compared to 7.4x as of June 30, 2024, attributed to lower utilization among newer and existing members [162]. Cost and Expenses - Cost of revenue share fee for the three months ended June 30, 2025, increased by $5.1 million, or 20%, to $31.2 million, primarily due to a 23% increase in fixed airport fees and an 18% increase in per Member fees [186]. - Cost of direct salaries and benefits for the three months ended June 30, 2025, increased by $7.6 million, or 19%, to $47.7 million, mainly due to higher employee compensation costs [188]. - Sales and marketing expenses for the three months ended June 30, 2025, increased by $3.5 million, or 32%, to $14.5 million, driven by higher discretionary marketing expenses [193]. Cash Flow and Investments - As of June 30, 2025, the company had cash and cash equivalents of $89.3 million and marketable securities of $516.4 million [203]. - For the six months ended June 30, 2025, net cash provided by operating activities was $221.3 million, an increase of $26.4 million compared to $194.9 million in 2024 [218]. - Cash flows from investing activities for the six months ended June 30, 2025, were $16.6 million, a decrease of $9.8 million compared to net cash used in investing activities of $26.4 million in 2024 [219]. Strategic Partnerships and Innovations - The partnership with American Express was renewed in March 2025 for a second one-year term, enhancing the ability to attract new CLEAR+ Members [132]. - The company aims to innovate its product offerings and partnerships to enhance Member experience and drive revenue growth [137]. - The Company plans to continue expanding TSA PreCheck® Enrollment locations, subject to TSA approval, to enhance revenue streams [171]. Market Risks - The company is exposed to market risk related to interest rate changes, with a hypothetical 100 basis points increase or decrease potentially resulting in an unrealized loss or gain of approximately $2.6 million in the fair value of its "available for sale" investments [230]. - Foreign currency transaction and translation risk was insignificant for the three and six months ended June 30, 2025, as the majority of the company's business is transacted in U.S. dollars [231].

Clear Secure (YOU) came out with quarterly earnings of $0.26 per share, beating the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.34 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +13.04%. A quarter ago, it was expected that this airport security company would post earnings of $0.3 per share when it actually produced earnings of $0.32, delivering a surprise of +6.67%. Over the last four quarte ...

Financial Performance - Revenue for Q2 2025 was $219.5 million, an increase of 17.5% year-over-year; Total Bookings reached $222.9 million, up 13.1%[6] - Operating income was $42.6 million, with an operating income margin of 19.4%; Net income was $37.9 million, representing a net income margin of 17.3%[6] - Revenue for the three months ended June 30, 2025, was $219.467 million, a 17.5% increase from $186.745 million in the same period of 2024[11] - Operating income for the six months ended June 30, 2025, reached $79.960 million, up 48.2% from $54.026 million in 2024[11] - Net income attributable to Clear Secure, Inc. for the six months ended June 30, 2025, was $50.127 million, a 16.5% increase compared to $42.925 million in 2024[11] - Revenue for the first half of 2025 was $430,835,000, representing a 17.7% increase compared to $365,794,000 in the same period of 2024[21] - Net income for Q2 2025 was $37,875,000, a decrease of 1.9% from $38,591,000 in Q2 2024[21] - Net income margin for Q2 2025 was 17.3%, down from 20.7% in Q2 2024[21] Cash Flow and Financial Health - Full Year 2025 Free Cash Flow expectations are reaffirmed to be at least $310 million[6] - Free Cash Flow for Q2 2025 was $117,921,000, an increase of 7.0% from $110,144,000 in Q2 2024[21] - Net cash provided by operating activities for the six months ended June 30, 2025, was $221.331 million, compared to $194.933 million in 2024, reflecting a 13.5% increase[13] - Cash, cash equivalents, and restricted cash at the end of the period was $92.079 million, significantly up from $42.705 million in 2024[13] Membership and Growth - Active CLEAR+ Members grew to 7.6 million, reflecting a year-over-year increase of 7.5%[6] - Total cumulative enrollments reached 33,472 thousand as of Q2 2025, with a year-over-year growth of 38.2%[7] - Total Bookings for Q3 2025 are projected to be between $253 million and $258 million, representing a year-over-year growth of 12.3% at the midpoint[6] - The company anticipates continued growth in 2025, driven by increased demand for its CLEAR+ subscription service and expansion into new markets[19] Strategic Initiatives - CLEAR launched a premium, personalized Concierge service in July 2025 and is set to launch CLEAR ID as a REAL ID for all U.S. travelers this month[6] - CLEAR has expanded its CLEAR+ service in the U.S. for international travelers from the U.K., Canada, Australia, and New Zealand[6] Risks and Challenges - The company faces risks related to competition, technology adoption, and economic conditions that could impact future performance[20] Key Financial Metrics - Adjusted EBITDA is a key financial measure used by management to evaluate business performance, excluding certain items that impact comparability[15] - Adjusted EBITDA for Q2 2025 reached $60,060,000, up 26.5% from $47,452,000 in Q2 2024[21] - Adjusted EBITDA margin for Q2 2025 improved to 27.4%, compared to 25.4% in Q2 2024[21] - Total Bookings are considered a leading indicator of business health, reflecting sales to new and renewing subscribers[23] - Total Cumulative Enrollments are tracked to analyze growth and marketing effectiveness, including all registered members since inception[24] - Active CLEAR+ Members are defined as those with an active subscription, which is crucial for measuring product growth[26]