Clear Secure(YOU) - 2025 Q2 - Quarterly Results

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]