Clear Secure(US:YOU)2025-08-05 12:34Financial 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].