Clarivate(US:CLVT)2025-10-29 10:06Revenue and Contract Value - Organic annualized contract value (ACV) grew by 1.6% compared to September 30, 2024, driven primarily by price increases [107]. - Total ACV decreased by 3.4% to $1,542.7 million as of September 30, 2025, compared to $1,596.4 million a year earlier, mainly due to the ScholarOne divestiture [107]. - Annual renewal rate improved to 93% for the nine months ended September 30, 2025, up from 92% in the same period of 2024 [109]. - Revenues for the three months ended September 30, 2025, were $623.1 million, a slight increase of 0.1% compared to $622.2 million in 2024 [115]. - Total revenues for the nine months ended September 30, 2025, were $1,838.2 million, a decrease of $55.5 million, or 2.9%, compared to $1,893.7 million in 2024 [123]. - Subscription revenues decreased by 1.4% year-over-year, primarily due to the ScholarOne divestiture and product group wind-downs [117]. - Subscription revenues for the nine months ended September 30, 2025, decreased by $20.1 million, or 1.6%, compared to the same period in 2024, primarily due to the ScholarOne divestiture [121]. - A&G segment revenues increased by $11.2 million, or 3.5%, for the three months ended September 30, 2025, driven by subscription growth from new sales and improved retention [122]. - EMEA revenues for the three months ended September 30, 2025, increased by $9.5 million, or 6.0%, primarily due to FX translation gains and strong subscription orders [124]. - The Americas segment revenues decreased by $36.3 million, or 3.6%, for the nine months ended September 30, 2025, primarily due to the ScholarOne divestiture [127]. - Transactional revenues for the nine months ended September 30, 2025, decreased by $37.7 million, or 10.6%, compared to the same period in 2024, primarily due to lower IP activity [121]. Expenses and Profitability - Net loss for the three months ended September 30, 2025, was $28.3 million, an improvement from a net loss of $65.6 million in the same period of 2024 [115]. - Total operating expenses for the three months ended September 30, 2025, were $579.1 million, down from $600.5 million in 2024 [115]. - SG&A costs decreased by 3.2% for the nine months ended September 30, 2025, primarily due to cost management and reductions in share-based compensation [131]. - Adjusted EBITDA for the three months ended September 30, 2025, was $252.4 million, compared to $264.4 million for the same period in 2024, reflecting a decrease of 7.6% [144]. - Adjusted EBITDA margin for the nine months ended September 30, 2025, was 40.6%, slightly down from 40.9% in 2024 [144]. - The company expects the wind-down of three product groups to reduce revenues and profit by less than 10% and 5%, respectively [118]. Cash Flow and Liquidity - Free cash flow for the nine months ended September 30, 2025, was $276.1 million, down 7% from $298.4 million in 2024 [150]. - Net cash provided by operating activities for the nine months ended September 30, 2025, was $468.6 million, a decrease of 7% from $505.3 million in 2024 [148]. - As of September 30, 2025, the company had $318.7 million in cash on hand and $768.5 million in available borrowing capacity [146]. - Outstanding borrowings as of September 30, 2025, totaled $4,441.8 million, with interest expenses of $199.4 million for the nine months ended September 30, 2025 [151]. - The company entered into a $500.0 million tranche of term loans in May 2025, using proceeds to redeem an equal amount of Senior Secured Notes due 2026 [152]. - Net cash used for investing activities decreased by 25% to $192.5 million for the nine months ended September 30, 2025, compared to $258.1 million in 2024 [148]. - The company anticipates that cash flow from operations and available cash will be adequate to meet liquidity needs and fund capital expenditures for the foreseeable future [158]. - The company has $350.5 million remaining under its current share repurchase program, valid through December 31, 2026 [156]. Impairments and Taxation - The company recorded a goodwill impairment charge of $302.8 million in the second quarter of 2024 due to declines in share price affecting the LS&H segment [134]. - The income tax provision for the nine months ended September 30, 2025, was $34.9 million, compared to $23.3 million in 2024, primarily due to the mix of jurisdictions in which pre-tax profits and losses were recognized [143]. Depreciation and Amortization - Depreciation and amortization expenses increased by 8.2% and 5.0% for the three and nine months ended September 30, 2025, respectively, driven by increased investment in computer software assets [133].