Clarivate(US:CLVT)2025-10-29 10:03Financial Performance - Total revenues for Q3 2025 were $623.1 million, a slight increase of 0.1% from $622.2 million in Q3 2024[2] - Total revenues for the first nine months of 2025 were $1,838.2 million, a decrease of 2.9% from $1,893.7 million in the same period of 2024[4] - Total revenues for Q3 2025 were $623.1 million, slightly up from $622.2 million in Q3 2024, while revenues for the nine months ended September 30, 2025, decreased to $1,838.2 million from $1,893.7 million in the same period of 2024[26] - Subscription revenues for Q3 2025 decreased by $5.7 million, or 1.4%, compared to Q3 2024, totaling $405.4 million[31] - Transactional revenues increased by $8.0 million, or 7.7%, in Q3 2025, totaling $112.4 million compared to $104.4 million in Q3 2024[31] Net Income and Loss - Net loss for Q3 2025 was $28.3 million, significantly improved from a net loss of $65.6 million in Q3 2024, representing a 56.9% reduction[3] - The company reported a net loss of $28.3 million for Q3 2025, compared to a net loss of $65.6 million in Q3 2024, and a net loss of $204.2 million for the nine months ended September 30, 2025, down from a loss of $444.9 million in the same period of 2024[26] - Net income for Q3 2025 was a loss of $28.3 million, improving from a loss of $65.6 million in Q3 2024[33] - Forecasted net income (loss) for 2025 is between $(328) million and $(252) million, resulting in a net income margin of between (13.5)% and (10.3)%[39] Cash Flow and Capital Expenditures - The company generated $468.6 million in operating cash flow and $276.1 million in free cash flow through nine months of 2025[6] - Free cash flow for Q3 2025 was $115.5 million, down from $126.3 million in Q3 2024[38] - Free cash flow is forecasted to be between $300 million and $380 million, with net cash provided by operating activities estimated at $555 million to $635 million[41] - Capital expenditures for Q3 2025 were $65.6 million, down from $76.6 million in Q3 2024[38] - Capital expenditures for 2025 are projected to be $(255) million, impacting free cash flow calculations[41] Debt and Equity - As of September 30, 2025, total debt outstanding was $4,470.2 million, a decrease of $100.9 million from December 31, 2024[10] - The total shareholders' equity decreased to $4,903.8 million as of September 30, 2025, from $5,139.0 million at the end of 2024[23] Operational Metrics - Organic ACV grew by 1.6% compared to September 30, 2024, with the mix of organic recurring revenue to total revenue improving by 800 basis points to 88%[2] - Adjusted EBITDA for Q3 2025 was $252.4 million, down 4.5% from $264.4 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $252.4 million, with an adjusted EBITDA margin of 40.5%, compared to $264.4 million and 42.5% in Q3 2024[33] - Adjusted EBITDA is projected to be between $940 million and $1,000 million, with an adjusted EBITDA margin of 40.5% to 42.5%[39] Shareholder Actions - The company repurchased 11.7 million ordinary shares and allocated $50 million towards share repurchases in Q3 2025[6][12] Restructuring and Impairments - The company incurred $11.9 million in restructuring and other impairments during Q3 2025, compared to $4.0 million in Q3 2024[26] - The company anticipates incurring restructuring costs associated with the Value Creation Plan in 2025[39][40] Revenue Outlook - The full year 2025 revenue outlook was revised upward to between $2.42 billion and $2.45 billion, reflecting increased transactional book sales[12]