Clearwater Analytics (US:CWAN)2025-11-05 21:14Financial Performance - Quarterly revenue for Q3 2025 was $205.1 million, representing a 77% increase year-over-year from $115.8 million in Q3 2024[3] - Adjusted EBITDA for Q3 2025 was $70.7 million, up 84.5% from $38.3 million in Q3 2024, with an adjusted EBITDA margin of 34.5%[3] - Annualized recurring revenue (ARR) reached $807.5 million as of September 30, 2025, a 77% increase from $456.9 million a year earlier[4] - Non-GAAP net income for Q3 2025 was $40.6 million, a 31.2% increase from $31.0 million in Q3 2024[3] - Revenue for Q3 2025 reached $205,110,000, a 77% increase from $115,828,000 in Q3 2024[23] - Gross profit for Q3 2025 was $134,472,000, compared to $84,471,000 in Q3 2024, reflecting a 59% increase[23] - Operating cash flow for the nine months ended September 30, 2025, was $120,565 thousand, an increase from $103,520 thousand in 2024[25] - Adjusted EBITDA for the nine months ended September 30, 2025, reached $174,117,000, representing a 67% increase compared to $103,992,000 in 2024[33] - Free cash flow for the three months ended September 30, 2025, was $44,927,000, slightly down from $48,111,000 in 2024[30] - The company reported a net income loss of $27,729,000 for the nine months ended September 30, 2025, compared to a profit of $7,280,000 in 2024[33] Expenses and Losses - Operating expenses totaled $127,918,000 in Q3 2025, up from $77,133,000 in Q3 2024, representing a 66% increase[23] - Net loss for Q3 2025 was $10,514,000, compared to a net income of $4,769,000 in Q3 2024[23] - Research and development expenses for Q3 2025 were $52,065,000, up from $36,618,000 in Q3 2024, a 42% increase[23] - Sales and marketing expenses rose to $44,471,000 in Q3 2025, compared to $17,889,000 in Q3 2024, an increase of 148%[23] - The company reported a basic net loss per share of $0.04 for Q3 2025, compared to a net income per share of $0.02 in Q3 2024[23] - The company incurred equity-based compensation of $33,470 thousand for the three months ended September 30, 2025, compared to $25,976 thousand in 2024[25] - Interest expense for the nine months ended September 30, 2025, was $30,502,000, compared to $3,256,000 in 2024, indicating a significant increase[33] Cash Flow and Investments - Operating cash flows for Q3 2025 were $49.0 million, enabling the repayment of $40 million of debt[3] - Cash used in investing activities for the nine months ended September 30, 2025, was $988,455 thousand, significantly higher than $54,772 thousand in 2024[25] - Cash and cash equivalents decreased to $60,750,000 from $177,350,000 as of December 31, 2024[21] - Cash and cash equivalents at the end of the period were $60,750 thousand, down from $228,694 thousand at the end of the same period in 2024[25] - Cash paid for interest was $15,137 thousand for the three months ended September 30, 2025, compared to $865 thousand in 2024[26] Strategic Developments - CWAN announced a revenue guidance of $730 million to $731 million for the full year 2025, reflecting a year-over-year growth of 62%[7] - The company hosted its annual user conference, Connect '25, showcasing enhanced capabilities for its Alternative Assets Solution targeting the $2.5 trillion private credit market[5] - CWAN repurchased $8.9 million of its shares as part of a $100 million share buyback program announced on September 3, 2025[5] - The company secured a multi-billion dollar endowment portfolio management contract with Texas Treasury Safekeeping Trust Company, validating its strategic product value[5] Balance Sheet - Total assets as of September 30, 2025, were $2,990,512,000, significantly up from $1,169,572,000 as of December 31, 2024[21] - Total liabilities increased to $988,961,000 as of September 30, 2025, compared to $139,341,000 at the end of 2024[21] - The company reported depreciation and amortization of $29,300 thousand for the three months ended September 30, 2025, compared to $3,239 thousand in 2024[25] - The company reported a deferred tax benefit of $(2,239) thousand for the three months ended September 30, 2025[25]