Clarivate Reports Second Quarter 2025 Results

Core Insights - Clarivate Plc reported total revenues of $621.4 million for Q2 2025, a decrease of 4.4% from $650.3 million in Q2 2024, primarily due to inorganic divestitures and disposals [2][8] - Organic revenues increased by 0.5% year-over-year, driven by a 0.8% rise in organic recurring revenues, although this was partially offset by lower organic transactional revenues [2][4] - The company experienced a net loss of $72.0 million in Q2 2025, an improvement from a net loss of $304.3 million in Q2 2024 [3][8] Financial Performance - Total revenues for the first half of 2025 were $1,215.1 million, down from $1,271.5 million in the first half of 2024, reflecting similar trends as Q2 [4][8] - Adjusted net income for Q2 2025 was $123.3 million, or $0.18 per diluted share, compared to $142.2 million, or $0.20 per diluted share in Q2 2024 [3][8] - Adjusted EBITDA for Q2 2025 was $261.6 million, down from $274.4 million in Q2 2024 [3][8] Cash Flow and Share Repurchase - Clarivate generated $287.5 million in operating cash flow and $160.6 million in free cash flow during the first half of 2025 [6][12] - The company repurchased approximately $100 million worth of shares, totaling 23.2 million ordinary shares at an average price of $4.29 per share [6][13] Outlook and Strategic Initiatives - The company reaffirmed its 2025 outlook, projecting organic ACV growth of 1.0% to 2.0% and total revenues between $2.28 billion and $2.40 billion [14][15] - Clarivate's CEO highlighted the positive momentum from the Value Creation Plan, which is expected to enhance profitability and value creation [7][14] - The company anticipates that improvements in its sales operating model and AI advancements will support future growth [7][14] Segment Performance - Subscription revenues for Q2 2025 were $405.7 million, essentially flat compared to Q2 2024, with organic subscription revenues increasing by 1.7% [9][10] - Transactional revenues decreased significantly by 21.5% to $106.8 million, primarily due to product group wind-downs [10][28] - The organic recurring revenue mix improved, with recurring revenues increasing by 0.8% organically [10][25]