Clarivate Reports Third Quarter 2025 Results

Core Insights - Clarivate Plc reported a slight increase in total revenues for Q3 2025, reaching $623.1 million, compared to $622.2 million in Q3 2024, indicating a growth of 0.1% [2][7] - The company experienced a net loss of $28.3 million in Q3 2025, an improvement from a net loss of $65.6 million in Q3 2024 [3][7] - Adjusted net income for Q3 2025 was $119.3 million, down from $134.1 million in Q3 2024, reflecting a decrease of 11.0% [3][7] Financial Performance - 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][7] - Organic revenues for the first nine months of 2025 increased by 0.2%, driven by a 0.6% rise in organic recurring revenues [4][7] - The company generated $468.6 million in operating cash flow and $276.1 million in free cash flow through the first nine months of 2025 [6][11] Shareholder Returns and Debt Management - Clarivate repurchased 11.7 million ordinary shares and allocated approximately $150 million for share repurchases in 2025 [2][6] - The company repaid $100 million of debt in Q3 2025, reducing total debt outstanding to $4,470.2 million [10][12] - The updated revenue outlook for 2025 was raised to between $2.42 billion and $2.45 billion, reflecting increased transactional book sales [12][13] Revenue Breakdown - Subscription revenues decreased by $5.7 million, or 1.4%, to $405.4 million in Q3 2025, while organic subscription revenues increased by 1.2% [8][26] - Transactional revenues increased by $8.0 million, or 7.7%, to $112.4 million, primarily due to higher transactional book sales [9][26] - The mix of organic recurring revenue to total revenue improved by 800 basis points to 88% for the first nine months of 2025, compared to 80% for the prior year [2][4] Outlook and Strategic Focus - The company remains committed to increasing its core subscription and recurring revenue mix while optimizing its business model [2][12] - Clarivate's strategic priorities include investing in innovation, driving operational efficiencies, and maximizing long-term value for shareholders [12][13] - The full-year 2025 outlook assumes no further acquisitions or divestitures, indicating a focus on organic growth [12][13]