SaaS Firm With Nearly $1 Billion in ARR Loses $20 Million Institutional Investor Amid Steep Stock Slide

Core Insights - Sea Cliff Partners Management has completely exited its position in Clearwater Analytics, selling 1,101,680 shares for an estimated $19.85 million, reflecting a significant decrease in quarter-end value [2][4]. Company Overview - Clearwater Analytics Holdings, Inc. specializes in SaaS-based investment accounting and analytics platforms, providing automated data aggregation and reporting capabilities [6][9]. - The company reported a total revenue of $731.4 million and a net income of -$38.8 million for the trailing twelve months (TTM) [4]. Financial Performance - In the fourth quarter, Clearwater Analytics achieved revenue of $217.5 million, marking a 72% year-over-year increase, while annualized recurring revenue rose to $841 million, up approximately 77% year-over-year [7]. - Adjusted EBITDA for the quarter reached $74.1 million, indicating operational growth despite a modest net loss of $12.5 million due to heavy investments in acquisitions and platform expansion [10]. Market Position - As of February 13, 2026, Clearwater Analytics shares were priced at $23.15, reflecting a nearly 20% decline over the past year, underperforming the S&P 500, which increased by about 17% during the same period [8]. - The exit by Sea Cliff Partners Management slightly reduces exposure to the software and fintech sectors, with remaining top holdings focusing on industrial distributors and consumer services [11].