CLEAR Secure (NYSE:YOU) Releases Quarterly Earnings Results, Beats Expectations By $0.09 EPS

CLEAR Secure (NYSE:YOU) released its earnings results on Wednesday. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.09, RTT News reports. The firm had revenue of $277.76 million during the quarter, compared to analyst estimates of $269.71 million. CLEAR Secure had a net margin of 13.01% and a return on equity of 68.98%. The business’s revenue was up 26.6% on a year-over-year basis. During the same quarter last year, the business earned $0.26 EPS.

Here are the key takeaways from CLEAR Secure’s conference call:

• Positive Sentiment: CLEAR reported strong Q2 momentum, with bookings up 33% year over year to $295.9 million, revenue up 26.6% to $277.8 million, and free cash flow up 60% to a record $189 million.
• Positive Sentiment: Profitability exceeded the company’s IPO-era target, as adjusted EBITDA margin reached 36.4%, up approximately 900 basis points year over year, supported by eGate-driven labor efficiencies and roughly 70% EBITDA flow-through.
• Positive Sentiment: CLEAR Travel active CLEAR+ members grew 15.2% to 8.3 million, while management cited record customer-experience scores, healthy retention after the July price increase to $219, and further opportunities from airport expansion, Concierge, eGates, and international members.
• Positive Sentiment: CLEAR1 momentum continued, with total members reaching 43.5 million, more than 50% sequential growth in new customer signings and pipeline, and increasing interest across government, healthcare, workforce, and consumer identity applications.
• Negative Sentiment: Q3 free cash flow is expected to be negatively affected by the planned settlement of approximately $315 million in accrued partnership liability with the company’s credit-card partner, although the payment is included in full-year guidance, which was raised to at least $480 million.

CLEAR Secure Price Performance

Shares of YOU stock traded up $1.99 during trading hours on Wednesday, hitting $57.72. The company had a trading volume of 2,917,694 shares, compared to its average volume of 1,589,824. The stock has a market capitalization of $7.69 billion, a PE ratio of 46.87 and a beta of 1.06. CLEAR Secure has a fifty-two week low of $29.43 and a fifty-two week high of $69.07. The company’s fifty day moving average is $54.35 and its 200 day moving average is $49.23.

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Wall Street Zen upgraded shares of CLEAR Secure from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Weiss Ratings raised shares of CLEAR Secure from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, May 15th. Zacks Research cut shares of CLEAR Secure from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. The Goldman Sachs Group set a $70.00 price objective on CLEAR Secure in a research report on Monday, July 20th. Finally, Stifel Nicolaus set a $60.00 price target on CLEAR Secure in a research report on Thursday, May 7th. Five equities research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $58.57.

Insiders Place Their Bets

In related news, President Michael Z. Barkin sold 11,550 shares of CLEAR Secure stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $56.29, for a total value of $650,149.50. Following the completion of the transaction, the president owned 22,994 shares in the company, valued at approximately $1,294,332.26. The trade was a 33.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonathan Schlegel sold 4,412 shares of the business’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $59.02, for a total transaction of $260,396.24. The disclosure for this sale is available in the SEC filing. Insiders have sold 23,962 shares of company stock worth $1,360,146 over the last three months. Company insiders own 29.70% of the company’s stock.

Hedge Funds Weigh In On CLEAR Secure

Several large investors have recently bought and sold shares of the stock. Geneos Wealth Management Inc. increased its stake in CLEAR Secure by 329.5% in the first quarter. Geneos Wealth Management Inc. now owns 975 shares of the company’s stock valued at $25,000 after purchasing an additional 748 shares during the period. Advisors Asset Management Inc. purchased a new stake in shares of CLEAR Secure during the 1st quarter worth $28,000. Caitong International Asset Management Co. Ltd grew its position in CLEAR Secure by 249.6% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 867 shares of the company’s stock worth $30,000 after buying an additional 619 shares during the period. Amundi increased its stake in CLEAR Secure by 62.5% in the 1st quarter. Amundi now owns 3,743 shares of the company’s stock valued at $97,000 after purchasing an additional 1,440 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of CLEAR Secure by 2,061.2% in the second quarter. EverSource Wealth Advisors LLC now owns 3,566 shares of the company’s stock valued at $99,000 after buying an additional 3,401 shares in the last quarter. Institutional investors and hedge funds own 73.80% of the company’s stock.

About CLEAR Secure

CLEAR Secure, Inc operates a biometric identity platform designed to expedite identity verification for air travelers and venue guests. The company’s core offering is the CLEAR membership service, which uses fingerprint and iris scans to confirm a member’s identity and provide access to dedicated security lanes at participating airports. Members link government-issued IDs and personal biometric data via the CLEAR app, enabling faster processing through Transportation Security Administration (TSA) checkpoints and select event entrances.

Founded in 2010 by Caryn Seidman‐Becker and Ken Cornick, CLEAR is headquartered in New York City.