Overview

* Clearwater Q3 2025 revenue grows 77% yr/yr, slightly beating analyst expectations

* Adjusted EBITDA for Q3 2025 beats expectations, rising 84% yr/yr

* Company reports Q3 2025 net loss, adjusted net income misses estimates

Outlook

* Clearwater Analytics forecasts Q4 2025 revenue between $216 mln and $217 mln

* Company expects full-year 2025 revenue to reach $730 mln to $731 mln

* Company projects Q4 2025 adjusted EBITDA at $73 mln

Result Drivers

* INTEGRATED PLATFORM - Clearwater's single security master architecture and Gen AI models contributed to strong revenue growth

* COMPETITIVE WINS - Secured marquee wins with insurance, hedge funds, asset management, and asset owners globally

* AI TRANSFORMATION - Clients experienced transformative results with AI agents, reducing manual efforts and speeding report generation

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $205.10 $203.65

Revenue Beat* mln mln (10

Analysts

)

Q3 Miss $40.60 $46.04

Adjusted mln mln (8

Net Analysts

Income )

Q3 Net -$10.50

Income mln

Q3 Beat $70.70 $64.47

Adjusted mln mln (10

EBITDA Analysts

)

Q3 34.50%

Adjusted

EBITDA

Margin

Q3 $161 mln

Adjusted

Gross

Profit

Q3 $807.50

Annual mln

Recurrin

g

Revenue

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the software peer group is "buy"

* Wall Street's median 12-month price target for Clearwater Analytics Holdings Inc ( CWAN ) is $30.00, about 42.1% above its November 4 closing price of $17.37

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)