CLEAR Q2 2026 earnings: Revenue growth drives margin expansion

CLEAR (NYSE: YOU) reported second-quarter 2026 revenue of $277.8 million, up 26.6% year over year, while diluted EPS increased to $0.49 from $0.26. Operating income rose about 95% to $83.0 million, and quarterly free cash flow reached $189.0 million. Bookings grew faster than revenue, membership expanded, and CLEAR raised its full-year free cash flow guidance.

Core earnings data

Revenue growth translated into faster profit growth because operating expenses increased by approximately 10.1%, well below the 26.6% increase in revenue. Direct salaries and benefits were nearly unchanged and research and development expenses declined slightly, offsetting increases in revenue-sharing, sales and marketing, and general and administrative costs.

The resulting operating leverage lifted CLEAR’s GAAP operating margin to 29.9%. Adjusted EBITDA margin expanded by 900 basis points to 36.4%, above the company’s long-term target of 35%.

Adjusted EBITDA, total bookings, and free cash flow are non-GAAP measures or operating performance indicators defined by CLEAR and may not be directly comparable with similarly named measures from other companies.

Membership and network expansion

Total CLEAR Members reached 43.5 million as of June 30, 2026, increasing 30.0% from 33.5 million a year earlier. Active CLEAR+ Members increased 15.2% to 8.3 million from 7.2 million. The slower growth of active CLEAR+ membership relative to total membership is important because the total-member figure is cumulative and includes trials, single-use purchases, non-paid users, and associated family accounts.

CLEAR+ was available at 62 airports after launches in Northwest Arkansas and Indianapolis during the quarter. CLEAR also operated 280 retail locations offering TSA PreCheck enrollment, while CLEAR Concierge was available at 39 airports. The company had launched eGates across 50 airports as of the earnings announcement and said it remained on track for a network-wide rollout in 2026.

Management described continued momentum in CLEAR1 and strength across both CLEAR Travel and CLEAR1, although the release did not provide a separate financial contribution for CLEAR1.

Bookings growth and upfront billing lift cash generation

Total bookings—defined as revenue plus the change in deferred revenue—grew 32.8%, faster than reported revenue. Deferred revenue increased to $573.0 million at June 30 from $516.2 million at the end of 2025.

Because CLEAR generally collects annual CLEAR+ subscription payments upfront, rising bookings and deferred revenue can produce cash flow before all associated revenue is recognized. That timing contributed to quarterly operating cash flow of $201.2 million and free cash flow of $189.0 million, both substantially above quarterly net income. For the first six months of 2026, operating cash flow was $391.5 million and free cash flow was $374.5 million; these are year-to-date figures rather than quarterly amounts.

At quarter-end, CLEAR held $128.2 million in cash and cash equivalents and $831.0 million in marketable securities, compared with $85.7 million and $614.4 million, respectively, at the end of 2025. The company returned approximately $22.2 million to shareholders through its regular quarterly dividend and distributions during Q2. It also declared another $0.15-per-share quarterly dividend, payable September 24, 2026, to eligible shareholders of record on September 10.

Guidance

CLEAR guided to continued double-digit growth in Q3, although the midpoint growth rates for revenue and bookings are below their respective Q2 growth rates. The company also raised the floor of its full-year free cash flow guidance by $15 million, or approximately 3.2%.

Recent insider transactions

The supplied insider data reports 4,407,695 shares purchased across 40 transactions during the past six months and 1,905,759 shares sold across 22 transactions, producing net purchases of 2,501,936 shares. It also lists total insider holdings of 7.55 million shares. The detailed records include stock awards and derivative conversions alongside sales, so they should be distinguished by transaction type rather than treated uniformly as open-market trades.

The two July 15 sale records report the same price range and value but identify different direct and indirect ownership classifications. The provided data does not support drawing conclusions about insiders’ outlook for the company.

Risks investors should monitor

• Paid-member growth is trailing total membership growth. Active CLEAR+ Members increased 15.2%, compared with 30.0% growth in total members. Converting the broader member base into retained paid subscriptions remains important for revenue growth.
• Q3 guidance implies a slower growth rate. At the midpoint, guided revenue growth of 24.6% and bookings growth of 20.5% are below Q2 rates of 26.6% and 32.8%, respectively.
• Margin durability depends on expense discipline. General and administrative expenses rose about 12.6%, while sales and marketing expenses increased about 18.4%. Faster expense growth in future periods could limit further margin expansion.
• Airport rollout and travel exposure create execution risk. Delays in the planned network-wide eGate rollout or disruptions affecting airport activity could weigh on membership utilization and travel-related growth.
• Privacy, biometric, and technology requirements remain material. CLEAR’s identity platform depends on public acceptance, data security, reliable systems, and compliance with evolving biometric, artificial intelligence, and privacy regulations.

Summary

CLEAR’s Q2 2026 results combined mid-20% revenue growth with substantially faster increases in operating income, net income, and free cash flow. Slower expense growth, rising bookings, upfront subscription collections, and continued membership expansion supported the improvement. The main follow-up items are the moderated growth rates embedded in Q3 guidance, conversion of total members into active CLEAR+ subscribers, the durability of current margins, and execution of the eGate and CLEAR1 expansion plans.