Clarivate Q4 revenue and EPS beat expectations, helped by subscription growth

Overview

• Global intelligence provider's Q4 revenue and adjusted EPS beat analyst expectations

• Company pursuing sale of Life Sciences & Healthcare business; is engaged in active talks with interested parties

• Q4 adjusted EBITDA beat analyst estimates

Outlook

• Clarivate forecasts 2026 revenue between $2.30 bln and $2.42 bln

• Company expects 2026 adjusted EBITDA between $980 mln and $1.04 bln

• Clarivate anticipates 2026 free cash flow of $365 mln to $435 mln

Result Drivers

• SUBSCRIPTION GROWTH - Clarivate's focus on subscription-based services led to a 1.0% organic growth in Q4 subscription revenues, driven by new sales, improved retention, and pricing actions

• STRATEGIC DIVESTITURES - Revenue decline in Q4 was impacted by divestitures and disposals in Academia & Government and Life Sciences & Healthcare segments

• COST MANAGEMENT - Improved net income in Q4 attributed to diligent cost management and strategic focus on recurring revenue streams

Company press release: ID:nPreWmhlla

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 6 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the professional information services peer group is "buy."

• Wall Street's median 12-month price target for Clarivate PLC is $4.00, about 138.1% above its February 23 closing price of $1.68

• The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 three months ago

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