YOU | Q2 2025

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Overview

• Non-GAAP EPS of $0.26 beats by $0.02.

• Revenue of $219.5M (+17.6% Y/Y) beats by $4.47M.

KEY Takeaways

• Q2 revenue grew 17.5% to $219.5M, bookings rose 13.1% to $222.9M, and free cash flow hit $117.9M.

• Active CLEAR Plus members increased 7.5% year-over-year to 7.6M, with gross dollar retention at 87.3%.

• Operating margin improved to 19.4% and adjusted EBITDA margin reached 27.4%.

• Travel remains the main growth driver, with the busiest CLEAR Plus quarter ever and average lane times under three minutes.

• CLEAR Plus access expanded to travelers from the U.K., Canada, Australia, and New Zealand, with more countries planned in 2026.

• New products like CLEAR Concierge and the upcoming free digital REAL ID aim to lift revenue per member and grow the ecosystem.

• The CLEAR1 enterprise platform signed a record number of Q2 deals across workforce, healthcare, and consumer markets.

• Q3 guidance: $223–$226M revenue, $253–$258M bookings, smallest net adds quarter due to seasonality; reaffirmed at least $310M free cash flow for the year.

NOTES

Clear Secure (YOU) had a very strong second quarter, proving that demand for its identity platform is still growing even though overall travel volumes were pretty flat. Revenue was up 17.5% to $219.5 million, bookings grew 13.1% to $222.9 million, and free cash flow hit $117.9 million.

The company now has 7.6 million active CLEAR Plus members, up 7.5% from last year, with gross dollar retention inching up to 87.3%. Profit margins improved, too—operating margin climbed to 19.4%, and adjusted EBITDA margin reached 27.4%.

CLEAR ended the quarter with $609 million in cash and securities and returned $42.7 million to shareholders through buybacks and dividends.

Unsurprisingly, travel continues to be the growth engine for Clear.

CLEAR Plus had its busiest travel quarter ever, thanks in part to the full roll out of Clear’s EnVe verification pods—which considerably speed up throughput and cut costs—and new digital enrollment tools that let people sign up by scanning their passport in the app. On average, members are through the lane in under three minutes, and satisfaction scores are trending higher.

The company also opened CLEAR Plus to travelers from the U.K., Canada, Australia, and New Zealand, with more countries planned in 2026. While lanes are still U.S.-only for now, this move expands their potential member base, especially ahead of big events like the World Cup.

New services adjacent to CLEAR Plus are playing a bigger role as well. CLEAR Concierge, now in 14 airports, offers curb-to-gate help for a premium and is one way the company plans to grow revenue per member. The upcoming digital REAL ID—free for users and usable at TSA checkpoints—should bring more travelers into the ecosystem too.

Outside of travel, the CLEAR1 enterprise platform is gaining ground, signing a record number of deals in Q2 across workforce, healthcare, and consumer markets. Partnerships include Greenhouse for secure hiring, Epic for patient record access, and DocuSign for identity verification in sensitive contracts. CLEAR is also working with the White House on a Centers for Medicare and Medicaid Services initiative to modernize healthcare identity systems.

Management was pretty confident about the rest of the year. Even with industrywide travel volumes down slightly in Q2, CLEAR added members and still sees plenty of room to grow in underpenetrated airports—now with the added boost of international travelers.

The broader environment is also working in CLEAR’s favor. The current administration wants to modernize airports through public-private partnerships, which fits perfectly with CLEAR’s model of innovating without taxpayer funding. AI is becoming a bigger focus as well, both for stopping fraudulent identities and for making operations faster and more efficient.

For the upcoming quarter, CLEAR expects revenue of $223–$226 million and bookings of $253–$258 million. Q3 will likely see the smallest net membership adds of the year due to seasonality, but for the full year, they’re sticking with guidance of at least $310 million in free cash flow and expect more margin gains.

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