London, November 3 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT, referred to herein as the "Company" or "Clarivate") today announced its third-quarter results for the period ended September 30, 2026. The company is a global provider of transformative intelligence services.
Executive Commentary
Chief Executive Officer Matti Shem Tov said:
Performance in the third quarter continued to improve on key metrics, including organic recurring revenue growth and the return to positive annual contract value (ACV) growth in the Intellectual Property (IP) segment. We also completed the divestiture of the Life Sciences & Healthcare segment, a significant milestone that enables us to create greater value in our two leading market segments—Academia & Government and Intellectual Property. AI-driven innovations in the A&G and IP businesses are gaining increasing commercial recognition and customer validation, giving us confidence in our commitment to accelerate sustainable organic growth, expand free cash flow, and reduce leverage.
Michael Easton, Executive Vice President and Chief Financial Officer, said:
We have seen the results of disciplined execution across all areas of our business, with improved growth trends, solid profit margins, and consistent generation of free cash flow. Our focus remains on converting organic growth into sustainable profitability and free cash flow, while maintaining prudent capital allocation. Looking ahead, we are well positioned to further strengthen our financial position and enhance financial flexibility.
Q3 2026 Performance
Total revenue was $567.9 million, including the life sciences and healthcare segment divested on October 6, 2026; total revenue for the same period last year was $623.1 million, primarily due to non-core divestitures. Excluding the LS&H segment, now classified as discontinued operations, total revenue was $481.6 million, compared to $530.3 million in the third quarter of 2025, also primarily due to non-core divestitures.
Organic revenue growth from continuing operations was 0.4%, driven by a 1.5% increase in organic subscription revenue and a 0.7% increase in organic recurring revenue, partially offset by a decline in organic transaction revenue.
Organic ACV from continuing operations increased by 1.8% compared to September 30, 2025, reflecting the company’s ongoing progress toward a more sustainable, subscription-based revenue model.
Including LS&H, the net loss was $80.8 million, or a diluted loss per share of $0.13; compared to a net loss of $28.3 million, or a diluted loss per share of $0.04, in the same period last year. The increased loss was primarily due to a $62.2 million non-cash goodwill impairment related to LS&H. Including LS&H, adjusted net income was $136 million, or diluted earnings per share of $0.21; compared to $119.3 million, or diluted earnings per share of $0.18, in the same period last year. Including LS&H, adjusted EBITDA was $245.3 million, compared to $252.4 million in the third quarter of 2025.
First nine months of 2026 performance
Total revenue was $1.7407 billion, including the LS&H segment; it was $1.8382 billion in the same period last year, primarily due to non-core divestitures. Excluding the LS&H segment, now classified as discontinued operations, total revenue was $1.4724 billion, compared to $1.5467 billion for the first nine months of 2025, also primarily due to non-core divestitures.
Organic revenue growth from continuing operations was 0.1%, driven by a 0.9% increase in organic recurring revenue (subscription and repeat revenue), offset by a decline in organic transaction revenue.
Including LS&H, the net loss was $389.6 million, or a diluted loss per share of $0.61; for the first nine months of 2025, the net loss was $204.2 million, or a diluted loss per share of $0.30. The increased loss was primarily due to a $283.9 million non-cash goodwill impairment related to LS&H. Including LS&H, adjusted net income was $378.4 million, or diluted earnings per share of $0.59; compared to $338.4 million, or diluted earnings per share of $0.49, in the same period last year. Including LS&H, adjusted EBITDA was $733.7 million, compared to $747.2 million for the first nine months of 2025.
For the first nine months of 2026, Clarivate (including LS&H) generated $399 million in cash flow from operating activities and $233.1 million in free cash flow.
Certain financial information
Commentary on Continuing Operations for the Third Quarter of 2026
Subscription revenue increased by $2.4 million to $3.383 billion, a 0.7% increase. Organic subscription revenue grew 1.5%, primarily due to new sales and pricing initiatives.
Recurring revenue increased by $5 million to $105.8 million, a 0.5% increase. Organic recurring revenue grew 0.7%, primarily due to increased IP volume.
Recurring revenue, consisting of subscription and recurring income, increased by 1.3% on an organic basis, or $5.7 million.
Trading revenue decreased by $51.6 million to $37.5 million, primarily due to the phased exit of certain product lines within A&G. On an organic basis, trading revenue declined by 12.4%, or $3.9 million, mainly due to reduced activity in two segments, partly as customers shifted toward higher-margin subscription products, consistent with the company’s focus on recurring revenue.
Balance sheet and cash flow
As of September 30, 2026, cash and cash equivalents amounted to $257 million, a decrease of $72.2 million compared to December 31, 2025.
As of September 30, 2026, total debt amounted to $4.1761 billion, a decrease of $393.8 million from the prior year, due to: the early repayment of $1 billion in debt in January 2026, resulting in the full redemption of the senior secured notes maturing in November 2026; and the repurchase and cancellation of an aggregate $1.926 billion in principal of senior secured notes maturing in 2028 and senior notes maturing in 2029 at a discount of approximately 5% below par through a series of debt buybacks.
For the first nine months of 2026 (including discontinued operations), net cash flow from operating activities was $399 million, compared to $468.6 million in the same period last year. For the first nine months of 2026 (including discontinued operations), free cash flow was $233.1 million, compared to $276.1 million in the same period last year.
The company completed the sale of the LS&H segment on October 6, 2026, generating net cash proceeds of $488.4 million.
Updated 2026 Outlook (excluding discontinued operations, forward-looking statements)
The full-year 2026 outlook provided below assumes no further acquisitions, divestitures, or other unforeseen events. Similarly, the Q4 2026 outlook provided below assumes no further acquisitions, divestitures, or other unforeseen events in relation to the completion of the LS&H divestiture.
Phone conference and live streaming
Clarivate will hold a conference call and webcast at 8:30 AM Eastern Time today to review third-quarter results. The webcast is open to all interested parties and may contain forward-looking information.
The live stream of the earnings call can be accessed through the investor relations page on the company’s official website. To join the live stream, visit: https://events.q4inc.com/attendee/388781202.
Interested parties may also listen to the live audio broadcast. Participants in the United States may dial 833-461-5787; international participants may dial +1 585-542-9983 (long-distance charges apply). The conference ID is 388 781 202.
The webcast replay will be available two hours after the live event concludes at https://ir.clarivate.com and will be archived for one year.
Use of Non-GAAP Financial Measures
This press release includes certain financial measures that are not prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP), including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted diluted earnings per share, and free cash flow. Non-GAAP financial measures are not recognized terms under GAAP and are not measures of financial condition or liquidity; they should not be considered alternatives to profit or loss or operating cash flow determined under GAAP. Therefore, these measures should not be viewed in isolation, nor should they be used as substitutes for GAAP financial measures or operating results.
The company uses these non-GAAP metrics internally in its operational and financial decision-making to evaluate business performance, employee compensation, and resource allocation. The company believes these metrics help focus attention on reliable indicators it considers more representative of ongoing operating performance and cash generation from operations; the company also believes investors may find these non-GAAP financial measures useful for similar reasons. Securities analysts, investors, and other interested parties frequently use non-GAAP metrics when evaluating companies similar to ours, and many such companies disclose similar metrics in their earnings reports. Additionally, the company believes these metrics facilitate comparison with peer companies, as they provide users with valuable insights into key components of GAAP financial disclosures. However, non-GAAP metrics have limitations as analytical tools, and not all companies use identical calculation methods; therefore, the company’s non-GAAP financial measures may not be directly comparable to similarly titled metrics reported by other companies.
Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided in the tables attached to this press release. The company’s disclosure of non-GAAP measures should not be construed as implying that future performance will not be affected by any adjustment items, or that any projections or estimates will be fully or partially realized.
Forward-looking statements
This press release contains statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions, or predictions regarding future events or results and therefore constitute or may be deemed “forward-looking statements” as defined by the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all matters that are not historical facts, including those relating to potential future strategic transactions the company may pursue, the expected use of proceeds from the sale of its life sciences and healthcare business and associated cost savings or other benefits, operating results, financial condition, liquidity, capital allocation plans and share repurchases, foreign exchange impacts, outlook, growth, strategy, and shareholder value; the markets in which the company operates; fiscal year 2026 financial guidance and its key drivers and underlying assumptions; the impact or expected benefits of value creation initiatives and other growth strategies; global macroeconomic uncertainty and volatility; the impact of artificial intelligence (AI) on the company’s business and strategy; and the timing of the above matters. Such forward-looking statements are typically identified by words or phrases such as “believe,” “estimate,” “expect,” “anticipate,” “seek,” “predict,” “intend,” “plan,” “may,” “will,” “should,” or their negative forms, other variations, or similar expressions. These forward-looking statements are based on currently available market information and management’s expectations, beliefs, and predictions regarding future events affecting the company. Such statements involve numerous risks and uncertainties—some of which are beyond the company’s control—or other assumptions that could cause actual results or performance to differ materially from those expressly or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those described in Item 1A, “Risk Factors,” in the company’s Annual Report on Form 10-K, as well as those disclosed in other filings made by the company with the U.S. Securities and Exchange Commission (SEC). There can be no assurance that future developments affecting the company will occur as anticipated. If one or more risks or uncertainties materialize, or if any assumptions prove incorrect, actual results may differ materially from those predicted by these forward-looking statements. Except as required by applicable securities laws, the company undertakes no obligation to update or revise any forward-looking statements due to new information, future events, or otherwise. Please refer to the company’s public filings with the SEC, which are also available on the company’s website at www.clarivate.com.
About Clarivate
Clarivate is a leading global provider of transformative intelligence services. The company offers rich data, insights, and analysis, workflow solutions, and expert services in academia and government, as well as intellectual property. For more information, visit www.clarivate.com.
Add income information
Annual Contract Value (ACV) at any point in time represents the annualized value of all active customer subscription licenses over the next 12 months, assuming contracts expiring during the measurement period are renewed at current price levels. The company's organic ACV increased by 1.8% compared to September 30, 2025, primarily driven by improved product pricing. The company's total ACV as of September 30, 2026, increased by 3.6% compared to September 30, 2025, primarily driven by improved product pricing and foreign exchange fluctuations.
The table below presents the company's revenue categorized by type and segment, along with the factors driving changes during the period.
Reconciliation to several non-GAAP metrics
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA refers to net income (loss) before deducting income tax expense (benefit), depreciation and amortization, and net interest expense, further adjusted to exclude the impact of share-based compensation, impairments, restructuring costs, non-cash fair value adjustments of certain financial instruments, transaction costs related to acquisitions and/or disposals, unrealized foreign exchange gains and losses, legal settlements, and other items that the company considers not reflective of ongoing operating performance. Net income (loss) margin is calculated as net income (loss) divided by revenue. Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.
The table below presents the company’s adjusted EBITDA and adjusted EBITDA margin for the three and nine months ended September 30, 2026 and 2025, and reconciles these non-GAAP measures to net income (loss) from continuing operations and operating margin for the same periods:
The table below presents the company's adjusted EBITDA and adjusted EBITDA margin for the three and nine months ended September 30, 2026 and 2025, including discontinued operations, and reconciles these non-GAAP measures to net income (loss) and net income (loss) margin for the same periods:
Adjusted net profit and adjusted diluted earnings per share
Adjusted net profit refers to net profit (loss) adjusted to exclude the impact of amortization related to acquired intangible assets, share-based compensation, impairments, restructuring costs, non-cash fair value adjustments of certain financial instruments, transaction costs related to acquisitions and/or disposals, unrealized foreign exchange gains and losses, legal settlements, and other items the company considers not reflective of ongoing operating performance, and to add back the income tax effects associated with these adjustments.
Adjusted diluted earnings per share are calculated by dividing adjusted net income by the adjusted diluted weighted average shares outstanding. The calculation of adjusted diluted weighted average shares outstanding assumes that all relevant instruments are dilutive.
The table below presents the company’s adjusted net income and adjusted diluted earnings per share for the three and nine months ended September 30, 2026 and 2025, including discontinued operations, and reconciles these non-GAAP measures to net income (loss) and diluted earnings per share for the same periods:
Free cash flow
Free cash flow refers to net cash flow from operating activities minus capital expenditures. The table below presents the company’s free cash flow for the three-month and nine-month periods ended September 30, 2026 and 2025, including discontinued operations, and reconciles this non-GAAP metric to net cash flow from operating activities during the same periods:
Reconciliation of certain non-GAAP measures - 2026 outlook
Adjusted EBITDA and Adjusted EBITDA Margin
The table below presents the adjusted EBITDA and adjusted EBITDA margin for continuing operations under the company’s 2026 outlook, along with a reconciliation of these non-GAAP measures to net income (loss) and net income (loss) margin for the same period:
Adjusted diluted earnings per share
The table below presents the company's adjusted diluted earnings per share for 2026 guidance, including the impact of discontinued operations for the first nine months, and reconciles this non-GAAP metric to earnings (loss) per share for the same period:
Free cash flow
The table below presents the company's free cash flow outlook for 2026, including the impact from discontinued operations for the first nine months, and reconciles this non-GAAP metric to net cash flow provided by operating activities during the same period.