YOU — Clear Secure, Inc.

Summary of Clear Secure, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $240.8 million, up 16.7% year-over-year.
• Total Bookings: $287.1 million, a 25.4% increase year-over-year.
• Full Year Revenue: $900.8 million, a 16.9% increase.
• Full Year Total Bookings: $977.2 million, up 17.2% year-over-year.
• Adjusted EBITDA: $79.9 million for Q4, with a margin of 33.2%, reflecting an 870 basis point increase from Q4 2024.
• Free Cash Flow: $343.1 million for the full year, significantly exceeding guidance.
• Cash Position: Ended 2025 with $703 million in cash and marketable securities, expecting to exceed $1 billion by the end of 2026.

2. Strategic Updates and Business Highlights

• Member Growth: Total Clear members reached 38 million, a 31.5% increase year-over-year; active CLEAR Plus members grew to 7.6 million, up 6%.
• Partnerships: Renewed multiyear partnership with American Express, enhancing member benefits.
• Product Innovations: Launched a new mobile app and expanded the Clear Concierge program, enhancing the home-to-gate travel experience.
• ClearOne Growth: Achieved record bookings in ClearOne, with significant demand from Fortune 100 companies and healthcare sectors, including a key contract with CMS to modernize identity verification processes.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipate revenue of $242 million to $245 million for Q1, with bookings of $248 million to $253 million, representing 15.2% to 20.9% growth.
• Full Year 2026 Free Cash Flow: Expected to be at least $440 million, representing a 28% increase year-over-year.
• Continued Focus: Emphasis on improving member experience and expanding partnerships to drive growth.

4. Bad News, Challenges, or Points of Concern

• Government Shutdown Risks: Concerns about potential TSA shutdowns impacting operations, although management expressed confidence in their ability to maintain service levels.
• Market Competition: The identity security landscape is increasingly competitive, with rising threats from fraud and data breaches.
• Operational Risks: The need to continuously innovate and enhance customer experience to retain members in a rapidly evolving market.

5. Notable Q&A Insights

• Strategic Priorities: Management emphasized the importance of the home-to-gate experience and the integration of technology with hospitality to enhance member retention and acquisition.
• Impact of eGates: Early positive feedback on eGates was noted, with expectations for improved member experience and retention as more users engage with the technology.
• Healthcare Expansion: Clear Secure's positioning in the healthcare sector was highlighted, with a focus on leveraging existing contracts to expand into new partnerships and services.

Overall, Clear Secure, Inc. demonstrated strong financial performance in Q4 2025, with significant growth in revenue and bookings, alongside strategic advancements in member experience and partnerships. The company remains optimistic about future growth despite potential challenges from government operations and competitive pressures.