8-K: CLEAR Reports Strong Q4, Full Year 2025 Results; Boosts Dividend

Clear Secure, Inc. announced robust financial results for the fourth quarter and full year 2025, marked by significant revenue and profit growth, increased member engagement, and an enhanced capital allocation strategy including a dividend increase and expanded share repurchase program.

Summary

• Fourth quarter 2025 revenue reached $240.8 million, an increase of 16.7% year-over-year.
• Full year 2025 revenue was $900.8 million, up 16.9% year-over-year.
• Total Bookings for Q4 2025 increased by 25.4% year-over-year to $287.1 million, marking the strongest quarterly growth since Q4 2023.
• Full year 2025 Total Bookings grew 17.2% to $977.2 million.
• Operating income for Q4 2025 was $53.9 million, representing a 22.4% operating income margin.
• Full year 2025 operating income was $186.5 million, with a 20.7% operating income margin.
• Net income for Q4 2025 was $46.5 million, a 19.3% net income margin.
• Full year 2025 net income was $168.1 million, an 18.7% net income margin.
• Adjusted EBITDA for Q4 2025 was $79.9 million, representing a 33.2% Adjusted EBITDA margin and 870 basis points of year-over-year margin expansion.
• Full year 2025 Adjusted EBITDA was $262.2 million, with a 29.1% Adjusted EBITDA margin and 480 basis points of year-over-year margin expansion.
• Earnings per Common Share Basic and Diluted for Q4 2025 were $0.31.
• Earnings per Common Share Basic and Diluted for Full Year 2025 were $1.14 and $1.12, respectively.
• Net cash provided by operating activities for Q4 2025 was $198.4 million, and for the full year was $372.5 million.
• Free Cash Flow for Q4 2025 was $187.4 million, and for the full year was $343.1 million.
• Total CLEAR Members grew to 38.0 million, an increase of 31.5% year-over-year.
• Active CLEAR+ Members grew to 7.6 million in Q4 2025, up 6.0% year-over-year.
• The company renewed its multi-year partnership with American Express.
• eGates were launched across 37 airports, with a network-wide rollout on track for 2026.
• CLEAR Concierge is now offered at 27 airports.
• CLEAR1 achieved its largest bookings quarter to date and set a record for new enterprise customers signed.
• The Board of Directors declared a quarterly cash dividend of $0.15 per share, a 20% increase, and a special cash dividend of $0.20 per share, both payable on March 24, 2026, to shareholders of record on March 10, 2026.
• The Board authorized a $125.0 million increase to its existing Class A Common Stock share repurchase program, resulting in an aggregate remaining authorization of approximately $250.3 million.
• First quarter 2026 revenue guidance is $242-245 million, representing 15.2% year-over-year growth at the midpoint.
• First quarter 2026 Total Bookings guidance is $248-253 million, representing 20.9% year-over-year growth at the midpoint.
• Full Year 2026 Free Cash Flow guidance is at least $440 million, representing at least 28.2% year-over-year growth.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a very positive report, driven by strong financial performance, significant margin expansion, robust member growth, and a confident capital allocation strategy including increased dividends and share repurchases, despite a non-recurring tax benefit impacting net income comparisons.

Positives

• Accelerating top-line growth in Q4 2025, with revenue up 16.7% and Total Bookings up 25.4% year-over-year.
• Achieved the strongest quarterly Total Bookings growth since Q4 2023, indicating strong business momentum.
• Delivered record full-year profitability and free cash flow.
• Significant margin expansion: Q4 Adjusted EBITDA margin increased by 870 basis points year-over-year to 33.2%, and full year Adjusted EBITDA margin expanded by 480 basis points to 29.1%.
• Robust member growth with Total CLEAR Members increasing 31.5% year-over-year to 38.0 million.
• Increased the regular quarterly cash dividend by 20% to $0.15 per share and declared a special cash dividend of $0.20 per share, signaling strong financial health and commitment to shareholder returns.
• Authorized a $125.0 million increase to the share repurchase program, with approximately $250.3 million remaining authorization, demonstrating confidence in the company's valuation.
• Renewed a multi-year partnership with American Express, securing a key embedded benefit for cardholders.
• Expanded operational footprint with eGates launched across 37 airports and CLEAR Concierge offered at 27 airports.
• CLEAR1 continues to build momentum, achieving its largest bookings quarter to date and setting a record for new enterprise customers signed.
• Provided strong Full Year 2026 Free Cash Flow guidance of at least $440 million, representing at least 28.2% year-over-year growth.

Negatives

• Net income attributable to Clear Secure, Inc. decreased from $103.286 million in Q4 2024 to $30.762 million in Q4 2025, and from $169.676 million in Full Year 2024 to $109.168 million in Full Year 2025, primarily due to a significant non-recurring income tax benefit recognized in 2024.
• Diluted Earnings per Common Share decreased from $0.83 in Q4 2024 to $0.31 in Q4 2025, and from $1.56 in Full Year 2024 to $1.12 in Full Year 2025, largely attributable to the non-recurring income tax benefit in the prior year.
• Annual CLEAR+ Gross Dollar Retention slightly decreased to 86.4% in Q4 2025 from 88.5% in Q4 2024.

Risks

• Risks relating to adding and retaining Members and partners, including Active CLEAR+ Members, or failing to increase the utilization of the platform.
• Inability to meet stakeholder expectations or maintain the value and reputation of the brand.
• Failure to successfully compete in a highly competitive market.
• Risks associated with the increased adoption of new technological solutions and services, including fourth-party identity verification solutions and credential authentication solutions.
• Public confidence in, and acceptance of, identity platforms and biometrics generally, and the platform specifically.
• Failure to successfully implement strategies to increase adoption of the platform or expand into new verticals.
• Risks associated with commercial agreements and strategic alliances, as well as potential indemnification obligations and certain agreements with fourth parties.
• Dependence of portions of the business and results of operations on concessionaire agreements.
• Risks associated with growth and ability to develop and introduce platform features and offerings, and the need for adequate research and development resources.
• Risks associated with any decline or disruption in the travel industry or a general economic downturn.
• Need for additional capital to support business growth and objectives, and risks that this capital may not be available on reasonable terms (or at all) and may result in shareholder dilution.
• Risks associated with acquisitions and other strategic transactions.
• The need for high-quality personnel.
• Risks associated with the complexity of the platform, including negative impacts of any errors, system failures or the successful implementation of upgrades or new technology.
• The risk that marketing efforts may not be effective.
• Risks associated with changes in Internet browsers and mobile device accessibility of Members.
• The ability to maintain corporate culture.
• Risks associated with payment processing.
• Potential adverse impacts of climate change.
• Limited experience operating outside of the United States and risks associated with international operations.
• Risks associated with breaches of information technology systems or those of fourth parties upon which the company relies, protection of intellectual property, technology and confidential information and failures by fourth-party technology and devices on which the business relies.
• Reliance on fourth-party technology and information systems and the ability to find alternatives if such technology and information systems fail.
• Potential liability due to the infringement on fourth-party intellectual property by technologies incorporated into products.
• The ability to meet the standards set for airport operations by governmental stakeholders.
• The risk that the company may be sued by fourth parties for alleged infringement, misappropriation or other violations of intellectual property and other proprietary rights.
• Risks associated with the actual or perceived failure to comply with applicable biometrics, artificial intelligence, health information and data privacy laws.
• Failure to comply with the constantly evolving laws and regulations that the company is or may become subject to.
• Potential legal proceedings, regulatory disputes and governmental inquiries.
• Coverage afforded under insurance policies may be inadequate.
• Risks associated with the use of open source software.
• Limitations of the SAFETY Act's liability protections.
• Risks associated with financial performance, including the risk of increased expenses and net losses in the near term and the ability to achieve or sustain profitability in the future.
• The failure of estimates or judgments relating to critical accounting policies.
• The risk that focus on delivering a safe, reliable, predictable and frictionless Member experience may not maximize short-term financial results, which may yield results that conflict with market expectations and could result in the stock price being negatively affected.
• Risks associated with the structure as a holding company, and reliance on Alclear Holdings, LLC for certain distributions.
• Risks associated with dividend payments and share repurchases.
• Risks associated with organizational structure, including those related to the Tax Receivable Agreement.
• The control of the Company by the co-founder, whose interests in the business may be different than those of other stockholders.
• Restrictions under the Credit Agreement.
• The unpredictable nature of tax attributes that will impact tax treatment.
• Substantial future sales of shares of Class A Common Stock could cause the stock price to fall.
• Failure to maintain adequate internal controls.
• The risk that provisions in charter documents and certain rules imposed by regulatory authorities may delay or prevent acquisition by a fourth party.
• The volatility of the stock price.
• Risks related to founder performance-based restricted stock unit awards granted at the time of the initial public offering.
• Future issuances of securities, including preferred securities, the terms of which could adversely affect the voting power or value of Common Stock.

Future Outlook

Clear Secure anticipates continued strong growth in 2026, with first-quarter revenue projected between $242-245 million (15.2% YoY growth at midpoint) and total bookings between $248-253 million (20.9% YoY growth at midpoint). The company expects full-year 2026 Free Cash Flow to be at least $440 million, representing at least 28.2% year-over-year growth. The network-wide rollout of eGates is on track for 2026, and management expects to continue strengthening the member experience and expanding its identity platform.

Management Comments

• "We exited the year with accelerating top line growth, delivered record full year profitability and free cash flow, and continued to strengthen our member experience while expanding our identity platform."
• "The momentum we are seeing across CLEAR Travel and CLEAR1, combined with rising demand for secure, high-fidelity identity, underscores that we are at an inflection point for both CLEAR and our industry."
• "With a robust balance sheet, expanding partnerships and a compelling innovation roadmap, we are entering 2026 from a position of strength."

Industry Context

StockSavvy.ai notes that Clear Secure's strong performance, particularly in member growth and bookings reacceleration, indicates robust demand for secure, frictionless identity solutions in the travel and enterprise sectors. The expansion of eGates and CLEAR Concierge, alongside the renewed American Express partnership, positions the company well within the evolving identity verification and travel technology landscape, where efficiency and security are paramount. The increasing adoption of biometrics for expedited processes aligns with broader industry trends towards enhanced user experience and operational efficiency.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results for direct industry standard comparison.

Corporate Governance

Stakeholder Impact

• Shareholders: Positive impact due to increased regular dividends, a special dividend, and an expanded share repurchase program, signaling strong financial performance and commitment to shareholder returns.
• Customers (Members): Positive impact from continued expansion of services (eGates, CLEAR Concierge) and renewed partnerships (American Express), enhancing the frictionless experience and value proposition.
• Employees: Continued growth and expansion across various initiatives (eGates, CLEAR1) suggest potential for job stability and growth opportunities, though not explicitly detailed.
• Partners: Renewed multi-year partnership with American Express and momentum in CLEAR1 indicate strong and expanding partner relationships, fostering mutual growth.

Next Steps

• Host a conference call to discuss these results on February 25, 2026, at 8:00 AM (ET).
• Pay the declared quarterly cash dividend of $0.15 per share and special cash dividend of $0.20 per share on March 24, 2026.
• Continue with the network-wide rollout of eGates in 2026.
• Further strengthen the member experience and expand the identity platform.
• Execute on the compelling innovation roadmap.

Key Dates

Recommendation

The filing demonstrates robust financial health with accelerating top-line growth, significant margin expansion, and record free cash flow. The substantial increase in dividends, including a special dividend, and the expanded share repurchase program signal strong management confidence and a commitment to returning capital to shareholders. Operational achievements like strong member growth, partnership renewals, and product expansion (eGates, CLEAR Concierge, CLEAR1) indicate a solid strategic trajectory. While net income comparisons are affected by a non-recurring tax benefit in the prior year, the underlying operational profitability and cash generation are exceptionally strong, making this an attractive investment with a positive outlook.

Keywords

Clear Secure, YOU, financial results, Q4 2025, full year 2025, revenue growth, Adjusted EBITDA, Free Cash Flow, dividends, share repurchase, member growth, biometrics, identity verification, airport security, travel technology, American Express partnership, eGates, CLEAR Concierge, CLEAR1, corporate governance, risk management