10-K: Clear Secure Reports Strong 2025 Growth, Expanding Identity Platform

Clear Secure, Inc. announced robust financial and operational growth for fiscal year 2025, driven by increased membership, expanded service offerings, and strategic partnerships.

Summary

• Total CLEAR Members grew 31% year-over-year to 38.0 million as of December 31, 2025.
• Active CLEAR+ Members increased 6% to 7.616 million as of December 31, 2025.
• Total Bookings rose 17% to $977.2 million for the year ended December 31, 2025.
• Revenue increased 17% to $900.8 million for the year ended December 31, 2025.
• Adjusted EBITDA grew 40% to $262.2 million, with Adjusted EBITDA Margin at 29% for 2025.
• Free Cash Flow increased 21% to $343.1 million for 2025.
• Launched TSA PreCheck Enrollment Provided by CLEAR in February 2025, now available in 61 airports and 340 retail locations.
• Expanded CLEAR+ and related offerings to serve international travelers from 42 countries in 2025.
• Rolled out eGates in 2025, offering approximately 5x faster verification and improving throughput.
• Renewed multi-year partnership with American Express in February 2026.
• Repurchased 5,294,598 shares of Class A Common Stock for $126.3 million in 2025.
• The Board authorized an additional $125 million increase to the share repurchase program in February 2026, bringing the remaining authorization to $250.3 million.
• Declared a quarterly dividend of $0.15 per share and a special cash dividend of $0.20 per share, payable March 24, 2026.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong performance, demonstrating significant growth in key operational metrics and financial health, despite a slight dip in retention and usage rates. The strategic expansions and capital return initiatives are positive indicators for long-term value.

Positives

• Total CLEAR Members increased by 31% year-over-year to 38.0 million, indicating strong platform reach and growth.
• Active CLEAR+ Members grew by 6% year-over-year to 7.616 million, demonstrating continued demand for the core subscription service.
• Revenue increased by 17% to $900.8 million for the year ended December 31, 2025, reflecting successful monetization strategies.
• Total Bookings increased by 17% to $977.2 million, serving as a leading indicator of business health and future revenue.
• Adjusted EBITDA saw a substantial 40% increase to $262.2 million, with the Adjusted EBITDA Margin expanding from 24% to 29%, highlighting improved operational efficiency and profitability.
• Free Cash Flow grew by 21% to $343.1 million, indicating strong cash generation from operations.
• The successful launch and scaling of TSA PreCheck Enrollment Provided by CLEAR in 61 airports and 340 retail locations represents a significant new revenue stream and customer acquisition channel.
• Expansion of CLEAR+ to international travelers from 42 countries broadens the addressable market and increases global relevance.
• Deployment of eGates, offering approximately 5x faster verification, enhances the Member experience and improves throughput.
• The multi-year renewal of the partnership with American Express ensures continued strategic alignment and support for subsidized memberships.
• Ongoing share repurchase program, with $126.5 million remaining as of December 31, 2025, and an additional $125 million authorized in February 2026, signals confidence in valuation and commitment to returning capital to shareholders.
• Consistent quarterly dividends and a special cash dividend declared demonstrate financial health and a commitment to shareholder returns.
• Maintained effective internal control over financial reporting as of December 31, 2025, as affirmed by management and independent auditors.

Negatives

• Annual CLEAR+ Gross Dollar Retention decreased to 86.4% in 2025 from 88.5% in 2024, primarily due to a lower increase in pricing compared to the prior period.
• Annual CLEAR+ Member Usage slightly decreased to 7.0x in 2025 from 7.1x in 2024, driven by lower utilization for newer members and a decrease in utilization for existing members.
• Net income decreased to $168.1 million in 2025 from $225.3 million in 2024, primarily due to a significant increase in income tax expense ($37.9 million in 2025 compared to a $158.6 million benefit in 2024).
• Interest income, net, decreased by $8.1 million (25%) in 2025 compared to 2024, driven by lower average interest rates and cash balances.
• Impairment charges of $4.7 million were recognized on strategic investments in equity securities during 2025.

Risks

• Failure to add new and retain existing Members, including Active CLEAR+ Members, or increase the utilization of the platform, could materially and adversely affect the business.
• Inability to meet stakeholder expectations or maintain the value and reputation of the brand, particularly concerning data protection and security incidents, could harm the business and financial results.
• Operating in a highly competitive market against existing and future competitors, including large technology platforms and governmental agencies developing similar solutions, poses a significant challenge.
• Increased adoption of new technological solutions and services, including third-party identity verification and credential authentication solutions (e.g., TSA PreCheck Touchless ID, state digital IDs), at locations where the company operates could impact its business.
• Public confidence in, and acceptance of, identity platforms and biometrics generally, and the company's platform specifically, is a key factor in continued growth and could be negatively impacted by privacy concerns or security breaches.
• Failure to implement successful strategies to increase platform adoption or expand into new verticals would limit growth.
• Risks associated with commercial agreements and strategic alliances, including potential indemnification obligations and reliance on concessionaire agreements with airports, could adversely affect the business.
• Inability to manage growth or continue innovating, requiring adequate research and development resources and successful integration of acquisitions, could adversely affect the business.
• Any decline or disruption in the travel industry or a general economic downturn could materially adversely affect the business, results of operations, and financial condition.
• Potential need for additional capital to support business growth and objectives, which might not be available on reasonable terms, if at all, and may result in stockholder dilution.
• Breaches of information technology systems or those of third parties upon which the company relies could subject it to significant reputational, financial, legal, and operational consequences.
• Failure to adequately protect intellectual property, technology, and confidential information could harm the business, competitive position, financial condition, and results of operations.
• Potential for legal proceedings, regulatory disputes, and governmental inquiries, including claims of intellectual property infringement or non-compliance with privacy laws, could cause significant expenses and divert management's attention.
• Any actual or perceived failure to comply with applicable laws relating to privacy, biometrics, artificial intelligence, health information, and data protection, which are constantly evolving and complex, may result in significant liability and erosion of trust.
• Liability protections provided by the SAFETY Act may be limited, potentially exposing the company to legal claims that the Act was designed to prevent.
• Inability to sustain profitability in the future and expected increased expenses as the company continues to invest in growth.
• Reliance on Alclear for distributions to pay dividends, taxes, and Tax Receivable Agreement (TRA) payments, which could be restricted by applicable law or contractual restrictions.
• The Tax Receivable Agreement confers certain benefits upon the CLEAR Post-IPO Members that may not benefit holders of Class A Common Stock to the same extent, and the amounts payable under the TRA could be substantial.
• The Credit Agreement contains restrictions that limit financial flexibility, and failure to comply with covenants could result in the acceleration of indebtedness.
• The timing and amount of any repurchases under the stock repurchase program are subject to uncertainties and may be impacted by factors like the 1% excise tax on net repurchases.
• The U.S. federal income tax treatment of distributions on Class A Common Stock to a stockholder will depend upon the company's tax attributes and the stockholder's tax basis, which are not necessarily predictable.
• Substantial future sales of shares of Class A Common Stock in the public market could cause the stock price to fall.
• Failure to maintain an effective system of internal controls could impair the ability to produce timely and accurate financial statements or comply with applicable regulations.
• Provisions in charter documents and certain rules imposed by regulatory authorities may delay or prevent the company's acquisition by a third-party.
• The stock price has been, and may in the future be, volatile, and investment in Common Stock could decline in value.
• Issuance of preferred securities, the terms of which could adversely affect the voting power or value of Common Stock.
• Use of open source software could adversely affect the ability to offer services and subject the company to possible litigation, and may increase vulnerability to unauthorized access and cyberattacks.
• The business may be vulnerable to the adverse effects of climate change, which may negatively impact operations and increase compliance costs.

Future Outlook

Clear Secure expects to continue expanding eGates across its network into 2026 and scale its TSA PreCheck Enrollment Provided by CLEAR offering to additional locations, subject to TSA approval. The company anticipates adding new CLEAR1 partners, expanding CLEAR+ through airport network growth, increased market penetration, new products, and digital marketing. It plans to continue investing in platform growth, Member base expansion, and network locations, and may opportunistically pursue selective acquisitions. Management believes existing cash, marketable securities, and cash from operations will be sufficient to meet anticipated cash needs for at least the next 12 months, including dividends and potential stock repurchases, despite expecting increased expenses due to growth investments.

Management Comments

• "We are obsessed with the Member experience."
• "Our business model is powered by network effects and characterized by efficient Member acquisition and maintaining strong retention rates."
• "We believe there is a significant opportunity to expand our reach."
• "Management uses certain key performance indicators to evaluate the scale, engagement, and monetization of the CLEAR network across CLEAR+, CLEAR1, and other emerging identity use cases."
• "We believe that our current and future financial growth are dependent upon many factors, including the key factors affecting performance described below."
• "We believe our existing cash and cash equivalents, marketable securities, cash provided by operations and the availability of additional funds under our Credit Agreement will be sufficient to meet our working capital and capital expenditure needs for at least the next 12 months, including payment of dividends, potential stock repurchases, and known commitments and contingencies."

Industry Context

StockSavvy.ai notes that Clear Secure's continued growth in membership and revenue, particularly within its CLEAR+ and new TSA PreCheck Enrollment services, reflects a broader industry trend towards enhanced biometric identity verification and frictionless travel experiences. The expansion into international markets and B2B solutions (CLEAR1) positions the company to capitalize on increasing demand for secure digital identity across various sectors, aligning with global shifts towards more efficient and secure personal identification. The slight dip in retention and usage metrics, however, suggests that while the market is growing, competition and evolving consumer expectations for value remain critical factors.

Comparison to Industry Standards

• The filing indicates competition from large, well-established technology platforms such as Alphabet/Google, Amazon, Apple, Microsoft, or Meta, and well-known credit card companies, which may develop or acquire competing identity verification solutions.
• Competition also arises from providers of decentralized identity verification platforms or KYC services, though specific comparable companies or their performance metrics are not detailed.
• The company faces competition from two other private entities authorized to enroll members for TSA PreCheck, as well as in-house solutions developed by existing and future partners or governmental agencies.
• The filing does not provide specific comparable company or project results to benchmark Clear Secure's financial and operational metrics against global industry standards.

Corporate Governance

Legal Proceedings

• Currently, there are no claims or proceedings against the company that are believed to have a material adverse effect on its business, results of operations, financial condition, or cash flows.
• The company is involved in various legal proceedings arising in the ordinary course of business from time to time, including claims by members, intellectual property claims, contract and employment claims, and claims related to data privacy.
• The company may also be subject to regulatory and governmental investigations, information requests, and subpoenas in the ordinary course of business.

Related Party Transactions

• As of December 31, 2025, total payables to certain related parties were $0, a decrease from $3,540 in 2024.
• For the year ended December 31, 2025, $0 was recorded within Cost of revenue share fee related to an airline, compared to $13,088 in 2024, as the entity no longer meets related party classification criteria as of December 31, 2024.
• The Tax Receivable Agreement (TRA) is a contractual commitment to certain current and former members of Alclear Holdings, LLC (TRA Holders) to distribute 85% of the net cash savings in U.S. federal, state, and local income tax that the company realizes or is deemed to realize from certain transactions. The TRA liability was $244.7 million as of December 31, 2025.

Stakeholder Impact

• Shareholders: Positive impact from strong financial performance, share repurchases, and consistent dividends. Potential dilution risk from future capital raises. Voting power is concentrated with Caryn Seidman Becker, which may influence corporate decisions.
• Members (Customers): Enhanced experience through faster eGates, expanded international service, and new TSA PreCheck enrollment options. Potential negative impact from decreased retention/usage rates, security incidents, or changes in pricing.
• Employees: Increased employee compensation costs. Equity incentives are used for attraction and retention. Risk of attrition and unsuccessful succession planning is noted.
• Partners (Airports, Airlines, B2B): Continued growth in partnerships and new use cases. Risk of partners not renewing agreements or developing in-house solutions.
• Regulatory Bodies: Continued compliance with evolving data privacy, biometrics, and aviation security regulations. Risk of non-compliance leading to liability and reputational damage.

Next Steps

• Continue expanding eGates across the network into 2026.
• Scale TSA PreCheck Enrollment Provided by CLEAR to additional locations across the airport network and in other partner retail locations on a rolling basis, subject to TSA approval.
• Pursue new CLEAR1 partners.
• Expand CLEAR+ through airport network expansion, increased market penetration in existing markets, partnerships, new products and services, and digital marketing efforts.
• Continue to develop new features to improve the Member experience.
• Continue adding new products within the Travel vertical.
• Continue investing to increase the growth of the platform, Member base, and network locations.
• Opportunistically pursue selective acquisitions and other corporate development opportunities.
• Pay a quarterly dividend of $0.15 per share and a special cash dividend of $0.20 per share on March 24, 2026.
• Continue the share repurchase program, with $250.3 million remaining authorization as of February 20, 2026.

Key Dates

Recommendation

Clear Secure's 2025 performance demonstrates robust growth across key operational and financial metrics, including significant increases in total members, revenue, Adjusted EBITDA, and Free Cash Flow. Strategic initiatives like the TSA PreCheck expansion, international market entry, and eGate deployment are enhancing its competitive position and expanding its addressable market. While there are minor dips in retention and usage, the overall trajectory is positive, supported by a strong balance sheet, ongoing share repurchases, and consistent dividend payments. The company's focus on a secure, frictionless identity platform aligns with increasing market demand, making it an attractive long-term investment despite regulatory and competitive risks.

Keywords

Secure Identity, Biometrics, Airport Security, CLEAR+, TSA PreCheck, CLEAR1, Digital Identity, Travel Technology, Financial Results, 10-K, Annual Report, YOU, Clear Secure, Corporate Governance, Share Repurchase, Dividends, Data Privacy, Cybersecurity, Risk Management