10-Q: Clear Secure Reports Strong Q1 2026 Growth

Clear Secure, Inc. announced a significant increase in revenue and net income for the first quarter of 2026, driven by strong member growth and strategic pricing adjustments.

Summary

• Clear Secure, Inc. reported a 20% increase in revenue for the first quarter of 2026, reaching $253.0 million compared to $211.4 million in the same period last year.
• Net income attributable to Clear Secure, Inc. rose by 46% to $38.8 million, or $0.38 per diluted share, up from $25.4 million, or $0.26 per diluted share, in Q1 2025.
• Total Bookings increased by 41% to $291.7 million, indicating strong sales growth.
• Total CLEAR Members grew by 31% to 40.99 million, while Active CLEAR+ Members increased by 13% to 8.17 million.
• Adjusted EBITDA saw a substantial increase of 55% to $80.6 million, with Adjusted EBITDA Margin improving to 32% from 25% in the prior year.
• Free Cash Flow more than doubled to $185.5 million, up from $91.3 million in Q1 2025.

Sentiment

Score: 8

Explanation: StockSavvy.ai views this as a strong positive report, with significant year-over-year growth across key financial and operational metrics, indicating robust business performance and market traction.

Positives

• Revenue increased by 20% to $253.0 million in Q1 2026.
• Net income attributable to Clear Secure, Inc. grew by 46% to $38.8 million.
• Diluted EPS increased to $0.38 from $0.26 in the prior year.
• Total Bookings surged by 41% to $291.7 million.
• Total CLEAR Members increased by 31% to 40.99 million.
• Active CLEAR+ Members grew by 13% to 8.17 million.
• Adjusted EBITDA increased by 55% to $80.6 million.
• Adjusted EBITDA Margin improved to 32% from 25%.
• Free Cash Flow more than doubled to $185.5 million.
• The company announced a quarterly dividend of $0.15 per share, payable in June 2026.

Negatives

• Cost of revenue share fee increased by 25% to $36.9 million.
• General and administrative expenses increased by 16% to $63.6 million, largely due to higher employee compensation and credit card fees.
• Income tax expense increased significantly by 165% to $14.4 million due to higher pre-tax earnings and an increased ownership percentage.

Risks

• The company's future success depends on its ability to attract and retain CLEAR+ Members, which can be impacted by TSA processes and randomized reverification rates.
• Delays in new partner, product, and location launches could materially affect financial results.
• Changes in the macro and regulatory environment, including travel levels, government policy, and economic conditions, could impact the business.
• The company is subject to minimum spend commitments under certain service arrangements and airport agreements.

Future Outlook

The company expects its existing cash, cash equivalents, marketable securities, and cash from operations, along with its credit agreement, to be sufficient to meet working capital and capital expenditure needs for at least the next 12 months, including dividends, potential stock repurchases, and known commitments. Future capital expenditures are expected to focus on platform enhancements, equipment, leasehold improvements, and corporate infrastructure.

Management Comments

• The company is focused on growing Total CLEAR Members and the number of Members that engage with its platform, relying on multiple channels including in-airport, digital channels, and strategic distribution partnerships.
• Retention of CLEAR+ Members is a key focus, driven by providing frictionless and predictable experiences and increasing the value of the CLEAR platform through more use cases and partnerships.
• Growth strategy relies on creating new revenue streams such as per partner, per Member or per use transaction fees, and innovating the product and platform to improve member experience and safety.
• Management believes Total Bookings is an important measure of the current health and growth of the business and views it as a leading indicator.
• Management views Total CLEAR Members as an important tool to analyze the efficacy of growth and marketing initiatives.
• Management views Active CLEAR+ Members as an important tool to measure the growth of its CLEAR+ product.

Industry Context

StockSavvy.ai notes that Clear Secure's Q1 2026 results demonstrate continued strong growth in the identity verification and secure travel experience sector. The company's ability to expand its member base and leverage partnerships, particularly with airlines and credit card companies, highlights the increasing demand for frictionless and secure identity solutions in both travel and B2B applications. The growth in Total Bookings and Adjusted EBITDA suggests effective monetization of its expanding user base and operational efficiencies.

Comparison to Industry Standards

• Clear Secure's revenue growth of 20% in Q1 2026 outpaces the general growth rate of many traditional security or identity management companies, which often see single-digit or low double-digit growth.
• The company's Adjusted EBITDA margin of 32% is robust and competitive within the technology and services sector, indicating strong operational leverage.
• The 13% year-over-year growth in Active CLEAR+ Members is a significant achievement in a mature market like airport security, suggesting effective market penetration and differentiation compared to competitors who may rely solely on government-provided services.
• The substantial increase in Free Cash Flow, more than doubling year-over-year, indicates strong cash generation capabilities, which is a key benchmark for sustainable business models and is often superior to companies with high capital expenditure requirements in other industries.

Legal Proceedings

• The company is subject to commercial litigation claims and various legal proceedings, as well as administrative and regulatory reviews arising in the ordinary course of business. Currently, the company does not believe these will have a material adverse effect on its financial statements.

Related Party Transactions

• The non-controlling interest balance represents the economic interest in Alclear held by the Founder, Caryn Seidman Becker, and members of Alclear. These holders have the right to exchange Alclear Units for Class A or Class B Common Stock, impacting ownership percentages and equity accounts.

Stakeholder Impact

• Shareholders: Positive impact due to increased revenue, net income, EPS, and a declared dividend. Strong financial performance and positive outlook are beneficial.
• Employees: Continued investment in compensation, including equity-based awards, suggests a focus on talent retention and motivation. Increased G&A expenses related to compensation may reflect this.
• Partners (Airports, Airlines, B2B): Continued growth in members and bookings is likely to benefit partners through increased revenue share and platform utilization. New partnerships and use cases are being pursued.
• Customers (Members): Continued focus on providing frictionless and predictable experiences aims to enhance member satisfaction and retention. Expansion of use cases and app functionality benefits users.

Next Steps

• Continue to grow Total CLEAR Members and engage existing members.
• Focus on retaining existing CLEAR+ Members by providing frictionless and predictable experiences.
• Innovate product and platform to improve member experience, safety, and introduce new use cases.
• Add new partners and retain existing relationships with favorable business terms.
• Continue to launch new TSA PreCheck Enrollment locations.
• The company announced a quarterly dividend of $0.15 per share, payable on June 24, 2026.

Key Dates

Recommendation

The Q1 2026 results demonstrate exceptional growth across all key metrics, including revenue, net income, bookings, and free cash flow. The company is effectively expanding its member base and improving profitability, as evidenced by the significant increase in Adjusted EBITDA and margin. The positive outlook, coupled with a shareholder-friendly dividend policy, suggests strong future performance and shareholder value creation.

Keywords

Clear Secure, CLEAR, 10-Q, Quarterly Report, Identity Verification, Airport Security, TSA PreCheck, Consumer Travel, B2B Solutions, Financial Results, Revenue Growth, Member Growth, Adjusted EBITDA, Free Cash Flow