CLEAR Secure (NYSE:YOU) Releases Earnings Results, Beats Expectations By $0.09 EPS

CLEAR Secure (NYSE:YOU) released its quarterly earnings results on Wednesday. The company reported $0.49 EPS for the quarter, topping analysts’ consensus estimates of $0.40 by $0.09, RTT News reports. The company had revenue of $277.76 million for the quarter, compared to analyst estimates of $269.71 million. CLEAR Secure had a return on equity of 68.98% and a net margin of 13.01%.CLEAR Secure’s revenue was up 26.6% compared to the same quarter last year. During the same quarter last year, the firm posted $0.26 earnings per share.

Here are the key takeaways from CLEAR Secure’s conference call:

• Positive Sentiment: CLEAR reported strong Q2 momentum, with bookings up 33% year over year to $295.9 million, revenue up 26.6% to $277.8 million, and free cash flow up 60% to a record $189 million.
• Positive Sentiment: Profitability exceeded the company’s IPO-era target, as adjusted EBITDA margin reached 36.4%, up approximately 900 basis points year over year, supported by eGate-driven labor efficiencies and roughly 70% EBITDA flow-through.
• Positive Sentiment: CLEAR Travel active CLEAR+ members grew 15.2% to 8.3 million, while management cited record customer-experience scores, healthy retention after the July price increase to $219, and further opportunities from airport expansion, Concierge, eGates, and international members.
• Positive Sentiment: CLEAR1 momentum continued, with total members reaching 43.5 million, more than 50% sequential growth in new customer signings and pipeline, and increasing interest across government, healthcare, workforce, and consumer identity applications.
• Negative Sentiment: Q3 free cash flow is expected to be negatively affected by the planned settlement of approximately $315 million in accrued partnership liability with the company’s credit-card partner, although the payment is included in full-year guidance, which was raised to at least $480 million.

CLEAR Secure Stock Performance

Shares of YOU traded up $2.50 during mid-day trading on Wednesday, reaching $58.23. The stock had a trading volume of 2,864,248 shares, compared to its average volume of 1,589,433. The firm has a market cap of $7.76 billion, a price-to-earnings ratio of 46.90 and a beta of 1.06. The business has a fifty day moving average of $54.35 and a 200 day moving average of $49.23. CLEAR Secure has a 12 month low of $29.43 and a 12 month high of $69.07.

Insider Buying and Selling at CLEAR Secure

In other CLEAR Secure news, EVP Kyle Mclaughlin sold 8,000 shares of CLEAR Secure stock in a transaction on Tuesday, June 2nd. The shares were sold at an average price of $56.20, for a total transaction of $449,600.00. Following the completion of the transaction, the executive vice president directly owned 29,519 shares of the company’s stock, valued at $1,658,967.80. The trade was a 21.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Michael Z. Barkin sold 11,550 shares of the business’s stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $56.29, for a total value of $650,149.50. Following the transaction, the president owned 22,994 shares of the company’s stock, valued at approximately $1,294,332.26. The trade was a 33.44% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 23,962 shares of company stock worth $1,360,146 over the last ninety days. Company insiders own 29.70% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in YOU. Geneos Wealth Management Inc. boosted its stake in shares of CLEAR Secure by 329.5% in the first quarter. Geneos Wealth Management Inc. now owns 975 shares of the company’s stock valued at $25,000 after purchasing an additional 748 shares during the period. Advisors Asset Management Inc. acquired a new stake in shares of CLEAR Secure in the 1st quarter worth $28,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of CLEAR Secure by 249.6% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 867 shares of the company’s stock valued at $30,000 after purchasing an additional 619 shares in the last quarter. Amundi increased its holdings in CLEAR Secure by 62.5% during the 1st quarter. Amundi now owns 3,743 shares of the company’s stock valued at $97,000 after acquiring an additional 1,440 shares in the last quarter. Finally, EverSource Wealth Advisors LLC boosted its holdings in shares of CLEAR Secure by 2,061.2% during the second quarter. EverSource Wealth Advisors LLC now owns 3,566 shares of the company’s stock worth $99,000 after purchasing an additional 3,401 shares during the last quarter. 73.80% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

YOU has been the subject of several research reports. Wall Street Zen raised CLEAR Secure from a “hold” rating to a “buy” rating in a report on Saturday, May 9th. Weiss Ratings raised CLEAR Secure from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, May 15th. Telsey Advisory Group raised their target price on CLEAR Secure from $62.00 to $68.00 and gave the company an “outperform” rating in a research note on Thursday, May 7th. Stifel Nicolaus set a $60.00 price objective on shares of CLEAR Secure in a report on Thursday, May 7th. Finally, Wells Fargo & Company raised their price target on shares of CLEAR Secure from $33.00 to $40.00 and gave the stock an “underweight” rating in a research note on Thursday, May 7th. Five research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, CLEAR Secure presently has a consensus rating of “Hold” and a consensus price target of $58.57.

CLEAR Secure Company Profile

CLEAR Secure, Inc operates a biometric identity platform designed to expedite identity verification for air travelers and venue guests. The company’s core offering is the CLEAR membership service, which uses fingerprint and iris scans to confirm a member’s identity and provide access to dedicated security lanes at participating airports. Members link government-issued IDs and personal biometric data via the CLEAR app, enabling faster processing through Transportation Security Administration (TSA) checkpoints and select event entrances.

Founded in 2010 by Caryn Seidman‐Becker and Ken Cornick, CLEAR is headquartered in New York City.