Clarivate Plc · NYSE:CLVT
Clarivate — Q2 2025 Earnings Presentation
35 slides from Clarivate's earnings presentation, Jul 30, 2025
Slide 1: Q2 2025 Earnings Call
Q2 2025 Earnings Call July 30, 2025
Slide 2: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures Forward-Looking Statements This communication includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or projections regarding future events or future results and therefore are, or may be deemed to be
Slide 3: Safe Harbor Statement and Non-GAAP Financial Measures
Safe Harbor Statement and Non-GAAP Financial Measures Non-GAAP Financial Measures This presentation contains financial measures that have not been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Incom
Slide 4: Agenda
Agenda Business Review Matti Shem Tov Chief Executive Officer Financial Review Jonathan Collins Executive Vice President and Chief Financial Officer Q&A © 2025 Clarivate. All rights reserved. 4
Slide 5: Business Review
Business Review Matti Shem Tov Chief Executive Officer
Slide 6: Q2 2025 Overview
Q2 2025 Overview Revenues Academia & Government $621M Organic ACV: 1.3% ▲ 10 bps sequentially H1 2% organic ACV & subs revenue growth Renewal Rate: 93% ▲ 1% YoY Recognized by Outsell for industry leading Recurring Organic Revenue Growth: 0.8% development of scholarly Agentic AI solutions2 Adj. EBITD
Slide 7: Value Creation Plan Driving Focus, Growth and Innovation
Value Creation Plan Driving Focus, Growth and Innovation Revenue Sales Product & AI Portfolio Business Model Optimization Improved Sales Execution Accelerated Innovation Solutions Rationalization Focus on driving core Drive sales execution, Invest in proprietary assets and Assess strategic alternati
Slide 8: A&G Business Model Optimization Positions Us Well, Ahead Of Market Shifts
A&G Business Model Optimization Positions Us Well, Ahead Of Market Shifts Academia & Government Business Model Optimization H1 2025 A&G organic recurring 93% Market Shifts revenue mix1 DOGE2 cuts to US federal agency contracts, higher education research funding pressures, and OBBBA3 budget implicati
Slide 9: Advancing Research Excellence Through Key Wins and AI Innovation
Advancing Research Excellence Through Key Wins and AI Innovation Academia & Government Web of Science Research Assistant Literature Review Agent Expanding Strategic Partnerships With Marquee Wins Signed multi-year partnership with Canadian Research Knowledge Network, providing 55 universities with e
Slide 10: IP Business Well Positioned to Capitalize on AI Innovation Boom
IP Business Well Positioned to Capitalize on AI Innovation Boom AI Innovation Top 100 Global Innovators report AI Innovation Boom Driving Registered IP Growth Rapid advancements and significant investments in AI innovation will increase registered IP volumes, creating a favorable secular growth tail
Slide 11: Transforming IP Software with Global Reach
Transforming IP Software with Global Reach Intellectual Property IPfolio Landmark IP Management Software Wins With IPfolio Greater than 50% year-over-year growth in IPfolio new logos1; Closed deals globally in Q2 2025, including South Korea and Japan, partnering with leading manufacturing and techno
Slide 12: IP Leadership Transition
IP Leadership Transition Maroun will join Clarivate as President of the IP segment, effective September 8, 2025 Joins from Verisk Analytics Inc., where he was President for the Claims Maroun Mourad Solutions division. He bring over 25 years experience as a data analytics Appointed IP President and s
Slide 13: Growing Strategic Reach and Innovation with Subscription Based Platforms
Growing Strategic Reach and Innovation with Subscription Based Platforms Life Sciences & Healthcare DRG Commercial Analytics 360 Strengthening Strategic Partnerships with Global Pharma Leaders Expanded long-term, multi-million-dollar partnership with a top 15 global pharmaceutical company1, securing
Slide 14: Shareholder Value Creation Focus
Shareholder Value Creation Focus Strategic Alternatives Update Strong Foundation To Drive Shareholder Value Progressed comprehensive review of strategic alternatives to support future growth and operational focus Best-In-Class Trusted Provider, Data & Workflow Products Blue Chip Assets Customer Base
Slide 15: Value Creation Plan on Track
Value Creation Plan on Track Business Model Optimization Improved Sales Execution Accelerated Solutions Innovation Rationalization Q1 2025 Q2 2025 Q3 2025 Q4 2025 • A&G | Launched ProQuest • Implemented initiative to • A&G | Release Web of • A&G | Complete Digital ✓ e-Books (subscription ✓ grow and
Slide 16: Positive Momentum Building Across Core Financial Metrics
Positive Momentum Building Across Core Financial Metrics Core Financial Metrics 2024A vs. H1 2025A 0.9% Organic ACV ▲ 40 bps 1.3% 92% Renewal Rate ▲ 100 bps 93% Recurring Organic 80% ▲ 800 bps Revenue Mix2 88% Recurring 0.1% ▲ 60 bps Organic Growth1 0.7% Total Organic (1.4%) ▲ 180 bps Revenue Growth
Slide 17: Financial Review
Financial Review Jonathan Collins Chief Financial Officer
Slide 18: Q2 & H1 2025 Financial Results
Q2 & H1 2025 Financial Results Changes from Prior Year Revenues $m except per share data Q2 ‘25 Q2 ‘24 Change H1 ‘25 H1 ‘24 Change • Change due to inorganic divestitures and disposals, partially Revenues $621 $650 $(29) $1,215 $1,272 $(57) offset by organic growth and Fx Income / (Loss) from Operati
Slide 19: Q2 2025 Revenues and Adj. EBITDA
Q2 2025 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Return to growth in subscription Revenues revenues and strong cost Adj. EBITDA1 discipline led to more than full flow through to profit $650 Inorganic Disposals $3 • Impact from A&G and LS&H $621 dis
Slide 20: H1 2025 Revenues and Adj. EBITDA
H1 2025 Revenues and Adj. EBITDA1 Changes from Prior Year Organic Year + Better - Worse $ millions • Return to growth in subscriptions Revenues and patent annuities drove Adj. EBITDA1 recurring2 organic growth of 0.7% combined with strong cost $1,272 discipline led to more than full flow through to
Slide 21: Q2 & H1 2025 Cash Flow
Q2 & H1 2025 Cash Flow Changes from Prior Year Free Cash Flow 1 $m Q2 ‘25 Q2 ‘24 Change H1 ‘25 H1 ‘24 Change • Change resulting from lower Adj. EBITDA as working capital Adj. EBITDA 1 $262 $274 $(12) $495 $511 $(16) improvement was offset by higher One-Time Costs2 (18) (6) (12) (42) (25) (17) one-ti
Slide 22: FY 2025 Guidance Reaffirmed
FY 2025 Guidance Reaffirmed ~1.5% Organic ACV 1.0% 2.0% Organic ACV • Continue to expect growth Recurring ~0.5% acceleration compared to last year (1.0)% 1.0% Organic Growth2 Recurring Organic Growth ~$2,390m • Anticipate outcome in upper half Revenues $2,280m $2,400m of range based on H1 results Re
Slide 23: FY 2025 Revenues and Adj. EBITDA Outlook
FY 2025 Revenues and Adj. EBITDA1 Outlook Changes from Prior Year Organic Year + Better - Worse $ millions • Now expecting revenue to be flat Revenues as recurring2 growth offsets Adj. EBITDA1 transactional decline • Profit headwind due to continued $2,557 Recurring2 ~+10 investments in product inno
Slide 24: FY 2025 Cash Flow Outlook
FY 2025 Cash Flow Outlook Changes from Prior Year Free Cash Flow 1 $m 2025 Outlook 2024 Actuals Change • Lower interest, working capital, and capital spending expected to Adj. EBITDA 1 ~$980 $1,060 ~$(80) largely offset lower profit to One-Time Costs2 ~(55) (46) ~(10) improve FCF conversion by ~1% I
Slide 25: Driving Momentum Through Strategic Focus and Execution
Driving Momentum Through Strategic Focus and Execution Second consecutive quarter of sequential organic ACV and recurring revenue growth acceleration A&G at 2% organic ACV & subs revenue growth in H1; solid H2 outlook despite US market headwinds Rebound in IP annuity market with return to organic re
Slide 26: Q&A Session
Q&A Session
Slide 27: Appendix: Presentation of Certain Non-GAAP Financial Measures
Appendix Presentation of Certain Non-GAAP Financial Measures
Slide 28: Presentation of Certain Non-GAAP Financial Measures
Presentation of Certain Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA margin Adjusted EBITDA represents net income (loss) before the provision (benefit) for income taxes, depreciation and amortization, and interest expense, net, adjusted to exclude share-based compensation, impairm
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) to Adjusted EBITDA and Adjusted EBITDA margin $m Q2 ‘25 Q2 ’24 H1 ’25 H1 ’24 Net income (loss) $(72.0) $(304.3) $(175.9) $(379.3) Provision (benefit) for income taxes 12.3 (6.8) 31.1 8.2 Depreciation and amortization 190.9 184.4 376.3 3
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net income (loss) and Net income (loss) per share to Adjusted net income and Adjusted diluted EPS Q2 ‘25 Q2 ‘24 H1 ’25 H1 ‘24 $m except per share data Amount Per Share Amount Per Share Amount Per Share Amount Per Share Net income (loss) and Diluted EPS $
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Net cash provided by operating activities to Free cash flow and Free cash flow conversion $m Q2 ‘25 Q2 ‘24 H1 ’25 H1 ’24 Net cash provided by operating activities $116.3 $126.2 $287.5 $302.4 Capital expenditures (66.0) (65.9) (126.9) (130.3) Free cash fl
Slide 32: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2025 outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same period: Net income (l
Slide 33: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook The following table presents our calculation of Adjusted diluted EPS for the 2025 outlook and reconciles this non-GAAP measure to our Net income (loss) per share for the same period: Net income (loss) per fully diluted weighted shares outs
Slide 34: Reconciliation of Non-GAAP Financial Measures – 2025 Outlook
Reconciliation of Non-GAAP Financial Measures – 2025 Outlook The following table presents our calculation of Free cash flow and Free cash flow conversion for the 2025 outlook and reconciles these non-GAAP measures to our Net cash provided by operating activities and operating cash flow conversion fo
Slide 35: About Clarivate
About Clarivate © 2025 Clarivate Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in Clarivate and its logo, as well as all other the areas of Academia & Government, Intellectual Property and L