CLVT · Clarivate Plc

Period Performance

Period Performance

In Q2 2025, Clarivate reported total revenues of $621.4M, a decrease of 4.4% compared to $650.3M in Q2 2024. The decline was primarily driven by disposals (6.4% drag), mainly the ScholarOne divestiture and product wind-downs, partially offset by favorable FX translation (1.4%) and organic growth of 0.5%. Gross margin remained stable at 67.2% vs 67.1%, as cost management offset revenue headwinds. GAAP operating income was $6.9M, a significant improvement from a loss of $240.0M in the prior year, which included a $302.8M goodwill impairment. Net loss improved to $72.0M from $304.3M. Adjusted EBITDA margin held steady at 42.1% (42.2% prior year), demonstrating underlying profitability resilience.

Segment Dynamics

• A&G (51% of revenue): Revenue declined 7.5% to $318.5M, dragged by the ScholarOne divestiture (November 2024) and product wind-downs. Organic growth of 2.5% was driven by subscription growth and price increases.
• IP (33%): Revenue slightly increased 0.4% to $202.5M due to FX gains, but organic growth was negative 2.1% due to lower transactional volumes (patent renewals).
• LS&H (16%): Revenue fell 3.6% to $100.4M from product wind-downs; organic growth was flat at 0.3%.

Mix shift continued toward recurring revenue (83% of total), which grew 0.1% in Q2, while transactional revenue dropped 21.5%.

Forward View

Management cited the Value Creation Plan (restructuring) initiated in Q4 2024, expected substantially complete by end of 2025, impacting near-term costs but aiming for efficiency. Organic ACV grew 1.3%, signaling underlying demand, and renewal rates improved to 93%. No quantitative guidance was provided, but the company expressed confidence in cash flow generation and liquidity, with $362.6M cash and $693.5M revolver availability. Risks include continued impact from divestitures and product wind-downs, variability in transactional revenue, and foreign exchange exposure.