Clarivate (CLVT) investor relations material

Executive summary

• Q2 2026 revenues were $587.3M, down 5–5.5% year-over-year, mainly due to divestitures and product wind-downs.

• Net loss for Q2 2026 was $268.6M, driven by a $221.7M non-cash goodwill impairment related to the LS&H divestiture.

• Strategic focus sharpened by the divestiture of the LS&H segment, with proceeds to accelerate debt paydown and enhance recurring revenue mix.

• AI innovation and new product launches in A&G and IP segments are driving new revenue streams and improving retention.

• Value Creation Plan advanced organic recurring revenue, AI innovation, and cost management.

Financial highlights

• Adjusted EBITDA for Q2 2026 was $247.2M (41.6–42.1% margin), with free cash flow for H1 at $122.9M, down 23% year-over-year.

• Organic ACV growth reached 1.5% year-over-year; organic subscription growth was 0.7%.

• Net cash provided by operating activities for H1 2026 was $233.4M.

• Debt reduced by $218.4M in H1 2026 through repayments and repurchases.

• Interest expense decreased 9% year-over-year due to lower rates and reduced debt.

Outlook and guidance

• FY 2026 guidance reaffirmed: revenues (including discontinued ops) $2.30B–$2.42B, adjusted EBITDA $980M–$1.04B, margin 42.0–43.5%.

• Adjusted diluted EPS expected at $0.70–$0.80; free cash flow $365M–$435M.

• Organic ACV growth projected at 2.0–3.0%; recurring organic revenue growth 0.75–2.25%.

• Proceeds from the LS&H divestiture will be used for debt reduction and to focus on A&G and IP segments.

• Management expects continued cost optimization and operational streamlining under the Value Creation Plan.