Clarivate Reports Third Quarter 2026 Results, Delivering Clear Path to Value Creation

— Improved recurring organic revenue growth driven by portfolio transformation and AI-led innovation —

— Updates 2026 financial outlook following the divestiture of Life Sciences & Healthcare segment —

LONDON, Nov. 3, 2026 /PRNewswire/ -- Clarivate Plc (NYSE: CLVT) (the "Company" or "Clarivate"), a leading global provider of transformative intelligence, today reported results for the third quarter ended September 30, 2026.

Executive Commentary

Matti Shem Tov, Chief Executive Officer:

"Third quarter results continued to improve across key metrics, including organic recurring revenue growth and the return to positive ACV growth in the Intellectual Property segment. We also achieved a major milestone with the early close of the Life Sciences & Healthcare segment divestiture, positioning us for enhanced value creation in our two market-leading segments, Academia & Government and Intellectual Property. The growing commercial traction and customer validation from our AI-led innovation within A&G and IP give us confidence in our ability to deliver on our commitments of accelerating sustained organic growth, expanding free cash flow and reducing leverage."

Michael Easton, Executive Vice President and Chief Financial Officer:

"We are seeing the benefits of disciplined execution across the business, with improving growth trends, strong margins and continued free cash flow generation. Our focus remains on translating organic growth into sustainable earnings and free cash flow, while maintaining a disciplined approach to capital allocation. Looking ahead, we are well positioned to further strengthen our financial profile and enhance our financial flexibility."

Third Quarter 2026 Results

Total revenues were $567.9 million, including the Life Sciences & Healthcare segment ("LS&H"), which was divested on October 6, 2026, compared to total revenues of $623.1 million for the third quarter of 2025, primarily due to inorganic disposals. Excluding LS&H, which is now presented as discontinued operations, total revenues were $481.6 million, compared to total revenues of $530.3 million for the third quarter of 2025, primarily due to inorganic disposals.

Organic revenues for continuing operations increased 0.4% as organic subscription growth of 1.5% and organic re-occurring growth of 0.7% was partially offset by lower organic transactional revenues.

Organic ACV for continuing operations grew 1.8% compared to September 30, 2025, reflecting continued progress toward a more sustainable, subscription-led revenue base.

Net loss, including LS&H, was $80.8 million, or $0.13 per diluted share, compared to a net loss of $28.3 million, or $0.04 per diluted share, for the third quarter of 2025, driven by a $62.2 million non-cash LS&H goodwill impairment charge. Adjusted net income, including LS&H, was $136.0 million, or $0.21 per diluted share, compared to $119.3 million, or $0.18 per diluted share, for the third quarter of 2025. Adjusted EBITDA, including LS&H, was $245.3 million, compared to Adjusted EBITDA of $252.4 million for the third quarter of 2025.

First Nine Months 2026 Results

Total revenues were $1,740.7 million, including the LS&H segment, compared to total revenues of $1,838.2 million, primarily due to inorganic disposals. Excluding the LS&H segment, which is now presented as discontinued operations, total revenues were $1,472.4 million, compared to total revenues of $1,546.7 million for the first nine months of 2025, primarily due to inorganic disposals.

Organic revenues for continuing operations increased 0.1%, as a 0.9% increase in organic recurring revenues (subscription and re-occurring) was offset by lower organic transactional revenues.

Net loss, including LS&H, was $389.6 million, or $0.61 per diluted share, compared to a net loss of $204.2 million, or $0.30 per diluted share, for the first nine months of 2025, driven by a $283.9 million non-cash LS&H goodwill impairment charge. Adjusted net income, including LS&H, was $378.4 million, or $0.59 per diluted share, compared to $338.4 million, or $0.49 per diluted share, for the first nine months of 2025. Adjusted EBITDA, including LS&H, was $733.7 million, compared to Adjusted EBITDA of $747.2 million for the first nine months of 2025.

Clarivate, including LS&H, generated $399.0 million of operating cash flow and $233.1 million of free cash flow during the first nine months of 2026.

Selected Financial Information

Third Quarter 2026 Continuing Operations Commentary

Subscription revenues increased $2.4 million, or 0.7%, to $338.3 million. Organic subscription revenues increased 1.5%, primarily due to new sales and pricing actions.

Re-occurring revenues increased $0.5 million, or 0.5%, to $105.8 million. Organic re-occurring revenues increased 0.7%, primarily due to higher IP volumes.

Recurring revenues, which consist of subscription and re-occurring revenues, increased 1.3% organically, or $5.7 million.

Transactional revenues decreased $51.6 million to $37.5 million, primarily due to product group wind-downs within A&G. On an organic basis, the decline was 12.4%, or $3.9 million, primarily due to lower activity across both segments, driven in part by customer migration to higher margin subscription products as we focus on our recurring revenues.

Balance Sheet and Cash Flow

As of September 30, 2026, cash and cash equivalents of $257.0 million decreased $72.2 million compared to December 31, 2025.

Total debt outstanding was $4,176.1 million as of September 30, 2026, a decrease of $293.8 million compared to the prior year, driven by a $100.0 million accelerated debt repayment in January 2026 resulting in the full redemption of the senior secured notes due November 2026, as well as the retirement of $192.6 million aggregate principal of the senior secured notes due 2028 and senior notes due 2029 through a series of debt repurchases at an approximate 5% discount to par.

Net cash provided by operating activities including discontinued operations for the first nine months of 2026 was $399.0 million compared to $468.6 million in the prior year period. Free cash flow including discontinued operations for the first nine months of 2026 was $233.1 million compared to $276.1 million in the prior year period.

On October 6, 2026 the company completed the sale of the LS&H segment for net cash proceeds of $488.4 million.

Updates 2026 outlook excluding discontinued operations (forward-looking statement)

The full year 2026 outlook presented below assumes no further acquisitions, divestitures, or unanticipated events. The Q4 2026 outlook presented below is provided in connection with the completion of the LS&H divestiture and also assumes no further acquisitions, divestitures, or unanticipated events.

Conference Call and Webcast

Clarivate will host a conference call and webcast today to review the results for the third quarter at 8:30 a.m. Eastern Time. The webcast is open to all interested parties and may include forward-looking information.

The live webcast of the earnings call will be accessible through the investor relations section of the Company's website. To join the webcast please visit https://events.q4inc.com/attendee/388781202.

Interested parties may access the live audio broadcast. U.S. participants may call 833-461-5787; international participants may call +1 585-542-9983 (long-distance charges will apply). The conference ID number is 388 781 202.

A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion of the live call and will remain available for one year.

Use of Non-GAAP Financial Measures

This release 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 income, Adjusted diluted EPS, and Free cash flow. Non-GAAP financial measures are not recognized terms under GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in isolation from, or as a substitute for, financial measures or results of operations calculated or determined in accordance with GAAP.

We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating performance of our business, to assess performance for employee compensation purposes, and to decide how to allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. Further, these measures can be useful in evaluating our performance against our peer companies because we believe they provide users with valuable insight into key components of our GAAP financial disclosure. However, non-GAAP measures have limitations as analytical tools and because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies.

Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be construed as an inference that our future results will be unaffected by any of the adjusted items, or that any projections and estimates will be realized in their entirety or at all.

Forward-Looking Statements

This release 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, "forward-looking statements" within the meaning of the "safe harbor provisions" of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include all matters that are not historical facts, including statements relating to our intentions, beliefs, or current expectations concerning, among other things, any future strategic transactions we may explore, the anticipated use of proceeds from the divestiture of our Life Sciences & Healthcare business, and any related cost savings or other benefits, our results of operations, financial condition, liquidity, capital allocation plans and share repurchases, foreign exchange impacts, our prospects, growth, strategies and shareholder value, the markets in which we operate, our financial guidance for the fiscal year 2026 and key drivers thereof and underlying assumptions, the impact or anticipated benefits of our Value Creation Plan and other growth strategies, the global macroeconomic uncertainty and volatility, the impact of artificial intelligence ("AI") on our business and strategy, and the timing of any of the foregoing. These forward-looking statements can generally be identified by the use of forward-looking terminology, including the terms "believes," "estimates," "anticipates," "expects," "seeks," "projects," "intends," "plans," "may," "will," or "should" or, in each case, their negative or other variations or comparable terminology. Such forward-looking statements are based on available current market material and management's expectations, beliefs, and forecasts concerning future events impacting us. These forward-looking statements involve a number of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk Factors in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange Commission ("SEC"). There can be no assurance that future developments affecting us will be those that we have anticipated. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws. Please consult our public filings with the SEC, which are also available on our website at www.clarivate.com.

About Clarivate

Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics, workflow solutions and expert services in the areas of Academia & Government and Intellectual Property. For more information, please visit www.clarivate.com.

Supplemental Revenues Information

Annualized contract value ("ACV"), at any point in time, represents the annualized value of all active customer subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the measurement period are renewed at their current price level. Our organic ACV grew 1.8% compared to September 30, 2025, primarily driven by improved product pricing. Our total ACV for September 30, 2026, compared to September 30, 2025, increased 3.6%, primarily due to improved product pricing and FX movements.

The following tables present our revenues by type and segment, as well as the components driving the changes between periods.

Reconciliations to Certain Non-GAAP 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, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.

The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three and nine months ended September 30, 2026 and 2025 and reconciles these non-GAAP measures to our Income (loss) from continuing operations, net of taxes and Income (loss) from continuing operations margin for the same periods:

The following table presents our calculation of Adjusted EBITDA, including discontinued operations and Adjusted EBITDA margin for the three and nine months ended September 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same periods:

Adjusted net income and Adjusted diluted EPS

Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that we do not consider indicative of our ongoing operating performance and the associated income tax impact of such adjustments.

Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares. The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are dilutive.

The following tables present our calculation of Adjusted net income including discontinued operations and Adjusted diluted EPS including discontinued operations for the three and nine months ended September 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and diluted EPS for the same periods:

Free cash flow

Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table presents our calculation of Free cash flow including discontinued operations for the three and nine months ended September 30, 2026 and 2025 and reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods:

Reconciliations to Certain Non-GAAP Measures - 2026 Outlook

Adjusted EBITDA and Adjusted EBITDA margin

The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for continuing operations for the 2026 outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the same period:

Adjusted diluted EPS

The following table presents our calculation of Adjusted diluted EPS for the 2026 outlook, including the impact of discontinued operations for the first nine months, and reconciles this non-GAAP measure to our Net income (loss) per share for the same period:

Free cash flow

The following table presents our calculation of Free cash flow for the 2026 outlook, including the impact of discontinued operations for the first nine months, and reconciles this non-GAAP measure to our Net cash provided by operating activities for the same period:

SOURCE Clarivate Plc