CLEAR Secure (NYSE:YOU) Issues Quarterly Earnings Results, Beats Estimates By $0.09 EPS

CLEAR Secure (NYSE:YOU) posted its quarterly earnings results on Wednesday. The company reported $0.49 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.40 by $0.09, RTT News reports. CLEAR Secure had a net margin of 14.78% and a return on equity of 71.51%. The firm had revenue of $277.76 million during the quarter, compared to analysts’ expectations of $269.71 million. During the same period in the prior year, the company posted $0.26 earnings per share. The firm’s revenue for the quarter was up 26.6% on a year-over-year basis.

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 Trading Down 2.0%

CLEAR Secure stock traded down $1.07 during mid-day trading on Friday, reaching $51.95. The company’s stock had a trading volume of 455,751 shares, compared to its average volume of 1,592,289. The firm has a market cap of $6.93 billion, a price-to-earnings ratio of 35.39 and a beta of 1.06. CLEAR Secure has a twelve month low of $29.43 and a twelve month high of $69.07. The business has a 50 day moving average price of $54.27 and a 200-day moving average price of $49.52.

CLEAR Secure Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, September 24th. Investors of record on Thursday, September 10th will be paid a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a yield of 1.2%. The ex-dividend date is Thursday, September 10th. CLEAR Secure’s dividend payout ratio (DPR) is 48.39%.

Analysts Set New Price Targets

YOU has been the subject of a number of research analyst reports. Zacks Research cut shares of CLEAR Secure from a “strong-buy” rating to a “hold” rating in a report on Monday, July 6th. Needham & Company LLC lifted their price objective on CLEAR Secure from $60.00 to $70.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Wells Fargo & Company lifted their price objective on CLEAR Secure from $33.00 to $40.00 and gave the stock an “underweight” rating in a research report on Thursday, May 7th. Telsey Advisory Group lifted their price target on shares of CLEAR Secure from $62.00 to $68.00 and gave the stock an “outperform” rating in a report on Thursday, May 7th. Finally, Wall Street Zen upgraded shares of CLEAR Secure from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Five research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and an average price target of $58.57.

Insider Buying and Selling

In related news, EVP Kyle Mclaughlin sold 8,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 2nd. The stock was sold at an average price of $56.20, for a total transaction of $449,600.00. Following the sale, the executive vice president 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, President Michael Z. Barkin sold 11,550 shares of CLEAR Secure stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $56.29, for a total value of $650,149.50. Following the transaction, the president directly owned 22,994 shares in the company, valued at approximately $1,294,332.26. The trade was a 33.44% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 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 valued at $1,360,146 in the last quarter. Company insiders own 29.70% of the company’s stock.

Institutional Trading of CLEAR Secure

A number of large investors have recently added to or reduced their stakes in the business. Kestra Advisory Services LLC acquired a new stake in shares of CLEAR Secure during the 4th quarter valued at $156,000. Cibc World Markets Corp purchased a new stake in shares of CLEAR Secure during the 4th quarter worth about $200,000. Daiwa Securities Group Inc. grew its stake in shares of CLEAR Secure by 6.5% in the 4th quarter. Daiwa Securities Group Inc. now owns 5,257 shares of the company’s stock valued at $184,000 after buying an additional 323 shares in the last quarter. Vestcor Inc bought a new position in CLEAR Secure during the third quarter valued at approximately $105,000. Finally, State of Wyoming bought a new stake in CLEAR Secure in the second quarter worth approximately $126,000. 73.80% of the stock is currently owned by institutional investors.

About CLEAR Secure

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.