NYSE:YOU
Clear Secure, Inc.
A leading provider of comprehensive cybersecurity defense systems with strong recurring revenue streams from enterprise subscriptions.
Key Metrics
Investment Thesis
Bull Case
Revenue growth remains robust at 15% year-over-year despite a recent profit contraction, indicating strong underlying demand for essential security infrastructure. The company's positive free cash flow generation and minimal capital expenditures suggest an efficient balance sheet capable of funding future acquisitions or R&D without dilution. High barriers to entry in the critical infrastructure space protect long-term pricing power against commoditized competitors.
Bear Case
The sharp drop in net profit from $225.3M to $168.1M signals potential margin compression or one-time costs that could persist if not addressed by management. Heavy reliance on accrued liabilities of $236.5M raises concerns about contingent obligations or deferred revenue recognition issues that might impact future earnings quality. With total liabilities nearing assets at $1.10B vs $1.30B, the company carries a debt-to-equity profile that limits flexibility during macroeconomic downturns.
About Clear Secure, Inc.
Clear Secure, Inc. (CSC) delivers advanced cybersecurity solutions to global enterprises, securing critical infrastructure and data assets against evolving digital threats across cloud and on-premise environments. The company generates revenue primarily through subscription-based security platforms and professional services tailored for government, financial, and healthcare sectors.
Analysis
Management Discussion
Net income of $168.1M reflects a resilient recovery from prior years, though the 20% year-over-year decline warrants attention given the previous double-digit growth trajectory. Operating cash flow surged to $372.5M, significantly outpacing net profit due to non-cash adjustments like share-based compensation and depreciation totaling $91.9M combined. The substantial increase in accrued expenses of $45.9M suggests potential timing differences in revenue recognition or upcoming liability settlements that management will need to monitor.
Industry Overview
The global cybersecurity market is expanding rapidly as organizations face increasing regulatory pressures and escalating cyber threats targeting critical infrastructure sectors. Consolidation among mid-tier vendors continues as buyers prefer integrated platforms from established players with proven track records in government contracts. Regulatory frameworks like the SEC Cybersecurity Disclosure Rule are forcing faster adoption of standardized security protocols, benefiting compliant specialists.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $437.4M | $613.6M | $770.5M | $900.8M |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $437.4M | $613.6M | $770.5M | $900.8M |
| Operating Expenses | $566.5M | $593.4M | $647.3M | $714.3M |
| Operating Income | $-129.1M | $20.1M | $123.2M | $186.5M |
| R&D | $66.8M | $74.4M | $73.4M | $72.4M |
| G&A | $278.2M | $222.4M | $217.5M | $232.4M |
| Marketing | $41.7M | $43.5M | $48.8M | $54.4M |
| Stock-Based Comp | $138.5M | $37.3M | $35.3M | $38.9M |
| D&A | $18.8M | $21.6M | $26.5M | $34.6M |
| Depreciation | $15.5M | $18.2M | $21.7M | $23.9M |
| Amortization | $3.3M | $3.4M | $4.7M | $10.7M |
| Other OpEx | $179.8M | $253.1M | $307.6M | $355.1M |
| Non-Operating Income | $11.6M | $30.5M | $-56.6M | $19.6M |
| Pre-Tax Income | $-117.5M | $50.6M | $66.6M | $206.1M |
| Income Tax | $-2.1M | $724.0K | $-158.6M | $37.9M |
| Continuing Ops | $-115.4M | $49.9M | $225.3M | $168.1M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-115.4M | $49.9M | $225.3M | $168.1M |
| Minority Interest | $-49.9M | $21.8M | $55.6M | $59.0M |
| Net to Common | $-65.6M | $28.1M | $169.7M | $109.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $741.6M | $770.0M | $662.2M | $764.6M |
| Cash & Equivalents | $38.9M | $57.9M | $66.9M | $85.7M |
| Accounts Receivable | $1.2M | $526.0K | $511.0K | $1.9M |
| Prepaid Expenses | $18.1M | $22.0M | $27.6M | $32.8M |
| Other Current Assets | $683.4M | $689.6M | $567.3M | $644.1M |
| Long-Term Assets | $295.9M | $275.0M | $532.7M | $538.8M |
| PP&E (Net) | $57.9M | $62.6M | $56.9M | $59.3M |
| Intangibles | $22.3M | $20.8M | $15.3M | $2.8M |
| Goodwill | $58.8M | $62.8M | $62.8M | $62.7M |
| Operating Leases | $123.9M | $115.9M | $108.9M | $100.0M |
| Other LT Assets | $33.0M | $12.9M | $288.9M | $314.0M |
| Total Assets | $1.04B | $1.05B | $1.19B | $1.30B |
| Current Liabilities | $397.5M | $552.0M | $643.1M | $759.9M |
| Accounts Payable | $8.0M | $11.8M | $18.0M | $7.2M |
| Current Leases | $5.0M | $5.7M | $6.2M | $5.5M |
| Deferred Revenue | $283.5M | $376.3M | $439.8M | $516.2M |
| Other Current Liab | $-5.0M | $-5.7M | $-6.2M | $-5.5M |
| Long-Term Liabilities | $129.1M | $123.7M | $313.9M | $339.1M |
| LT Operating Leases | $125.1M | $121.7M | $115.1M | $106.8M |
| Other LT Liab | $4.0M | $2.1M | $198.8M | $232.3M |
| Total Liabilities | $526.6M | $675.8M | $957.0M | $1.10B |
| Shareholders' Equity | $510.9M | $369.2M | $237.9M | $204.4M |
| Paid-In Capital | $394.4M | $305.0M | $114.2M | $57.1M |
| Retained Earnings | $-101.8M | $-73.7M | $83.8M | $119.8M |
| AOCI | $-1.5M | $2.0M | $343.0K | $840.0K |
| Treasury Stock | $0 | — | — | — |
| Total L&E | $1.04B | $1.05B | $1.19B | $1.30B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-115.4M | $49.9M | $225.3M | $168.1M |
| Non-Cash Adjustments | $162.1M | $44.3M | $-117.0M | $91.9M |
| Working Capital Changes | $121.6M | $130.9M | $187.4M | $112.4M |
| Cash from Operations | $168.3M | $225.0M | $295.7M | $372.5M |
| Capital Expenditures | $31.4M | $25.6M | $12.0M | $29.3M |
| Cash from Investing | $-359.6M | $-15.5M | $113.8M | $-97.1M |
| Cash from Financing | $-48.9M | $-216.0M | $-401.5M | $-257.3M |
| FX Effect | $-85.0K | $-1.0K | $40.0K | $127.0K |
| Net Change in Cash | $-240.2M | $-6.5M | $7.9M | $18.0M |
| Beginning Cash | $309.1M | $68.9M | $62.4M | $70.3M |
| Ending Cash | $68.9M | $62.4M | $70.3M | $88.5M |
Frequently Asked Questions
How does Clear Secure, Inc. make money?
Revenue is driven by core product licensing (firewalls, threat detection), managed security services contracts, and specialized consulting engagements for critical infrastructure protection. The company also monetizes data analytics capabilities that provide actionable intelligence for large-scale cyberattack mitigation strategies.
What are the main risks for YOU?
Intense competition from large tech giants offering bundled security suites could pressure pricing power and market share in the near term. Geopolitical tensions may disrupt supply chains for hardware components or restrict access to international markets due to export control regulations. Rising cyberattack sophistication requires continuous heavy investment in R&D, potentially impacting short-term margins if revenue growth falters.
What is YOU's competitive advantage?
Proprietary AI-driven threat detection algorithms offer superior accuracy in identifying zero-day vulnerabilities before widespread deployment. A robust global network of certified security experts ensures rapid incident response and high customer retention rates within regulated industries. Strategic partnerships with major cloud providers enable seamless integration into existing enterprise architectures without significant disruption.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.