Clarivate (CLVT) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 3.57M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -3.92%
• EPS Growth: 67.52%
• Country: US
• Employees: 12,000
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.18
• Shares Outstanding: 672,219,060
• 10 Day Avg. Volume: 3,222,305
• 30 Day Avg. Volume: 3,568,285
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.93
• Enterprise Value/Revenue: 2.86
• Enterprise Value/Gross Profit: 4.33
• Enterprise Value/Ebitda: 10.44
• 1Y Price Target: $4.88
• Price Target Upside: 34.44% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

• Rating: 52 Neutral
• Price Target: $3.50 ▼(-3.58% Downside)

Clarivate's overall stock score reflects significant financial challenges, particularly in profitability and revenue growth, despite positive cash flow. Technical indicators show bearish momentum, and valuation metrics are unfavorable. However, the earnings call provided a positive outlook with strong organic growth and strategic execution, partially offsetting the financial and technical weaknesses.

Positive Factors

Strong Organic Growth

The growth in Organic Annual Contract Value (ACV) indicates Clarivate's ability to expand its market reach and enhance customer retention, which is crucial for long-term revenue stability and growth.

Improved Adjusted EBITDA Margin

An improved EBITDA margin reflects effective cost management and operational efficiencies, enhancing profitability and providing a buffer against market fluctuations.

Innovative Product Launches

New product launches, especially in AI, position Clarivate as an innovative leader, potentially attracting new customers and retaining existing ones, driving long-term growth.

Negative Factors

Net Loss in the Second Quarter

A net loss indicates ongoing profitability challenges, which can strain financial resources and limit investment in growth initiatives, impacting long-term sustainability.

Impact of Disposals on Revenue

Revenue and EBITDA impacts from disposals suggest potential disruptions in business operations and revenue streams, affecting financial stability and growth prospects.

Challenges in University Funding

Constraints in university funding could reduce demand for Clarivate's services in the academic sector, potentially impacting revenue and growth in this key market segment.

Clarivate Business Overview & Revenue Model

Company Description

Clarivate (CLVT) is a global leader in providing trusted insights and analytics to accelerate the pace of innovation. The company operates primarily in the fields of intellectual property, life sciences, and academic research. Its core products include the Web of Science, a comprehensive research platform, and the Derwent Innovation platform, which supports intellectual property management and decision-making. Clarivate's offerings enable researchers, academics, and corporations to navigate complex information landscapes and drive innovation across various sectors.

How the Company Makes Money

Clarivate generates revenue through a combination of subscription-based services, software licenses, and transactional services. Its key revenue streams include subscription fees for access to its databases and analytical tools, which are utilized by researchers and institutions. The company also earns revenue from licensing its proprietary datasets and providing consulting services to help clients optimize their research and intellectual property strategies. Significant partnerships with universities, research institutions, and corporations enhance its reach and credibility in the market, contributing to a steady flow of income. Additionally, Clarivate's investment in expanding its product offerings and entering new markets plays a crucial role in driving growth and profitability.

Clarivate Financial Statement Overview

Summary

Clarivate's financial performance is challenged by declining revenue and profitability issues, despite a strong cash flow position. High leverage and declining equity pose risks, necessitating strategic financial management.

Income Statement

Clarivate's income statement highlights significant challenges. The TTM (Trailing-Twelve-Months) revenue has decreased compared to the previous year, indicating revenue contraction. The gross profit margin remains healthy, but negative EBIT and net income margins suggest operational inefficiencies and profitability issues. Although EBITDA is positive, it is insufficient to cover operating losses, indicating potential financial instability.

Balance Sheet

The balance sheet reflects a moderate level of financial stability. The company has a manageable debt-to-equity ratio, but the significant total liabilities suggest a high leverage position. The equity ratio is reasonable, though the declining stockholders' equity may pose risks. Overall, the balance sheet shows moderate stability with potential risks from high leverage.

Cash Flow

Cash flow analysis reveals a moderately positive outlook. Operating cash flow remains robust, and free cash flow is positive, indicating good cash generation capability. However, the free cash flow growth rate is negative, suggesting potential challenges in maintaining cash flow levels. The operating cash flow to net income ratio is favorable, indicating efficient cash conversion despite profitability issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.50B	2.56B	2.63B	2.66B	1.88B	1.88B
Gross Profit	1.65B	1.69B	1.72B	1.71B	1.25B	1.25B
EBITDA	685.00M	456.60M	-10.50M	-3.01B	532.15M	52.38M
Net Income	-433.30M	-636.70M	-911.20M	-3.96B	-270.50M	-270.45M
Balance Sheet
Total Assets	11.42B	11.49B	12.71B	13.94B	13.94B	20.18B
Cash, Cash Equivalents and Short-Term Investments	362.60M	295.20M	370.70M	348.80M	348.80M	430.88M
Total Debt	4.59B	4.59B	4.81B	5.10B	5.10B	5.61B
Total Liabilities	6.43B	6.35B	6.71B	7.13B	7.13B	8.26B
Stockholders Equity	4.99B	5.14B	5.99B	6.81B	6.81B	11.93B
Cash Flow
Free Cash Flow	346.00M	357.50M	501.70M	306.40M	205.30M	205.22M
Operating Cash Flow	631.70M	646.60M	744.20M	509.30M	323.80M	323.77M
Investing Cash Flow	-197.00M	-236.70M	-237.40M	57.30M	-4.04B	-4.04B
Financing Cash Flow	-459.80M	-470.10M	-496.50M	-759.20M	4.03B	4.03B

Clarivate Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.63
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLVT, the sentiment is Negative. The current price of 3.63 is below the 20-day moving average (MA) of 3.70, below the 50-day MA of 4.05, and below the 200-day MA of 4.26, indicating a bearish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 41.84 is Neutral, neither overbought nor oversold. The STOCH value of 52.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLVT.

Clarivate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EXLS	77 Outperform	$6.58B	28.67	24.70%	―	15.15%	34.33%
CTSH	76 Outperform	$32.58B	13.54	16.69%	1.79%	6.34%	12.16%
G	76 Outperform	$7.02B	13.37	21.86%	1.67%	7.37%	-14.64%
IT	69 Neutral	$19.55B	15.44	116.13%	―	5.89%	54.53%
EPAM	68 Neutral	$8.08B	22.11	11.36%	―	9.73%	-0.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CLVT	52 Neutral	$2.44B	―	-8.18%	―	-3.92%	67.52%

Clarivate Corporate Events

Clarivate Increases Revolving Credit by $75 Million

On August 5, 2025, Clarivate Plc’s subsidiaries amended their existing Credit Agreement, originally dated October 31, 2019, to increase the total revolving credit commitments by $75 million, bringing the total to $775 million. This amendment, which maintains the same terms as the existing agreement, is expected to enhance Clarivate’s financial flexibility and support its operational and strategic initiatives.

The most recent analyst rating on (CLVT) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Clarivate Plc Reports Q2 2025 Earnings and Outlook

Clarivate Plc is a leading global provider of transformative intelligence, offering enriched data, insights, analytics, workflow solutions, and expert services in the areas of Academia & Government, Intellectual Property, and Life Sciences & Healthcare.

Clarivate Plc’s Mixed Earnings Call: Growth Amid Challenges

The recent earnings call for Clarivate Plc presented a mixed sentiment, reflecting both positive strides and ongoing challenges. The company showcased notable organic growth in key metrics and strong cash flow generation, which were overshadowed by a reported net loss and the impact of ongoing disposals. Despite these hurdles, Clarivate demonstrated progress in strategic initiatives and maintained high renewal rates, particularly in the Academic & Government (A&G) segment.

Clarivate Announces Leadership Change in IP Segment

Clarivate Plc announced significant leadership changes within its Intellectual Property segment, with Gordon Samson set to depart from his role as President, effective September 7, 2025, and remain in a non-executive role until the end of the year. In a strategic move to drive long-term growth, Maroun S. Mourad will assume the role of President, Intellectual Property, effective September 8, 2025. Mourad brings extensive experience in data analytics and technology-enabled services, having previously led the Claims Solutions division at Verisk Analytics. The transition is part of Clarivate’s commitment to accelerating innovation and growth within its IP business, and Mourad’s appointment is expected to enhance the company’s focus on delivering quality results and customer-centric solutions.

The most recent analyst rating on (CLVT) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.

Clarivate Reports Q2 2025 Results with Revenue Decline

On July 30, 2025, Clarivate reported its second-quarter results, highlighting a decrease in total revenues to $621.4 million from $650.3 million in the same period of 2024, attributed to inorganic divestitures and disposals. Despite this, the company saw a 0.5% increase in organic revenues, driven by a rise in organic recurring revenues. Clarivate also repurchased 11.5 million ordinary shares and reaffirmed its 2025 outlook. The net loss for the quarter was significantly reduced to $72.0 million from $304.3 million in 2024, indicating improved financial performance. The company is optimistic about future profitability, supported by enhancements in its sales operating model and AI advancements in its IP business.

The most recent analyst rating on (CLVT) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Clarivate stock, see the CLVT Stock Forecast page.