Clarivate Widens Loss as Transactional Revenue Tumbles
A $221.7 million goodwill impairment weighed on the information-services provider’s results.
Clarivate Plc (CLVT), the information and analytics provider, reported a wider second-quarter net loss as revenue declined and transactional sales weakened.
The quarter extended Clarivate’s revenue contraction while showing little sequential change. Revenue fell 5.5% from a year earlier to $587.3 million, largely because of divestitures and disposals, and edged 0.3% above the first-quarter level. Organic revenue declined 1.5%.
The net loss widened to $268.6 million, or $0.42 a share, from $72.0 million, or $0.11 a share, after the company recorded a noncash goodwill charge. Adjusted net income was nearly flat at $123.1 million, while adjusted earnings rose to $0.19 a share from $0.18 as the diluted share count declined.
Organic subscription revenue grew 0.7% and organic recurring revenue increased 0.5%, supported by new sales and price increases. Organic transactional revenue fell 15.7%, partly reflecting customer migrations to subscription offerings. Total transactional revenue dropped 30.1% to $74.7 million, including a 14.1% drag from disposals.
Life Sciences & Healthcare remained the weakest segment, with revenue down 11.7% to $88.7 million and organic revenue falling 5.2%. Academia & Government revenue declined 5.7% to $300.3 million, though it grew 0.3% organically, while Intellectual Property revenue decreased 2.1% to $198.3 million.
Adjusted EBITDA declined 5.5% to $247.2 million, leaving the margin unchanged at 42.1%. Profit improved sequentially, with adjusted EBITDA rising 2.5% and adjusted net income increasing 3.2% from the first quarter.
Clarivate reaffirmed its 2026 outlook, which calls for revenue including discontinued operations of $2.30 billion to $2.42 billion and adjusted earnings of $0.70 to $0.80 a share. The company continues to expect adjusted EBITDA of $980 million to $1.04 billion and free cash flow of $365 million to $435 million.
Starting in the third quarter, Clarivate will classify Life Sciences & Healthcare as discontinued operations and expects continuing-operation revenue of $1.94 billion to $2.04 billion for the year. The company reduced total debt by $218.4 million to $4.25 billion, even as first-half free cash flow fell 23.5% to $122.9 million.