Clarivate : Q1 2026 – Supplemental Materials

Published: 2026-04-29 06:35:12 ET CLVT

Published on 04/29/2026 at 06:35 am EDT

April 29, 2026

Non-GAAP Financial Measures

This presentation 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 financial measures to the most directly comparable GAAP measures are provided within the Appendix to this presentation. 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.

Industry and Market Data

The market data and other statistical information used throughout this presentation are based on industry publications and surveys, public filings, and various government sources. Industry publications and surveys generally state that the information contained therein has been obtained from sources believed to be reliable, but there can be no assurance as to the accuracy or completeness of the included information. We have not independently verified such third-party information, nor have we ascertained the underlying economic assumptions relied upon in those sources, and we are unable to assure you of the accuracy or completeness of such information contained in this presentation. While we are not aware of any misstatements regarding our market, industry, or similar data presented herein, such data involve risks and uncertainties and are subject to change based on various factors.

Business Review

Financial Review

Q&A

Matti Shem Tov

Chief Executive Officer

Jonathan Collins

Chief Financial Officer

Agenda

Business Review

$586M

Academia & Government

Organic ACV and subs revenue growth >2%

Accelerated adoption of subscription-based

content solutions

Revenues

ACV Organic Growth: 1.6% ▲ 40 bps YoY Subscription Organic Growth: 1.7% ▲ 230 bps YoY Recurring Organic Growth: 1.0% ▲ 40 bps YoY

$241M

Adj. EBITDA¹

Intellectual Property

ACV performance continues to strengthen; results approaching flat

Released AI-powered Brand Landscape Analyzer Image Search

41.2% Margin1

▲ 190 bps YoY, +$8m

$79M

Free Cash Flow1

$143m debt reduction

Life Sciences & Healthcare

Organic subs revenue growth accelerated to

>1% on last year's ACV improvement

Expanded AI ecosystem access through

partnership with Anthropic

$18m share repurchase

18₵

Adj. EPS1

▲ 4₵ YoY

Revenue

Business Model Optimization

Focus on driving core subscription and re-occurring revenue improving predictability

Increase Subscription and Re-occurring Revenue Mix

Sales

Improved Sales Execution

Drive sales execution, customer engagement and retention

Increase Organic Growth and Achieve Targets

Product & Agentic AI

Accelerated Innovation

Invest in proprietary assets and drive development of Agentic-AI capabilities across portfolio

Optimize ROI and Support Sales Execution

Portfolio

Solutions Rationalization

Assess strategic alternatives to increase execution focus and optimize capital allocation

Unlock Value for Shareholders

Value Creation Enablers

Talent and Culture

Cost Rationalization

Enterprise Technology

Academia & Government

BUSINESS MODEL OPTIMIZATION

Accelerating Adoption of Subscription-Based Content Solutions

Drove continued adoption of new ProQuest subscription offerings, with over 600 new subscriptions sold since launch, reflecting successful transition to recurring revenue

IMPROVED SALES EXECUTION

Driving Growth Through Strategic Cross-Sell Wins

Secured multi-solution (research and analytics and content solutions) institutional win with Fuyao University of Science and Technology, underscoring continued success in strategic cross-sell adoption

Web of Science

ACCELERATED INNOVATION

Delivering Significant Impact With Clarivate Academic AI1

Transforming academic library workflows with AI-powered solutions delivering 30% -60% reduction in time spent on manual, repetitive work and 2-4x increase in feasible workload without additional staff

ProQuest One Academic

1 Research paper prepared by Emerging Strategy on behalf of Clarivate examining the operational impact of two Clarivate products (Alma AI Metadata Assistant and Leganto Syllabus Assistant) in two core academic library workflows: (1) metadata creation and cataloguing and (2) course reading list and syllabus support.

Intellectual Property

BUSINESS MODEL OPTIMIZATION

Increasing Focus on Subscription Organic Growth

~100bps improvement in Q1 renewal rate helping to return ACV organic growth to nearly flat

IMPROVED SALES EXECUTION

Securing National IP Office Partnerships and Digital Transformation Wins

Awarded major trademark analytics and large-scale digitalization programs, advancing modernization of patent and trademark operations

Brand Landscape Analyzer

ACCELERATED INNOVATION

Advancing AI-Powered Decision Intelligence and Search

Released Brand Landscape Analyzer Image Search for brand IP professionals with

enhanced AI capabilities including clustering and multilingual support

Life Sciences & Healthcare

BUSINESS MODEL OPTIMIZATION

Advancing Subscription Transition Across Commercial Business

Progressing ahead of schedule in the shift to subscriptions, with strong customer feedback and a sales cadence delivering repeatable and predictable results

IMPROVED SALES EXECUTION

Driving Growth Across Enterprise, Public Sector, and Biotech

Won a new Top 20 pharma customer for DRG Fusion1 and secured a six-figure biotech deal for OFF-X2, reflecting strong momentum across key customer segments

DRG Fusion

ACCELERATED INNOVATION

Expanding Access to Trusted Regulatory Intelligence With Anthropic

Integrated Cortellis Regulatory Intelligence with Claude Enterprise, combining proprietary

data with advanced AI reasoning to deliver trusted insights across the AI ecosystem

Rationalizing Portfolio LS&H Sale Process

Announced process in Q1 to pursue sale of the LS&H business

Ongoing process with due diligence progressing

No guarantee of an agreement; will update as appropriate

AI Driven Cost Efficiencies

GO-TO-MARKET

Embedding AI within sales and customer care to accelerate revenue growth,

streamline customer interactions, and increase retention

TECHNOLOGY

Deploying AI across software engineering and content operations to accelerate innovation, streamline build cycles and enhance platform capability

CORPORATE FUNCTIONS

Implementing AI across finance, human resources, and legal functions to

automate workflows and drive scalable efficiencies across enterprise systems

Financial Review

Changes from Prior Year

Revenues

Change driven by disposals, partially offset by organic growth and Fx translation impact

Net Income / Loss

Improvement over the prior year primarily due to Fx transaction benefit as well as lower restructuring, interest, and tax expenses

Operating Cash Flow

Change entirely from higher working capital largely driven by incentive compensation payments, partially offset by higher Adj. EBITDA

$m except per share data Q1 2026 Q1 2025 Change

Revenues $586 $594 $(8)

Operating Expenses 555 615 (60)

Income / (Loss) from Operations $30 $(21) $51

Interest Expense, Net 59 64 (5)

Net Income / (Loss) $(40) $(104) $64

Income Tax Expense (Benefit) 11 19 (8)

Net Income / (Loss) Per Share, basic $(0.06) $(0.15) $0.09 Adjusted EBITDA1 241 233 8

Adjusted EBITDA Margin1 41.2% 39.3% +190 bps

Operating Cash Flow $135 $171 $(36)

Adjusted Diluted EPS1 $0.18 $0.14 $0.04

Capital Spending 56 61 (5)

Free Cash Flow1 79 110 (31)

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding.

Year + Better - Worse

Changes from Prior Year ($ millions)

Changes from Prior Year

Organic

Accelerated subscription revenue growth partially offset by re-occurring and transactional headwinds; cost efficiencies led to strong profit contribution

Inorganic Disposals

Revenue impact from A&G (transactional books and digital collections) and LS&H (real world data reselling) disposals with negligible profit impact due to cost reductions

Foreign Exchange

Revenue benefit from translation impact due to weaker USD was partially offset by transaction gains in 2025 that did not recur in 2026

+$3m

Revenues

$594

Subscription ~+6

+$13

$586

Re-occurring

& Transactional ~(3)

($24)

+$9m

+$2

($3)

$233

39.3%

$241

41.2%

Q1 2025

Organic

Inorganic

Disposals

Inorganic FX

Divestitures

Q1 2026

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding.

Changes from Prior Year ($ millions)

Adj. EBITDA1 $241 $233 $8

Free Cash Flow1

Change from prior year driven entirely by working capital, largely due to expected incentive compensation payments

Capital Allocation

Redeemed remaining $100m of

2026 bonds

Repurchased $43m face value of 2028 and 2029 bonds in the open market at a discount of ~10%

Repurchased ~7m shares of stock to offset the dilutive impact of this year's stock compensation vesting, most of which occurred in March

Q1 2026 Q1 2025 Change

One-Time Costs2 (18) (23) 5

Interest (40) (33) (7)

Taxes (8) (7) (1)

Working Capital (37) 10 (47)

Other3 (3) (8) 5

Operating Cash Flow 135 171 (36)

Free Cash Flow1 $79 $110 $(31)

Capital Spending (56) (61) 5

Debt Reduction (139) - (139)

Share Repurchase (18) (50) 32

M&A - - -

Cash Flow $(87) $59 $(146)

Other4 (9) (2) (7)

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. 2 Includes restructuring-related severance and transaction cost. 3 Includes impaired contractual costs. 4 Fx, tax withholding for share-based compensation, and refinancing cost.

Note: Amounts in table may not sum due to rounding.

Mid Point4 vs. PY

+70 bps

~2½%

ACV Organic Growth

Expect continued acceleration as momentum from Value Creation Plan continues

Recurring Organic Growth

Subscription growth acceleration and stable re-occurring revenues

Revenues

Decline due entirely to strategic disposals, expect 2026 to be final year of decline

Adj. EBITDA / Margin / EPS1

Margin expansion driven by organic

growth and cost discipline

EPS growth due to share repurchases

Free Cash Flow1

Growth driven by disciplined capital spending, lower one-time costs and interest

ACV Organic Growth

+90 bps

¾%

~1½%

2¼%

Recurring

88%

~89%

90%

+100 bps

(4)%

$2,300m

~$2,360m

$2,420m

Organic Growth2 Revenues

Recurring Organic Revenue Mix3

$980m

~$1,010m

$1,040m

+1%

Adj. EBITDA1

42%

~42¾%

43½%

+200 bps

Adj. EBITDA

Margin1

70₵

~75₵

80₵

+9%

Adj. Diluted EPS1

$365m

~$400m

$435m

+10%

Free Cash Flow1

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures.

2 Subscription + Re-occurring order types.

3 (Subscription + Re-occurring) / Total Revenues excluding disposals.

4 Mid Point included for illustrative purposes only.

Year + Better - Worse

Changes from Prior Year ($ millions)

Organic

Recurring revenue growth partially offset by modest transactional decline

Strong profit flow-through driven by disciplined cost management

Inorganic Disposals

Books transactional revenues gone

by mid-year, RWD by end of year

Inorganic Divestitures

Guidance does not include potential sale of LS&H business

Foreign Exchange

Expect modest benefit associated with weaker USD

~$25

Revenues

$2,455

~$10

~$2,360

~($130)

~$25

~$5

~$1,010

~42.8%

~($25)

$1,002

40.8%

2025A

Organic

Inorganic

Disposals

Inorganic FX

Divestitures

2026T

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures. Note: Amounts in table may not sum due to rounding.

Revenue, Organic ACV Growth, Organic Recurring Revenue Growth and Adj. EBITDA %

Revenue

Less seasonality this year due to increased recurring revenue mix due to the disposals

Organic ACV

Expect acceleration through the balance of the year from momentum of new subs sales

Organic Recurring Revenue

Expect slight sequential pull back in Q2 due to patent renewal re-occurring revenues, which are expected to accelerate in H2

Adj. EBITDA Margin1

Expect acceleration through the balance of the year from organic growth conversion and disposals

0.9%

0%.1%

%41.5%

1.2% 1.3%

0.6% 0.8%

42.1%

39.3%

1.6% 1.8% 1.6%

1.0%

0.3% 0.5%

41.3% 41.2%

40.5%

2026E

2025A

2024A

2024A Q1 25A Q2 25A Q3 25A Q4 25A Q1 26A Q2 26E Q3 26E Q4 26E

Revenue ($M)

Organic ACV Growth (%) Organic Recurring Revenue Growth (%)

Adj. EBITDA Margin (%)1

2024A revenue represents quarterly average revenue for the year.

1 See the Appendix for a reconciliation of GAAP to Non-GAAP measures.

Changes from Prior Year ($ millions)

Free Cash Flow1

Expecting ~10% growth from lower one-time costs, interest, and capital spending driven by efficiencies to be partially offset by higher working capital

Capital Allocation

Redeemed remaining $100m of

2026 notes in January

Repurchased $43m of 2028 and 2029 notes in March

Plan to repurchase $300m of 2028 notes through the rest of the year

Achieved efficiencies lowering

target operating cash balance to

~$250m

2026 Outlook 2025 Actuals Change

Adj. EBITDA1 ~$1,010 $1,002 ~$5

One-Time Costs2 ~(40) (67) ~25

Interest ~(235) (253) ~20

Taxes ~(50) (42) ~(10)

Working Capital ~(20) 12 ~(30)

Other3 ~(15) (23) ~10

Operating Cash Flow ~650 629 ~20

Capital Spending ~(250) (263) ~15

Free Cash Flow1 ~$400 $365 ~$35

Share Repurchase ~(20) (225) ~205

Debt Repayment ~(430) (100) ~(330) M&A - 3 ~(5)

Other4 ~(15) (9) ~(5)

Cash Flow ~$(65) $34 ~$(100)

Note: Amounts in table may not sum due to rounding.

Disclaimer

Clarivate plc published this content on April 29, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2026 at 10:34 UTC.