Clearwater Analytics Announces First Quarter 2026 Financial Results

Published: 2026-05-07 16:16:07 ET CWAN

Quarterly Revenue of $221.2 Million, Up 74% Year-Over-Year Annualized Recurring Revenue of $872 Million, Up 77% Year-Over-Year Adjusted EBITDA of $77.4 Million, Up 72% Year-Over-Year

Published on 05/07/2026 at 04:16 pm EDT

Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“CWAN” or the “Company”), the most comprehensive technology platform for investment management, today announced its financial results for the quarter ended March 31, 2026.

“We delivered a strong start to 2026 with Q1 revenue of $221.2 million, up 74% year-over-year. GenAI tools are woven into the fabric of our organization, enabling both technical and non-technical employees to deliver internal automation and new products at unprecedented speeds,” said Sandeep Sahai, CEO at CWAN. “This is enabling strong profitability with Non-GAAP Gross Profit growing 73% year-over-year to a record $172.7 million. Adjusted EBITDA grew 71.8% year-over-year to $77.4 million, reaching a near-record margin of 35%.”

“Now that we have completed a full year since acquiring Enfusion, Beacon, and Bistro, we are seeing clear validation of the strategic rationale we presented," continued Sahai. "CWAN’s comprehensive front‑to‑back platform continues to resonate with clients and is influencing investment management workflows worldwide. The strength of our product portfolio, the expertise of our teams, and the scale of our offerings provide a robust foundation for CWAN’s continued leadership in rapid development and commercialization of best‑in‑class technologies.”

First Quarter 2026 Financial Results Summary

First Quarter 2026 Key Metrics Summary

Recent Business Highlights

Earnings Conference Call and Guidance

As a result of the execution of a definitive agreement under which the Investor Group will acquire all of the outstanding shares of the Company's common stock in an all-cash transaction, as announced on December 21, 2025, the Company will not host an earnings conference call or webcast to discuss its first quarter 2026 financial results nor provide forward-looking guidance.

About CWAN

CWAN (NYSE: CWAN) is transforming investment management with the industry’s most comprehensive cloud-native platform for institutional investors across global public and private markets. While legacy systems create risk, inefficiency, and data fragmentation, CWAN’s single-instance, multi-tenant architecture delivers real-time data and AI-driven insights throughout the investment lifecycle. The platform eliminates information silos by integrating portfolio management, trading, investment accounting, reconciliation, regulatory reporting, performance, compliance, and risk analytics in one unified system. Serving leading insurers, asset managers, hedge funds, banks, corporations, and governments, CWAN supports over $10 trillion in assets globally. Learn more at www.cwan.com.

Use of non-GAAP Information

This press release contains certain non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow.

The non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. However, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate its operating performance, when reviewed in conjunction with its GAAP financial statements. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company's business and operations. In addition, undue reliance should not be placed upon non-GAAP or operating information because this information is neither standardized across companies nor subjected to the same control activities and audit procedures that produce the Company's GAAP financial results.

The Company's non-GAAP statement of operations measures, including non-GAAP gross profit, non-GAAP gross margin, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per basic and diluted share, non-GAAP effective tax rate, diluted non-GAAP share count and free cash flow, are adjusted to exclude the impact of certain costs, expenses, gains and losses and other specified items that management believes are not indicative of its ongoing operations. These adjusted measures exclude the impact of share-based compensation and eliminate potential differences in results of operations between periods caused by factors such as financing and capital structures, taxation positions or regimes, restructuring, transaction expenses, impairment and other charges. Please refer to the reconciliations of these measures below to what the Company believes are the most directly comparable measures evaluated in accordance with GAAP.

Use of Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Forward-looking statements include information concerning the Company's expectations with respect to the proposed transaction, including the timing thereof, and the Company’s possible or assumed future results of operations, business strategies, technology developments, financing and investment plans, dividend policy, competitive position, industry, economic and regulatory environment, potential growth opportunities and the effects of competition. Forward-looking statements include statements that are not historical facts and can be identified by terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “aim,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “will,” “would” or similar expressions and the negatives of those terms, but are not the exclusive means of identifying such statements.

Forward-looking statements involve known and unknown risks, uncertainties, and other factors, many of which are beyond the Company’s control, that may cause the Company’s actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. These risks and uncertainties may cause actual results to differ materially from the Company’s current expectations and include, but are not limited to: (A) risks related to the Proposed Transactions, including (i) the risk that the Proposed Transaction may not be completed in a timely manner or at all; (ii) the possibility that any or all of the various conditions to the consummation of the Proposed Transaction may not be satisfied or waived, including the failure to receive any required regulatory approvals from any applicable governmental entities (or any conditions, limitations or restrictions placed on such approvals); (iii) the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive transaction agreement relating to the Proposed Transaction, including in circumstances which would require the Company to pay a termination fee; (iv) the effect of the announcement or pendency of the Proposed Transaction on the Company’s ability to attract, motivate or retain key executives and associates, its ability to maintain relationships with its customers, vendors, service providers and others with whom it does business, or its operating results and business generally; (v) risks related to the Proposed Transaction diverting management’s attention from the Company’s ongoing business operations; (vi) the risk of shareholder litigation in connection with the Proposed Transaction, including resulting expense or delay; (vii) certain restrictions during the pendency of the Proposed Transaction that may impact the Company’s ability to pursue certain business opportunities or strategic transactions; (viii) risks that the anticipated benefits of the Proposed Transaction are not realized when and as expected; (ix) the availability of capital and financing and rating agency actions in connection with the Proposed Transaction; (B) ongoing risks such as those related to (i) the Company’s ability to successfully integrate the operations and technology of its acquisitions of Enfusion, Beacon and Bistro (the “Acquisitions”) with those of the Company and to obtain third party data rights, retain and incentivize the employees of the Acquisitions following the close of the Acquisitions, retain the Acquisitions’ clients, repay debt incurred in connection with the Acquisitions and meet financial covenants to be imposed in connection with such debt; (ii) risks that synergies and growth from the Acquisitions may not be fully realized or may take longer to realize than expected, (iii) the Company's ability to keep pace with rapid technological change and market developments, including artificial intelligence, (iv) competitors in its industry, (v) the possibility that market volatility, a downturn in economic conditions or other factors may cause negative trends or fluctuations in the value of the assets on the Company’s platform, (vi) the Company's ability to manage growth, (vii) the Company’s ability to attract and retain skilled employees, (viii) the possibility that the Company’s solutions fail to perform properly, (ix) disruptions and failures in the Company's and third parties’ computer equipment, cloud-based services, electronic delivery systems, networks and telecommunications systems and infrastructure, (x) the failure to protect the Company, its customers’ and/or its vendors’ confidential information and/or intellectual property, claims of infringement of others’ intellectual property, (xi) factors related to the Company's ownership structure; and (C) other risks and uncertainties detailed in the Company’s periodic public filings with the SEC, including but not limited to those discussed under “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 filed on February 18, 2026 (as amended by Amendment No. 1 thereto, filed with the SEC on April 1, 2026), and in other periodic reports filed by the Company with the SEC. These filings are available at www.sec.gov and on the Company’s website.

Given these uncertainties, you should not place undue reliance on forward-looking statements. Also, forward-looking statements represent management’s beliefs and assumptions only as of the date of this press release and should not be relied upon as representing the Company’s expectations or beliefs as of any date subsequent to the time they are made. The Company does not undertake to and specifically declines any obligation to update any forward-looking statements that may be made from time to time by or on behalf of the Company.

Clearwater Analytics Holdings, Inc. Consolidated Balance Sheets (In thousands, except share amounts and per share amounts, unaudited)

March 31

December 31

2026

2025

Assets

Current assets:

Cash and cash equivalents

81,507

91,245

Accounts receivable, net

169,630

167,348

Prepaid expenses and other current assets

43,107

36,977

Total current assets

294,244

295,570

Property, equipment and software, net

30,454

26,607

Operating lease right-of-use assets, net

51,639

34,300

Deferred contract costs, non-current

11,044

13,017

Debt issuance costs - line of credit

3,268

3,467

Deferred tax assets, net

702,300

695,998

Intangible assets, net

660,650

687,578

Goodwill

1,268,440

1,270,056

Other non-current assets

4,816

5,336

Total assets

3,026,855

3,031,929

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

1,630

4,096

Accrued expenses and other current liabilities

78,605

112,249

Notes payable, current portion

8,000

Deferred revenue

28,027

21,860

Operating lease liability, current portion

14,210

15,138

Total current liabilities

130,472

161,343

Notes payable, less current maturities and unamortized debt issuance costs

798,399

814,643

Operating lease liability, less current portion

40,228

22,555

Other long-term liabilities

3,194

2,296

Total liabilities

972,293

1,000,837

Stockholders' Equity

Class A common stock, par value $0.001 per share; 1,500,000,000 shares authorized, 297,249,547 shares issued and outstanding as of March 31, 2026, 291,426,648 shares issued and outstanding as of December 31, 2025

297

291

Class B common stock, par value $0.001 per share; 500,000,000 shares authorized, 1,113,136 share issued and outstanding as of March 31, 2026; and 2,017,754 share issued and outstanding as of December 31, 2025

Class C common stock, par value $0.001 per share; 500,000,000 shares authorized, no share issued and outstanding as of March 31, 2026 and December 31, 2025

—

Class D common stock, par value $0.001 per share; 500,000,000 shares authorized, no share issued and outstanding as of March 31, 2026 and December 31, 2025

—

Additional paid-in-capital

1,784,861

1,754,387

Accumulated other comprehensive income

2,777

7,089

Retained earnings

261,564

259,963

Total stockholders' equity attributable to Clearwater Analytics Holdings, Inc.

2,049,500

2,021,732

Non-controlling interests

5,062

9,360

Total stockholders' equity

2,054,562

2,031,092

Total liabilities and stockholders' equity

3,026,855

3,031,929

Clearwater Analytics Holdings, Inc. Consolidated Statements of Operations (In thousands, except share amounts and per share amounts, unaudited)

Three Months Ended March 31,

2026

2025

Revenue

221,228

126,864

Cost of revenue(1)

75,681

33,924

Gross profit

145,547

92,940

Operating expenses:

Research and development(1)

57,050

37,400

Sales and marketing(1)

46,241

19,631

General and administrative(1)

33,266

28,827

Total operating expenses

136,557

85,858

Income from operations

8,990

7,082

Interest expense

12,646

919

Other income, net

(51

)

(2,323

)

Income (loss) before income taxes

(3,605

)

8,486

Provision for (benefit from) income taxes

(809

)

1,550

Net income (loss)

(2,796

)

6,936

Less: Net income (loss) attributable to non-controlling interests

(20

)

426

Net income (loss) attributable to Clearwater Analytics Holdings, Inc.

(2,776

)

6,510

Net income (loss) per share attributable to Class A and Class D common stockholders stock:

Basic

(0.01

)

0.03

Diluted

(0.01

)

0.03

Weighted average shares of Class A and Class D common stock outstanding:

Basic

294,989,154

237,324,564

Diluted

294,989,154

246,212,517

(1) Amounts include equity-based compensation as follows:

Cost of revenue

4,323

3,464

Operating expenses:

Research and development

7,065

8,698

Sales and marketing

8,793

4,009

General and administrative

8,394

7,541

Total equity-based compensation expense

28,575

23,712

Clearwater Analytics Holdings, Inc. Consolidated Statements of Cash Flows (In thousands, unaudited)

Three Months Ended March 31,

2026

2025

OPERATING ACTIVITIES

Net income (loss)

(2,796

)

6,936

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Depreciation and amortization

29,557

3,146

Noncash operating lease cost

4,123

2,375

Equity-based compensation

28,575

23,712

Amortization of deferred contract acquisition costs

3,121

1,350

Amortization of debt issuance costs, included in interest expense

954

Provision for bad debt

216

—

Deferred tax (benefit) expense

(2,000

)

1,250

Accretion of discount on investments

—

(284

)

Realized gain on investments

—

(112

)

Gain on disposal of fixed assets

(80

)

—

Changes in operating assets and liabilities, net of acquisitions:

Accounts receivable, net

(2,498

)

(5,296

)

Prepaid expenses and other assets

(4,078

)

(2,576

)

Deferred contract acquisition costs

(3,006

)

Accounts payable

(2,458

)

(918

)

Accrued expenses and other liabilities

(32,824

)

(5,124

)

Tax receivable agreement liability

—

(35

)

Other long-term liabilities

869

—

Net cash provided by operating activities

17,675

24,500

INVESTING ACTIVITIES

Purchases of property, equipment and software

(6,440

)

(1,468

)

Purchase of held to maturity investments

—

(4,686

)

Proceeds from sale of available-for-sale investments

—

89,479

Proceeds from maturities of investments

—

16,200

Net cash (used in) provided by investing activities

(6,440

)

99,525

FINANCING ACTIVITIES

Taxes paid related to net share settlement of equity awards

(2,248

)

(24,402

)

Repayments of borrowings

(17,000

)

(688

)

Payment of debt issuance costs

—

(2,159

)

Net cash used in financing activities

(19,248

)

(27,249

)

Effect of exchange rate changes on cash and cash equivalents

(1,725

)

1,033

Change in cash and cash equivalents during the period

(9,738

)

97,809

Cash and cash equivalents, beginning of period

91,245

177,350

Cash and cash equivalents, end of period

81,507

275,159

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

Cash paid for interest

21,708

1,282

Cash paid for income taxes

1,154

583

NON-CASH INVESTING AND FINANCING ACTIVITIES

Purchase of property, equipment and software included in accounts payable and accrued expense

202

Tax distributions payable to Continuing Equity Owners included in accrued expenses

—

Acquisition of intangible assets paid in common stock

—

102,729

Acquisition holdback liability included in accrued expenses and other liabilities

—

10,000

Clearwater Analytics Holdings, Inc. Reconciliation of Net Income (Loss) to Adjusted EBITDA (In thousands, unaudited)

Three Months Ended March 31,

2026

2025

(in thousands, except percentages)

Net income (loss)

(2,796

)

6,936

Adjustments:

Interest expense

12,646

919

Depreciation and amortization

29,557

3,146

Equity-based compensation expense and related payroll taxes

32,827

27,562

Transaction expenses(1)

6,051

7,280

Provision for (benefit from) income taxes

(809

)

1,550

Other income, net

(51

)

(2,323

)

Adjusted EBITDA

77,425

45,070

Revenue

221,228

100

126,864

100

Clearwater Analytics Holdings, Inc. Reconciliation of Free Cash Flow (In thousands, unaudited)

Three Months Ended March 31,

2026

2025

Net cash provided by operating activities

17,675

24,500

Less: Purchases of property, equipment and software

6,440

1,468

Free Cash Flow

11,235

23,032

Clearwater Analytics Holdings, Inc. Reconciliation of Non-GAAP Information (In thousands, except share amounts and per share amounts, unaudited)

Three Months Ended March 31,

2026

2025

Revenue

221,228

126,864

Gross profit

145,547

92,940

Adjustments:

Equity-based compensation expense and related payroll taxes

5,182

4,374

Depreciation and amortization

21,995

2,764

Gross profit, non-GAAP

172,724

100,078

As a percentage of revenue, non-GAAP

Cost of Revenue

75,681

33,924

Adjustments:

Equity-based compensation expense and related payroll taxes

5,182

4,374

Depreciation and amortization

21,995

2,764

Cost of revenue, non-GAAP

48,504

26,786

As a percentage of revenue, non-GAAP

Research and development

57,050

37,400

Adjustments:

Equity-based compensation expense and related payroll taxes

8,390

9,827

Depreciation and amortization

753

122

Research and development, non-GAAP

47,907

27,451

As a percentage of revenue, non-GAAP

Sales and marketing

46,241

19,631

Adjustments:

Equity-based compensation expense and related payroll taxes

10,132

5,000

Depreciation and amortization

6,297

153

Sales and marketing, non-GAAP

29,812

14,478

As a percentage of revenue, non-GAAP

General and administrative

33,266

28,827

Adjustments:

Equity-based compensation expense and related payroll taxes

9,123

8,361

Depreciation and amortization

512

107

Transaction expenses

6,051

7,280

General and administrative, non-GAAP

17,580

13,079

As a percentage of revenue, non-GAAP

Income from operations

8,990

7,082

Adjustments:

Equity-based compensation expense and related payroll taxes

32,827

27,562

Depreciation and amortization

29,557

3,146

Transaction expenses

6,051

7,280

Income from operations, non-GAAP

77,425

45,070

As a percentage of revenue, non-GAAP

Net income (loss)

(2,796

)

6,936

Adjustments:

Equity-based compensation expense and related payroll taxes

32,827

27,562

Depreciation and amortization

29,557

3,146

Transaction expenses

6,051

7,280

Tax impacts of adjustments to net income (loss) (1)

(17,017

)

(10,069

)

Net income, non-GAAP

48,622

34,855

As a percentage of revenue, non-GAAP

Net income per share - basic, non-GAAP

0.16

0.15

Net income per share - diluted, non-GAAP

0.16

0.13

Weighted average common shares outstanding - basic

294,989,154

237,324,564

Weighted average common shares outstanding - diluted

303,076,722

258,754,627

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