📊 CWAN Key Takeaways
Investment Thesis
Clearwater Analytics demonstrates strong revenue growth (+61.9% YoY) and exceptional cash generation (FCF margin 22.5%), but profitability remains challenged with negative operating margin (-1.1%) and net losses (-$38.8M). The company's solid balance sheet and high liquidity provide financial stability, though the path to profitability needs clarification.
CWAN Strengths
- Strong revenue growth of 61.9% YoY indicating market demand and scaling
- Excellent free cash flow generation of $164.3M (22.5% FCF margin) showing operational efficiency despite paper losses
- Healthy balance sheet with current ratio of 1.83x and moderate leverage (0.41x debt-to-equity)
- High gross margin of 67.3% typical of software businesses demonstrates pricing power
- Positive operating cash flow of $175.9M substantially exceeding net income losses
CWAN Risks
- Operating and net margins remain deeply negative (-1.1% and -5.3%) with no clear path to profitability improvement
- High insider activity (26 Form 4 filings in 90 days) may indicate potential liquidity concerns or option vesting pressure
- Negative interest coverage ratio (-9.2x) indicates inability to cover debt service from operations, relying on cash reserves
- Significant gap between cash flow generation and GAAP profitability suggests potential accounting charges or non-cash expenses masking operational issues
- Long-term debt of $822.6M represents 41% of equity, creating refinancing risk if profitability doesn't materialize
Key Metrics to Watch
- Path to operating profitability - operating margin trend and timeline to breakeven
- Cash burn sustainability - whether FCF can remain positive as growth normalizes
- Debt management strategy - refinancing plans and covenant compliance
- Operating expense ratio trends - critical to understand margin expansion potential
CWAN Financial Metrics
💡 AI Analyst Insight
The 22.5% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
CWAN Profitability Ratios
CWAN vs Technology Sector
How Clearwater Analytics Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CWAN Balance Sheet & Liquidity
CWAN 5-Year Financial Trend
5-Year Trend Summary: Clearwater Analytics Holdings, Inc.'s revenue has grown significantly by 190% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.11 indicates the company is currently unprofitable.
CWAN Growth Metrics (YoY)
CWAN Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $115.8M | $3.6M | $0.02 |
| Q2 2025 | $106.8M | -$430.0K | $0.00 |
| Q1 2025 | $102.7M | $1.9M | $0.01 |
| Q3 2024 | $94.7M | -$1.9M | $-0.01 |
| Q2 2024 | $89.9M | -$430.0K | $0.00 |
| Q1 2024 | $84.6M | $1.9M | $0.01 |
| Q3 2023 | $76.6M | -$1.9M | $-0.01 |
| Q2 2023 | $73.4M | -$2.0M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CWAN Capital Allocation
CWAN SEC Filings
Access official SEC EDGAR filings for Clearwater Analytics Holdings, Inc. (CIK: 0001866368)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CWAN
What is the AI rating for CWAN?
Clearwater Analytics Holdings, Inc. (CWAN) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWAN's key strengths?
Strong revenue growth of 61.9% YoY indicating market demand and scaling. Excellent free cash flow generation of $164.3M (22.5% FCF margin) showing operational efficiency despite paper losses.
What are the risks of investing in CWAN?
Operating and net margins remain deeply negative (-1.1% and -5.3%) with no clear path to profitability improvement. High insider activity (26 Form 4 filings in 90 days) may indicate potential liquidity concerns or option vesting pressure.
What is CWAN's revenue and growth?
Clearwater Analytics Holdings, Inc. reported revenue of $731.4M.
Does CWAN pay dividends?
Clearwater Analytics Holdings, Inc. pays dividends, with $163.3M distributed to shareholders in the trailing twelve months.
Where can I find CWAN SEC filings?
Official SEC filings for Clearwater Analytics Holdings, Inc. (CIK: 0001866368) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWAN's EPS?
Clearwater Analytics Holdings, Inc. has a diluted EPS of $-0.14.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.