Clearwater Analytics Holdings, Inc. (NYSE: CWAN) (“Clearwater Analytics” or the “Company”), the most comprehensive technology platform for investment management, today announced its financial results for the quarter ended June 30, 2025. “Q2 was very successful, both for our standalone business and as an integrated company. Most encouraging were our meetings with clients across multiple countries, where we found near unanimous excitement and support for what we are building and how it could help transform our industry. We have moved expeditiously to reorganize the company for the next growth phase, and in doing that, we have already achieved our $20 million synergy target a full year ahead of schedule. Our strong metric-driven focus on client delight has already started to bear fruit, as evidenced by our combined non-GAAP gross margin of 77.4% for the quarter,” said Sandeep Sahai, CEO of Clearwater Analytics. “Our core business continues its strong growth trajectory with revenues growing 22% in the quarter, with the gross margin of our platform exceeding 80%, a long-term target we had hoped to achieve in a few years. We are delighted to welcome Germany’s largest public insurer, Versicherungskammer Group, to the Clearwater community. Their implementation of our combined Clearwater, Enfusion and Beacon solutions will serve as a powerful validation of our integrated platform strategy. Additionally, we are thrilled that our APAC team secured a significant mandate from one of the largest banks in the world to provide client reporting globally, further demonstrating our expanding international footprint.”
Second Quarter 2025 Financial Results Summary
- Revenue: Total revenue for the second quarter of 2025 was $181.9 million, an increase of 70.4%, from $106.8 million in the second quarter of 2024. Revenue from the core Clearwater business was $130.6 million, an increase of 22% from the second quarter of 2024.
- Gross Profit: Gross profit for the second quarter of 2025 increased to $118.5 million, which equates to a 65.1% GAAP gross margin, compared with gross profit of $76.9 million and GAAP gross margin of 72.0% in the second quarter of 2024. Non-GAAP gross profit for the second quarter of 2025 was $140.8 million, which equates to a 77.4% non-GAAP gross margin, compared with non-GAAP gross profit of $82.7 million and non-GAAP gross margin of 77.5% in the second quarter of 2024.
- Net Income/(Loss): Net loss for the second quarter of 2025 was $24.2 million, compared with net income of $0.3 million in the second quarter of 2024. Non-GAAP net income for the second quarter of 2025 increased to $34.8 million, an increase of 29.7% from $26.8 million in the second quarter of 2024.
- Adjusted EBITDA: Adjusted EBITDA for the second quarter of 2025 was $58.3 million, an increase of 74.3%, from $33.4 million in the second quarter of 2024. Adjusted EBITDA margin for the second quarter of 2025 was 32.1%, an increase of 70 basis points over the second quarter of 2024.
Second Quarter 2025 Key Metrics Summary
- Annualized Recurring Revenue: As of June 30, 2025, annualized recurring revenue (“ARR”) reached $783.5 million, an increase of 83% from $427.2 million as of June 30, 2024.
- Gross Revenue Retention Rate: As of June 30, 2025, the gross revenue retention rate was 98%, compared to 99% as of June 30, 2024.
- Net Revenue Retention Rate: As of June 30, 2025, the net revenue retention rate was 110%, compared to 110% as of June 30, 2024.
Recent Business Highlights
- Clearwater Analytics announced the 2025 Insurance Investment Outsourcing Report (IIOR), revealing a record $4.5 trillion in unaffiliated general account insurance assets under management (AUM) up 24% year-over-year. Investment consultant assets under advisement grew to $2 trillion. The IIOR profiles over 100 investment managers and consultants, showcases emerging strategies across public and private markets, and provides expert perspectives to help insurers make informed decisions about investment management strategies and technology requirements.
- The Company announced a strategic partnership with Bloomberg, a milestone that supports our growth strategy and expands our reach among the world’s largest investment firms. The bi-directional integration between Bloomberg AIM and Clearwater will eliminate manual workflows and deliver a seamless front-to-back experience. This collaboration reinforces Clearwater’s open, interoperable platform strategy-integrating with the systems clients prefer while providing scalable middle- and back-office capabilities. It strengthens our competitive position and broadens the range of operating models we support.
- The Company announced that:
- Versicherungskammer Group (VKB), Germany’s largest public insurer, selected Clearwater Analytics’ platform to power their middle, back office and risk functions.
- Long-time client Wayne Cooperative Insurance expanded its relationship with Clearwater to include performance attribution and risk analytics to drive improved returns and reduced risk exposure.
- Danish pension provider, Norli Liv Pension, part of the Norli group, selected Clearwater to modernize its investment accounting, reporting, and compliance operations and benefit from a single, consolidated view of all in-house and outsourced chief investment officer managed holdings across its public and private asset classes.
- Pool Re, the UK’s terrorism reinsurer overseeing more than £7.2 billion in assets, selected Clearwater’s risk products to modernize its investment management infrastructure.
- HG Re Ltd. selected Clearwater to enhance its investment performance measurement and risk analytics capabilities, support data-driven investment decisions, and improve portfolio oversight.
- The Company expanded its footprint within existing clients and added marquee clients such as:
- Agile Investment Management
- Arthrosi Therapeutics
- Axonic Insurance Services
- Black Swift Group
- Centennial Government Advisors
- Communities Foundation of Texas
- Fondo de Garantias de Instituciones Financieras
- Hawaii Community Foundation
- Hildene Capital Management
- Hoisington Investment Management Company
- IAG Asset Management Limited
- Kathrein Privatbank Aktiengesellschaft
- Knight Management Company
- Liberty Media Corporation
- Los Angeles Capital Management
- Missouri Farm Bureau
- OFI Invest Asset Management
- PacificSource Health Plans
- Prudent Man Advisors
- Turks and Caicos Islands National Insurance Board
- University of the Pacific
Guidance for Clearwater Analytics
| Third Quarter 2025 | Revenue ($203 million to $204 million) | Year-over-Year Growth (~75% to 76%) |
| Adjusted EBITDA (~$65 million) | Adjusted EBITDA Margin (~32%) | |
| Interest Expense (~$16 million) | Consolidated Guidance for Clearwater Analytics | |
| Full Year 2025 | Revenue ($726 million to $732 million) | Year-over-Year Growth (~61% to 62%) |
| Adjusted EBITDA ($232 million to $237 million) | Adjusted EBITDA Margin (~32%) |
Conference Call Details
Clearwater Analytics will hold a conference call and webcast on August 6, 2025, at 5:00 p.m. Eastern time to discuss second quarter 2025 financial results, provide a general business update, and respond to analyst questions. A live webcast of the call will also be available on the Company’s investor relations website. Please visit investors.clearwateranalytics.com at least fifteen minutes prior to the start of the event to register, download and install any necessary audio software. If you are unable to participate live, a replay of the webcast will be available following the conference call on the Company’s investor relations website, along with the earnings press release, and related financial tables.
About Clearwater Analytics
Clearwater Analytics (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, Clearwater’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, Clearwater supports over $8.8 trillion in assets globally. Learn more at clearwateranalytics.com.