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what it is
Clarivate sells research, patent, and drug data tools to universities, labs, and big drug makers.
how it gets paid
Last year Clarivate made $2.5B in revenue. Academia & government was the main engine at $1.1B, or 44% of sales.
why growth slowed
Revenue fell 4.0% last year. Annual revenue was $2.5B, down 4.0% vs. prior year.
what just happened
Clarivate posted $0.20 in EPS versus $0.16 expected.
At a glance
B+ balance sheet — decent shape, but not bulletproof
25/100 earnings predictability — expect surprises
4.1x trailing p/e — the market's not buying it — or you found a deal
5.6% return on capital — nothing to write home about
xvary composite: 46/100 — below average
What they do
Clarivate sells research, patent, and drug data tools to universities, labs, and big drug makers.
Clarivate has 45,000 customers in more than 180 countries. All 30 of the largest pharmaceutical companies use it. Your team does not rip out tools that sit inside daily research, patent, and drug work.
How they make money
$2.5B
annual revenue · their business grew -4.0% last year
Academia & government
$1.1B
0.0%
Life sciences & healthcare
$0.8B
+1.0%
Intellectual property
$0.5B
6.0%
Workflow & services
$0.1B
0.0%
The products that matter
specialized data and workflow tools
Research, IP and life sciences platform
$2.5B revenue base
it's the whole $2.5B story on this snapshot. That matters because you do not get a clean segment offset if one customer group pushes back on pricing or contract changes.
entire story
Key numbers
$4
target price
That is 51% above the current $2.65 price. Cheap only helps if debt does not get louder.
4.1x
trailing p/e
You are paying 4.1x earnings for a business with $4.5B of debt. That is the bargain and the bill.
$4.5B
debt load
Debt equals 72% of capital. That is the number that can pin the stock if cash gets tight.
45,000
customers
This base spans more than 180 countries. That many customers make churn harder than it sounds.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $4.5B (72% of capital)
- net profit margin 19.1% — keeps 19 cents of every dollar in revenue
- return on equity 17% — $0.17 profit for every $1 investors have put in
B+ — net profit margin looks solid but long-term debt needs watching.
Total return vs. market
You invested $10,000 in CLVT 3 years ago → it's now worth $2,270.
The index would have given you $13,880.
source: institutional data · total return
What just happened
beat estimates
Clarivate posted $0.20 in EPS versus $0.16 expected.
Annual revenue was $2.5B, down 4.0% vs. prior year. The beat matters, but the debt load is still the bigger story.
$1.8B
revenue
$0.20
eps
2.9%
operating margin
the number that mattered
The 33.3% EPS beat mattered because it showed the quarter was better than expected, even with revenue still down 4.0%.
-
we expect that clarivate continued to underperform in the fourth quarter of 2025.
-
by our estimate, revenues likely dipped by approximately 8%, with earnings per share down 29% from the year-ago period.the quarter capped off what was likely an underwhelming year for the company, which saw both the top and bottom lines down substantially, despite attempts to pivot to a more-lucrative subscription-based model. at the time, the move was seen as a potential misplay in the industry due to its unpopularity with customers, which competitors sought to capitalize on via reassurances that they would not move to a subscription model. over the longer term, it’s possible that clarivate’s strategy may pan out as the recurring revenue stream of subscriptions continues to bolster results into the future, but with regards to the year just finished, the change does not yet seem to have been effective. looking ahead, we expect that, despite a modest recovery, both revenues and earnings will remain below 2024 levels over the next several years. further, while we do see the potential for more-meaningful growth by end of decade, there are some worrying signs with regards to the company’s financial situation.
-
although the clarivate’s debt load is not too onerous at present, that could change.in the fourth quarter of 2025, clarivate repurchased 21 million shares of stock, making for a total of 56 million bought back during the year. given that the company’s current liabilities exceed its current assets, it seems as though clarivate is attempting to keep its share price propped up, and that it may be spending money it doesn’t have to do it. although management has expressed an intention to reduce debt, it’s difficult to see how that can be achieved under the current circumstances.
-
we would consider an expanding debt burden a severe warning sign.
-
at present, there is some recovery potential here over the intermediate term.
source: company earnings report, 2026
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What could go wrong
the #1 risk is customer pushback against clarivate's contract and subscription reset.
med
the reset keeps hurting demand
Management changed how customers pay and package their spend. Customers pushed back. The 4.0% revenue decline says this is already in the numbers.
If revenue turns down again after the flat $0.6B quarter, the entire $2.5B base stays under pressure and the cheap multiple stops looking cheap.
med
debt leaves less room for a slow fix
Long-term debt is $4.5B, or 72% of capital, and current liabilities exceed current assets. Turnarounds get easier when the balance sheet is dull. This one is not.
If the revenue line slips and debt does not move down, equity holders face a tighter margin for error than the 4.1x p/e suggests.
med
buybacks crowd out cleanup
Clarivate repurchased 56 million shares in 2025, including 21 million in Q4. That helps EPS optics. It does not cut the $4.5B debt load.
If management keeps favoring repurchases over debt paydown, you are left owning a capital-allocation bet as much as a data franchise.
A failed reset hits 100% of the $2.5B revenue base, and $4.5B of long-term debt means management does not get many misses before the equity story gets worse.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
top-line stabilization
The revenue line still matters most. After a 4.0% annual decline and one flat $0.6B quarter, you want another clean quarter before calling this fixed.
risk
debt versus buybacks
Long-term debt is $4.5B. If management keeps shrinking the share count without shrinking debt, the market has little reason to rerate the stock.
calendar
next earnings print
One flat quarter is a data point. Two or three flat or better quarters start to look like evidence. That matters more than any reset narrative.
trend
chart bounce versus business repair
Technical momentum sits in the top 5%. The business still has to catch up. If price strength and revenue trend split apart, trust the revenue line first.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts still expect this stock to lag most names over the next year.
risk profile
average
stability score 3 — not a bunker stock, not chaos, but the debt keeps it from feeling safe.
chart momentum
top 5%
technical score 1 — the chart bounced hard. That is not the same thing as the business being fixed.
earnings predictability
25 / 100
low predictability — expect earnings noise while management tries to stop the revenue slide.
source: institutional data
Institutional activity
90 buyers vs. 121 sellers in 3q2025. total institutional holdings: 0.6B shares.
source: institutional data
Price targets
3-5 year target range
$2
$6
$3
current price
$4
target midpoint · +51% from current · 3-5yr high: $4 (+50% · 11% ann'l return)
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