Earnings Releases·Nov 3, 2026, 8:04 AM ET

Clarivate — Third Quarter 2026 Earnings Summary

Q3 2026 total revenue declined to $567.9 million from $623.1 million in the prior year period, driven by discontinued LS&H operations; excluding LS&H, revenue was $481.6 million versus $530.3 million, with organic revenue for continuing operations up 0.4% due to subscription and re-occurring growth offset by a 12.4% drop in transactional revenues.
Net loss for Q3 2026 including LS&H widened to $80.8 million ($0.13/share) from $28.3 million ($0.04/share) in the prior year, primarily due to a $62.2 million non-cash goodwill impairment charge; adjusted net income including LS&H rose to $136.0 million ($0.21/share) from $119.3 million ($0.18/share).
The company completed the divestiture of the LS&H segment on October 6, 2026, generating $488.4 million in net cash proceeds, while total debt decreased by $293.8 million to $4,176.1 million driven by accelerated repayments and note repurchases at a 5% discount.
Full Year 2026 guidance (excluding discontinued operations) projects revenues of $1.965 billion to $1.985 billion, adjusted EBITDA of $865 million to $885 million, and free cash flow of $320 million to $340 million, assuming no further acquisitions or divestitures.
Strategic focus remains on two market-leading segments (Academia & Government and Intellectual Property), with the IP segment returning to positive ACV growth and AI-led innovation cited as a driver for improved commercial traction and a shift toward a subscription-led revenue base.