1
Clarivate Reports Second Quarter 2026 Results
— Delivers continued progress on strategic and financial priorities through Value Creation Plan —
— Sharpens focus and enhances financial profile with previously announced Life Sciences &
Healthcare segment divestiture —
— Reaffirms 2026 financial outlook —
London, UK -- July 29, 2026 Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading global
provider of transformative intelligence, today reported results for the second quarter ended June 30, 2026.
Executive Commentary
Matti Shem Tov, Chief Executive Officer:
“The Value Creation Plan continues to drive meaningful progress, as we execute against our strategic priorities
and strengthen Clarivate’s foundation for organic growth acceleration. During the quarter, we expanded organic
recurring revenue, advanced our AI innovation roadmap, maintained disciplined cost management, and
strengthened our balance sheet through deleveraging. Together, with the recently announced divestiture of the
Life Sciences & Healthcare segment, these actions are creating a more focused company with greater financial
flexibility, a higher recurring revenue mix, and a clear path to deliver long-term value to shareholders.”
Jonathan Collins, Executive Vice President and Chief Financial Officer:
“Our second quarter results reflect continued financial discipline and execution. In the first half of 2026, we
expanded our profit margin and reduced debt by more than $200 million through strong free cash flow generation
and opportunistic debt repurchases. Combined with our reaffirmed full-year outlook, these results demonstrate the
resilience of our business model and our commitment to strengthening Clarivate’s financial profile while
maintaining the flexibility to invest in our highest-value growth opportunities.”
Second Quarter 2026 Results
Total revenues were $587.3 million, compared to total revenues of $621.4 million for the second quarter of 2025,
primarily due to inorganic divestitures and disposals. Organic revenues decreased 1.5% as organic subscription
growth of 0.7% was offset by lower organic transactional revenues.
Organic ACV grew 1.5% compared to June 30, 2025, reflecting continued progress toward a more sustainable,
subscription-led revenue base.
Net loss was $268.6 million, or $0.42 per diluted share, compared to a net loss of $72.0 million, or $0.11 per
diluted share, for the second quarter of 2025, driven by a $221.7 million non-cash goodwill impairment charge.
Adjusted net income was $123.1 million, or $0.19 per diluted share, compared to $123.3 million, or $0.18 per
diluted share, for the second quarter of 2025. Adjusted EBITDA was $247.2 million, compared to Adjusted
EBITDA of $261.6 million for the second quarter of 2025.
First Half 2026 Results
Total revenues were $1,172.8 million, compared to total revenues of $1,215.1 million for the first six months of
2025, primarily due to inorganic divestitures and disposals. Organic revenues decreased 0.4%, as a 0.7% increase
in organic recurring revenues (subscription and re-occurring) was offset by lower organic transactional revenues.
Net loss was $308.8 million, or $0.48 per diluted share, compared to a net loss of $175.9 million, or $0.26 per
diluted share, for the first six months of 2025, driven by a $221.7 million non-cash goodwill impairment charge in
the second quarter of 2026. Adjusted net income was $242.4 million, or $0.38 per diluted share, compared to
$219.1 million, or $0.32 per diluted share, for the first six months of 2025. Adjusted EBITDA was $488.4 million,
compared to Adjusted EBITDA of $494.8 million for the first six months of 2025.
Clarivate generated $233.4 million of operating cash flow and $122.9 million of free cash flow during the first six
months of 2026.
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Selected Financial Information
(In millions, except percentages and per share data),
(unaudited)
Three Months Ended
June 30,
Change
Six Months Ended
June 30,
Change
2026
2025
$
%
2026
2025
$
%
Revenues
$587.3
$621.4
$(34.1)
(5.5)%
$1,172.8
$1,215.1
$(42.3)
(3.5)%
Net income (loss)
$(268.6)
$(72.0)
$(196.6)
N/M
$(308.8)
$(175.9)
$(132.9)
(75.6)%
Adjusted net income(1)
$123.1
$123.3
$(0.2)
(0.2)%
$242.4
$219.1
$23.3
10.6%
Adjusted EBITDA(1)
$247.2
$261.6
$(14.4)
(5.5)%
$488.4
$494.8
$(6.4)
(1.3)%
Diluted EPS
$(0.42)
$(0.11)
$(0.31)
N/M
$(0.48)
$(0.26)
$(0.22)
(84.6)%
Adjusted diluted EPS(1)
$0.19
$0.18
$0.01
5.6%
$0.38
$0.32
$0.06
18.8%
Net cash provided by operating activities
$98.7
$116.3
$(17.6)
(15.1)%
$233.4
$287.5
$(54.1)
(18.8)%
Free cash flow(1)
$44.0
$50.3
$(6.3)
(12.5)%
$122.9
$160.6
$(37.7)
(23.5)%
Second Quarter 2026 Commentary
Subscription revenues decreased $2.4 million, or 0.6%, to $403.3 million, primarily due to product group wind-
downs within LS&H. Organic subscription revenues increased 0.7%, primarily due to new sales and price
increases.
Re-occurring revenues increased $0.4 million, or 0.4%, to $109.3 million, primarily due to foreign exchange
benefit.
Recurring revenues, which consist of subscription and re-occurring revenues, increased 0.5% organically.
Transactional revenues decreased $32.1 million, or 30.1%, to $74.7 million, primarily due to product group wind-
downs within A&G. Organic transactional revenues decreased 15.7%, primarily due to lower activity across all
segments, driven in part by customer migrations to subscription offerings.
Balance Sheet and Cash Flow
As of June 30, 2026, cash and cash equivalents of $217.7 million decreased $111.5 million compared to
December 31, 2025.
Total debt outstanding was $4,251.5 million as of June 30, 2026, a decrease of $218.4 million compared to the
prior year, driven by a $100.0 million accelerated debt repayment completed in January 2026, fully redeeming the
senior secured notes due November 2026, as well as the retirement of $117.6 million aggregate principal of the
senior secured notes due 2028 and senior notes due 2029 through a series of debt repurchases at an approximate
6% discount to par.
Net cash provided by operating activities for the first six months of 2026 was $233.4 million compared to $287.5
million in the prior year period. Free cash flow for the first six months of 2026 was $122.9 million compared to
$160.6 million in the prior year period.
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Reaffirms outlook for 2026 (forward-looking statement)
The full year outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.
Full Year 2026 Outlook
ACV Organic Growth
2.0% to 3.0%
Recurring Organic Revenue Growth
0.75% to 2.25%
Revenues, Including Discontinued Operations(1)
$2.30B to $2.42B
Adjusted EBITDA(1)
$980M to $1.04B
Adjusted EBITDA Margin(1)
42.0% to 43.5%
Adjusted Diluted EPS(1)(2)
$0.70 to $0.80
Free Cash Flow(1)
$365M to $435M
Notes to press release
(1) Non-GAAP measure. Please see “Reconciliations to Certain Non-GAAP Measures” in this release for important disclosures and reconciliations of these
financial measures to the most directly comparable GAAP measure. These terms are defined elsewhere in this press release.
(2) Adjusted diluted EPS for 2026 is calculated based on approximately 650 million fully diluted adjusted weighted average ordinary shares outstanding.
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the second quarter at 9:30 a.m.
Eastern Time. The webcast is open to all interested parties and may include forward-looking information.
The live webcast of the earnings call will be accessible through the investor relations section of the Company’s
website. To join the webcast please visit https://events.q4inc.com/attendee/248169870.
Interested parties may access the live audio broadcast. U.S. participants may call 833-461-5787; international
participants may call +1 585-542-9983 (long-distance charges will apply). The conference ID number is
248169870.
A replay of the webcast will also be available on https://ir.clarivate.com beginning two hours after the conclusion
of the live call and will remain available for one year.
Use of Non-GAAP Financial Measures
This release contains financial measures that have not been prepared in accordance with U.S. generally accepted
accounting principles (“GAAP”), including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income,
Adjusted diluted EPS, Free cash flow, and Revenues, including discontinued operations. Non-GAAP financial
measures are not recognized terms under GAAP, are not measures of financial condition or liquidity, and should
not be considered as an alternative to profit or loss for the period determined in accordance with GAAP or
operating cash flows determined in accordance with GAAP. As a result, you should not consider such measures in
isolation from, or as a substitute for, financial measures or results of operations calculated or determined in
accordance with GAAP.
We use non-GAAP measures internally in our operational and financial decision-making, to assess the operating
performance of our business, to assess performance for employee compensation purposes, and to decide how to
allocate resources. We believe that such measures allow us to focus on what we deem to be more reliable
indicators of ongoing operating performance and our ability to generate cash flow from operations, and we also
believe that investors may find these non-GAAP financial measures useful for the same reasons. Non-GAAP
measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of
companies comparable to us, many of which present non-GAAP measures when reporting their results. Further,
these measures can be useful in evaluating our performance against our peer companies because we believe they
provide users with valuable insight into key components of our GAAP financial disclosure. However, non-GAAP
measures have limitations as analytical tools and because not all companies use identical calculations, our
presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other
companies.
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Definitions and reconciliations of non-GAAP measures to the most directly comparable GAAP measures are
provided within the schedules attached to this release. Our presentation of non-GAAP measures should not be
construed as an inference that our future results will be unaffected by any of the adjusted items, or that any
projections and estimates will be realized in their entirety or at all.
Forward-Looking Statements
This release includes statements that express our opinions, expectations, beliefs, plans, objectives, assumptions, or
projections regarding future events or future results and therefore are, or may be deemed to be, “forward-looking
statements” within the meaning of the “safe harbor provisions” of the Private Securities Litigation Reform Act of
1995. These forward-looking statements include all matters that are not historical facts, including statements
relating to our intentions, beliefs, or current expectations concerning, among other things, the divestiture of our
Life Sciences & Healthcare business or any other strategic transactions we may explore, the anticipated use of
proceeds from the divestiture of our Life Sciences & Healthcare business, anticipated cost savings or other
benefits, results of operations, financial condition, liquidity, capital allocation plans and share repurchases, foreign
exchange impacts, prospects, growth and shareholder value, strategies, and the markets in which we operate, our
financial guidance for the fiscal year 2026 and key drivers thereof and underlying assumptions, the impact or
anticipated benefits of our Value Creation Plan and other growth strategies, the global macroeconomic uncertainty
and volatility, the impact of artificial intelligence (“AI”) on our business and strategy, and the timing of any of the
foregoing. These forward-looking statements can generally be identified by the use of forward-looking
terminology, including the terms “believes,” “estimates,” “anticipates,” “expects,” “seeks,” “projects,” “intends,”
“plans,” “may,” “will,” or “should” or, in each case, their negative or other variations or comparable terminology.
Such forward-looking statements are based on available current market material and management’s expectations,
beliefs, and forecasts concerning future events impacting us. These forward-looking statements involve a number
of risks and uncertainties (some of which are beyond our control) or other assumptions that may cause actual
results or performance to be materially different from those expressed or implied by these forward-looking
statements. These risks and uncertainties include, but are not limited to, those factors described in Item 1A. Risk
Factors in our annual report on Form 10-K, along with our other filings with the U.S. Securities and Exchange
Commission (“SEC”). There can be no assurance that future developments affecting us will be those that we have
anticipated. Should one or more of these risks or uncertainties materialize, or should any of the assumptions prove
incorrect, actual results may vary in material respects from those projected in these forward-looking statements.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of
new information, future events, or otherwise, except as may be required under applicable securities laws. Please
consult our public filings with the SEC, which are also available on our website at www.clarivate.com.
About Clarivate
Clarivate is a leading global provider of transformative intelligence. We offer enriched data, insights & analytics,
workflow solutions and expert services in the areas of Academia & Government, Intellectual Property, and Life
Sciences & Healthcare. For more information, please visit www.clarivate.com.
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Condensed Consolidated Balance Sheets – Unaudited
(In millions)
June 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents, including restricted cash
$217.7
$329.2
Accounts receivable, net
827.9
821.7
Prepaid expenses
107.1
94.2
Other current assets
61.5
64.9
Total current assets
1,214.2
1,310.0
Property and equipment, net
49.5
52.7
Other intangible assets, net
7,734.3
8,008.1
Goodwill
1,344.9
1,566.7
Other non-current assets
86.5
68.1
Deferred income taxes
17.9
17.2
Operating lease right-of-use assets
38.8
46.6
Total assets
$10,486.1
$11,069.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$152.9
$150.6
Accrued compensation
99.0
146.7
Accrued expenses and other current liabilities
268.5
273.0
Current portion of deferred revenues
897.0
878.6
Current portion of operating lease liability
16.7
18.4
Current portion of long-term debt
1.6
101.5
Total current liabilities
1,435.7
1,568.8
Long-term debt
4,209.3
4,321.5
Other non-current liabilities
75.8
86.2
Deferred income taxes
197.9
212.1
Operating lease liabilities
29.9
37.9
Total liabilities
5,948.6
6,226.5
Commitments and contingencies
Shareholders' equity:
Ordinary Shares, no par value; unlimited shares authorized; 639.7 and 640.7 shares issued and
outstanding as of June 30, 2026 and December 31, 2025, respectively
12,815.2
12,810.6
Accumulated other comprehensive loss
(454.3)
(453.1)
Accumulated deficit
(7,823.4)
(7,514.6)
Total shareholders' equity
4,537.5
4,842.9
Total liabilities and shareholders' equity
$10,486.1
$11,069.4
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Condensed Consolidated Statements of Operations – Unaudited
Three Months Ended June 30,
Six Months Ended June 30,
(In millions, except per share data)
2026
2025
2026
2025
Revenues
$587.3
$621.4
$1,172.8
$1,215.1
Operating expenses:
Cost of revenues
185.5
203.6
377.6
410.6
Selling, general and administrative costs
181.6
181.1
357.9
359.5
Depreciation and amortization
185.7
190.9
369.7
376.3
Goodwill and intangible asset impairments
221.7
–
221.7
–
Restructuring costs
12.1
9.3
24.1
34.0
Other operating expense (income), net
0.9
29.6
(8.2)
48.6
Total operating expenses
787.5
614.5
1,342.8
1,229.0
Income (loss) from operations
(200.2)
6.9
(170.0)
(13.9)
Interest expense, net
60.4
66.6
119.4
130.9
Income (loss) before income taxes
(260.6)
(59.7)
(289.4)
(144.8)
Provision (benefit) for income taxes
8.0
12.3
19.4
31.1
Net income (loss)
$(268.6)
$(72.0)
$(308.8)
$(175.9)
Per share:
Basic
$(0.42)
$(0.11)
$(0.48)
$(0.26)
Diluted
$(0.42)
$(0.11)
$(0.48)
$(0.26)
Weighted average shares used to compute earnings per share:
Basic
639.4
681.3
640.0
685.5
Diluted
639.4
681.3
640.0
685.5
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Condensed Consolidated Statements of Cash Flows – Unaudited
Six Months Ended June 30,
(In millions)
2026
2025
Cash Flows From Operating Activities
Net income (loss)
$(308.8)
$(175.9)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
369.7
376.3
Share-based compensation
29.4
29.3
Goodwill and intangible asset impairments
221.7
–
Deferred income taxes
(11.3)
(5.4)
Amortization and write-off of debt issuance costs
6.6
7.7
Other operating activities
(14.0)
48.0
Changes in operating assets and liabilities:
Accounts receivable
(11.3)
2.2
Prepaid expenses
(13.3)
(1.5)
Other assets
(5.0)
3.1
Accounts payable
3.2
(3.3)
Accrued expenses and other current liabilities
(54.3)
(36.1)
Deferred revenues
24.4
42.6
Operating leases, net
(1.9)
(3.2)
Other liabilities
(1.7)
3.7
Net cash provided by operating activities
233.4
287.5
Cash Flows From Investing Activities
Capital expenditures
(110.5)
(126.9)
Net cash used for investing activities
(110.5)
(126.9)
Cash Flows From Financing Activities
Principal payments on debt
(211.1)
(500.0)
Proceeds from issuance of debt
–
500.0
Payment of debt issuance and extinguishment costs
–
(8.5)
Repurchases of ordinary shares
(18.1)
(99.5)
Payments related to tax withholding for share-based compensation
(6.6)
(8.1)
Other financing activities
4.6
5.6
Net cash used for financing activities
(231.2)
(110.5)
Effects of exchange rates
(3.2)
17.3
Net change in cash and cash equivalents, including restricted cash
(111.5)
67.4
Cash and cash equivalents, including restricted cash, beginning of period
329.2
295.2
Cash and cash equivalents, including restricted cash, end of period
$217.7
$362.6
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Supplemental Revenues Information
Annualized contract value (“ACV”), at any point in time, represents the annualized value of all active customer
subscription-based license agreements for the next 12 months, assuming those coming up for renewal during the
measurement period are renewed at their current price level. Our organic ACV grew 1.5% compared to June 30,
2025, primarily driven by improved product pricing. Our total ACV for June 30, 2026, compared to June 30,
2025, increased 3.1%, primarily due to improved product pricing and FX movements.
The following tables present our revenues by type and segment, as well as the components driving the changes
between periods.
Revenues by transaction type
(In millions, except percentages);
(unaudited)
Three Months Ended
June 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$403.3
$405.7
$(2.4)
(0.6)%
—%
(1.0)%
(0.3)%
0.7%
Re-occurring
109.3
108.9
0.4
0.4%
—%
—%
0.4%
—%
Recurring revenues
512.6
514.6
(2.0)
(0.4)%
—%
(0.7)%
(0.2)%
0.5%
Transactional
74.7
106.8
(32.1)
(30.1)%
—%
(14.1)%
(0.3)%
(15.7)%
Revenues
$587.3
$621.4
$(34.1)
(5.5)%
—%
(3.8)%
(0.2)%
(1.5)%
(In millions, except percentages);
(unaudited)
Six Months Ended
June 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$800.8
$794.3
$6.5
0.8%
—%
(1.2)%
0.8%
1.2%
Re-occurring
217.9
214.8
3.1
1.4%
—%
(0.1)%
2.3%
(0.8)%
Recurring revenues
1,018.7
1,009.1
9.6
1.0%
—%
(0.8)%
1.1%
0.7%
Transactional
154.1
206.0
(51.9)
(25.2)%
—%
(16.3)%
0.5%
(9.4)%
Revenues
$1,172.8
$1,215.1
$(42.3)
(3.5)%
—%
(4.1)%
1.0%
(0.4)%
Revenues by segment
(In millions, except percentages);
(unaudited)
Three Months Ended
June 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$300.3
$318.5
$(18.2)
(5.7)%
—%
(5.9)%
(0.1)%
0.3%
Intellectual Property
198.3
202.5
(4.2)
(2.1)%
—%
—%
0.2%
(2.3)%
Life Sciences & Healthcare
88.7
100.4
(11.7)
(11.7)%
—%
(5.4)%
(1.1)%
(5.2)%
Revenues
$587.3
$621.4
$(34.1)
(5.5)%
—%
(3.8)%
(0.2)%
(1.5)%
(In millions, except percentages);
(unaudited)
Six Months Ended
June 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$595.3
$621.2
$(25.9)
(4.2)%
—%
(6.1)%
0.7%
1.2%
Intellectual Property
395.5
395.2
0.3
0.1%
—%
—%
1.9%
(1.8)%
Life Sciences & Healthcare
182.0
198.7
(16.7)
(8.4)%
—%
(6.0)%
(0.1)%
(2.3)%
Revenues
$1,172.8
$1,215.1
$(42.3)
(3.5)%
—%
(4.1)%
1.0%
(0.4)%
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Reconciliations to Certain Non-GAAP Measures
Adjusted EBITDA and Adjusted EBITDA margin
Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and
amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring
expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or
disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that
are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating
performance. Net income (loss) margin is calculated by dividing Net income (loss) by Revenues. Adjusted
EBITDA margin is calculated by dividing Adjusted EBITDA by Revenues.
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the three
and six months ended June 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss)
and Net income (loss) margin for the same periods:
 
Three Months Ended June 30,
Six Months Ended June 30,
(In millions, except percentages); (unaudited)
2026
2025
2026
2025
Net income (loss)
$(268.6)
$(72.0)
$(308.8)
$(175.9)
Provision (benefit) for income taxes
8.0
12.3
19.4
31.1
Depreciation and amortization
185.7
190.9
369.7
376.3
Interest expense, net
60.4
66.6
119.4
130.9
Share-based compensation expense
15.1
18.5
29.7
29.6
Goodwill and intangible asset impairments
221.7
—
221.7
—
Restructuring costs
12.1
9.3
24.1
34.0
Transaction related costs
10.2
8.1
18.4
14.4
Other(1)
2.6
27.9
(5.2)
54.4
Adjusted EBITDA
$247.2
$261.6
$488.4
$494.8
Net income (loss) margin
(45.7)%
(11.6)%
(26.3)%
(14.5)%
Adjusted EBITDA margin
42.1%
42.1%
41.6%
40.7%
(1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing
operating performance.
Adjusted net income and Adjusted diluted EPS
Adjusted net income represents Net income (loss), adjusted to exclude amortization related to acquired intangible
assets, share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value
adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign
currency gains/losses, legal settlements, and other items that are included in net income (loss) for the period that
we do not consider indicative of our ongoing operating performance and the associated income tax impact of such
adjustments.
Adjusted diluted EPS is calculated by dividing Adjusted net income by Adjusted diluted weighted average shares.
The Adjusted diluted weighted average shares calculation assumes that all instruments in the calculation are
dilutive.
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The following tables present our calculation of Adjusted net income and Adjusted diluted EPS for the three and
six months ended June 30, 2026 and 2025 and reconciles these non-GAAP measures to our Net income (loss) and
diluted EPS for the same periods:
Three Months Ended June 30,
2026
2025
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$(268.6)
$(0.42)
$(72.0)
$(0.11)
Amortization related to acquired intangible assets
135.3
0.21
137.0
0.20
Share-based compensation expense
15.1
0.02
18.5
0.03
Goodwill and intangible asset impairments
221.7
0.35
—
—
Restructuring costs
12.1
0.02
9.3
0.01
Transaction related costs
10.2
0.02
8.1
0.01
Other(1)
4.3
—
28.0
0.05
Income tax impact of related adjustments
(7.0)
(0.01)
(5.6)
(0.01)
Adjusted net income and Adjusted diluted EPS
$123.1
$0.19
$123.3
$0.18
Adjusted weighted average ordinary shares, diluted
642.7
684.6
(1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing
operating performance.
Six Months Ended June 30,
2026
2025
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$(308.8)
$(0.48)
$(175.9)
$(0.26)
Amortization related to acquired intangible assets
270.7
0.42
273.3
0.40
Share-based compensation expense
29.7
0.05
29.6
0.04
Goodwill and intangible asset impairments
221.7
0.35
—
—
Restructuring costs
24.1
0.04
34.0
0.05
Transaction related costs
18.4
0.03
14.4
0.02
Other(1)
(1.9)
(0.01)
54.5
0.09
Income tax impact of related adjustments
(11.5)
(0.02)
(10.8)
(0.02)
Adjusted net income and Adjusted diluted EPS
$242.4
$0.38
$219.1
$0.32
Adjusted weighted average ordinary shares, diluted
645.0
689.9
(1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing
operating performance.
Free cash flow
Free cash flow represents Net cash provided by operating activities less Capital expenditures. The following table
presents our calculation of Free cash flow for the three and six months ended June 30, 2026 and 2025 and
reconciles this non-GAAP measure to Net cash provided by operating activities for the same periods:
Three Months Ended June 30,
Six Months Ended June 30,
(In millions); (unaudited)
2026
2025
2026
2025
Net cash provided by operating activities
$98.7
$116.3
$233.4
$287.5
Capital expenditures
(54.7)
(66.0)
(110.5)
(126.9)
Free cash flow
$44.0
 
$50.3
$122.9
 
$160.6
11
Reconciliations to Certain Non-GAAP Measures - 2026 Outlook
Adjusted EBITDA and Adjusted EBITDA margin
The following table presents our calculation of Adjusted EBITDA and Adjusted EBITDA margin for the 2026
outlook and reconciles these non-GAAP measures to our Net income (loss) and Net income (loss) margin for the
same period:
Year Ending December 31, 2026
(Forecasted)
(In millions); (unaudited)
Low
 
High
Net income (loss)
$(418)
$(353)
Provision (benefit) for income taxes
45
45
Depreciation and amortization
760
760
Interest expense, net
242
237
Share-based compensation expense
70
70
Goodwill and intangible asset impairments
222
222
Restructuring costs(1)
35
35
Transaction related costs
35
35
Other
(11)
(11)
Adjusted EBITDA
$980
$1,040
Net income (loss) margin
(18.2)%
(14.6)%
Adjusted EBITDA margin
42.0%
43.5%
(1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan.
Adjusted diluted EPS
The following table presents our calculation of Adjusted diluted EPS for the 2026 outlook and reconciles this non-
GAAP measure to our Net income (loss) per share for the same period:
Year Ending December 31, 2026
(Forecasted)
(Unaudited)
Low
High
Net income (loss) per share
$(0.64)
$(0.54)
Amortization related to acquired intangible assets
0.83
0.83
Share-based compensation expense
0.11
0.11
Goodwill and intangible asset impairments
0.34
0.34
Restructuring costs(1)
0.05
0.05
Transaction related costs
0.05
0.05
Other
(0.01)
(0.01)
Income tax impact of related adjustments
(0.03)
(0.03)
Adjusted diluted EPS
$0.70
$0.80
Adjusted weighted average ordinary shares, diluted
~650 million
(1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan.
12
Free cash flow
The following table presents our calculation of Free cash flow for the 2026 outlook and reconciles this non-GAAP
measure to our Net cash provided by operating activities for the same period:
Year Ending December 31, 2026
(Forecasted)
(In millions); (unaudited)
Low
High
Net cash provided by operating activities
$610
$680
Capital expenditures
(245)
(245)
Free cash flow
$365
$435
Revenues, including discontinued operations
Revenues, including discontinued operations represents total company revenues including those attributable to
discontinued operations, which will begin to be reported in the third quarter for the LS&H segment.
The following table presents our calculation of Revenues, including discontinued operations and reconciles this
non-GAAP measure to our Revenues, excluding discontinued operations for the same period:
Year Ending December 31, 2026
(Forecasted)
(In millions); (unaudited)
Low
High
Revenues, including discontinued operations
$2,300
$2,420
Revenues attributable to discontinued operations
(360)
(380)
Revenues
$1,940
$2,040
Media Contact:
Amy Bourke-Waite, Senior Director, Communications & Brand
newsroom@clarivate.com
Investor Relations Contact:
Mark Donohue, Vice President, Investor Relations
investor.relations@clarivate.com