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Clarivate Reports Third Quarter 2026 Results, Delivering Clear Path to Value Creation
— Improved recurring organic revenue growth driven by portfolio transformation
and AI-led innovation —
— Updates 2026 financial outlook following the divestiture of Life Sciences & Healthcare segment —
London, UK -- November 3, 2026 Clarivate Plc (NYSE: CLVT) (the “Company” or “Clarivate”), a leading
global provider of transformative intelligence, today reported results for the third quarter ended September 30,
2026.
Executive Commentary
Matti Shem Tov, Chief Executive Officer:
“Third quarter results continued to improve across key metrics, including organic recurring revenue growth and
the return to positive ACV growth in the Intellectual Property segment. We also achieved a major milestone with
the early close of the Life Sciences & Healthcare segment divestiture, positioning us for enhanced value creation
in our two market-leading segments, Academia & Government and Intellectual Property. The growing
commercial traction and customer validation from our AI-led innovation within A&G and IP give us confidence
in our ability to deliver on our commitments of accelerating sustained organic growth, expanding free cash flow
and reducing leverage.”
Michael Easton, Executive Vice President and Chief Financial Officer:
“We are seeing the benefits of disciplined execution across the business, with improving growth trends, strong
margins and continued free cash flow generation. Our focus remains on translating organic growth into
sustainable earnings and free cash flow, while maintaining a disciplined approach to capital allocation. Looking
ahead, we are well positioned to further strengthen our financial profile and enhance our financial flexibility.”
Third Quarter 2026 Results
Total revenues were $567.9 million, including the Life Sciences & Healthcare segment (“LS&H”), which was
divested on October 6, 2026, compared to total revenues of $623.1 million for the third quarter of 2025, primarily
due to inorganic disposals. Excluding LS&H, which is now presented as discontinued operations, total
revenues were $481.6 million, compared to total revenues of $530.3 million for the third quarter of 2025,
primarily due to inorganic disposals.
Organic revenues for continuing operations increased 0.4% as organic subscription growth of 1.5% and organic
re-occurring growth of 0.7% was partially offset by lower organic transactional revenues.
Organic ACV for continuing operations grew 1.8% compared to September 30, 2025, reflecting continued
progress toward a more sustainable, subscription-led revenue base.
Net loss, including LS&H, was $80.8 million, or $0.13 per diluted share, compared to a net loss of $28.3 million,
or $0.04 per diluted share, for the third quarter of 2025, driven by a $62.2 million non-cash LS&H goodwill
impairment charge. Adjusted net income, including LS&H, was $136.0 million, or $0.21 per diluted share,
compared to $119.3 million, or $0.18 per diluted share, for the third quarter of 2025. Adjusted EBITDA,
including LS&H, was $245.3 million, compared to Adjusted EBITDA of $252.4 million for the third quarter of
2025.
First Nine Months 2026 Results
Total revenues were $1,740.7 million, including the LS&H segment, compared to total revenues of $1,838.2
million, primarily due to inorganic disposals. Excluding the LS&H segment, which is now presented as
discontinued operations, total revenues were $1,472.4 million, compared to total revenues of $1,546.7 million
for the first nine months of 2025, primarily due to inorganic disposals.
Organic revenues for continuing operations increased 0.1%, as a 0.9% increase in organic recurring revenues
(subscription and re-occurring) was offset by lower organic transactional revenues.
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Net loss, including LS&H, was $389.6 million, or $0.61 per diluted share, compared to a net loss of $204.2
million, or $0.30 per diluted share, for the first nine months of 2025, driven by a $283.9 million non-cash LS&H
goodwill impairment charge. Adjusted net income, including LS&H, was $378.4 million, or $0.59 per diluted
share, compared to $338.4 million, or $0.49 per diluted share, for the first nine months of 2025. Adjusted
EBITDA, including LS&H, was $733.7 million, compared to Adjusted EBITDA of $747.2 million for the first
nine months of 2025.
Clarivate, including LS&H, generated $399.0 million of operating cash flow and $233.1 million of free cash flow
during the first nine months of 2026.
Selected Financial Information
(In millions, except percentages and per share data),
(unaudited)
Three Months Ended
September 30,
Change
Nine Months Ended
September 30,
Change
2026
2025
$
%
2026
2025
$
%
Revenues, including discontinued operations
$567.9
$623.1
$(55.2)
(8.9)%
$1,740.7
$1,838.2
$(97.5)
(5.3)%
Revenues, continuing operations
$481.6
$530.3
$(48.7)
(9.2)%
$1,472.4
$1,546.7
$(74.3)
(4.8)%
Net income (loss)
$(80.8)
$(28.3)
$(52.5)
N/M
$(389.6)
$(204.2)
$(185.4)
N/M
Adjusted net income(1)
$136.0
$119.3
$16.7
14.0%
$378.4
$338.4
$40.0
11.8%
Adjusted EBITDA, including discontinued
operations(1)
$245.3
$252.4
$(7.1)
(2.8)%
$733.7
$747.2
$(13.5)
(1.8)%
Adjusted EBITDA, continuing operations(1)
$218.2
$222.2
$(4.0)
(1.8)%
$645.6
$645.7
$(0.1)
–%
Diluted EPS, continuing operations
$(0.04)
$(0.04)
$0.00
–%
$(0.19)
$(0.31)
$0.12
(38.7)%
Diluted EPS, discontinued operations
$(0.09)
$0.00
$(0.09)
N/M
$(0.42)
$0.01
$(0.43)
N/M
Diluted EPS, including discontinued operations
$(0.13)
$(0.04)
$(0.09)
N/M
$(0.61)
$(0.30)
$(0.31)
N/M
Adjusted diluted EPS(1)
$0.21
$0.18
$0.03
16.7%
$0.59
$0.49
$0.10
20.4%
Net cash provided by operating activities
$165.6
$181.1
$(15.5)
(8.6)%
$399.0
$468.6
$(69.6)
(14.9)%
Free cash flow(1)
$110.2
$115.5
$(5.3)
(4.6)%
$233.1
$276.1
$(43.0)
(15.6)%
Third Quarter 2026 Continuing Operations Commentary
Subscription revenues increased $2.4 million, or 0.7%, to $338.3 million. Organic subscription revenues increased
1.5%, primarily due to new sales and pricing actions.
Re-occurring revenues increased $0.5 million, or 0.5%, to $105.8 million. Organic re-occurring revenues
increased 0.7%, primarily due to higher IP volumes.
Recurring revenues, which consist of subscription and re-occurring revenues, increased 1.3% organically, or $5.7
million.
Transactional revenues decreased $51.6 million to $37.5 million, primarily due to product group wind-downs
within A&G. On an organic basis, the decline was 12.4%, or $3.9 million, primarily due to lower activity across
both segments, driven in part by customer migration to higher margin subscription products as we focus on our
recurring revenues.
Balance Sheet and Cash Flow
As of September 30, 2026, cash and cash equivalents of $257.0 million decreased $72.2 million compared to
December 31, 2025.
Total debt outstanding was $4,176.1 million as of September 30, 2026, a decrease of $293.8 million compared to
the prior year, driven by a $100.0 million accelerated debt repayment in January 2026 resulting in the full
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redemption of the senior secured notes due November 2026, as well as the retirement of $192.6 million aggregate
principal of the senior secured notes due 2028 and senior notes due 2029 through a series of debt repurchases at
an approximate 5% discount to par.
Net cash provided by operating activities including discontinued operations for the first nine months of 2026 was
$399.0 million compared to $468.6 million in the prior year period. Free cash flow including discontinued
operations for the first nine months of 2026 was $233.1 million compared to $276.1 million in the prior year
period.
On October 6, 2026 the company completed the sale of the LS&H segment for net cash proceeds of $488.4
million.
Updates 2026 outlook excluding discontinued operations (forward-looking statement)
The full year 2026 outlook presented below assumes no further acquisitions, divestitures, or unanticipated events.
The Q4 2026 outlook presented below is provided in connection with the completion of the LS&H divestiture and
also assumes no further acquisitions, divestitures, or unanticipated events.
Full Year 2026 Outlook
Q4 2026 Outlook
ACV Organic Growth
1.75% to 2.25%
1.75% to 2.25%
Recurring Organic Revenue Growth
1.00% to 1.50%
2.00% to 2.50%
Revenues
$1.965B to $1.985B
$490M to $510M
Adjusted EBITDA(1)
$0.865B to $0.885B
$215M to $235M
Adjusted EBITDA Margin(1)
43.0% to 45.0%
44.0% to 46.0%
Adjusted Diluted EPS(1)(2)
$0.73 to $0.77
$0.14 to $0.18
Free Cash Flow(1)(3)
$320M to $340M
$85M to $105M
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 the full year and Q4 2026 outlooks are calculated based on approximately 646 million fully diluted adjusted weighted average
ordinary shares outstanding. The full year 2026 outlook includes results from discontinued operations for the nine months ended September 30, 2026
and excludes results from discontinued operations for the three months ended December 31, 2026.
(3)Free cash flow includes results from discontinued operations for the nine months ended September 30, 2026 and excludes results from discontinued
operations for the three months ended December 31, 2026.
Conference Call and Webcast
Clarivate will host a conference call and webcast today to review the results for the third quarter at 8:30 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/388781202.
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 388 781
202.
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, and Free cash flow. 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
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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.
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, any future strategic
transactions we may explore, the anticipated use of proceeds from the divestiture of our Life Sciences &
Healthcare business, and any related cost savings or other benefits, our results of operations, financial condition,
liquidity, capital allocation plans and share repurchases, foreign exchange impacts, our prospects, growth,
strategies and shareholder value, 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 and Intellectual Property. For
more information, please visit www.clarivate.com.
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Condensed Consolidated Balance Sheets – Unaudited
(In millions)
September 30, 2026
December 31, 2025
ASSETS
Current assets:
Cash and cash equivalents, including restricted cash
$257.0
$329.2
Accounts receivable, net
747.4
696.8
Prepaid expenses
95.7
79.2
Other current assets
61.6
62.0
Current assets held for sale
70.6
142.8
Total current assets
1,232.3
1,310.0
Property and equipment, net
44.6
52.0
Other intangible assets, net
7,155.5
7,515.9
Goodwill
1,088.8
1,088.9
Other non-current assets
109.3
59.9
Deferred income taxes
19.4
16.1
Operating lease right-of-use assets
38.7
45.4
Non-current assets held for sale
679.7
981.2
Total assets
$10,368.3
$11,069.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$117.2
$138.8
Accrued compensation
87.3
114.6
Accrued expenses and other current liabilities
276.3
260.0
Current portion of deferred revenues
761.3
737.4
Current portion of operating lease liability
16.3
17.8
Current portion of long-term debt
1.6
101.5
Current liabilities held for sale
144.5
198.7
Total current liabilities
1,404.5
1,568.8
Long-term debt
4,136.8
4,321.5
Other non-current liabilities
72.6
81.1
Deferred income taxes
195.0
201.8
Operating lease liabilities
29.2
37.3
Non-current liabilities held for sale
15.8
16.0
Total liabilities
5,853.9
6,226.5
Commitments and contingencies
Shareholders' equity:
Ordinary Shares, no par value; unlimited shares authorized; 639.9 and 640.7 shares issued and
outstanding as of September 30, 2026 and December 31, 2025, respectively
12,825.8
12,810.6
Accumulated other comprehensive loss
(407.2)
(453.1)
Accumulated deficit
(7,904.2)
(7,514.6)
Total shareholders' equity
4,514.4
4,842.9
Total liabilities and shareholders' equity
$10,368.3
$11,069.4
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Condensed Consolidated Statements of Operations – Unaudited
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions, except per share data)
2026
2025
2026
2025
Revenues
$481.6
$530.3
$1,472.4
$1,546.7
Operating expenses:
Cost of revenues
139.0
178.5
442.4
511.3
Selling, general and administrative costs
134.6
145.7
447.3
453.2
Depreciation and amortization
162.3
168.6
484.7
499.2
Restructuring costs
4.5
7.9
24.9
34.3
Other operating expense (income), net
1.1
(16.3)
(8.4)
33.6
Total operating expenses
441.5
484.4
1,390.9
1,531.6
Operating income (loss)
40.1
45.9
81.5
15.1
Interest expense, net
61.0
68.5
180.4
199.4
Income (loss) from continuing operations before income taxes
(20.9)
(22.6)
(98.9)
(184.3)
Provision (benefit) for income taxes
5.5
2.3
23.4
29.0
Income (loss) from continuing operations, net of taxes
(26.4)
(24.9)
(122.3)
(213.3)
Income (loss) from discontinued operations, net of taxes
(54.4)
(3.4)
(267.3)
9.1
Net income (loss)
$(80.8)
$(28.3)
$(389.6)
$(204.2)
Basic earnings (loss) per share:
Continuing operations
$(0.04)
$(0.04)
$(0.19)
$(0.31)
Discontinued operations
(0.09)
–
(0.42)
0.01
Basic earnings (loss) per share
$(0.13)
$(0.04)
$(0.61)
$(0.30)
Diluted earnings (loss) per share:
Continuing operations
$(0.04)
$(0.04)
$(0.19)
$(0.31)
Discontinued operations
(0.09)
–
(0.42)
0.01
Diluted earnings (loss) per share
$(0.13)
$(0.04)
$(0.61)
$(0.30)
Weighted average shares used to compute earnings per share:
Basic
639.7
668.3
639.9
679.7
Diluted
639.7
668.3
639.9
679.7
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Condensed Consolidated Statements of Cash Flows – Unaudited
Nine Months Ended September 30,
(In millions)
2026
2025
Cash Flows From Operating Activities
Net income (loss)
$(389.6)
$(204.2)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization
532.0
568.1
Share-based compensation
40.2
45.4
Goodwill and intangible asset impairments
283.9
–
Loss on classification as held for sale
10.1
–
Deferred income taxes
(9.8)
(11.6)
Amortization and write-off of debt issuance costs
9.9
11.3
Other operating activities
(16.5)
29.9
Changes in operating assets and liabilities:
Accounts receivable
19.3
6.2
Prepaid expenses
(14.9)
(7.2)
Other assets
(7.0)
0.5
Accounts payable
(26.9)
11.7
Accrued expenses and other current liabilities
(20.6)
27.3
Deferred revenues
(7.4)
(8.3)
Operating leases, net
(2.6)
(4.3)
Other liabilities
(1.1)
3.8
Net cash provided by operating activities
399.0
468.6
Cash Flows From Investing Activities
Capital expenditures
(165.9)
(192.5)
Net cash used for investing activities
(165.9)
(192.5)
Cash Flows From Financing Activities
Principal payments on debt
(284.2)
(600.0)
Proceeds from issuance of debt
–
500.0
Payment of debt issuance and extinguishment costs
–
(9.5)
Repurchases of ordinary shares
(18.1)
(149.5)
Payments related to tax withholding for share-based compensation
(6.8)
(9.6)
Other financing activities
4.1
3.4
Net cash used for financing activities
(305.0)
(265.2)
Effects of exchange rates
(0.3)
12.6
Net change in cash and cash equivalents, including restricted cash
(72.2)
23.5
Cash and cash equivalents, including restricted cash, beginning of period
329.2
295.2
Cash and cash equivalents, including restricted cash, end of period
$257.0
$318.7
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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 1.8% compared to September
30, 2025, primarily driven by improved product pricing. Our total ACV for September 30, 2026, compared to
September 30, 2025, increased 3.6%, 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
September 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$338.3
$335.9
$2.4
0.7%
—%
(0.1)%
(0.7)%
1.5%
Re-occurring
105.8
105.3
0.5
0.5%
—%
—%
(0.2)%
0.7%
Recurring revenues
444.1
441.2
2.9
0.7%
—%
(0.1)%
(0.5)%
1.3%
Transactional
37.5
89.1
(51.6)
(57.9)%
—%
(45.3)%
(0.2)%
(12.4)%
Revenues
$481.6
$530.3
$(48.7)
(9.2)%
—%
(9.1)%
(0.5)%
0.4%
(In millions, except percentages);
(unaudited)
Nine Months Ended
September 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Subscription
$1,004.7
$989.4
$15.3
1.5%
—%
(0.2)%
0.4%
1.3%
Re-occurring
323.7
320.1
3.6
1.1%
—%
(0.1)%
1.5%
(0.3)%
Recurring revenues
1,328.4
1,309.5
18.9
1.4%
—%
(0.2)%
0.7%
0.9%
Transactional
144.0
237.2
(93.2)
(39.3)%
—%
(30.1)%
0.4%
(9.6)%
Revenues
$1,472.4
$1,546.7
$(74.3)
(4.8)%
—%
(5.5)%
0.6%
0.1%
Revenues by segment
(In millions, except percentages);
(unaudited)
Three Months Ended
September 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$286.9
$332.5
$(45.6)
(13.7)%
—%
(14.1)%
(0.5)%
0.9%
Intellectual Property
194.7
197.8
(3.1)
(1.6)%
—%
(0.6)%
(0.6)%
(0.4)%
Revenues
$481.6
$530.3
$(48.7)
(9.2)%
—%
(9.1)%
(0.5)%
0.4%
(In millions, except percentages);
(unaudited)
Nine Months Ended
September 30,
Change
% of Change
2026
2025
$
%
Acquisitions
Disposals
FX
Organic
Academia & Government
$882.2
$953.7
$(71.5)
(7.5)%
—%
(8.9)%
0.3%
1.1%
Intellectual Property
590.2
593.0
(2.8)
(0.5)%
—%
(0.3)%
1.1%
(1.3)%
Revenues
$1,472.4
$1,546.7
$(74.3)
(4.8)%
—%
(5.5)%
0.6%
0.1%
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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 nine months ended September 30, 2026 and 2025 and reconciles these non-GAAP measures to our Income
(loss) from continuing operations, net of taxes and Income (loss) from continuing operations margin for the same
periods:
 
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions, except percentages); (unaudited)
2026
2025
2026
2025
Income (loss) from continuing operations, net of taxes
$(26.4)
$(24.9)
$(122.3)
$(213.3)
Provision (benefit) for income taxes
5.5
2.3
23.4
29.0
Depreciation and amortization
162.3
168.6
484.7
499.2
Interest expense, net
61.0
68.5
180.4
199.4
Share-based compensation expense
7.7
13.1
32.3
37.1
Restructuring costs
4.5
7.9
24.9
34.3
Transaction related costs
(0.2)
3.0
17.5
17.3
Other(1)
3.8
(16.3)
4.7
42.7
Adjusted EBITDA
$218.2
$222.2
$645.6
$645.7
Income (loss) from continuing operations margin
(5.5) %
(4.7) %
(8.3) %
(13.8) %
Adjusted EBITDA margin
45.3 %
41.9 %
43.8 %
41.7 %
(1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances, the impact of initiatives to reduce our cost
structure related to the LS&H divestiture, and other items that do not reflect our ongoing operating performance.
10
The following table presents our calculation of Adjusted EBITDA, including discontinued operations and
Adjusted EBITDA margin for the three and nine months ended September 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 September 30,
Nine Months Ended September 30,
(In millions, except percentages); (unaudited)
2026
2025
2026
2025
Net income (loss)
$(80.8)
$(28.3)
$(389.6)
$(204.2)
Provision (benefit) for income taxes
7.7
3.8
27.1
34.9
Depreciation and amortization
162.3
191.8
532.0
568.1
Interest expense, net
61.0
68.5
180.4
199.4
Share-based compensation expense
10.8
16.0
40.5
45.6
Goodwill and intangible asset impairments
62.2
—
283.9
—
Loss on classification as held for sale
10.1
—
10.1
—
Restructuring costs
4.9
11.9
29.0
45.9
Transaction related costs
8.1
4.1
26.5
18.5
Other(1)
(1.0)
(15.4)
(6.2)
39.0
Adjusted EBITDA, including discontinued operations
$245.3
$252.4
$733.7
$747.2
Net income (loss) margin
(14.9) %
(4.5) %
(22.6) %
(11.1) %
Adjusted EBITDA margin
43.2 %
40.5 %
42.1 %
40.6 %
(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.
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.
11
The following tables present our calculation of Adjusted net income including discontinued operations and
Adjusted diluted EPS including discontinued operations for the three and nine months ended September 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 September 30,
2026
2025
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$(80.8)
$(0.13)
$(28.3)
$(0.04)
Amortization related to acquired intangible assets
122.6
0.19
136.7
0.20
Share-based compensation expense
10.8
0.02
16.0
0.02
Goodwill and intangible asset impairments
62.2
0.10
—
—
Loss on classification as held for sale
10.1
0.02
—
—
Restructuring costs
4.9
0.01
11.9
0.02
Transaction related costs
8.1
0.01
4.1
0.01
Other(1)
0.7
(0.01)
(14.0)
(0.02)
Income tax impact of related adjustments
(2.6)
—
(7.1)
(0.01)
Adjusted net income and Adjusted diluted EPS
$136.0
$0.21
$119.3
$0.18
Adjusted weighted average ordinary shares, diluted
643.6
675.5
(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.
Nine Months Ended September 30,
2026
2025
(In millions, except per share amounts); (unaudited)
Amount
Per Share
Amount
Per Share
Net income (loss) and Diluted EPS
$(389.6)
$(0.61)
$(204.2)
$(0.30)
Amortization related to acquired intangible assets
393.3
0.61
410.0
0.60
Share-based compensation expense
40.5
0.06
45.6
0.07
Goodwill and intangible asset impairments
283.9
0.44
—
—
Loss on classification as held for sale
10.1
0.02
—
—
Restructuring costs
29.0
0.05
45.9
0.07
Transaction related costs
26.5
0.04
18.5
0.03
Other(1)
(1.2)
—
40.5
0.05
Income tax impact of related adjustments
(14.1)
(0.02)
(17.9)
(0.03)
Adjusted net income and Adjusted diluted EPS
$378.4
$0.59
$338.4
$0.49
Adjusted weighted average ordinary shares, diluted
644.5
685.0
(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 including discontinued operations for the three and nine months ended
September 30, 2026 and 2025 and reconciles this non-GAAP measure to Net cash provided by operating activities
for the same periods:
Three Months Ended September 30,
Nine Months Ended September 30,
(In millions); (unaudited)
2026
2025
2026
2025
Net cash provided by operating activities
$165.6
$181.1
$399.0
$468.6
Capital expenditures
(55.4)
(65.6)
(165.9)
(192.5)
Free cash flow
$110.2
 
$115.5
$233.1
 
$276.1
12
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 continuing
operations 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)
$(154)
$(144)
Provision (benefit) for income taxes
45
45
Depreciation and amortization
650
650
Interest expense, net
225
230
Share-based compensation expense
45
50
Restructuring costs(1)
30
30
Transaction related costs
35
35
Other
(11)
(11)
Adjusted EBITDA
$865
$885
Net income (loss) margin
(7.8)%
(7.3)%
Adjusted EBITDA margin
43.0%
45.0%
(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, including the impact of
discontinued operations for the first nine months, 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
$(0.65)
$(0.62)
Amortization related to acquired intangible assets
0.80
0.80
Share-based compensation expense
0.07
0.08
Goodwill and intangible asset impairments
0.46
0.46
Restructuring costs(1)
0.05
0.05
Transaction related costs
0.05
0.05
Other
(0.02)
(0.02)
Income tax impact of related adjustments
(0.03)
(0.03)
Adjusted diluted EPS
$0.73
$0.77
Adjusted weighted average ordinary shares, diluted
~650 million
(1)Reflects restructuring costs expected to be incurred in 2026 associated with the Value Creation Plan.
13
Free cash flow
The following table presents our calculation of Free cash flow for the 2026 outlook, including the impact of
discontinued operations for the first nine months, 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
$550
$570
Capital expenditures
(230)
(230)
Free cash flow
$320
$340
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