Download PDF

1. Company Snapshot

1.a. Company Description

Clearwater Analytics Holdings, Inc.develops and provides a Software-as-a-Service solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities.The company offers investment accounting and reporting, performance measurement, compliance monitoring, and risk analytics solutions.


Its Clearwater Prism solution enables self-service access to data feeds from accounting, compliance, performance, and risk systems, including those offered by the company and other third-party software vendors, as well as provides flexible reporting to various users.The company was incorporated in 2021 and is headquartered in Boise, Idaho.

Show Full description

1.b. Last Insights on CWAN

Clearwater Analytics Holdings, Inc.'s recent performance was driven by strong Q3 2025 financial results, with quarterly revenue of $205.1 million, up 77% year-over-year. The company's integration of acquisitions, including Enfusion, has strengthened its SaaS platform and expanded its end-to-end investment management capabilities. A $100 million share repurchase program authorized by the Board of Directors has also been viewed positively. Robust cross-sell momentum and stabilizing Enfusion growth are notable factors, although NRR decline and organic ARR deceleration remain key risks.

1.c. Company Highlights

2. CWCN Delivers Exceptional Q3 2025 Results with 77% Revenue Growth

CWCN's financial performance in Q3 2025 was outstanding, with revenues reaching $205.1 million, representing a 77% year-over-year growth. The company's adjusted quarterly EBITDA of $70.7 million was also remarkable, with a 34.5% margin, exceeding expectations. The actual EPS came out at $0.14, slightly below estimates of $0.15. Gross margin performance hit 78.5%, in line with the company's 2027 targets. As Sandeep Sahai mentioned, "We delivered revenues of $205.1 million, a 77% year-on-year growth, and ARR reached $807.5 million, also up 77% year-over-year."

Publication Date: Nov -11

📋 Highlights
  • Revenue & ARR Surge: Q3 revenue hit $205.1M (+77% YoY), ARR reached $807.5M (+77% YoY), and full-year 2025 revenue guidance is $730–731M (+62% YoY).
  • Profitability Milestone: Adjusted EBITDA soared to $70.7M (34.5% margin), surpassing guidance by $5M, with gross margin flat at 78.5%.
  • Retention Excellence: 98% gross revenue retention (26/27 quarters ≥98%) and 108% net revenue retention, driven by upsells and cross-sells.
  • AI & TAM Expansion: Hosts 800 GenAI agents managing $10T in assets, with TAM growing to $23B and 40% YoY growth in alternative asset bookings (35% of total).

Revenue Growth and ARR

The company's ARR at the end of Q3 was a record $807.5 million, up 77% year-over-year. The revenue growth was driven by strong performance across various segments, including alternatives, risk, and insurance for Europe. The pipeline for alternatives and risk is also high, and the company expects a good Q4 for hedge funds after a slower Q1.

Gross Margin and EBITDA

CWCN's gross margin reached 78.5%, flat year-over-year and in line with the company's 2027 targets. Adjusted EBITDA was $70.7 million in the quarter, more than $5 million above the company's guidance. EBITDA margin expanded meaningfully to 34.5%, 140 basis points better than the Q3 2024 EBITDA margins.

Valuation Metrics

With a P/S Ratio of 8.73 and an EV/EBITDA of 157.18, the market is pricing in significant growth expectations for CWCN. The company's ROE is 36.15%, indicating strong profitability. Analysts estimate next year's revenue growth at 29.4%, which is lower than the current year's growth rate but still indicates a strong growth trajectory.

Growth Drivers

The company has identified four drivers of NRR growth: maintaining gross retention of 98%, price increases and commercial model alignment, cross-sell of incremental products, and upsell of existing products. The company achieved just under 3% net increase across the entirety of the business in price increases and commercial model alignment. The upsell trend was evident in the quarter, with a consolidated basis of just under 3% compared to the target of 5%.

3. NewsRoom

Card image cap

Advantage Alpha Capital Partners LP Purchases New Stake in Clearwater Analytics Holdings, Inc. $CWAN

Nov -28

Source: defenseworld.net

Card image cap

Clearwater Analytics Holdings, Inc. (NYSE:CWAN) Given Consensus Rating of “Moderate Buy” by Analysts

Nov -27

Source: defenseworld.net

Card image cap

AXQ Capital LP Purchases Shares of 13,963 Clearwater Analytics Holdings, Inc. $CWAN

Nov -25

Source: defenseworld.net

Card image cap

Artisan Global Discovery Fund: Q3 Delivers Strong Results Amid Trimming And Exits

Nov -20

Source: seekingalpha.com

Card image cap

Exclusive: Buyout firm Thoma Bravo has offered to buy Clearwater Analytics, sources say

Nov -17

Source: reuters.com

Card image cap

Warburg, Permira in talks to buy Clearwater Analytics, source says

Nov -15

Source: reuters.com

Card image cap

Clearwater Analytics: Core Business Needs Re-Acceleration To Make Equity Story Clearer

Nov -13

Source: seekingalpha.com

Card image cap

Why Clearwater Analytics Was Quite a Winner on Wednesday

Nov -12

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.07%)

6. Segments

Software as a Service

Expected Growth: 12.07%

Clearwater Analytics Holdings, Inc.'s Software as a Service (SaaS) growth of 12.07% is driven by increasing demand for cloud-based investment accounting and reporting solutions, expansion into new markets, and growing adoption among institutional investors, asset managers, and insurance companies seeking to streamline their investment operations and improve transparency.

7. Detailed Products

Investment Accounting and Reporting

Clearwater Analytics Holdings, Inc. provides investment accounting and reporting solutions that help investors and asset managers to accurately track and report their investments.

Portfolio Risk Analytics

Clearwater Analytics Holdings, Inc. offers portfolio risk analytics solutions that enable investors to assess and manage risk across their portfolios.

Compliance and Regulatory Reporting

Clearwater Analytics Holdings, Inc. provides compliance and regulatory reporting solutions that help investors and asset managers to meet regulatory requirements.

Data Management and Integration

Clearwater Analytics Holdings, Inc. offers data management and integration solutions that enable investors to integrate and manage large datasets.

Client Reporting and Transparency

Clearwater Analytics Holdings, Inc. provides client reporting and transparency solutions that enable investors to provide transparent and accurate reports to their clients.

8. Clearwater Analytics Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Clearwater Analytics Holdings, Inc. operates in a niche market with limited substitutes, but the threat of substitutes is still present due to the evolving nature of the financial technology industry.

Bargaining Power Of Customers

Clearwater Analytics Holdings, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's software solutions are often critical to its customers' operations, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

Clearwater Analytics Holdings, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's suppliers are primarily technology and service providers, which are readily available in the market.

Threat Of New Entrants

The threat of new entrants in the financial technology industry is low due to the high barriers to entry, including the need for significant investments in technology, talent, and regulatory compliance.

Intensity Of Rivalry

The intensity of rivalry in the financial technology industry is moderate, with several established players competing for market share. However, Clearwater Analytics Holdings, Inc. has a strong market position and a differentiated product offering, which helps to mitigate the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.46%
Debt Cost 3.95%
Equity Weight 86.54%
Equity Cost 6.41%
WACC 6.08%
Leverage 15.56%

11. Quality Control: Clearwater Analytics Holdings, Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AppFolio

A-Score: 5.1/10

Value: 0.6

Growth: 9.7

Quality: 8.8

Yield: 0.0

Momentum: 7.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Paylocity

A-Score: 4.9/10

Value: 2.0

Growth: 9.2

Quality: 7.8

Yield: 0.0

Momentum: 3.0

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Lyft

A-Score: 4.7/10

Value: 2.9

Growth: 7.7

Quality: 6.1

Yield: 0.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Duolingo

A-Score: 4.4/10

Value: 0.3

Growth: 9.9

Quality: 8.0

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

View Full Report
Stock-Card
Tyler Technologies

A-Score: 4.4/10

Value: 0.7

Growth: 7.2

Quality: 7.6

Yield: 0.0

Momentum: 2.5

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
Clearwater Analytics

A-Score: 4.1/10

Value: 2.4

Growth: 8.7

Quality: 6.5

Yield: 0.0

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.73$

Current Price

21.73$

Potential

-0.00%

Expected Cash-Flows