â Improved recurring organic revenue growth driven by portfolio transformation and AI-led innovation â
â Updates 2026 financial outlook following the divestiture of Life Sciences & Healthcare segment â
LONDON, Nov. 3, 2026 /PRNewswire/ -- 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.
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
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 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.
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 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.