LONDON – November 03, 2026 -- Clarivate Plc (NYSE: CLVT) closed the sale of its Life Sciences & Healthcare (LS&H) segment on October 6, 2026 for net cash proceeds of $488.4 million, and reported third-quarter organic revenue growth of 0.4% for continuing operations alongside a $80.8 million net loss driven by a goodwill impairment.
Organic ACV rises 1.8% as subscriptions replace transactional sales
Organic annual contract value (ACV) for continuing operations grew 1.8% against September 30, 2025. Organic subscription revenue increased 1.5%, helped by new sales and pricing actions, while organic re-occurring revenue rose 0.7% on higher IP volumes. Organic recurring revenue, the combination of both, grew 1.3%, or $5.7 million.
Subscription revenue reached $338.3 million, up $2.4 million, and re-occurring revenue was $105.8 million, up $0.5 million. Transactional revenue fell $51.6 million to $37.5 million, mainly because of product group wind-downs within Academia & Government (A&G). Organically, transactional revenue declined 12.4%, or $3.9 million, as customers migrated to higher-margin subscription products.
CEO Matti Shem Tov cited the return to positive ACV growth in the Intellectual Property segment and growing commercial traction from AI-led products in A&G and IP.
Continuing-operations revenue falls to $481.6 million on disposals
Excluding LS&H, now reported as discontinued operations, Q3 revenue was $481.6 million versus $530.3 million a year earlier, primarily due to inorganic disposals. Including LS&H, total revenue was $567.9 million versus $623.1 million.
For the first nine months, continuing-operations revenue was $1,472.4 million versus $1,546.7 million. Organic revenue rose 0.1%, as a 0.9% increase in organic recurring revenue was offset by lower transactional sales.
Impairment charge widens Q3 net loss to $80.8 million
Including LS&H, Q3 net loss was $80.8 million, or $0.13 per diluted share, against a loss of $28.3 million, or $0.04 per share, in the prior-year quarter. A $62.2 million non-cash LS&H goodwill impairment drove the result. Adjusted net income rose to $136.0 million, or $0.21 per share, from $119.3 million. Adjusted EBITDA slipped to $245.3 million from $252.4 million.
Nine-month net loss reached $389.6 million, or $0.61 per share, versus $204.2 million, after a $283.9 million LS&H goodwill impairment. Adjusted net income was $378.4 million, up from $338.4 million, while Adjusted EBITDA declined to $733.7 million from $747.2 million.
Debt falls $293.8 million to $4,176.1 million after repurchases
Total debt stood at $4,176.1 million at September 30, 2026. A $100.0 million accelerated repayment in January fully redeemed the senior secured notes due November 2026. Clarivate also retired $192.6 million of principal across its senior secured notes due 2028 and senior notes due 2029, repurchased at an approximate 5% discount to par.
Cash and cash equivalents were $257.0 million, down $72.2 million from December 31, 2025. Including discontinued operations, nine-month operating cash flow was $399.0 million versus $468.6 million, and free cash flow was $233.1 million versus $276.1 million.
Clarivate updates 2026 outlook to exclude LS&H
The company revised its full-year 2026 outlook to exclude discontinued operations and issued a Q4 2026 outlook tied to the LS&H completion. Both assume no further acquisitions, divestitures or unanticipated events. CFO Michael Easton said the focus is converting organic growth into earnings and free cash flow while maintaining disciplined capital allocation.