Clear Secure (YOU) Q1 2026 earnings summary

Executive summary

• Achieved record Q1 results with revenue of $253 million, 41 million members, $292 million in bookings, and $185.5 million in free cash flow, reflecting strong demand for secure identity solutions and robust growth in both CLEAR Travel and CLEAR1.

• Net income rose 46% to $56.4 million, with a net income margin of 22.3%, and Adjusted EBITDA increased 54% to $80.6 million, with margin expanding to 31.9%.

• CLEAR1 bookings grew approximately fivefold year-over-year, driven by multi-year enterprise and government contracts and expansion into new verticals.

• Enhanced customer experience through eGate rollout (over 50% network coverage), app adoption, and expansion of high-margin concierge services, now in 32 airports.

• Free cash flow more than doubled year-over-year, and total CLEAR members increased 31.3% to 41 million, with Active CLEAR+ members up 13% to 8.2 million.

Financial highlights

• Q1 revenue grew 19.7% year-over-year to $253 million; total bookings increased 40.8% to $291.7 million.

• Adjusted EBITDA margin reached 31.9%, up 7.2 percentage points year-over-year; adjusted EBITDA was $80.6 million.

• Net income was $56.4 million, with a margin of 22.3%; operating income was $62 million.

• Free cash flow was $185.5 million, more than doubling year-over-year.

• Ended quarter with $170.7 million in cash and $629.4 million in marketable securities.

Outlook and guidance

• Q2 2026 revenue expected at $268–$271 million and bookings at $280–$285 million, representing 22.8% and 26.7% growth at midpoint, respectively.

• Raised 2026 full-year free cash flow guidance to at least $465 million, up from $440 million, implying at least 35.5% year-over-year growth.

• Management expects continued growth in CLEAR+ members, B2B expansion, and margin improvement.

• Sufficient liquidity to fund operations, dividends, and share repurchases for at least the next 12 months.

• Quarterly dividend of $0.15 per share declared for Q2 2026.