Clear Secure surges after beating Q4 estimates, raising guidance
Biometric identity verification platform expands free cash flow outlook by 28% as membership growth accelerates
Clear Secure delivered a robust fourth-quarter performance that exceeded analyst expectations and prompted a significant boost to its 2026 financial outlook, underscoring the growing demand for biometric identity verification across travel and enterprise sectors.
The company reported quarterly revenue of $240.8 million, marking a 16.7% increase year-over-year and beating the consensus estimate of $224.8 million by 7.1%. The strong performance was driven by accelerating bookings growth of 25.4% to $287.1 million, the strongest quarterly expansion since the fourth quarter of 2023.
Operating metrics showed meaningful margin expansion, with adjusted EBITDA reaching $79.9 million and margin expanding 870 basis points to 33.2%. Operating income climbed to $53.9 million, representing a 22.4% operating margin, while net income reached $46.5 million with a 19.3% net margin. Diluted earnings per share came in at $0.31 for the quarter.
"The momentum we are seeing across CLEAR Travel and CLEAR1, combined with rising demand for secure, high-fidelity identity, underscores that we are at an inflection point for both CLEAR and our industry," said Caryn Seidman-Becker, chief executive officer of Clear Secure. "With a robust balance sheet, expanding partnerships and a compelling innovation roadmap, we are entering 2026 from a position of strength."
The company's membership base continued its expansion, with total CLEAR members growing to 38.0 million, a 31.5% year-over-year increase. Active CLEAR+ members, who pay for the premium airport expedited service, reached 7.6 million, up 6.0% from the prior year. The growth reflects Clear's strategy of expanding beyond its core airport security business into healthcare, financial services, and other enterprise sectors through its CLEAR1 platform.
Building on the strong operational performance, Clear Secure raised its full-year 2026 free cash flow guidance to at least $440 million, representing a 28.2% increase from the prior year. The company also announced a significant enhancement to its capital allocation program, increasing the quarterly dividend by 20% to $0.15 per share and declaring a special dividend of $0.20 per share. Both dividends are payable on March 24, 2026, to shareholders of record as of March 10, 2026.
Additionally, the board authorized an additional $125 million for share repurchases, demonstrating management's confidence in the company's ability to generate excess cash while funding growth initiatives.
For the full year 2025, Clear Secure achieved revenue of $900.8 million, up 16.9% year-over-year, while total bookings increased 17.2% to $977.2 million. Diluted earnings per share for the year were $1.12.
The company's performance comes amid broader growth in the biometric identity verification market, which analysts project will reach approximately $11.56 billion by 2026, driven by increasing regulatory requirements, rising identity fraud, and advances in AI-powered biometrics. Clear competes against government programs like TSA PreCheck in the travel sector while expanding its CLEAR1 platform into healthcare, workforce identity management, and financial services.
Shares of Clear Secure, which trade on the New York Stock Exchange under the ticker YOU, have a 52-week range of $21.39 to $42.29. The company currently has a market capitalization of approximately $4.4 billion, with analysts maintaining a consensus rating of "Hold" and an average price target of $40.25 to $43.50, implying potential upside from current levels.
The company's forward guidance reflects confidence in sustained growth across both its consumer travel business and its expanding enterprise platform, positioning it to capitalize on what executives described as an industry inflection point for secure identity verification.