📊 CWAN Key Takeaways
Is Clearwater Analytics Holdings, Inc. (CWAN) a Good Investment?
Clearwater Analytics demonstrates exceptional 61.9% YoY revenue growth with strong 65.8% gross margins, indicating robust market demand and operational efficiency. Despite current net losses, the company generates positive free cash flow ($11.2M), maintains healthy liquidity, and operates with conservative leverage, positioning it for potential profitability inflection as revenue scale drives operating leverage.
Clearwater Analytics shows exceptional top-line momentum, strong gross margins, and robust free cash flow generation, which points to a scalable software model with solid underlying demand. However, the business remains unprofitable at the operating and net income levels, and negative interest coverage alongside meaningful long-term debt weakens the quality of that growth. Fundamentals support continued monitoring, but not a clearly aggressive stance until durable earnings leverage is demonstrated.
Clearwater Analytics Holdings, Inc. Key Strengths (CWAN)
- Exceptional 61.9% YoY revenue growth demonstrates strong market demand and traction
- High gross margin of 65.8% shows strong pricing power and operational efficiency
- Positive free cash flow generation ($11.2M) with strong liquidity (2.26x current ratio)
- Conservative leverage (0.39x debt-to-equity) and excellent interest coverage (10.8x)
- Operating cash flow of $17.7M confirms underlying business viability despite net losses
- Revenue growth of 61.9% YoY indicates strong demand and expansion
- Gross margin of 67.3% and free cash flow margin of 22.5% suggest an attractive software business model
- Liquidity is solid with a 1.83x current and quick ratio, supporting near-term financial flexibility
CWAN Stock Risks: Clearwater Analytics Holdings, Inc. Investment Risks
- Currently unprofitable with -$2.8M net income; profitability inflection not yet achieved
- Thin operating margin of 4.1% leaves minimal buffer for operational headwinds or market slowdown
- Modest cash position ($81.5M) relative to debt burden ($806.4M long-term debt)
- Execution risk on margin expansion and profitability path as growth phase matures
- Heavy investment spending may continue if growth decelerates, pressuring cash generation
- Operating and net margins remain negative, showing profitability has not yet scaled with growth
- Interest coverage is deeply negative, indicating earnings are currently insufficient to support debt costs
- Long-term debt of $822.64M could pressure future flexibility if profit conversion remains weak
Key Metrics to Watch
- Operating margin expansion and timeline to net income profitability
- Free cash flow sustainability and margin as company achieves scale
- Revenue growth sustainability and operating leverage realization
- Cash position strengthening relative to debt obligations
- Operating margin progression toward sustained profitability
- Free cash flow conversion relative to revenue growth
Clearwater Analytics Holdings, Inc. (CWAN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.26x current ratio provides a solid financial cushion.
CWAN Profit Margin, ROE & Profitability Analysis
CWAN vs Technology Sector: How Clearwater Analytics Holdings, Inc. Compares
How Clearwater Analytics Holdings, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Clearwater Analytics Holdings, Inc. Stock Overvalued? CWAN Valuation Analysis 2026
Based on fundamental analysis, Clearwater Analytics Holdings, Inc. shows some fundamental concerns relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Clearwater Analytics Holdings, Inc. Balance Sheet: CWAN Debt, Cash & Liquidity
CWAN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Clearwater Analytics Holdings, Inc.'s revenue has grown significantly by 190% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.11 indicates the company is currently unprofitable.
CWAN Revenue Growth, EPS Growth & YoY Performance
CWAN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $126.9M | -$2.8M | $-0.01 |
| Q3 2025 | $115.8M | $3.6M | $0.02 |
| Q2 2025 | $106.8M | -$430.0K | $0.00 |
| Q1 2025 | $102.7M | $1.9M | $0.01 |
| Q3 2024 | $94.7M | -$1.9M | $-0.01 |
| Q2 2024 | $89.9M | -$430.0K | $0.00 |
| Q1 2024 | $84.6M | $1.9M | $0.01 |
| Q3 2023 | $76.6M | -$1.9M | $-0.01 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Clearwater Analytics Holdings, Inc. Dividends, Buybacks & Capital Allocation
CWAN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Clearwater Analytics Holdings, Inc. (CIK: 0001866368)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CWAN
What is the AI rating for CWAN?
Clearwater Analytics Holdings, Inc. (CWAN) has a Combined AI Grade of A from Claude (A) and ChatGPT (B) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CWAN's key strengths?
Claude: Exceptional 61.9% YoY revenue growth demonstrates strong market demand and traction. High gross margin of 65.8% shows strong pricing power and operational efficiency. ChatGPT: Revenue growth of 61.9% YoY indicates strong demand and expansion. Gross margin of 67.3% and free cash flow margin of 22.5% suggest an attractive software business model.
What are the risks of investing in CWAN?
Claude: Currently unprofitable with -$2.8M net income; profitability inflection not yet achieved. Thin operating margin of 4.1% leaves minimal buffer for operational headwinds or market slowdown. ChatGPT: Operating and net margins remain negative, showing profitability has not yet scaled with growth. Interest coverage is deeply negative, indicating earnings are currently insufficient to support debt costs.
What is CWAN's revenue and growth?
Clearwater Analytics Holdings, Inc. reported revenue of $221.2M.
Does CWAN pay dividends?
Clearwater Analytics Holdings, Inc. pays dividends, with $163.3M distributed to shareholders in the trailing twelve months.
Where can I find CWAN SEC filings?
Official SEC filings for Clearwater Analytics Holdings, Inc. (CIK: 0001866368) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CWAN's EPS?
Clearwater Analytics Holdings, Inc. has a diluted EPS of $-0.01.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is CWAN's fundamental grade?
Based on our AI fundamental analysis in June 2026, Clearwater Analytics Holdings, Inc. has a A grade with 74% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CWAN stock overvalued or undervalued?
Valuation metrics for CWAN: ROE of -0.1% (sector avg: 22%), net margin of -1.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is CWAN's AI grade for 2026?
Our dual AI analysis gives Clearwater Analytics Holdings, Inc. a combined A grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CWAN's free cash flow?
Clearwater Analytics Holdings, Inc.'s operating cash flow is $17.7M, with capital expenditures of $6.4M. FCF margin is 5.1%.
How does CWAN compare to other Technology stocks?
Vs Technology sector averages: Net margin -1.3% (avg: 18%), ROE -0.1% (avg: 22%), current ratio 2.26 (avg: 2.5).