Identity verification company CLEAR Secure (NYSE: YOU) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue up 27.8% year on year to $292.9 million. Revenue guidance for next quarter was $300.5 million at the midpoint, 2% above analysts’ consensus estimates. Its GAAP profit of $0.52 per share was 3.5% above analysts’ consensus estimates.
For more on CLEAR Secure, read our free full research report.
CLEAR Secure (YOU) Q3 2026 highlights:
- Revenue $292.9 million vs S&P analysts’ consensus estimates of $286.7 million (27.8% year-on-year growth, 2.1% beat)
- EPS (GAAP) $0.52 vs analysts’ consensus estimates of $0.50 (3.5% beat)
- Adjusted EBITDA $103.9 million vs analysts’ consensus estimates of $98.71 million (35.5% margin, 5.2% beat)
- Revenue guidance $300.5 million at the midpoint for Q4 2026, above analysts’ consensus estimates of $294.6 million
- Operating margin 28.3%, up from 23% in the same quarter last year
- Free cash flow -$103.8 million, down from $189 million in the previous quarter
- Billings $323.5 million at quarter end, up 24.4% year on year
- Market capitalization $4.92 billion
"CLEAR's secure identity platform extends from homeland security to cybersecurity. With nearly 50 million Members and a network of partners, we are bringing safer and easier experiences to more people in more places. Our strong third quarter results show the value Members and partners see in CLEAR. Identity is security and in today's environment, that is more important than ever," said Caryn Seidman Becker, CLEAR's CEO.
Revenue growth
Reviewing a company’s long-term revenue performance reveals insights into its quality. Any business can deliver a good quarter or two, but the best consistently grow over the long haul. CLEAR Secure’s revenue grew at a strong 36.3% compounded annual growth rate over the last five years. Its growth surpassed the average software company and shows its offerings resonate with customers.
Long-term growth matters most, but within software, a half-decade historical view may miss recent innovations or disruptive industry trends. CLEAR Secure’s annualized revenue growth of 20.3% over the last two years is below its five-year trend, but the results still suggest healthy demand. 
This quarter, CLEAR Secure reported strong year-on-year revenue growth of 27.8%, and its $292.9 million in revenue topped Wall Street’s consensus estimates by 2.1%. Management is guiding for a 24.8% year-on-year increase in revenue next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 14.6% over the next 12 months, according to S&P, a deceleration versus the last two years. This underwhelming projection indicates its products and services will face some demand headwinds. Still, the company is tracking well on other measures of financial health.
Billings
Billings is a non-GAAP metric that is often called “cash revenue” because it shows how much money the company has collected from customers in a certain period. This is different from revenue, which must be recognized in pieces over the length of a contract.
CLEAR Secure’s billings totaled $323.5 million in Q3, and growth over the last four quarters was strong, averaging 24.4% year on year. This performance aligned with its total revenue growth, indicating healthy customer demand. The high level of cash collected from customers also supports liquidity and capacity for future investment and growth. 
Customer acquisition efficiency
The customer acquisition cost, or CAC, payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
CLEAR Secure is highly efficient at acquiring new customers, and its CAC payback period was 4.2 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give CLEAR Secure more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments.
Key takeaways from CLEAR Secure’s Q3 results
CLEAR Secure delivered a solid quarter, with revenue above Wall Street’s consensus estimates and revenue guidance for next quarter also topping analysts’ consensus expectations. Shares rose 4.6% to $49.97 immediately after the results.
CLEAR Secure may have had a good quarter, but an investment decision calls for a broader view. The latest results matter, but longer-term business quality and valuation matter more when deciding whether to invest in the stock. For more on CLEAR Secure, read our full research report here (it’s free).
