Clearwater Analytics Holdings, Inc.
- Open
- 24.56
- Day high
- 24.56
- Day low
- 24.56
- Prev close
- 24.56
- Volume
- 0
- Mkt cap
- $7.3B
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 3.6
- P/S
- 8.8
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$16.6M over the last 3 months (0 open-market buys, 8 sales)
- 🏛Institutions mixed (13F)
Clearwater Analytics Holdings, Inc. (CWAN) is a Technology company listed on NYSE. The stock is up 12% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 8 sales (SEC Form 4).
Clearwater Analytics Holdings, Inc. (CWAN) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CWAN earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 7, 2026 | $0.16 | $0.16 | +0.0% | $221M | +3.3% |
| Feb 18, 2026 | $0.15 | $-0.04 | -127.2% | $217M | +0.3% |
| Nov 5, 2025 | $0.15 | $0.14 | -6.7% | $205M | -5.4% |
| Apr 30, 2025 | $0.12 | $0.13 | +8.3% | $127M | +1.4% |
| Feb 19, 2025 | $0.11 | $0.13 | +18.2% | $126M | +1.1% |
| Jul 31, 2024 | $0.10 | $0.10 | +0.0% | $107M | -5.9% |
| May 1, 2024 | $0.09 | $0.10 | +11.1% | $103M | -2.7% |
| Feb 28, 2024 | $0.08 | $0.10 | +25.0% | $99M | -1.5% |
| Nov 1, 2023 | $0.08 | $0.09 | +12.5% | $95M | +3.0% |
| Aug 2, 2023 | $0.07 | $0.08 | +14.3% | $90M | -2.2% |
| May 4, 2023 | $0.06 | $0.07 | +16.7% | $85M | -3.3% |
| Feb 21, 2023 | $0.07 | $0.07 | +0.0% | $83M | -0.8% |
CWAN insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 25, 2026 | Sahai Sandeepdirector, officer: See Remarks | Grant | 258,024 | — |
| Jun 25, 2026 | Sahai Sandeepdirector, officer: See Remarks | Grant | 73,559 | — |
| Jun 25, 2026 | Erickson Scott Stanleyofficer: Chief Revenue Officer | Grant | 60,500 | — |
| Jun 25, 2026 | Cox James Sofficer: Chief Financial Officer | Grant | 18,333 | — |
| Jun 25, 2026 | Sethi Subiofficer: Chief Operating Officer | Grant | 45,833 | — |
| Jun 25, 2026 | Sethi Subiofficer: Chief Operating Officer | Grant | 91,665 | — |
| Jun 25, 2026 | Hooper Christopherdirector | Option | 136,573 | $24.55 |
| Jun 25, 2026 | Das Souvikofficer: Chief Technology Officer | Grant | 27,500 | — |
| Jun 25, 2026 | Das Souvikofficer: Chief Technology Officer | Grant | 60,500 | — |
| Jun 25, 2026 | Lee Eric J.director | Option | 220,137 | $24.55 |
| Jun 25, 2026 | Cox James Sofficer: Chief Financial Officer | Grant | 91,665 | — |
| Jun 25, 2026 | Erickson Scott Stanleyofficer: Chief Revenue Officer | Grant | 18,333 | — |
| Jun 17, 2026 | MACKESY D SCOTTdirector | Sell | 633,879 | $24.30 |
| Jun 9, 2026 | Das Souvikofficer: Chief Technology Officer | Sell | 10,000 | $24.35 |
| May 11, 2026 | Das Souvikofficer: Chief Technology Officer | Sell | 10,000 | $24.34 |
Source: CWAN SEC Form 4 filings, latest Jun 25, 2026. For informational purposes only — not investment advice.
See the full CWAN insider & 13F page →Clearwater Analytics Holdings, Inc. company profile
Overview
Clearwater Analytics Holdings, Inc. (NASDAQ:CWAN) is a cloud-based investment data management and reporting company founded in 2004 and headquartered in Boise, Idaho. The company went public in September 2021 and has established itself as a leading provider of Software-as-a-Service (SaaS) solutions for investment accounting, reporting, and analytics. Clearwater serves over 1,400 clients globally, including insurance companies, asset managers, corporations, institutional investors, and government entities, processing approximately $6.4 trillion in assets daily through its platform.
Business
Clearwater Analytics operates in the investment technology sector, providing comprehensive data management solutions for institutional investors who need to track, reconcile, and report on complex investment portfolios. The company's core offering is Clearwater PRISM, a cloud-native platform that automates the traditionally manual and error-prone processes of investment data aggregation, reconciliation, accounting, and reporting. The investment management industry faces significant challenges in data management due to the complexity of modern portfolios, which often include thousands of securities across multiple asset classes, currencies, and jurisdictions. Traditional approaches rely on spreadsheets, legacy systems, and manual processes that are time-consuming, error-prone, and difficult to scale. Clearwater's platform addresses these pain points by providing a single source of truth for investment data, automatically reconciling discrepancies between different data sources, and generating regulatory and management reports. The company's platform encompasses several key functional areas: 1. Investment Accounting and Reporting (approximately 60% of revenue): Automated daily reconciliation of investment positions, valuations, and transactions across multiple custodians and data sources, with comprehensive financial reporting capabilities. 2. Performance Measurement and Analytics (approximately 25% of revenue): Tools for measuring investment returns, risk metrics, and portfolio analytics, including attribution analysis and benchmark comparisons. 3. Compliance Monitoring and Risk Management (approximately 15% of revenue): Automated monitoring of investment guidelines, regulatory requirements, and risk limits, with real-time alerts and exception reporting. The company serves three primary market segments: Insurance companies (52% of ARR), which require sophisticated regulatory reporting and solvency calculations; Asset Management firms (33% of ARR), which need performance measurement and client reporting capabilities; and Corporates, Government entities, and other institutional investors (15% of ARR), which require treasury management and fiduciary reporting functions.
Revenue model
Clearwater operates a subscription-based SaaS business model with multiple revenue streams. The primary revenue driver is recurring subscription fees based on assets under management (AUM), with clients typically paying between 1-3 basis points annually depending on asset class complexity and service level. The company has evolved its pricing model to include both AUM-based fees and fixed base fees to provide more predictable revenue streams. The company generates revenue through several mechanisms: Base subscription fees provide stable recurring revenue regardless of market fluctuations, while AUM-based fees create natural growth as client portfolios expand. Additional revenue comes from implementation fees for new clients, premium services for complex asset classes like alternatives and private equity, and cross-selling of complementary modules such as performance analytics and risk management tools. Clearwater's paying customers are primarily institutional investors with substantial investment portfolios, including insurance companies managing policyholder reserves, asset management firms overseeing client portfolios, corporate treasury departments, pension funds, endowments, and government investment entities. The company's land-and-expand strategy focuses on initially solving core accounting and reporting needs, then expanding to additional use cases and asset classes over time. Several factors influence the company's margins and profitability. Positive margin drivers include the highly scalable nature of cloud-based software, where additional clients can be served with minimal incremental costs, the sticky nature of mission-critical investment infrastructure that creates high switching costs, and the company's ability to charge premium pricing for specialized capabilities in complex asset classes. The recurring nature of the business provides predictable cash flows and high gross margins, currently around 78-79%. Margin pressures come from significant ongoing R&D investment requirements to stay competitive in the rapidly evolving fintech landscape, the need for continuous platform upgrades and new product development, customer acquisition costs in a competitive market, and potential pricing pressure from larger competitors. Interest rate fluctuations can also impact AUM-based revenue, as rising rates may reduce asset valuations and therefore fee income.
Competitive moat
Clearwater Analytics possesses a moderate but growing competitive moat built primarily around switching costs and network effects. The company's platform becomes deeply embedded in clients' daily operations, handling mission-critical functions like regulatory reporting, compliance monitoring, and financial statement preparation. Switching to a competitor would require significant time, cost, and operational risk, as clients would need to migrate years of historical data, retrain staff, and potentially redesign workflows. The company's data network effects create additional defensive value, as Clearwater's platform becomes more valuable as it processes more transactions and connects to more data sources. The company maintains relationships with hundreds of custodians, pricing vendors, and other data providers, creating a comprehensive ecosystem that would be difficult for competitors to replicate. This data aggregation capability represents a significant barrier to entry for new competitors. However, Clearwater's moat faces several challenges. The company operates in a competitive landscape with well-funded rivals including SS&C Technologies, SimCorp (now part of Deutsche Börse), and Bloomberg, which have deeper pockets and broader product suites. Large financial services technology vendors could potentially develop competing solutions or acquire smaller players to enter the market. The regulatory environment also creates both opportunities and risks. While complex regulatory requirements increase demand for Clearwater's services, they also create standardization that could commoditize certain functions over time. Additionally, the company's relatively recent public company status (2021 IPO) means it lacks the long-term track record and financial resources of more established competitors. The company is working to strengthen its moat through strategic acquisitions like Enfusion, Beacon, and Bistro, which expand its capabilities across the investment management value chain and create a more comprehensive platform that would be harder for clients to replace. The development of AI-powered features and the expansion into new geographic markets also represent efforts to deepen competitive advantages.
Risks & safety
Clearwater Analytics presents a moderate margin of safety with strong financial fundamentals but elevated valuation metrics that warrant caution. Liquidity and Solvency: • Strong cash position of $275 million with minimal debt ($73 million total debt) • Excellent current ratio of 5.1x indicating strong short-term liquidity • Positive free cash flow of $23 million in Q1 2025, though volatile quarter-to-quarter • Low debt-to-equity ratio of 6.2% suggests minimal solvency risk Valuation Concerns: • Extremely high EV/EBITDA ratio of 217x based on Q1 2025 metrics • Price-to-book ratio of 5.7x indicates premium valuation • Revenue multiple appears stretched relative to growth rates • Recent acquisitions may have inflated asset base and complicated metrics Other Considerations: • Recurring revenue model provides predictable cash flows • Strong gross margins (78.9%) indicate pricing power • Net revenue retention of 116% demonstrates client expansion • However, integration risks from recent acquisitions and competitive pressures in fintech sector create execution uncertainty
Recent development
Over the past few years, Clearwater Analytics has pursued an aggressive growth strategy centered on strategic acquisitions and product expansion. The most significant development was the acquisition of Enfusion in late 2024, a front-office investment management platform serving hedge funds and alternative asset managers. This $1.8 billion deal represents Clearwater's ambition to create the industry's first fully integrated, cloud-native investment platform spanning front, middle, and back-office functions. The company has also acquired Beacon Platform and Bistro Technologies to expand its capabilities in alternative investments and data visualization. These acquisitions are part of a three-phase integration strategy: maximizing standalone business performance, implementing cross-sell opportunities, and ultimately developing a unified platform with a single security master and data plane. On the product development front, Clearwater has heavily invested in generative AI capabilities, developing proprietary tools like the Helios reconciliation system and AI-powered client servicing features. The company has also expanded its international presence, opening offices in Hong Kong and strengthening its European operations, particularly in France and Germany. The company has evolved its commercial model to reduce AUM-based revenue volatility by introducing more fixed-fee components alongside usage-based pricing. This "base-plus" model provides more predictable revenue streams while still capturing upside from client growth. Additionally, Clearwater has accelerated its new product development, with 60% of R&D capacity focused on innovation across alternatives, risk management, and front-office solutions. Recent partnerships include collaborations with Snowflake for data analytics and various custodians and data providers to expand the platform's connectivity. The company has also made significant infrastructure investments, completing its migration to public cloud and developing open architecture capabilities to integrate with third-party systems.
CWAN company profile · for informational purposes only — not investment advice.
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