Clear Secure Posts Strong Growth, But Membership Lags
Mar 3, 2025
Clear Secure, the biometric ID platform that speeds up airport check-in, reported its fiscal year results. Revenue grew 25.6%, with bookings up 17%, while free cash flow rose 37% and margins expanded to nearly 37%. The company remains a strong financial performer, raising its quarterly dividend and declaring a special dividend, bringing its forward total yield to 3.25%. However, underlying metrics remain weak—Clear PLUS (paying) members grew just 9% in 2024, well below past years, and usage declined 13%, with price increases masking some of the softness. I still like Clear Secure, but after revisiting my modeling assumptions, a fair value reduction is warranted. The new target price is $41. The stock still appears attractive at current levels.
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