Clearwater Analytics Holdings, Inc.CWAN
NYSE•Technology•Software - Application
Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services in the United States and internationally. It offers portfolio management, order and execution management systems (OEMS), investment accounting, reconciliation, regulatory reporting, performance measurement, compliance monitoring, and risk analytics. The company offers a single instance, multi-tenant technology platform that automates data aggregation, reconciliation, validation, and trade management. It serves insurers, asset managers, hedge funds, banks, corporations, and government entities. The company was founded in 2004 and is headquartered in Boise, Idaho.
Clearwater Analytics Holdings, (CWAN) reported trailing twelve months revenue of $825.73M as of March 2026, a 73.5% increase year-over-year. Quarterly revenue reached $221.23M, reflecting continued top-line momentum.
Clearwater Analytics Holdings, reported a TTM net loss of $48.09M, with quarterly EBITDA of $38.55M. The operating margin contracted from 5.6% to 4.1%, suggesting rising cost pressures or pricing headwinds.
The spread between operating margin (4.1%) and net margin (-1.3%) indicates moderate non-operating costs. Net margin has narrowed from 5.1% a year ago, reflecting increased costs or interest expense.
CWAN trades at a P/S of 8.7x. The price-to-book ratio of 3.5x reflects a moderate premium to book value.
The company generated $11.23M in free cash flow over the trailing twelve months, a 51.2% decrease year-over-year, indicating strong cash generation ability. The balance sheet shows $3.03B in total assets with $798.40M in long-term debt against $2.05B in stockholders equity for a debt-to-equity ratio of 0.4, a conservative capital structure. Data based on the most recent quarterly reports.
Competitive analysis based on 19 quarters of fundamental data
Operating margins are under pressure, averaging 1.6%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~104.8% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 19 quarters
Operating margins dropped 123.4% over recent quarters — a sharp decline suggesting serious cost or pricing challenges.
FCF consistently trails net income (avg -12.1x) — earnings may be inflated by non-cash items or aggressive accounting.
Debt-to-equity has risen 806.8% recently — increasing financial risk even if the current ratio is manageable.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Shares outstanding increased 35.1% — significant dilution, likely from stock compensation or capital raises.