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.
as of March 2026
Are revenues and earnings expanding?
$825.73M in TTM revenue grew 73.5% YoY, reaching $221.23M last quarter. TTM EBITDA of $159.08M on operating income of $8.99M shows growth is flowing through. However, net income is negative at $48.09M — growth is not yet reaching the bottom line. Revenue is growing at a healthy pace — a signal to hold.
Is revenue turning into profit effectively?
Op. margin of 4.1% is down 1.5% YoY — costs are rising relative to revenue. Net margin at -1.3% and gross margin of 65.8%. Negative ROE of -2.3% indicates shareholder value is being eroded.
Is the stock cheap or expensive?
P/S of 8.7x and P/B of 3.5x.
Is the company financially stable?
With $3.03B in assets and $798.40M in long-term debt, the D/E of 0.4 shows a conservative capital structure — the company has a strong financial cushion to weather downturns.
Is the business self-funding?
FCF of $11.23M on $17.68M in operating cash flow. The FCF / Net Income ratio of -0.2x shows cash consumption — the business is not yet self-funding. Cash reserves of $81.51M provide financial flexibility. Shares outstanding rose 24.3% YoY — shareholder dilution is eroding per-share value.
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.
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.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation
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.