The LSH divestiture simplifies the business to two segments (AG and IP) and provides $488.4M in net proceeds for debt reduction, targeting net leverage of ~3.5-3.6x by year-end. Monitor Q4 2026 results for organic ACV growth acceleration toward the ~2% target and free cash flow conversion, as well as any updates on the IPOne early adopter launch and Web of Science Research Intelligence pipeline conversion.
Price Chart
Executive Summary
Clarivate reported Q3 2026 continuing operations revenue of $481.6M (down 9.2% YoY from $530.3M, primarily due to disposals) and adjusted diluted EPS of $0.21, beating the $0.18 consensus. Organic revenue grew 0.4%, with recurring organic revenue up 1.3% and organic ACV growth of 1.8%. The company completed the sale of the Life Sciences & Healthcare segment on October 6 for $488.4M net cash proceeds and updated its FY2026 guidance to reflect the divestiture, narrowing the revenue range to $1.965B-$1.985B and adjusted EBITDA to $865M-$885M for continuing operations.
Key Financial Metrics
Key Facts
- Q3 2026 continuing operations revenue: $481.6M, down 9.2% YoY from $530.3M, driven by inorganic disposals (primarily the wind-down of the A&G books business).
- Organic revenue for continuing operations grew 0.4% YoY, with organic subscription growth of 1.5% and organic re-occurring growth of 0.7%, partially offset by a 12.4% organic decline in transactional revenue.
- Organic ACV for continuing operations grew 1.8% YoY.
- Adjusted diluted EPS (including discontinued ops) was $0.21, up from $0.18 in Q3 2025 and above the consensus estimate of $0.18.
- Net loss including discontinued operations was $80.8M, or $0.13 per diluted share, driven by a $62.2M non-cash LSH goodwill impairment charge.
- Adjusted EBITDA including discontinued operations was $245.3M, down 2.8% from $252.4M in Q3 2025.
- Free cash flow including discontinued operations was $110.2M in Q3 2026, compared to $115.5M in Q3 2025.
- On October 6, 2026, the company completed the sale of the Life Sciences & Healthcare segment for net cash proceeds of $488.4M.
- FY2026 guidance updated for continuing operations: revenue $1.965B-$1.985B, adjusted EBITDA $865M-$885M, adjusted diluted EPS $0.73-$0.77, free cash flow $320M-$340M.
- Total debt outstanding was $4,176.1M as of September 30, 2026, a decrease of $293.8M from the prior year.
- The company plans to use net proceeds from the LSH divestiture and Q4 free cash flow to retire an additional ~$575-600M of the 2028 and 2029 notes.
Financial Impact
Q3 continuing ops revenue $481.6M, adjusted EBITDA $218.2M (45.3% margin), adjusted diluted EPS $0.21. FY2026 guidance: revenue $1.965B-$1.985B, adjusted EBITDA $865M-$885M, adjusted diluted EPS $0.73-$0.77.
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Academia & Government | $286.9M | -13.7% |
| Intellectual Property | $194.7M | -1.6% |
Risk Factors
- Organic revenue growth remains low (0.4% in Q3) and transactional revenue continues to decline (organic -12.4%), indicating ongoing headwinds from product wind-downs and customer migration to subscription models.
- Net loss widened to $80.8M in Q3 2026 from $28.3M in Q3 2025, driven by goodwill impairment charges related to the LSH divestiture.
- Free cash flow for the first nine months of 2026 declined to $233.1M from $276.1M in the prior year period, impacted by working capital and higher taxes.
- High debt load of $4.18B with net leverage around 4x, though deleveraging is underway with the LSH sale proceeds.
- The company's guidance assumes no further acquisitions, divestitures, or unanticipated events, leaving limited flexibility for strategic moves.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001764046-26-000125 |
| Exhibit: ex992q32026earningsprese.htm | 0001764046-26-000125 |
| Document: clvt-20261103.htm | 0001764046-26-000125 |
| Document: 0001764046-26-000125-index-headers.html | 0001764046-26-000125 |
| Document: 0001764046-26-000125-index.html | 0001764046-26-000125 |
| Document: 0001764046-26-000125.txt | 0001764046-26-000125 |
| 8-K Data (Synthetic) | 0001764046-26-000125 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 4, 2026 today | 8-K | $1.62 | awaiting T+60 | awaiting T+60 | $2.33 (+43.52%) |
Nov 3, 2026 today | 144 | $2.08 | awaiting T+60 | awaiting T+60 | $2.33 (+11.61%) |
Nov 3, 2026 1d ago | 8-K | No price | awaiting T+60 | awaiting T+60 | No price |
Nov 3, 2026 1d ago | Press Release | $1.67 | awaiting T+60 | awaiting T+60 | $2.33 (+39.22%) |
Oct 13, 2026 21d ago | 8-K/A | $1.61 | awaiting T+60 | awaiting T+60 | $2.33 (+44.41%) |
Oct 6, 2026 28d ago | 8-K | $1.47 | awaiting T+60 | awaiting T+60 | $2.33 (+58.16%) |
Sep 24, 2026 5w ago | 8-K | $1.84 | awaiting T+60 | awaiting T+60 | $2.33 (+26.36%) |
Sep 22, 2026 6w ago | Press Release | $1.89 | awaiting T+60 | awaiting T+60 | $2.33 (+23.02%) |
Sep 17, 2026 6w ago | Press Release | $1.90 | awaiting T+60 | awaiting T+60 | $2.33 (+22.37%) |
Aug 10, 2026 12w ago | Insider Cluster | $1.91 | awaiting T+60 | awaiting T+60 | $2.33 (+21.73%) |
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