Clear Secure, Inc. (YOU) - Q2 2026 10-Q Summary
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. Clear Secure, Inc. operates the CLEAR secure identity network, primarily offering the CLEAR+ consumer travel subscription service at 62 U.S. airports and the CLEAR1 B2B identity verification solution. The company operates as a single segment and is structured as a holding company with a controlling interest in Alclear Holdings, LLC.
Key Financial Metrics
| Metric | Q2 2026 (3 Months) | Q2 2025 (3 Months) | YTD 2026 (6 Months) | YTD 2025 (6 Months) |
|---|---|---|---|---|
| Revenue | $277.8 million | $219.5 million | $530.8 million | $430.8 million |
| Operating Income | $83.0 million | $42.6 million | $145.0 million | $80.0 million |
| Net Income (GAAP) | $72.3 million | $37.9 million | $128.7 million | $76.5 million |
| Net Income Attributable to Clear Secure | $50.1 million | $24.7 million | $88.8 million | $50.1 million |
| Diluted EPS (Class A) | $0.49 | $0.26 | $0.87 | $0.52 |
| Operating Cash Flow (YTD) | $391.5 million | |||
| Free Cash Flow (YTD) | $374.5 million | |||
| Cash & Marketable Securities | $959.3 million (as of June 30, 2026) | |||
| Debt | None outstanding; $17.7 million remaining capacity on credit facility |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 27% year-over-year in Q2 and 23% year-over-year for the six months ended June 30, 2026. Growth was driven by a 15% increase in Active CLEAR+ Members and price increases.
- Profitability Expansion: Operating income surged 95% in Q2 and 81% YTD. Net income attributable to Clear Secure, Inc. more than doubled in Q2 (up 102%) and increased 77% YTD.
- Expense Management: Cost of revenue share fees increased 26% in Q2, tracking with membership growth. General and administrative expenses rose 13% in Q2, primarily due to higher equity compensation and credit card fees.
- Non-GAAP Performance: Adjusted EBITDA margin improved to 36.4% in Q2 2026 from 27.4% in Q2 2025.
Guidance, Outlook, and Risks
- Capital Allocation: The company declared a quarterly dividend of $0.15 per share (payable September 2026) and a special dividend of $0.20 per share in March 2026. As of June 30, 2026, $250.3 million remained available under the share repurchase program.
- Debt Facility: In June 2026, the company amended its credit agreement to reduce commitments from $100 million to $50 million and extend the maturity to June 2031. No borrowings were outstanding.
- Tax Receivable Agreement (TRA): The company recorded a TRA liability of $256.7 million. Payments under the TRA are expected to be significant as non-controlling interest holders exchange units for common stock.
- Risks: Key risks include TSA policy changes affecting lane access, macroeconomic impacts on travel, and the ability to retain members. The company noted no material changes to risk factors from the 2025 10-K.
Investor Verification Checklist
- Member Growth Quality: Verify the sustainability of the 15% increase in Active CLEAR+ Members and the impact of price increases on churn rates.
- Tra Liability Impact: Assess the cash flow impact of the $256.7 million TRA liability and future payment obligations as unit exchanges continue.
- Revenue Share Costs: Monitor the ratio of revenue share fees to total revenue to ensure margin expansion is not solely driven by pricing but also by operational efficiency.
- Subsequent Events: Note the automatic conversion of Class B and Class D stock to Class A and Class C on July 2, 2026, and the subsequent share repurchases in Q3 2026 ($22.4 million).