Clearwater Analytics Reports 70% Revenue Growth to $181.9 Million in Q2 2025

Clearwater Analytics Holdings, Inc. reported significant financial results for the second quarter of 2025, with revenues reaching $181.9 million, a 70% increase from $106.8 million in the same period last year. For the first half of 2025, total revenue was $308.8 million, up 47% from $209.5 million in the first half of 2024. The growth was attributed to the onboarding of new clients and the contributions from recent acquisitions, particularly Enfusion and Beacon, which collectively added $51.3 million in revenue during the quarter. However, the company recorded a net loss of $24.2 million for the quarter, compared to a net income of $276,000 in the prior year, reflecting increased operating expenses and interest costs associated with its recent acquisitions.

The company's operating expenses surged to $133.1 million in the second quarter, up from $73.1 million a year earlier, driven by higher costs in research and development, sales and marketing, and general administrative functions. Notably, research and development expenses rose by 41% to $49.8 million, while sales and marketing expenses increased by 159% to $39.2 million, reflecting the company's investment in growth and client acquisition strategies. Interest expense also saw a dramatic rise to $13.5 million, up from $1.1 million, primarily due to new borrowings under the 2025 Credit Agreement.

Clearwater's customer base expanded significantly, with over 1,400 clients as of June 30, 2025, and the company reported a gross revenue retention rate of 98%, consistent with previous quarters. The net revenue retention rate was 110%, indicating strong growth from existing clients as they added more assets to the platform. The average assets on the Clearwater platform increased by 11% and 12% for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024.

Strategically, Clearwater completed the acquisitions of Enfusion and Beacon in April 2025, enhancing its capabilities in investment management and analytics. The company also acquired Bistro, a portfolio visualization software platform, in March 2025. These acquisitions are expected to accelerate Clearwater's vision of creating a unified, cloud-native platform for investment management, integrating front, middle, and back-office solutions. The company anticipates that these strategic moves will enhance its competitive position and drive future growth.

Looking ahead, Clearwater remains optimistic about its growth trajectory, supported by its expanding client base and the integration of new technologies from its acquisitions. The company plans to continue investing in its platform and expanding its international presence, particularly in Europe and Asia, leveraging the strengths of its recent acquisitions. Despite the current net losses, Clearwater's management believes that the investments made will yield long-term benefits and contribute to sustained revenue growth.