Clarivate Accelerates ACV Growth, Proposes Life Sciences Unit Sale After $365M Free Cash Flow
Clarivate's Q4 revenue fell to $617.0 million from $663.0 million year-over-year, while full-year revenues dipped to $2,455.2 million. Organic ACV grew 1.8%, free cash flow reached $365.3 million, and the company launched a sale process for its Life Sciences & Healthcare unit.
1. Fourth Quarter and Full-Year Financial Results
Clarivate reported fourth quarter revenue of $617.0 million, down 6.9% year-over-year, with organic revenue declining 1.2% and adjusted EBITDA of $254.6 million. Full-year revenues totaled $2,455.2 million, down 4.0%, while organic ACV rose 1.8% and adjusted EBITDA reached $1,001.8 million.
2. Divestiture of Life Sciences & Healthcare Segment
The company has commenced active discussions to sell its Life Sciences & Healthcare unit, with Morgan Stanley & Co. LLC advising. Proceeds are expected to reduce leverage and refocus resources on Academia & Government and Intellectual Property markets, though no transaction is assured.
3. Cash Flow and Share Repurchases
Operating cash flow reached $628.5 million in 2025, generating $365.3 million of free cash flow. Clarivate returned approximately $225 million to shareholders through buybacks, repurchasing 56.0 million shares, including 21.2 million in the fourth quarter.
4. 2026 Outlook and Strategic Priorities
For 2026, the company forecasts growth in organic ACV and recurring revenue, with adjusted EBITDA projected to expand by 200 basis points and free cash flow rising about 10% to nearly $400 million. Management is prioritizing AI investments, disciplined execution and strategic capital allocation to sustain momentum.