Enfusion's Q2 2025: Unpacking Contradictions in NRR, Growth, and AI Impact

Revenue and ARR Growth:
- Clearwater Analytics reported revenue of $181.9 million for Q2 2025, an increase of 70% year-over-year, surpassing expectations.
- ARR reached $783.5 million, up 83.4% year-on-year.
- This growth was driven by the strong performance of the core business and the integration of Enfusion, Beacon, and Bistro acquisitions, which contributed to ARR expansion.

Profitability and Margin Expansion:
- Adjusted EBITDA rose to $58.3 million, up 74.3% year-over-year, with a margin of 32.1%.
- Gross margin increased to 77.4%, exceeding expectations, primarily due to operational efficiencies and integrated architecture.

Acquisition Integration and Synergies:
- The integration of Enfusion and Beacon led to $20 million in cost synergies achieved in the first few days as an integrated company.
- This synergy was realized through integrated GTM teams and restructuring to better serve clients, enhancing operational efficiency.

Strategic Partnerships and Product Initiatives:
- Clearwater Analytics formed a strategic partnership with Bloomberg, providing a bidirectional integration that enhances the front-to-back solution for large asset managers.
- This partnership is expected to drive significant client interest and new deal opportunities.