Clearwater Analytics 2025 Q2 Earnings Revenue Surges 70% but Net Loss Widens

Clearwater Analytics reported second-quarter 2025 earnings that showed strong revenue growth but a significant net loss. The company announced revenue of $181.94 million, a 70.4% increase year-over-year, but also revealed a net loss of $24.15 million, a 8850.4% deterioration compared to the previous year's net income of $276,000. Despite these mixed results, the company's core business demonstrated resilience and momentum.

Revenue
Total revenue for Clearwater Analytics surged to $181.94 million in Q2 2025, representing a 70.4% year-over-year increase from $106.79 million in Q2 2024. This impressive growth was driven by the core Clearwater business, which generated $130.6 million in revenue—a 22% increase from the same period the previous year. The company's ability to maintain and expand its core operations while integrating recent acquisitions highlights its strategic execution.

Earnings/Net Income
The company's net income deteriorated significantly, with a net loss of $24.15 million in Q2 2025, compared to a net income of $276,000 in Q2 2024. The loss reflects a 8850.4% decline from the previous year's earnings. Meanwhile, the company's EPS remained stable at -$0.09, consistent with the previous year's figure. Despite the loss, Clearwater set a new record for fiscal Q2 net income, the highest in four years, which is a positive indicator for future performance.

Price Action
The stock price of Clearwater Analytics experienced a notable decline in the period following the earnings report. Shares dropped 6.52% during the latest trading day, 7.26% during the most recent full trading week, and 15.55% month-to-date. This downward trend raises concerns for investors and highlights the market's reaction to the company's earnings results.

Post Earnings Price Action Review
A strategy of buying Clearwater Analytics (CWAN) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days delivered moderate returns over the past three years. This strategy achieved a 51.73% return, slightly outperforming the benchmark at 49.40%. The strategy indicated a low-risk profile with a maximum drawdown of 0.00% and a Sharpe ratio of 0.39, although it had a relatively high volatility of 38.63%.

CEO Commentary
Sandeep Sahai, CEO of Clearwater Analytics, described Q2 as "very successful" with strong business and integration progress. He highlighted near-unanimous global client support, achieving a $20 million synergy target a year early, and a combined non-GAAP gross margin of 77.4%. The core business grew 22% with a platform gross margin exceeding 80%, surpassing long-term goals. Key wins included onboarding Germany’s largest public insurer and securing a major APAC mandate from a global bank, validating international expansion and platform strategy.

Guidance
Clearwater Analytics did not explicitly provide forward-looking financial guidance for future periods in the provided text.

Additional News
Clearwater Analytics announced a strategic partnership with Bloomberg, marking a milestone in its growth strategy and expanding its reach among the world’s largest investment firms. This bi-directional integration between Bloomberg AIM and Clearwater will eliminate manual workflows and deliver a seamless front-to-back experience. The collaboration reinforces Clearwater’s open, interoperable platform strategy—integrating with the systems clients prefer while providing scalable middle- and back-office capabilities, thus strengthening its competitive position.

The company also expanded its footprint within existing clients and added marquee clients, including Agile Investment Management, Arthrosi Therapeutics, and Axonic Insurance Services, among others. These developments underscore Clearwater's growing influence in the investment management sector. Furthermore, the company was recognized by CNBC and Statista, Inc. on CNBC’s list of the World’s Top Fintech Companies 2025 and received accolades for its innovative product and service in Hong Kong.