Company: CWAN
Filing Date: 2025-08-06
Form Type: 10-Q
Source: 0001866368-25-000018
Chunk: 138

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-08-06
Form: 10-Q
Item: Part I, Item 2
Chunk 138
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5 increased due to the valuation allowance release on most of our U.S. net deferred tax assets in the fourth quarter of 2024 as well as a decrease in year to date and forecasted pretax profit for the year. The decreased pretax profit is largely attributable to one time expenses related to the acquisitions of Enfusion and Beacon, amortization of intangibles from the acquisitions of Enfusion and Beacon, as well as increased interest expense from debt incurred to fund the acquisitions of Enfusion and Beacon.

Liquidity and Capital Resources

To date, we have primarily financed our operations through cash flows from operations and financing activities.

As of June 30, 2025, we had total cash, cash equivalents and investments of $71.9 million, including cash and cash equivalents of $68.4 million, and short-term investments of $3.5 million. Cash, cash equivalents and short-term investments primarily consist of highly-liquid investments in money market funds and certificates of deposit. 

We believe our existing cash and cash equivalents, together with cash expected to be generated from operations, borrowings available under our 2025 Revolving Facility, and our access to capital markets, will be sufficient to meet our operating working capital, capital expenditure and debt repayment requirements over the next 12 months. Our future financing requirements will depend on many factors, including our growth rate, revenue retention rates, the timing and extent of spending to support development of our platform and any future investments or acquisitions we may make. 

The following table shows our cash flows from operating activities, investing activities and financing activities for the stated periods:

Six Months EndedJune 30,20252024(in thousands)Net cash provided by operating activities$71,581 $53,963 Net cash used in investing activities(984,343)(53,729)Net cash provided by (used in) financing activities801,557 (31,653)Effect of exchange rate changes on cash and cash equivalents2,259 (251)Change in cash and cash equivalents during the period$(108,946)$(31,670)

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Cash Flows from Operating Activities

Net cash provided by operating activities of $71.6 million during the six months ended June 30, 2025 was primarily the result of our net loss adjusted by non-cash charges, including equity-based compensation, operating lease expense, depreciation and amortization, and cash flows resulting from decrease in changes in operating assets and liabilities of $7.5 million. This primarily includes a decrease in