Company: CWAN
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001628280-25-021833
Chunk: 50

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 1
Chunk 50
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 administrative expense for the three months ended March 31, 2025 was primarily due to increased outside services and contractors related to legal, consulting and accounting professional services supporting the Bistro, Enfusion and Beacon acquisitions, increased payroll and related costs due to headcount growth and increases in merit-based compensation, increased technology costs due to higher utilization of third-party IT services, and increased recruiting expense to support key hires, offset by decreased equity-based compensation expense due to reduction in new grants.    

Non-Operating Expenses

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeInterest income, net$(1,694)$(2,060)$366 (18 %)Tax receivable agreement expense— 286 (286)(100)%Other (income) expense, net$290 $(530)$820 (155)%

Interest income, net decreased in the three months ended March 31, 2025 due to sale of the investment portfolios.

The tax receivable agreement expense decreased in the three months ended March 31, 2025 due to the TRA Amendment. All obligations of the tax receivable agreement have been fully paid in accordance with the TRA Amendment and no further tax receivable agreement expense is expected in the future.

Other (income) expense, net relates to foreign exchange gains and losses driven by fluctuations in exchange rates, and gains and losses related to our investments.

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Provision for (Benefit from) Income Taxes

Three Months EndedMarch 31,(In thousands, except percentages)20252024$ Change% ChangeProvision for (benefit from) income taxes$1,550 $(98)$1,648 (1682)%

The provision for (benefit from) income taxes for the three months ended March 31, 2025 increased due to the valuation allowance release on most of our U.S. net deferred tax assets in the fourth quarter of 2024. The provision for income taxes in the current year includes taxes on our U.S. income whereas no taxes were provided for on our U.S. income in the prior year due to the valuation allowance.

Liquidity and Capital Resources

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

As of March 31, 2025, we had total cash, cash equivalents and investments of $282.9 million, including cash and cash equivalents of $275.2 million, and short-term investments of $7.7 million. Cash