Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 115

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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, except percentages)20252024$ Change% Change20252024$ Change% ChangeEquity-based compensation$7,097 $8,674 $(1,577)(18%)$24,588 $26,767 $(2,179)(8%)All other research and development44,968 27,944 17,024 61 %114,631 82,887 31,744 38 %Total research and development$52,065 $36,618 $15,447 42 %$139,219 $109,654 $29,565 27 %Percent of revenue25 %32 %27 %34 %

37

Research and development expenses changed as follows:

Change From 2024 to 2025 QTDChange From 2024 to 2025 YTD(in thousands)Increased payroll and related costs$11,939 $21,277 Increased technology cost2,167 5,451 Increased data costs1,226 1,351 Increased outside services and contractors costs969 1,621 Increased depreciation and amortization257 406 Decreased tax credits23 711 Decreased equity-based compensation(1,577)(2,179)Other items443 927 Total change$15,447 $29,565 

The increase in research and development expenses for the three and nine months ended September 30, 2025 was primarily due to increased payroll and related costs as a result of headcount growth from acquisitions, increases in merit-based compensation, changes in our employee base leading to higher compensation, partially offset by decreased equity-related payroll taxes for vested equity awards. In addition, research and development expenses increased due to increased technology costs from higher utilization of third-party cloud computing services and other third-party IT services, increased data costs for acquiring vendor data contracts, and increased outside services and contractors costs related to acquisitions. These increases were partially offset by decreased equity-based compensation due to the movement of certain key personnel from the research and development team to the sales and marketing team with a change in responsibilities. 

Sales and Marketing

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands, except percentages)20252024$ Change% Change20252024$ Change% ChangeEquity-based compensation$12,680 $3,905 $8,775 225 %$26,870 $10,418 $16,452 158