Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 141

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 141
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 due to increased depreciation and amortization of acquired intangible assets from acquisitions, 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, and increased equity-related payroll taxes for vested equity awards. In addition, cost of revenue increased due to higher data costs for acquiring vendor data contracts, increased technology costs from higher utilization of third-party cloud computing services and other third-party IT services, increased equity-based compensation due to grants of additional awards to employees, and increased allocation of facilities cost due to the acquisition of additional office space.

Operating Expenses

Research and Development

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands, 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