Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 111

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 8
Chunk 111
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Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA and Adjusted EBITDA Margin are supplemental performance measures that our management uses to assess our operating performance. We define Adjusted EBITDA as net income plus (i) interest expense, (ii) depreciation and amortization, (iii) equity-based compensation expense and related payroll taxes, (iv) tax receivable agreement expense, (v) transaction expenses, (vi) provision for (benefit from) income taxes, and (vii) other (income) expense, net. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue.

The following tables reconcile net income to Adjusted EBITDA and include amounts expressed as a percentage of revenue for the periods indicated.

Three Months Ended September 30,Nine Months Ended September 30,2025202420252024(in thousands, except percentages)(in thousands, except percentages)Net income (loss)$(10,514)(5%)$4,769 4%$(27,729)(5%)$7,280 2%Adjustments:Interest expense16,119 8%1,076 1%30,502 6%3,256 1%Depreciation and amortization29,300 14%3,239 3%56,052 11%8,730 3%Equity-based compensation expense and related payroll taxes34,330 17%26,907 23%100,735 20%80,540 25%Tax receivable agreement expense— —%5,344 5%— —%11,545 3%Transaction expenses(1)549 0%248 0%18,263 3%1,926 1 %Amortization of prepaid management fees and reimbursable expenses— —%608 0%10 0%1,780 0%Provision for (benefit from) income tax expense510 0%(486)0%(287)0%(505)0%Other (income) expense, net439 0%(3,365)(3%)(3,429)(1%)(10,560)(3%)Adjusted EBITDA$70,733 34%$38,340 33%$174,117 34%$103,992 32%Revenue$205,110 100%$115,828 100%$513,911 100%$325