Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 67

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands, except percentages)20252024$ Change% Change20252024$ Change% ChangeEquity-based compensation$4,398 $3,460 $938 27 %$12,480 $9,879 $2,601 26 %All other cost of revenue66,240 27,897 38,343 137 %155,504 79,547 75,957 95 %Total cost of revenue$70,638 $31,357 $39,281 125 %$167,984 $89,426 $78,558 88 %Percent of revenue34 %27 %33 %27 %

Cost of revenue changed as follows:

Change From 2024 to 2025 QTDChange From 2024 to 2025 YTD(in thousands)Increased depreciation and amortization$19,171 $34,818 Increased payroll and related costs12,728 28,249 Increased data costs3,822 7,994 Increased technology costs1,389 3,426 Increased equity-based compensation938 2,601 Increased facility costs910 1,255 Other items323 215 Total change$39,281 $78,558 

The increase in cost of revenue for the three and nine months ended September 30, 2025 was primarily 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,