Company: CWAN
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001866368-25-000031
Chunk: 144

Company: Clearwater Analytics Holdings, Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Part I, Item 2
Chunk 144
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% Change20252024$ Change% ChangeInterest expense$16,119 $1,076 $15,043 1,398%$30,502 $3,256 $27,246 837%Tax receivable agreement expense$— $5,344 $(5,344)(100%)$— $11,545 $(11,545)(100%)Other (income) expense, net$439 $(3,365)$(3,804)(113%)$(3,429)$(10,560)$(7,131)(68%)

Interest expense increased in the three and nine months ended September 30, 2025 mainly due to the newly obtained borrowings under the 2025 Credit Agreement with an average aggregate principal outstanding balance of $891.9 million and $911.7 million, and the weighted average interest rate is 6.46% and 6.49% in the three and nine months ended September 30, 2025, respectively.

There was no tax receivable agreement expense in the three and nine months ended September 30, 2025 as all obligations of the tax receivable agreement have been fully paid in accordance with the TRA Amendment in 2024 and no further tax receivable agreement expense is expected in the future.

Other (income) expense, net primarily relates to interest income which has reduced significantly due to utilization of surplus funds for acquisitions, foreign exchange gains and losses which is driven by fluctuations in exchange rates, and gains and losses related to our investments.

Provision for (Benefit from) Income Taxes

Three Months EndedSeptember 30,Nine Months EndedSeptember 30,(In thousands, except percentages)20252024$ Change% Change20252024$ Change% ChangeProvision for (benefit from) income taxes$510 $(486)$996 (205%)$(287)$(505)$218 43%

The provision for (benefit from) income taxes for the three months ended September 30, 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 (benefit from) income taxes in the current year includes taxes on our U.S. income (losses) whereas no taxes were provided for on our U.S. income in the prior year due to the valuation allowance. The benefit from income taxes for the nine months ended September 30, 2025 decreased due to the valuation allowance