Clear Secure to Report Q1 Earnings: What's in Store for the Stock?

Clear Secure YOU is set to report first-quarter 2025 results on May 8.

YOU expects first-quarter 2025 revenues between $207 million and $209 million. The Zacks Consensus Estimate for revenues is pegged at $208.17 million for the quarter, suggesting a 16.26% rise from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for Clear Secure’s first-quarter earnings is pegged at 30 cents per share, unchanged over the past 30 days. The estimate indicates year-over-year growth of 7.14%.

YOU beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average earnings surprise being 76.96%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

CLEAR Secure, Inc. Price and EPS Surprise

 

CLEAR Secure, Inc. price-eps-surprise | CLEAR Secure, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Note for YOU’s Q1 Results

Clear Secure’s first-quarter 2025 is expected to have benefited from the continued expansion of its TSA PreCheck enrollment services, which expanded to 91 locations by the end of 2024. This expansion enhanced its public-private partnership with the Transportation Security Administration and increased convenience for travelers nationwide. The broader footprint is likely to have positively contributed to member growth and revenue momentum in early 2025.

The launch of Clear1 and expanded integrations through partnerships like Okta OKTA are expected to have powered Clear Secure’s top-line performance in the quarter under review. The deepening of ties with Okta has also helped broaden YOU’s presence in the enterprise market. The strengthened alliance with Okta is expected to have facilitated Clear Secure's entry into sectors such as healthcare and financial services.

The implementation of NextGen Identity and EnVe pods is expected to have positively contributed to YOU’s first-quarter 2025 results by improving efficiency at checkpoints and enhancing the overall member experience, which enabled faster processing for 91% of users.

However, the seasonal slowdown in travel during January is expected to have posed headwinds for Clear Secure’s member growth and revenue expansion in the quarter under review.

Further, Clear Secure is expected to have faced challenges in improving gross dollar retention in the first quarter of 2025, as it began phasing out deep-discount programs that had previously pressured unit economics.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is the exact case here.

Clear Secure has an Earnings ESP of +7.86% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:

Affirm AFRM has an Earnings ESP of +63.27% and currently flaunts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

AFRM is set to report third-quarter fiscal 2025 results on May 8. The Zacks Consensus Estimate for the third-quarter bottom line is pegged at a loss of 8 cents per share. This indicates a narrower loss from the year-ago quarter's reported loss of 43 cents.

Baidu BIDU has an Earnings ESP of +8.67% and a Zacks Rank #2 at present.

BIDU is set to report first-quarter 2025 results on May 21. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.96 per share. The consensus estimate indicates a year-over-year decline of 28.99%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research