CWAN logo

Clearwater Analytics Holdings Inc

CWAN

Build a strategy around CWAN

Accountable AI Logo

Clearwater Analytics Holdings Inc AI Insights

Informational only. Not investment advice.
As of 2026-01-21

Snapshot

  • Goodwill of 1.3B is 64% of equity and 3,900x tangible book (324K) - acquisition-heavy model with material impairment risk[Goodwill]
  • Net income TTM 392.5M on pretax loss of -64.9M signals one-time tax benefit distorting profitability; operating income near zero (275K)[Net Income TTM]
  • 5Y revenue CAGR 30.9% vs industry median 9.4% - 3.3x faster growth with 68.5% gross margin[Total Revenue 5yr Growth]

Watch Triggers

  • Operating Margin TTM: Sustained above 5%Validates operating leverage thesis; current 0.04% masks true unit economics
  • Goodwill: Impairment charge announced1.3B goodwill (64% of equity) from acquisitions; write-down would expose thin equity base
  • Free Cash Flow TTM: Falls below 50MFCF is only positive metric supporting valuation; decline signals model stress

Bull Case

FCF margin 12.8% (81.8M) despite minimal operating profit shows cash-generative SaaS model; 91.4M operating cash flow funds growth without dilution

Free Cash Flow TTMCash Flow TTM

31% 5Y revenue CAGR at 640M scale with 68.5% gross margin positions for operating leverage as growth investments moderate

Total Revenue 5yr GrowthGross Margin TTM

Bear Case

P/S 10.9x vs industry median 2.6x and P/E 15.6x built on non-recurring tax benefit; normalized earnings likely negative given -64.9M pretax

PS RatioPretax Income TTM

Total debt 882.9M at 0.45x D/E with 16.1M interest expense consumes 18% of EBITDA (64.2M); goodwill 1.3B creates write-down overhang

Total DebtGoodwill

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
40%

Leverage CWAN's top insights and create a custom strategy based on them in seconds. Our AI editor does it all — in one click.

Take Me to The Editor

Forward Thesis

Operating leverage inflection likely as R&D (28% of revenue) scales against 31% revenue growth

1-3ymed
  • R&D 180M TTM is 28% of revenue vs industry median ~45M
  • Gross margin 68.5% provides cushion for OpEx absorption
  • SaaS model with 640M revenue approaching scale threshold
Operating margin 0.04% TTM vs industry median 0%FCF 81.8M positive despite near-zero operating incomeRevenue growth 31% sustaining above industry 9.4%

Valuation Context

Caveats

Data Partners
Morningstar Logo

Fundamental company data provided by Morningstar, updated daily.

Accountable Finance, Inc. Disclaimer
accountable.finance is not operated by a broker or a dealer. Under no circumstances does any information posted on accountable.finance represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. In no event shall accountable.finance be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on accountable.finance, or relating to the use of, or inability to use, accountable.finance or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. Stock quotes and fundamental company data provided by Morningstar, updated daily.

Accountable Logo
© 2026 Accountable Finance, Inc. All rights reserved.