Revenue growth has accelerated to 74.4% as of 2026Q1, yet gross margins have contracted from 73.5% in 2024Q4 to 65.8% in 2026Q1, suggesting rising costs associated with scaling complex service offerings.
Clearwater Analytics Holdings, Inc. (CWAN) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 825.73M | 731.37M | 451.8M | 368.17M | 303.43M | 252.02M | 203.22M | 168M |
| Revenue Growth % | 73.49% | 61.88% | 22.72% | 21.34% | 20.4% | 24.01% | 20.96% | - |
| Cost of Goods Sold | 280.98M | 239.22M | 122.99M | 107.13M | 87.78M | 67.86M | 53.26M | 47.15M |
| COGS % of Revenue | - | 32.71% | 27.22% | 29.1% | 28.93% | 26.93% | 26.21% | 28.06% |
| Gross Profit | 544.75M | 492.15M | 328.82M | 261.04M | 215.64M | 184.16M | 149.96M | 120.86M |
| Gross Margin % | 65.97% | 67.29% | 72.78% | 70.9% | 71.07% | 73.07% | 73.79% | 71.94% |
| Gross Profit Growth % | - | 49.67% | 25.96% | 21.05% | 17.1% | 22.81% | 24.08% | - |
| Operating Expenses | 550.53M | 499.83M | 316.58M | 277.79M | 210.53M | 155.7M | 170.38M | 95.16M |
| OpEx % of Revenue | - | 68.34% | 70.07% | 75.45% | 69.38% | 61.78% | 83.84% | 56.64% |
| Selling, General & Admin | 334.65M | 303.61M | 166.02M | 153.86M | 116.41M | 83.01M | 66.12M | 55.88M |
| SG&A % of Revenue | - | 41.51% | 36.75% | 41.79% | 38.36% | 32.94% | 32.53% | 33.26% |
| Research & Development | 215.88M | 196.23M | 150.56M | 123.92M | 94.12M | 72.69M | 55.26M | 39.27M |
| R&D % of Revenue | - | 26.83% | 33.32% | 33.66% | 31.02% | 28.84% | 27.19% | 23.38% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 49M | 0 |
| Operating Income | -5.78M | -7.69M | 12.23M | -16.75M | 5.12M | 28.46M | -20.42M | 25.7M |
| Operating Margin % | -0.7% | -1.05% | 2.71% | -4.55% | 1.69% | 11.29% | -10.05% | 15.3% |
| Operating Income Growth % | - | -162.82% | 173.06% | -427.24% | -82.02% | 239.39% | -179.46% | - |
| EBITDA | 106.17M | 77.86M | 24.41M | -6.82M | 10.26M | 31.95M | -18.15M | 27.72M |
| EBITDA Margin % | 12.86% | 10.65% | 5.4% | -1.85% | 3.38% | 12.68% | -8.93% | 16.5% |
| EBITDA Growth % | 229.13% | 218.88% | 458.2% | -166.46% | -67.9% | 276.08% | -165.47% | - |
| D&A (Non-Cash Add-back) | 111.95M | 85.54M | 12.18M | 9.93M | 5.14M | 3.49M | 2.27M | 2.02M |
| EBIT | -4.37M | -4.01M | -30.06M | -22.87M | -5.33M | 18.07M | -20.42M | 25.61M |
| Net Interest Income | -57.39M | -45.66M | 8.62M | 6.4M | 1.14M | -25.68M | -22.91M | -17.81M |
| Interest Income | 0 | 0 | 8.62M | 6.4M | 1.14M | 0 | 0 | 0 |
| Interest Expense | 57.39M | 45.66M | 0 | 0 | 0 | 25.68M | 22.91M | 17.81M |
| Other Income/Expense | -55.98M | -41.99M | -42.3M | -6.12M | -10.45M | -36.07M | -22.91M | -17.89M |
| Pretax Income | -61.76M | -49.67M | -30.06M | -22.87M | -5.33M | -7.61M | -43.33M | 7.8M |
| Pretax Margin % | -7.48% | -6.79% | -6.65% | -6.21% | -1.76% | -3.02% | -21.32% | 4.65% |
| Income Tax | -11.78M | -9.42M | -457.65M | 217K | 1.36M | 487K | 902K | 73K |
| Effective Tax Rate % | 19.07% | 18.96% | 1522.3% | -0.95% | -25.49% | -6.4% | -2.08% | 0.94% |
| Net Income | -48.09M | -38.81M | 424.38M | -21.63M | -7.97M | -8.21M | -44.23M | 7.73M |
| Net Margin % | -5.82% | -5.31% | 93.93% | -5.87% | -2.63% | -3.26% | -21.76% | 4.6% |
| Net Income Growth % | -111.21% | -109.14% | 2062.26% | -171.46% | 3% | 81.43% | -672.04% | - |
| Net Income (Continuing) | -49.99M | -40.25M | 427.58M | -23.08M | -6.7M | -8.09M | -44.23M | 7.73M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 5.06M | 9.36M | 21.98M | 55.33M | 68.86M | 65M | 0 | 0 |
| EPS (Diluted) | -0.16 | -0.14 | 1.68 | -0.11 | -0.04 | -0.05 | -0.19 | 0.03 |
| EPS Growth % | -110.24% | -108.33% | 1627.27% | -204.71% | 20.66% | 76.05% | -679.27% | - |
| EPS (Basic) | - | -0.14 | 1.93 | -0.11 | -0.04 | -0.05 | -0.19 | 0.03 |
| Diluted Shares Outstanding | 294.99M | 271.32M | 254.36M | 199.69M | 185.56M | 178.03M | 235.98M | 235.98M |
| Basic Shares Outstanding | 294.99M | 271.32M | 219.32M | 199.69M | 185.56M | 178.03M | 235.98M | 235.98M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying CWAN stock.
For fiscal year 2025, Clearwater Analytics Holdings, Inc. (CWAN) reported total revenue of $731.4M. This represents a 335.3% increase compared to $168.0M in 2019.
Clearwater Analytics Holdings, Inc. (CWAN) reported a net loss of $38.8M for the fiscal year ending 2025.
Clearwater Analytics Holdings, Inc. (CWAN) reported an operating income of $-7.7M, resulting in an operating profit margin of -1.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Clearwater Analytics Holdings, Inc. (CWAN) generated $492.1M in gross profit for the year, representing a gross profit margin of 67.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
High stock-based compensation dilution
Metrics are mathematically derived from official filings.
Aggressive Revenue Expansion Trends
According to quarterly financial data, Clearwater Analytics has achieved a significant acceleration in top-line performance, with year-over-year revenue growth reaching 74.4% in 2026Q1, a marked increase from the 19.8% growth rate observed in 2023Q4, suggesting successful penetration into new institutional and international market segments.
The rapid revenue trajectory appears to be driven by the successful scaling of the company's cloud-native platform, which is increasingly capturing complex mandates. Investors should monitor whether this growth is sustainable or if it reflects the lumpy recognition of large-scale enterprise implementations that may normalize in future periods.
Gross Margin Compression Amid Scaling
Based on reported income statements, the company's gross margin has experienced a noticeable contraction, declining from a peak of 73.5% in 2024Q4 to 65.8% in 2026Q1, which may indicate rising costs associated with manual data reconciliation or the onboarding of more complex alternative asset classes.
This margin degradation suggests that the company's software-as-a-service model is not yet achieving the expected economies of scale in its data processing layer. Further investigation is warranted to determine if this is a structural shift or a temporary byproduct of aggressive investment in client-specific data connectors.
Stock-Based Compensation Distorts Profitability
As reported in recent filings, the company's GAAP net income remains consistently pressured, with a net loss of $2.8 million in 2026Q1, largely influenced by significant stock-based compensation expenses that totaled $28.6 million in the same period, masking the underlying operational cash generation capabilities of the business.
The reliance on equity-based incentives appears to be a primary driver of the gap between adjusted metrics and GAAP results. Investors should interpret these figures with caution, as the persistent use of stock-based compensation may lead to ongoing shareholder dilution and obscures the true cost of talent acquisition.
Operating Leverage Remains Elusive
Analysis of the income statement reveals that operating expenses are scaling in near lockstep with revenue, as evidenced by the 2026Q1 operating margin of 6.8%, which remains largely unchanged from the 2.6% margin reported in 2023Q4 despite the substantial increase in total revenue volume.
The lack of meaningful operating leverage suggests that the company is currently prioritizing market share acquisition over bottom-line efficiency. This strategy implies that the business may require a much larger revenue base before it can demonstrate the structural profitability typically expected of mature enterprise software providers.