Free cash flow remains highly inconsistent, evidenced by a swing from a negative 23.3% margin in 2025Q3 to a 77.8% margin in 2025Q4.
| Cash from Operations | 464.46M | 372.45M | 295.68M | 225.03M | 168.31M | 69.71M | -12.34M | 16.57M |
| Operating CF Margin % | - | 41.35% | 38.38% | 36.68% | 38.48% | 27.45% | -5.35% | 8.62% |
| Operating CF Growth % | 114.26% | 25.97% | 31.39% | 33.7% | 141.45% | 664.98% | -174.44% | - |
| Net Income | 168.87M | 243.99M | 225.27M | 49.89M | -115.44M | -115.17M | -9.31M | -54.22M |
| Depreciation & Amortization | 34.95M | 34.62M | 26.48M | 21.65M | 18.79M | 12.36M | 9.42M | 7.32M |
| Stock-Based Compensation | 31.13M | 38.93M | 35.34M | 37.29M | 138.5M | 36.51M | 3.43M | 14.66M |
| Deferred Taxes | 14.55M | 24.38M | -165.77M | -722K | -2.47M | 0 | 0 | 0 |
| Other Non-Cash Items | 104.68M | -66.21M | 213K | -2.02M | 4.32M | 18.4M | 1.13M | 3.49M |
| Working Capital Changes | 127.65M | 96.73M | 174.14M | 118.95M | 124.61M | 117.61M | -17M | 45.33M |
| Change in Receivables | -716K | -1.58M | 15K | 643K | 4.16M | -4.21M | 201K | -401K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 1.73M | 0 |
| Change in Payables | -1.13M | -6.37M | 2.2M | 4.53M | -752K | 1.45M | 404K | -2.23M |
| Cash from Investing | -211.79M | -97.1M | 113.78M | -15.51M | -359.59M | -403.2M | -21.58M | -25.78M |
| Capital Expenditures | -27.13M | -29.34M | -12.01M | -25.55M | -31.91M | -28.15M | -16.93M | -14.68M |
| CapEx % of Revenue | 2.88% | 3.26% | 1.56% | 4.16% | 7.29% | 11.08% | 7.33% | 7.64% |
| Acquisitions | 2.7M | 0 | 0 | -3.75M | 545K | -75.83M | -424K | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 62.55M | 2.7M | -318K | -580K | -545K | -822K | 174K | -502K |
| Cash from Financing | -169.98M | -257.33M | -401.55M | -216.01M | -48.87M | 503.4M | -63.05M | 180.36M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -31.79M | -126.34M | -272.92M | -69.67M | -5.2M | 505.37M | -62.4M | 180.36M |
| Dividends Paid | -89.95M | -91.88M | -93.37M | -125.19M | -38.09M | 0 | 0 | 0 |
| Share Repurchases | -31.79M | -126.34M | -272.92M | -69.67M | -5.2M | -11.74M | -210.34M | -12.09M |
| Other Financing | -48.24M | -39.1M | -35.26M | -21.14M | -5.58M | -1.97M | -652K | 0 |
| Net Change in Cash | 82.76M | 18.15M | 7.95M | -6.48M | -240.24M | 170.04M | -96.97M | 171.15M |
| Free Cash Flow | 437.33M | 343.11M | 283.67M | 198.9M | 136.4M | 40.74M | -29.26M | 1.39M |
| FCF Margin % | 46.41% | 38.09% | 36.82% | 32.42% | 31.18% | 16.04% | -12.68% | 0.72% |
| FCF Growth % | 47.12% | 20.96% | 42.62% | 45.82% | 234.84% | 239.21% | -2205.32% | - |
| FCF per Share | 4.33 | 3.53 | 1.96 | 2.17 | 1.66 | 0.53 | -0.45 | 0.02 |
| FCF Conversion (FCF/Net Income) | 2.59x | 3.41x | 1.74x | 8.01x | -2.57x | -1.93x | 1.33x | -0.31x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Aviation market saturation risk
As reported in the quarterly cash flow statements, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios swinging from -1.67 in 2025Q3 to 6.45 in 2025Q4, indicating that GAAP earnings are frequently decoupled from actual cash generation.
The significant variance between net income and operating cash flow suggests that non-cash items and working capital fluctuations are the primary drivers of reported profitability. Investors should monitor whether this disconnect is a permanent feature of the subscription-based revenue recognition model or a sign of underlying earnings quality issues.
Based on the provided financial data, free cash flow margins have exhibited extreme inconsistency, ranging from a negative 23.3% in 2025Q3 to a peak of 77.8% in 2025Q4, reflecting a lack of predictability in the company's ability to convert revenue into sustainable cash.
This erratic trajectory implies that the company's cash flow is highly sensitive to timing differences in subscription renewals and operational expenditures. The inability to maintain a stable FCF margin suggests that the business model may be more capital-intensive or operationally complex than the high gross margins initially imply.
According to recent SEC filings, working capital changes have been the dominant force behind cash flow volatility, with a massive $160.3 million outflow in 2025Q3 followed by a $120.2 million inflow in 2025Q4, highlighting the significant impact of timing on liquidity.
These large swings suggest that the company's cash position is heavily reliant on the timing of deferred revenue recognition and the settlement of airport revenue-share obligations. Analysts should investigate whether these fluctuations are seasonal or indicative of structural challenges in managing the cash conversion cycle.
As reported in financial statements, the company has consistently returned capital to shareholders through dividends and buybacks, including a $101.7 million share repurchase in 2025Q1, even during periods where operating cash flow was significantly lower than net income.
The decision to prioritize share repurchases and dividends despite inconsistent cash flow generation warrants further investigation into management's capital allocation priorities. It appears that the company is attempting to signal confidence to the market, though this may limit the cash available for necessary infrastructure reinvestment.
Quick answers to the most common questions about buying YOU stock.
Clear Secure, Inc. (YOU) generated $372.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Clear Secure, Inc. (YOU) generated $343.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Clear Secure, Inc. (YOU) spent $29.3M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Clear Secure, Inc. (YOU) returned $91.9M to shareholders via cash dividends and spent $126.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.