Clear Secure (YOU) Stock Drops After Mixed Q1 Earnings Report

Benzinga · 05/08 14:59

Clear Secure Inc (NYSE:YOU) shares fell 7.2% to $24.38 on Thursday following a mixed first-quarter earnings report.

What To Know: The identity verification firm posted EPS of 26 cents, narrowly missing analysts' expectations of 27 cents and marking a 7.1% year-over-year decline. However, revenue grew 18.1% year-over-year to $211.4 million, surpassing estimates of $208 million, driven by increased CLEAR+ member subscriptions and price hikes.

The company saw strong operational performance, with cumulative enrollments rising 42.3% to 31.2 million and CLEAR+ members growing 9.1% to 7.4 million. Total bookings increased 14.8% to $207.2 million. Clear Secure reported $37.4 million in operating income and $91.3 million in free cash flow.

Despite solid financial metrics, the stock declined, possibly due to the earnings miss and slightly conservative second-quarter guidance of $214–$216 million in revenue, which aligns closely with analyst projections.

Clear returned $168.3 million to shareholders through buybacks and dividends during the quarter. The company reaffirmed its full-year 2025 free cash flow outlook of at least $310 million and expects continued growth in both CLEAR+ and emerging non-CLEAR+ revenue streams.

How To Buy YOU Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Clear Secure’s case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, YOU has a 52-week high of $38.88 and a 52-week low of $16.48.