CluenexClarivate CLVT
Clarivate scores weak on business quality (2.8 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Clarivate does
Clarivate sells proprietary data, analytics, and workflow tools to universities, law firms, and life sciences companies. Customers rely on its citation indices and patent databases to track academic research and intellectual property.
- What it does best
Its standout gross margin of 67% sits in the top decile of its sector at the 95th percentile. This pricing power stems from deeply embedded scientific and patent archives that researchers cannot easily swap out without breaking historical work.
- The main risk
A severe debt burden threatens equity value, carrying $4.4 billion of total debt against an interest coverage ratio of just 0.6x. Operating income fails to cover interest payments, leaving the company vulnerable if cash generation slips.
Quality, check by check
Scored against its own industry, from company filings.
Operating margin rests at 6.8% while FCF margin is strong at 61%. Profitability is mixed as net income stays negative at -$334 million due to heavy interest expenses weighing down scale.
Its moat rests on high switching costs for enterprise researchers using proprietary databases. A gross margin in the 95th sector percentile protects pricing, though shrinking revenue limits the moat strength.
Revenue fell 4.0% to $2.4 billion, continuing a multi-year downward trend from $2.7 billion in 2022. The top-line engine is fading across its historical reporting periods.
Net debt sits at $4.1 billion with interest coverage at 0.6x, meaning earnings fall short of covering debt costs. Free cash flow is $327 million, showing a soft financial base.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 insider bought $1.7M on the open market. 1 sold $4.8M outside pre-planned sales.
Our sealed record on CLVT
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Clarivate scores weak on the Cluenex quality check (2.8 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health weak.
In the last 90 days of SEC Form 4 filings: 1 insider bought $1.7M on the open market. 1 sold $4.8M outside pre-planned sales.
Nov 3, 2026.
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Cite this page: Cluenex, “Clarivate (CLVT)”, https://cluenex.com/stocks/clvt/, data as of Oct 10, 2026.