Company Overview - Clearwater Analytics specializes in SaaS solutions for automated investment data management, providing integrated accounting, compliance, and risk analytics to institutional clients [3] - The company operates a subscription-based business model, generating recurring revenue by delivering services to insurers, investment managers, corporations, institutional investors, and government entities [4] Financial Metrics - As of February 17, 2026, Clearwater Analytics has a market capitalization of $6.99 billion, revenue of $731.37 million, and a net income of -$38.81 million [2] - The stock price was $22.93, reflecting a 17.0% decline over the past year and underperforming the S&P 500 by 26.7 percentage points [2] Investment Insights - Clearwater operates in a niche of enterprise software that institutions rely on, with a focus on earnings quality rather than growth narratives due to recent SaaS multiple compression [5] - The company's product is considered more structural than cyclical, as switching systems is disruptive and regulatory requirements are constant [5] - The potential for revenue growth hinges on the ability to onboard new clients and integrate their data, which may slow margin growth [7] - For investors, Clearwater's value will depend on demonstrating that revenue growth can outpace service delivery costs, leading to lasting operating leverage [8]

Insiders may stand to receive substantial financial benefits not available to ordinary shareholders.  The proposed transactions may contain terms that could limit superior competing offers. Shareholders are encouraged to contact the firm to discuss their rights and options at no cost or obligation. We would handle any matter on a contingent fee basis, whereby you would not be responsible for out-of-pocket payment of our legal fees or expenses. NEW YORK, Feb. 22, 2026 (GLOBE NEWSWIRE) -- Halper Sadeh LLC, an ...

Core Viewpoint - Clearwater Analytics Holdings, Inc. is under investigation regarding the fairness of the proposed buyout price of $24.55 per share, as analysts had previously set price targets exceeding $35.00 per share [1][3]. Group 1: Buyout Announcement - On December 21, 2025, Clearwater announced an agreement to be acquired by a group of private equity funds at a cash price of $24.55 per share [2]. - Following the completion of the transaction, Clearwater's shares will no longer be publicly traded, and shareholders will be cashed out [2]. Group 2: Investigation Details - The investigation aims to assess whether Clearwater investors are receiving adequate financial consideration for their shares, given the analysts' price targets [3]. - Several stock analysts had maintained price targets of over $35.00 per share at the time of the buyout announcement, raising concerns about the adequacy of the proposed buyout price [3].

分组1 - Clearwater Analytics reported quarterly earnings of $0.15 per share, matching the Zacks Consensus Estimate, and showing an increase from $0.13 per share a year ago, resulting in an earnings surprise of +2.74% [1] - The company posted revenues of $217.46 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 0.37%, and up from $126.46 million year-over-year [2] - Clearwater Analytics has surpassed consensus revenue estimates four times over the last four quarters, indicating a positive trend in revenue performance [2] 分组2 - The stock has underperformed the market, losing about 4.9% since the beginning of the year, while the S&P 500 has shown a zero return [3] - The current consensus EPS estimate for the upcoming quarter is $0.16 on revenues of $222.31 million, and for the current fiscal year, it is $0.68 on revenues of $947.34 million [7] - The Zacks Industry Rank places the Internet - Software sector in the bottom 48% of over 250 Zacks industries, suggesting potential challenges for stocks in this category [8]

Merger and Acquisitions - The company entered into a Merger Agreement valued at approximately $8.4 billion, with each share of Class A common stock converting to $24.55 in cash upon completion[18]. - The Merger is expected to close in Q2 2026, pending stockholder approval and regulatory conditions[20]. - The company completed acquisitions of Beacon and Enfusion in 2025, enhancing its capabilities in risk management and portfolio visualization[32]. - The company completed acquisitions of Enfusion and Beacon in April 2025, and an asset purchase of Blackstone's Bistro platform in March 2025, to enhance its service offerings[84][85]. - If the Merger Agreement is terminated for certain reasons, the company may be required to pay a termination fee of approximately $0.2 billion[114]. Client and Market Performance - The company serves over 2,500 clients and aggregates data on over $10 trillion of global invested assets as of December 31, 2025[22]. - The gross revenue retention rate has remained at least 98% in 27 of the past 28 quarters, indicating strong client satisfaction and operational efficiency[29]. - The company has consistently exceeded a net revenue retention rate of 100% since 2019, reflecting successful expansion of client relationships[30]. - The company’s diversified client base includes insurance companies, asset managers, and large corporations, with assets on the platform amounting to $5.0 trillion, $3.2 trillion, and $1.4 trillion respectively as of December 31, 2025[70]. - The company has only approximately 4% market penetration in a $23 billion total addressable market (TAM), indicating significant growth potential[80]. - Revenues outside the United States represented only 25% of total revenues for the year ended December 31, 2025, despite these markets representing approximately 51% of the total addressable market[81]. Technology and Operations - The company’s platform processes data from over 4,900 daily data feeds and more than four million securities, providing comprehensive analytics and reporting[27]. - CWAN's platform supports investment accounting for over $10 trillion in assets globally as of December 31, 2025[47]. - Approximately 91% of portfolios are automatically validated, reconciled, and processed without further intervention[46]. - The platform eliminates the need for clients to manually process and reconcile data from different sources, providing a single source of truth for investment management workflows[47]. - CWAN's platform allows clients to access over 60 local currencies and 30 functional currencies, supporting multi-currency operations[52]. - The platform offers flexible configurations for accounting, supporting 45 different accounting bases including GAAP, Statutory, Tax, and IFRS[52]. - CWAN provides deep insights into opaque alternative assets, enhancing decision-making for asset owners and managers[47]. - The platform automates data aggregation, reconciliation, and validation, creating a "golden copy" of investment portfolio data[47]. - CWAN's technology stack is designed to efficiently process millions of daily transactions, ensuring scalability and efficiency[47]. - CWAN runs 1,200 automated workflows each week, driving operational improvements for clients[67]. Financial Performance and Growth - For the year ended December 31, 2025, the company's revenues grew by 62% compared to the same period in 2024[125]. - The company achieved a gross revenue retention rate of at least 98% for 27 of the past 28 quarters, with a net revenue retention rate of 109% for the quarter ended December 31, 2025[79]. - The company relies heavily on fees based on the value of assets on its platform, which are affected by market volatility and economic conditions[120]. - The company faces prolonged sales cycles and substantial upfront sales costs when targeting large financial institutions and government entities, which may impact revenue predictability[123]. - The company is vulnerable to changes in economic conditions, interest rates, and regulatory events that could adversely affect client demand for its services[121]. Compliance and Regulatory Challenges - Increased regulatory complexity has led to a nearly six-fold rise in global yearly regulatory alerts, necessitating robust compliance solutions[41]. - The company expects to incur significant costs related to compliance with privacy and security standards, which could adversely affect its financial condition[97]. - Increased regulation of data utilization may require the company to modify operations and incur additional expenses, impacting its business[96]. - Compliance with various privacy laws, including the California Consumer Privacy Act, may increase legal costs and impact operations[144]. - Cybersecurity events could lead to reputational harm, loss of clients, and significant liabilities, adversely affecting business operations[145]. Human Resources and Culture - The company has a team-oriented culture and emphasizes diversity and inclusion, believing it leads to better business outcomes[101]. - The company has observed increased competition for qualified employees, which could affect its ability to attract and retain top talent necessary for growth[126]. - As of December 31, 2025, the company had over 3,000 employees, with 1,303 located in the United States and 1,118 in India[99]. - The company has invested heavily in product development and engineering, with approximately 31% of its global employee base dedicated to these areas[91]. Intellectual Property and Legal Risks - The company is dependent on its intellectual property rights, and any failure to protect these rights could have a material adverse effect on its operations[177]. - The company holds three copyright registrations, seven registered trademarks in the U.S., and eighteen international trademarks, but only one technology is covered by an issued patent[178]. - The company faces risks of intellectual property infringement claims, which could lead to significant damages or operational changes[179]. Environmental, Social, and Governance (ESG) Considerations - Increased scrutiny on ESG practices may impose additional costs and expose the company to new risks[216]. - Stakeholders are increasingly focused on ESG issues, including climate change, human rights, and diversity[216]. - Public ESG and sustainability reporting is becoming a standard expectation among various stakeholders[216]. - Investment funds are increasingly using ESG scores to evaluate companies, impacting investment decisions[217]. - A low ESG rating could result in reputational damage and exclusion from certain investors' portfolios[217].

Financial Performance - Quarterly revenue for Q4 2025 was $217.5 million, representing a 72% increase year-over-year from $126.5 million in Q4 2024[3] - Annualized recurring revenue (ARR) reached $841 million as of December 31, 2025, up 77% from $475 million as of December 31, 2024[4] - Adjusted EBITDA for Q4 2025 was $74.1 million, an increase of 78% from $41.7 million in Q4 2024, with an adjusted EBITDA margin of 34.1%[3] - Non-GAAP gross profit for Q4 2025 was $172.2 million, equating to a 79.2% non-GAAP gross margin, compared to 78.8% in Q4 2024[3] - The net loss for Q4 2025 was $12.5 million, while non-GAAP net income increased to $44.4 million, a 30.7% rise from $33.9 million in Q4 2024[3] - Revenue for Q4 2025 reached $217,457,000, a 72% increase from $126,465,000 in Q4 2024[21] - Gross profit for the year ended December 31, 2025, was $492,148,000, up from $328,816,000 in 2024, representing a 50% increase[21] - Net income for Q4 2025 was $(12,525) thousand, a decrease of 6% compared to $420,305 thousand in Q4 2024, which represented a 332% increase year-over-year[26] - Adjusted EBITDA for Q4 2025 was $74,072 thousand, reflecting a 34% increase from $41,683 thousand in Q4 2024, which was a 33% increase year-over-year[26] - Non-GAAP income from operations for the year ended December 31, 2025, was $248.190 million, up from $145.674 million in 2024, indicating a growth of 70%[31] - Non-GAAP net income for the year ended December 31, 2025, was $154.653 million, compared to $117.427 million in 2024, representing a 32% increase[31] Cash Flow and Expenses - Operating cash flows for Q4 2025 were $55.3 million, enabling the repayment of $17 million of debt[1] - Operating expenses for Q4 2025 totaled $152,964,000, compared to $91,685,000 in Q4 2024, reflecting a 67% increase[21] - Research and development expenses for the year ended December 31, 2025, were $196,228,000, up from $150,558,000 in 2024, a 30% increase[21] - Research and development expenses for Q4 2025 were $57.009 million, compared to $40.904 million in Q4 2024, marking a 39% increase[30] - The company reported interest expense of $15,162 thousand in Q4 2025, which was 7% of total revenue, compared to $1,069 thousand in Q4 2024, which was only 1% of total revenue[26] - The company incurred transaction expenses of $17,508 thousand in Q4 2025, representing 8% of total revenue, compared to $6,382 thousand in Q4 2024, which was 5% of total revenue[26] - The company’s depreciation and amortization expenses for Q4 2025 were $29,489 thousand, accounting for 14% of total revenue, compared to $3,451 thousand in Q4 2024, which was 3% of total revenue[26] Client and Market Metrics - The gross revenue retention rate was 98% as of December 31, 2025, indicating strong client retention[4] - CWAN has over 2,500 clients, with 152 generating ARR of more than $1 million, showcasing significant client base expansion[7] Assets and Liabilities - Total assets as of December 31, 2025, were $3,031,929,000, significantly higher than $1,169,572,000 as of December 31, 2024[19] - Total liabilities increased to $1,000,837,000 in 2025 from $139,341,000 in 2024[19] - Cash and cash equivalents decreased to $91,245,000 in 2025 from $177,350,000 in 2024[19] - Total stockholders' equity attributable to Clearwater Analytics increased to $2,021,732,000 in 2025 from $1,008,255,000 in 2024[19] Acquisition and Strategic Initiatives - The company announced a proposed acquisition valued at approximately $8.4 billion, with stockholders set to receive $24.55 per share upon completion[8] - The company integrated AI capabilities into its Beacon platform, enhancing model validation and risk insights for institutional investors[7]

Core Insights - Conestoga Capital Advisors reported that US equities had solid returns in 2025, with double-digit gains across major indices, but underlying conditions showed extreme volatility and market leadership [1] - In Q4 2025, Conestoga's Small Cap Strategy returned -1.89% net-of-fees, underperforming the Russell 2000 Growth Index, which returned 1.22% [1] - The rally in "low quality" stocks continued but at a slower pace compared to previous quarters [1] Company Focus: Clearwater Analytics Holdings, Inc. (NYSE:CWAN) - Clearwater Analytics Holdings, Inc. provides technology solutions for accounting and reporting, significantly contributing to Conestoga's strategy performance in Q4 2025 [2] - As of February 17, 2026, Clearwater's stock closed at $22.93 per share, with a -5.75% return in the past month and a 15.20% decline over the past twelve months [2] - Clearwater Analytics has a market capitalization of $6.825 billion [2] - The company’s shares outperformed in Q4 2025 following an acquisition announcement, which led to a re-rating towards the transaction value, emphasizing its recurring revenue model and strong client retention [3] Hedge Fund Interest - Clearwater Analytics is not among the 30 most popular stocks among hedge funds, with 33 hedge fund portfolios holding the stock at the end of Q3 2025, down from 51 in the previous quarter [5] - While Clearwater is recognized for its potential, analysts suggest that certain AI stocks may offer greater upside potential with less downside risk [5]

Company Overview - Clearwater Analytics Holdings, Inc. is a technology-driven provider of investment accounting and analytics software, utilizing a scalable SaaS platform to deliver critical solutions for institutional asset owners and managers [6] - The company operates a subscription-based business model, generating recurring revenue by providing cloud-based software and analytics services to institutional clients, including insurers, investment managers, corporations, institutional investors, and government entities [9] Financial Performance - As of February 12, 2026, Clearwater Analytics had a market capitalization of $6.78 billion and reported a revenue of $451.80 million with a net income of $424.38 million for the trailing twelve months [4] - In the third quarter, the company experienced a revenue increase of 77% year over year, reaching $205.1 million, while adjusted EBITDA rose 84% to $70.7 million, and annualized recurring revenue reached $807.5 million with a net revenue retention rate of 108% [10] Recent Developments - Keenan Capital initiated a new position in Clearwater Analytics by purchasing 3,660,973 shares valued at approximately $88.30 million during the fourth quarter, which now represents 16.08% of Keenan Capital's reportable U.S. equity AUM as of December 31, 2025 [2][8] - Clearwater Analytics agreed to be acquired in an $8.4 billion deal in December, raising questions about the timing of the share accumulation by Keenan Capital [11] Market Position - As of February 12, 2026, shares of Clearwater Analytics were priced at $23.47, reflecting a decline of 14.5% over the past year and underperforming the S&P 500 by 27.43 percentage points [8]

Core Insights - Clearwater Analytics (CWAN) is expected to report quarterly earnings of $0.15 per share, reflecting a year-over-year increase of 15.4% [1] - Projected revenues for the upcoming quarter are $216.66 million, which represents a significant increase of 71.3% compared to the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] Financial Metrics - The estimated 'Number of Clients' for Clearwater Analytics is projected to be 1,562, up from 1,462 in the previous year [4] - Analysts forecast a 'Net revenue retention rate' of 111.5%, down from 116.0% reported in the same quarter last year [4] - The 'Total ARR' is expected to reach $838.42 million, compared to $474.90 million a year ago [4] Stock Performance - Over the past month, shares of Clearwater Analytics have decreased by 4.6%, while the Zacks S&P 500 composite has declined by 1.7% [5] - Currently, CWAN holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [5]

Core Viewpoint - Kaskela Law LLC is investigating the fairness of the proposed buyout of Clearwater Analytics Holdings, Inc. to assess if the buyout price is fair for the company's investors [1]. Group 1: Buyout Details - Clearwater announced an agreement to be acquired by a group of private equity funds at a price of $24.55 per share in cash on December 21, 2025 [2]. - Following the transaction's closing, Clearwater's shareholders will be cashed out, and the company's shares will cease to be publicly traded [2]. Group 2: Investigation Focus - The investigation aims to determine if Clearwater investors are receiving adequate financial consideration for their shares and if the company's officers or directors breached their fiduciary duties or violated securities laws during the sale [3]. - At the time of the announcement, several stock analysts had price targets exceeding $35.00 per share for Clearwater's shares, indicating a potential undervaluation in the buyout offer [3]. Group 3: Shareholder Actions - Clearwater shareholders who believe the buyout price is insufficient are encouraged to contact Kaskela Law LLC for more information regarding their legal rights and options [4].