Clearwater Analytics authorizes $100 million share repurchase program

BOISE, Idaho - Clearwater Analytics (NYSE:CWAN), whose stock has declined over 33% in the past six months according to InvestingPro data, announced Wednesday that its Board of Directors has authorized a $100 million share repurchase program, according to a company press release.

Based on the closing price of $20.19 on Tuesday, the program would enable the buyback of approximately 5 million shares. The company, which maintains a strong financial position with a current ratio of 2.02 and liquid assets exceeding short-term obligations, stated this would partially offset the dilutive impact of recent share issuances and reduce its public float.

Jim Cox, Chief Financial Officer at CWAN, said the company remains committed to reducing its debt-to-EBITDA ratio below 3.0 by December 2026. "Given our significant excess free cash flows for the remainder of 2025 and 2026, we expect to both exceed our deleveraging commitment and complete this share repurchase at the same time," Cox stated.

The investment management technology platform provider plans to execute the repurchase by buying its Class A common stock in the open market, potentially pursuant to a 10B5-1 plan. The timing, price, and number of shares repurchased will be at the company’s discretion and depend on various factors including market conditions, stock price, and corporate priorities.

The share repurchase program has no time limit and may be modified, suspended, or discontinued at any time, according to the announcement.

Clearwater Analytics provides a cloud-native platform for institutional investors across global public and private markets, supporting over $10 trillion in assets globally. The company has demonstrated robust growth with revenue increasing 36.68% over the last twelve months. For deeper insights into CWAN’s financial health and growth prospects, including 10+ additional ProTips and comprehensive analysis, check out the detailed Research Report available on InvestingPro.

In other recent news, Clearwater Analytics Holdings reported its second-quarter earnings for 2025, surpassing market expectations with an earnings per share of $0.12, beating the forecast of $0.11. The company generated revenue of $181.9 million, exceeding the expected $174.1 million. Clearwater’s first-quarter results were also noteworthy, as the company completed its Enfusion and Beacon acquisitions, achieving $20 million in synergies a year ahead of schedule. Enfusion reported record-breaking bookings for the quarter, highlighting the success of the acquisition strategy.

Additionally, Goldman Sachs upgraded Clearwater Analytics to Buy from Neutral, maintaining a $27 price target, citing the stock’s recent underperformance. Meanwhile, DA Davidson maintained a Buy rating but lowered its price target to $34, acknowledging the company’s impressive 70% year-over-year revenue growth. Morgan Stanley also adjusted its price target to $27, maintaining an Overweight rating, due to a less explosive quarterly performance in net new annual recurring revenue.

Loop Capital lowered its price target to $31, maintaining a Buy rating, following Clearwater’s strong first-quarter results. These developments reflect varied analyst perspectives on Clearwater’s performance and future potential.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.