Description

Why Clearwater Analytics Growth Hinges On A $23 Billion TAM

Clearwater Analytics Holdings, Inc. reported robust financial results for the third quarter of 2025, showcasing significant revenue growth. The company generated $205.1 million in revenue, marking a remarkable 77% increase year-over-year. This substantial growth was mirrored in its Annualized Recurring Revenue (ARR), which also grew by 77% to reach $807.5 million. The company’s adjusted EBITDA also saw an impressive climb, reaching $70.7 million, which was a sequential improvement from $58.3 million in the second quarter. On the positive side, Clearwater demonstrated strong operational efficiency with an improvement in its EBITDA margin to 34.5% from the prior quarter’s 32.1%. This improvement was notable because the integration of lower-margin businesses like Enfusion was expected to decrease margins, yet Clearwater managed to raise them by 240 basis points. The company’s gross revenue retention stood at a robust 98%, indicating high customer satisfaction and the ability to maintain its client base.