A biometric identity company that lets travelers skip the ID-check line at airport security: CLEAR+ members verify their face and fingerprint at a pod or eGate, then an ambassador walks them straight to bag screening. It also sells identity-verification tools to healthcare, workforce, and government clients, and enrolls people in TSA PreCheck at airports and stores. The modern company was born in 2010, when investors Caryn Seidman-Becker and Ken Cornick bought the assets of a bankrupt biometric venture for a few million dollars and relaunched it as CLEAR — a "second act" that later went public on the NYSE under the ticker YOU.
CLEAR Plus retention held at 86.5% as operating income nearly doubled to $83.0M on 27% revenue growth.
CLEAR Plus member retention stopped falling, holding at 86.5% for the second straight quarter. rose 27% to $277.8 million and nearly doubled to $83.0 million as a 15% increase in Active CLEAR Plus Members to 8.3 million and higher pricing drove the top line. The business is scaling profitably, but the retention floor is still being tested.
Key takeaways
Annual CLEAR Plus Gross Dollar Retention held at 86.5%, unchanged from the prior quarter, after declining steadily from 91.9% in FY2022 — the first quarter without a drop in over two years.
rose 27% to $277.8 million, driven by a 15% increase in Active CLEAR Plus Members to 8.3 million and higher membership pricing.
nearly doubled to $83.0 million, and widened 10.5 points to 29.9%, as the 27% increase outpaced a 13% rise in general and administrative expenses.
Section summaries
Management's Discussion and Analysis
Revenue rose 27% YoY to $277.8M on 15% Active CLEAR+ Member growth and price increases; net income nearly doubled to $72.3M.
⌄
grew 27% to $277.8M for Q2 FY2026, driven by a 15% increase in Active CLEAR+ Members to 8.3M and higher membership pricing.
, a leading indicator, rose 33% to $295.9M, reflecting member growth and price increases.
Total , a leading indicator of future , rose 33% to $295.9 million, reflecting member growth and price increases.
rose 102.5% to $50.0 million, aided by a $4.5 million swing in other income because a prior-year strategic investment did not recur.
rose 60% to $189.0 million, and the company extended its American Express partnership in a multi-year renewal while amending its to extend maturity to 2031.
What changed
Annual CLEAR Plus Gross Dollar Retention held at 86.5% for the second straight quarter, after the prior quarter's filing flagged whether it would stabilize or continue declining — the metric has now been flat for two quarters, suggesting a potential floor.
The TSA PreCheck enrollment program, launched at scale in 61 airports and 340 retail locations as of the FY2025 annual report, still has not been cited as a separately disclosed material contributor, though Total growth accelerated to 33% from 14% in Q3 FY2025.
The $4.7 million strategic investment recorded in Q2 FY2025 did not recur, contributing to a $4.5 million swing in other income that helped more than double .
rose 60% to $189.0 million, accelerating from 7% growth in Q2 FY2025, as for the six-month period reached $391.5 million on higher and favorable changes.
What to watch
Whether Annual CLEAR Plus Gross Dollar Retention holds at 86.5% for a third consecutive quarter, confirming a floor, or resumes its decline as the membership base matures.
Whether the TSA PreCheck enrollment program, now operating at scale, begins to appear as a separately disclosed material contributor in future filings.
Whether the 33% increase in Total to $295.9 million translates into sustained growth above 20% in coming quarters, or reflects a one-time acceleration.
The pace of share repurchases against the remaining authorization, given the company's continued capital returns alongside a growing profile.
nearly doubled to $83.0M as growth significantly outpaced a 13% rise in general and administrative expenses.
increased 91% to $72.3M, aided by a $4.5M swing in other income due to a prior-year strategic investment .
surged to $391.5M for the six-month period, driven by higher and favorable changes.
The company extended its American Express partnership in a multi-year renewal and amended its , extending maturity to 2031.
Quantitative and Qualitative Disclosures About Market Risk
Interest-rate risk on $831M in marketable securities is the primary exposure; FX risk is insignificant and no revolver borrowings are outstanding.
⌄
A hypothetical 100 parallel shift in rates would cause an approximate $5.2 million unrealized gain or loss on the available-for-sale investment portfolio, recorded in .
Cash and cash equivalents of $128.2 million are held in short-term instruments whose fair value is not significantly affected by a 10% rate move.
The carries variable-rate interest but had zero outstanding borrowings as of June 30, 2026, limiting near-term rate exposure.
Foreign currency transaction and translation risk was deemed insignificant for the three and six months ended June 30, 2026 because most business is transacted in U.S. dollars.
The company does not enter into investments for trading or speculative purposes; marketable securities are held for capital preservation.
From time to time, the Company is subject to commercial litigation claims and various legal proceedings, as well as administrative and regulatory reviews arising in the ordinary course of business. We currently believe that the ultimate outcome of such lawsuits, proceedings and…
⌄
From time to time, the Company is subject to commercial litigation claims and various legal proceedings, as well as administrative and regulatory reviews arising in the ordinary course of business. We currently believe that the ultimate outcome of such lawsuits, proceedings and reviews will not, individually or in the aggregate, have a material adverse effect on our condensed consolidated financial statements.
We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K the risk factors which materially affect our business, financial condition or results of operations. There have been no material changes from the risk factors previously disclosed. You should ca…
⌄
We have disclosed under the heading “Risk Factors” in our Annual Report on Form 10-K the risk factors which materially affect our business, financial condition or results of operations. There have been no material changes from the risk factors previously disclosed. You should carefully consider the risk factors set forth in the Annual Report on Form 10-K and the other information set forth elsewhere in this Quarterly Report on Form 10-Q. You should be aware that these risk factors and other information may not describe every risk facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.