Key Takeaways:
- Clearwater Analytics Holdings, Inc. (CWAN, Financial) reports strong Q1 2025 performance with notable revenue and EBITDA growth.
- Analysts' price targets suggest a potential upside of nearly 56% from the current share price.
- Despite strong performance, GuruFocus's GF Value suggests a potential downside based on historical valuations.
Clearwater Analytics Holdings, Inc. (CWAN) has announced impressive financial results for the first quarter of 2025, showcasing a significant increase in both revenue and profitability. The company's recent acquisitions are expected to further stimulate growth in the coming quarters.
Q1 2025 Financial Highlights
Clearwater Analytics reported a remarkable revenue of $126.9 million for the quarter, which represents a 23.5% increase compared to the same period last year. Additionally, the company achieved an adjusted EBITDA of $45.1 million, marking a robust 40% rise. The reported gross margin stood at an impressive 78.9%, reflecting the company's efficient operational capabilities.
Wall Street Analysts Forecast
According to the projections of nine analysts, Clearwater Analytics Holdings Inc (CWAN, Financial) is projected to reach an average target price of $35.44 over the next year, with estimates ranging from a high of $40.00 to a low of $32.00. This average target suggests a notable upside of 55.87% from the current stock price of $22.74, indicating strong market sentiment. For more comprehensive estimates, please visit the Clearwater Analytics Holdings Inc (CWAN) Forecast page.
The consensus among 11 brokerage firms places Clearwater Analytics Holdings Inc (CWAN, Financial) at an average brokerage recommendation of 1.7, denoting an "Outperform" status. This rating falls within a scale from 1 to 5, where a 1 signifies a Strong Buy, and a 5 indicates a Sell.
GuruFocus GF Value Insights
While Clearwater Analytics' recent performance appears strong, the GuruFocus GF Value estimate suggests caution. With an estimated GF Value of $19.12, there is a suggested downside of 15.92% from the current trading price of $22.74. The GF Value is GuruFocus's estimate of the fair value of the stock, calculated using historical trading multiples, past business growth, and future performance projections. For further detailed insights, refer to the Clearwater Analytics Holdings Inc (CWAN, Financial) Summary page.
