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YOU (Clear Secure) Financial Strength : 6 (As of Mar. 2025)


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What is Clear Secure Financial Strength?

Clear Secure has the Financial Strength Rank of 6.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

GuruFocus does not calculate Clear Secure's interest coverage with the available data. Clear Secure's debt to revenue ratio for the quarter that ended in Mar. 2025 was 0.14. As of today, Clear Secure's Altman Z-Score is 2.64.


Competitive Comparison of Clear Secure's Financial Strength

For the Software - Application subindustry, Clear Secure's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Clear Secure's Financial Strength Distribution in the Software Industry

For the Software industry and Technology sector, Clear Secure's Financial Strength distribution charts can be found below:

* The bar in red indicates where Clear Secure's Financial Strength falls into.


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Clear Secure Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Clear Secure's Interest Expense for the months ended in Mar. 2025 was $0.0 Mil. Its Operating Income for the months ended in Mar. 2025 was $37.4 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $113.5 Mil.

Clear Secure's Interest Coverage for the quarter that ended in Mar. 2025 is

GuruFocus does not calculate Clear Secure's interest coverage with the available data.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Clear Secure Inc has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Clear Secure's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(6.029 + 113.542) / 845.472
=0.14

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Clear Secure has a Z-score of 2.64, indicating it is in Grey Zones. This implies that Clear Secure is in some kind of financial stress. If it is below 1.81, the company may faces bankrupcy risk.

Warning Sign:

Altman Z-score of 2.64 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Clear Secure  (NYSE:YOU) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Clear Secure has the Financial Strength Rank of 6.


Clear Secure Financial Strength Related Terms

Thank you for viewing the detailed overview of Clear Secure's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Clear Secure Business Description

Traded in Other Exchanges
N/A
Address
85 10th Avenue,, 9th Floor, New York, NY, USA, 10011
Clear Secure Inc is an identity company making experiences safer and easier digitally and physically. It is involved in the creation of a frictionless travel experience while enhancing security. Its secure identity platform uses biometrics to automate the identity verification process through lanes in airports which helps to make the travel experience safe and easy.
Executives
Kenneth L. Cornick director, 10 percent owner, officer: President & CFO 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
Alclear Investments Ii, Llc director, 10 percent owner, other: See Remarks 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
Adam Wiener director C/O REDFIN CORPORATION, 1099 STEWART STREET, SUITE 600, SEATTLE WA 98101
Dennis W. Liu officer: Chief Accounting Officer 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
Michael Z Barkin director 390 INTERLOCKEN CRESCENT, SUITE 1000, BROOMFIELD CO 80021
Jeffery H Boyd director C/O ASPEN GROVE CAPITAL, LLC, PO BOX 9389, AVON CO 81620
Patterson Richard N. Jr. officer: Chief Info Sec. Officer 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022
Kasra Moshkani officer: EVP, Operations 85 10TH AVE., 9TH FLOOR, NEW YORK NY 10022
Durable Capital Partners Lp 10 percent owner 4747 BETHESDA AVENUE, SUITE #1002, BETHESDA MD 20814
Shawn Henry director CROWDSTRIKE HOLDINGS, INC., 150 MATHILDA PLACE, SUITE 300, SUNNYVALE CA 94086
Jonathan J. Feldman officer: EVP, Powered by CLEAR 85 10TH AVE., 9TH FLOOR, NEW YORK NY 10011
Gapco Aiv Interholdco (ac), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic, L.p. 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners Aiv (ac), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE CO., L.P., 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Matthew Levine officer: GC & Chief Privacy Officer 65 EAST 55TH STREET, 17TH FLOOR, NEW YORK NY 10022