Reconciliations of these measures to GAAP measures are available on our earnings release and supplemental presentation on our website. Our forward-looking metrics such as annual contract value continued to improve to 1.6%, making a 30 basis point sequential improvement driven by 2% ACV growth across academia and government. In Life Sciences and Health, our renewal rate of 93%, an important indicator, was up 100 basis points year-over-year. Our free cash flow generation continues to support our balanced capital allocation, including $150 million of opportunistic share repurchases year-to-date as well as $100 million of debt paid down.

On slide seven, our VCP is driving improved focus, growth, and innovation across the business. We expect this R&D investment to result in higher organic growth and improved renewal rates in the future. Our sales execution has improved support, stronger customer engagement, and revenue retention, helping us achieve our organic growth outlook through the first nine months of 2025. We continue to see strong renewal patterns with 90% of global A&G subscription for the full year successfully renewed through October 27.

Moving to the Intellectual Property segment, for the first nine months, the patent and trademark maintenance services recurring revenue was flat compared to the same period last year. We are encouraged by this as it represents 3% improvement in the organic growth rate relative to the full year of 2024. While these results show improvement, we are committed to returning the segment to sustainable growth. Moving to the Life Sciences and Health segment, I am personally excited it has returned to 2% ACV growth this year.

What went well
  • Organic ACV growth improved to 1.6%, a 30 bps sequential gain, led by 2% ACV growth in Academia & Government.
  • Life Sciences & Healthcare returned to 2% ACV growth and its renewal rate rose 100 bps year-over-year to 93%.
  • Raised full-year revenue guidance by $50 million to about $2.44 billion at the midpoint and pointed adjusted EBITDA to the high end of the range.
  • Generated $115 million of free cash flow in the quarter ($276 million year-to-date), funding $150 million of year-to-date share repurchases and $100 million of debt paydown.
  • A&G subscription mix reached 93% (up from 81%); completed a multimillion-dollar Web of Science renewal with the largest U.S. library consortium and won an IP and Web of Science cross-sell at China Petrochemical (Sinopec).
What went wrong
  • Q3 revenue was essentially flat year-over-year at $623 million, as subscription growth was offset by recurring and transactional declines.
  • Reported a net loss of $28 million for the quarter.
  • Margins declined year-over-year as operating expenses rose on growth investment and higher incentive compensation, and the ScholarOne divestiture and business disposals weighed on revenue and EBITDA.
  • Year-to-date revenue fell more than $50 million, and IP patent and trademark maintenance recurring revenue was only flat versus the prior-year period.
  • Net leverage remained elevated at about four turns.

More on Clarivate Plc

Reported 2025-10-29 · figures from the Clarivate Plc Q3 2025 earnings call.

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