Q2 2026 Clarivate PLC Earnings Call

July 29, 2026

Operator 3: Hello, everyone. Thank you for joining us, welcome to Clarivate's Q2 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Mark Donohue, Head of Investor Relations at Clarivate. Please go ahead.

Operator: Hello, everyone. Thank you for joining us, welcome to Clarivate's Q2 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Mark Donohue, Head of Investor Relations at Clarivate. Please go ahead.

Speaker #1: If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Mark Donohue, Head of Investor Relations at Clarivate.

Speaker #1: Please go ahead.

Speaker #2: Thank you. And good morning, everyone. Thank you for joining us for the CLARIVATE second quarter 2026 earnings conference call. As a reminder, this conference call is being recorded and webcast and is copyrighted at property of CLARIVATE.

Mark Donohue: Thank you. Good morning, everyone. Thank you for joining us for the Clarivate Q2 2026 earnings conference call. As a reminder, this conference call is being recorded and webcast and is copyrighted property of Clarivate. Any rebroadcast of this information in whole or in part without prior written consent of Clarivate is prohibited. The accompanying earnings call presentation is available on the investor relations section of the company's website. During our call, we may make certain forward-looking statements within the meaning of the applicable securities laws. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of the business or developments in Clarivate's business to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements.

Speaker #2: Any rebroadcast of this information and whole or in part without prior written consent of CLARIVATE is prohibited, and the accompanying earnings call presentation is available on the Investor Relations section of the company's website.

Speaker #2: During our call, we may make certain forward-looking statements within the meaning of the applicable securities laws, such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of the business, or developments in CLARIVATE's business that differ materially from the anticipated results, performance, achievements, or developments expressed or implied by such forward-looking statements.

Speaker #2: Information about the factors that cause actual results that differ materially from anticipated results, performance, can be found in CLARIVATE's filings with the SEC and on the company's website.

Mark Donohue: Information about the factors that cause actual results to differ materially from anticipated results or performance can be found in Clarivate's filings with the SEC and on the company's website. Our discussion will include non-GAAP measures or adjusted numbers. Clarivate believes non-GAAP results are useful in order to enhance understanding of our ongoing operating performance, but they are a supplement to and should not be considered in isolation from or as a substitute for GAAP financial measures. Reconciliation of these measures to GAAP measures are available on earnings release and supplemental presentation on our website. With me today are Matti Shem Tov, Chief Executive Officer, Jonathan Collins, Chief Financial Officer, and Michael Easton, Chief Accounting Officer. After our prepared remarks, we will open up the call to your questions. With that, it is a pleasure to turn the call over to Matti.

Speaker #2: Our discussion will include non-GAAP measures or adjusted numbers, CLARIVATE believes non-GAAP results are useful in order to enhance understanding of our ongoing operating performance, but they are a supplement to and should not be considered an isolation from or as a substitute for GAAP financial measures.

Speaker #2: Reconciliation of these measures to GAAP measures is available in our earnings release and supplemental presentation on our website. With me today are Mahdi Shemtov, Chief Executive Officer, and Jonathan Easton, Chief Accounting Officer.

Speaker #2: After our prepared remarks, we'll open up the call to your questions, and with that, it's a pleasure to turn the call over to Mahdi.

Speaker #3: Good morning, everyone, and thank you for joining us. The key messages today are straightforward—we are delivering on our commitment, and now we have a building block in place to accelerate. In the quarter, we advanced our AI innovation roadmap, grew organic ACV year over year, maintained disciplined cost management, and strengthened our balance sheet through delivery.

Matti Shem Tov: Good morning, everyone. Thank you for joining us. The key messages today are straightforward. We are delivering on our commitment. Now we have the building blocks in place to accelerate organic growth. During the quarter, we advanced our AI innovation roadmap, grew organic ACV year over year, maintained disciplined cost management, and strengthened our balance sheet through delevering. These actions will deliver further long-term value to shareholders. In the Q2, we drove continued progress across the business. Organic ACV growth improved to 1.5%, and profit margin has expanded to more than 42%. At the segment level, Academia & Government and Life Sciences & Healthcare each delivered 2% organic ACV growth. A sign of continued progress here is the shift from transactional to recurring revenue. We expect to see this continue in coming quarter as we focus on subscription revenue.

Speaker #3: These actions will deliver further long-term value to shareholders. In the second quarter, we drove continued progress across the business. Organic ACV growth improved to 1.5%, and profit margin has expanded to more than 42%.

Speaker #3: As a segment level, academia and government, and life sciences and health each delivered 2% organic ACV growth. A sign of continual progress here is the shift from transactional to recurring revenue.

Speaker #3: We expect to see this continue in coming quarter as we focus on subscription revenue. In the intellectual property segment, reoccurring organic revenue improved to flat in the quarter, and we continue to expect a return to growth in the second half.

Matti Shem Tov: In the Intellectual Property segment, reoccurring organic revenue improved to flat in the quarter. We continue to expect a return to growth in the H2. We advanced key innovation milestones, including introducing two new agentic AI products, Nexus Connect and IP1, which I will discuss in greater detail later. In early July, we announced the agreement to sell Life Sciences & Healthcare segment, sharpening our focus on AI-driven transformative intelligence and enhancing our financial profile. I will also share more here in a minute. These results reflect the steady execution of the value creation plan, which we launched in late 2024. We are moving forward with urgency. Our progress is clear. We are investing wisely, operating with more discipline, and directing resources towards the highest value growth opportunities.

Speaker #3: We advanced key innovation milestones, including introducing two new agentic AI products, Nexus Connect and IP1, which I will discuss in greater detail later. And in early July, we announced the agreement to sell our Life Science and Health segment, sharpening our focus on AI-driven transformative intelligence and enhancing our financial profile.

Speaker #3: I will also share more here in a minute. This results reflect the steady execution of the value creation plan, which we launched in late 2024.

Speaker #3: We are moving forward with urgency. Our progress is clear. We are investing wisely, operating with more discipline, and directing resources towards the highest value growth opportunities.

Speaker #3: What differentiates Clarivate in this industry is our ability to apply AI to highly curated, proprietary datasets that have been built and refined over decades.

Matti Shem Tov: What differentiates Clarivate in this industry is our ability to apply AI to highly curated proprietary datasets that have been built and refined over decades. As a result, we believe that we are on a path towards accelerating our growth rate over the next couple of years. Turning to A&G segment. Our strategy is to be the trusted layer between AI and research. That means using Clarivate's proprietary data, domain expertise, and workflow solution to help institutions make better decisions with confidence and transparency. This quarter, we launched Web of Science Research Intelligence globally. This is an AI-native platform for research strategy, impact, and funding. It is shaped by more than 50 development partners and early adopters across 20 countries. Its insights are grounded in publisher-neutral Web of Science data and it provides full editorial provenance.

Speaker #3: As a result, we believe that we are on a path toward accelerating our growth rate over the next couple of years. Turning to the AMG segment.

Speaker #3: Our strategy is to be the trusted layer between AI and research. That means using Clarivate's proprietary data, domain expertise, and workflow solutions to help institutions make better decisions with confidence and transparency.

Speaker #3: This quarter, we launched Web of Science Research Intelligence globally. This is an AI-native platform for research strategy, impact, and funding. It is shaped by more than 50 development partners and early adopters across 20 countries.

Speaker #3: Its insights are grounded in publisher-neutral Web of Science data and are provided with full editorial provenance. It has already generated a multi-million dollar ACV pipeline, and we have secured 77 paying customers to date.

Matti Shem Tov: It has already generated a multimillion-dollar ACV pipeline, and we have secured 77 paying customers to date. This is a great example of incremental pipeline resulting from new AI-driven products. We also introduced Nexus Connect, an AI-native gateway that provides a single university connector within AI chat agents such as ChatGPT and Claude. It allows students and researchers to access scholarly resources and services seamlessly integrating with various AI platforms to enhance the research experience. The important point is that we are embedding Clarivate proprietary intelligence into existing research workflow for the academic community. It is leading to new revenue streams. We are applying the same innovation approach to the IP segment. We announced the development of IP1, a unified AI platform that combines purpose-built AI agents with Clarivate's trusted proprietary assets and unique expertise.

Speaker #3: This is a great example of incremental pipeline resulting from new AI-driven products. We also introduced Nexus Connect, an AI-native gateway that provides a single university connector within AI, chat agents, such as ChatGPT and Claude.

Speaker #3: It allows students and researchers to access scholarly resources and services, seamlessly integrating with various AI platforms to enhance the research experience. The important point is that we are embedding Clarivate proprietary intelligence into existing research workflows for the academic community.

Speaker #3: It is leading to new revenue streams. We are applying the same innovation approach to the IP segment. We announced the development of IP1, a unified AI platform that combines purpose-built AI agents with CLARIVATE's trusted proprietary assets and unique expertise.

Speaker #3: This platform agentic AI capabilities allow IP professionals to efficiently solve both patent and trademark intelligence questions as well as simplify daily complex workflows across the entire IP lifecycle.

Matti Shem Tov: This platform agentic AI capabilities allow IP professionals to efficiently solve both patent and trademark intelligence questions, as well as simplify daily complex workflow across the entire IP lifecycle. IP1 is being developed in close collaboration with leading corporate IP teams and law firms. We look forward to discussing this in coming quarters. We are seeing much market validation for our IP innovation. Recently, RiskMark was named the best AI tool for lawyers at the 2026 CODiE Awards. It was recognized for its use of predictive and generative AI to lower trademark risk assessment from hours to minutes. This marks the product's second industry recognition following its 2025 LegalTech Predictive AI Solution of the Year award. In June, we were pleased to welcome Simon Webster as president of our IP segment.

Speaker #3: IP1 is being developed in close collaboration with leading corporate IP teams and law firms. We look forward to discussing this in coming quarters. We are seeing much market validation for our IP innovation, recently risk mark was named the best AI tool for lawyers at the 2026 Cody Awards.

Speaker #3: It was recognized for its use of predictive and generative AI to lower trademark risk assessment from hours to minutes. This marks the product's second industry recognition following its 2025 legal tech predictive AI solution of the year award.

Speaker #3: In June, we were pleased to welcome Simon Webster, as president of our IP segment. Simon is a proven leader in the global IP ecosystem with more than two decades of experience including as CEO of CPA Global with CLARIVATE acquired in late 2020.

Matti Shem Tov: Simon is a proven leader in the global IP ecosystem with more than two decades of experience, including as CEO of CPA Global, which Clarivate acquired in late 2020. During his time at CPA, the organization delivered compounded annual organic growth in the mid-single digits. Our priorities in IP are to improve customer focus and retention across annuities and software, increase commercial intensity, and accelerate AI innovation supported by our proprietary data assets. Importantly, our IP business has meaningful differentiators, scale, trusted relationship with leading law firms and blue-chip corporate IP teams, a strong reoccurring annuity and renewal engine, and differentiated proprietary content. We believe this strength, combined with disciplined execution under Simon's guidance, positions IP to improve its performance over time. As mentioned before, in early July, we announced an agreement to sell our Life Sciences & Healthcare segment to Altaris.

Speaker #3: During his time at CPA, the organization delivered compounded annual organic growth in the mid-single digits. Our priorities in IP are two: improve customer focus and retention across annuities and software.

Speaker #3: Increase commercial intensity and accelerate AI innovation supported by proprietary data assets. Importantly, our IP business has meaningful differentiators. Scale, trusted relationship with leading law firms, and blue chief corporate IP teams.

Speaker #3: A strong reoccurring annuity and renewal engine. And differentiated proprietary content. We believe this strength combined with disciplined execution under Simon's guidance position IP to improve its performance over time.

Speaker #3: As mentioned before, in early July, we announced an agreement to sell our life science and health segment to Alteros. This marked an important step in our portfolio rationalization effort and is a clear example of the BCP in action.

Matti Shem Tov: This marks an important step in our portfolio rationalization effort and is a clear example of the BCPE in action. This transaction creates a more focused company as a subscription-first provider, simplifying our operating model and allowing us to make more targeted investment in organic growth. It also improves the quality of Clarivate's revenue base. On a pro forma basis, recurring revenue mix increases from 89% to approximately 92%, improving predictability, retention, and cash flow visibility. We plan to use the net proceeds to reduce debt, which extend our average maturity, strengthen our balance sheet, and enhances financial flexibility, enabling further shareholder value creation. Let me bring to your attention slide 12. I will walk you through the progress we have made since launching the value creation plan in late 2024. It starts with business model optimization. We have meaningfully shifted our revenue towards recurring subscription-based model.

Speaker #3: This transaction creates a more focused company as a subscription-first provider simplifying our operating model and allowing us to make more targeted investment in organic growth.

Speaker #3: It also improves the quality of Clarivate's revenue base. On a pro forma basis, recurring revenue mix increases from 89% to approximately 92%, improving predictability, retention, and cash flow visibility.

Speaker #3: We plan to use the net proceeds to reduce debt, which extends our average maturity, strengthens our balance sheet, and enhances financial flexibility—enabling further shareholder value creation.

Speaker #3: Let me bring to your attention slide 12. I will walk you through the progress we have made since launching the value creation plan in late 2024.

Speaker #3: It starts with business model optimization. We have meaningfully shifted our revenue towards recurring subscription-based model. This gives us greater visibility greater predictability and higher quality base to build on.

Matti Shem Tov: This gives us greater visibility, greater predictability, and higher quality base to build on. We have also improved our go-to-market. By sharpening how we sell and how we serve customers, we have improved the momentum of our recurring business and set a stronger foundation for future bookings. At the same time, we have accelerated our AI innovation across the business, we have a robust and growing portfolio of new AI-powered products, deepening the value we deliver to customers and reinforcing our competitive position. We have rationalized the portfolio. We have taken deliberate action to divest non-core assets, announcing several disposals so that our capital and our attention are concentrated on our two major markets. Which brings me to what is next, accelerating organic growth.

Speaker #3: We have also improved our go-to-market by sharpening how we sell and how we serve customers we have improved the momentum of our recurring business and set a stronger foundation for future bookings.

Speaker #3: At the same time, we have accelerated our AI innovation. Across the business, we have a robust and growing portfolio of new AI-powered products, deepening the value we deliver to customers and reinforcing our competitive position.

Speaker #3: We have rationalized the portfolio. We have taken deliberate action to divest non-core assets, announcing several disposals so that our capital and our attention are concentrated on our two major markets.

Speaker #3: Which brings me to what is next. Accelerating organic growth. With a more focused portfolio and higher quality recurring revenue base a stronger go-to-market engine exciting new product and a healthier balance sheet we expect sequential improvement in recurring organic growth in the second half of 2026 and continued momentum into 2027.

Matti Shem Tov: With a more focused portfolio and higher quality recurring revenue base, a stronger go-to-market engine, exciting new product, and a healthier balance sheet, we expect sequential improvement in recurring organic growth in H2 2026 and continued momentum into 2027. We are investing in the right opportunities, and we are more confident than ever in our ability to execute, accelerate organic growth, and deliver long-term value to shareholders. I will turn it over to Jonathan to discuss this quarter results in more detail.

Speaker #3: We are investing in the right opportunities, and we are more confident than ever in our ability to execute, accelerate organic growth, and deliver long-term value to shareholders.

Speaker #3: I will turn it over to Jonathan to discuss his Q2 results in more detail.

Speaker #2: Thank you, Marty. Slide 14 is an overview of our second quarter and first half results compared with the same periods last year. Q2 revenue was $587 million, bringing H1 to nearly $1.2 billion.

Jonathan Collins: Thank you, Moti. Slide 14 is an overview of our Q2 and H1 results compared with the same periods last year. Q2 revenue was $587 million, bringing H1 to nearly $1.2 billion. The change in the quarter over the prior year was due to the inorganic disposals, lower organic transactional revenues, and a modest foreign exchange impact, partially offset by organic recurring revenue growth. The Q2 net loss was $269 million. The change over the prior year was driven entirely by the non-cash impairment charge triggered by the definitive agreement we reached to divest the LS&H segment. Adjusted diluted EPS in the Q2 was up $0.01 over the prior year to $0.19, bringing the H1 to $0.38, which is a 19% increase over the same period last year. Operating cash flow was $99 million in the quarter.

Speaker #2: The change in the quarter over the prior year was due to the inorganic disposals, lower organic transactional revenues, and a modest foreign exchange impact partially offset by organic recurring revenue growth.

Speaker #2: The second quarter net loss was $269 million. The change over the prior year was driven entirely by the non-cash impairment charge triggered by the definitive agreement we reached to divest the LS and H segment.

Speaker #2: Adjusted diluted EPS in the second quarter was up a cent over the prior year to $0.19, bringing the first half to $0.38, which is a 19% increase over the same period last year.

Speaker #2: Operating cash flow was $99 million in the quarter. The change compared to last year was driven by lower adjusted EBITDA from the disposals and foreign exchange as lower interest expense was offset by higher working capital requirements due to timing of receipts and disbursements.

Jonathan Collins: The change compared to last year was driven by lower Adjusted EBITDA from the disposals and foreign exchange, as lower interest expense was offset by higher working capital requirements due to timing of receipts and disbursements. Please turn with me now to page 15 for a closer look at the drivers of the Q2 top and bottom line changes from the prior year. The changes over the prior year were driven by three primary factors. First, organic revenues declined by $9 million as recurring growth of about a half a percent, only partially offset lower transactional revenues. We mitigated the revenue impact through cost efficiencies, leaving a negligible impact to profit. Second, the businesses we are disposing decreased revenue by $24 million, but was largely offset by cost reductions due to the wind downs, yielding a net $7 million reduction in Adjusted EBITDA.

Speaker #2: Please turn with me now to page 15 for a closer look at the drivers of the second-quarter top- and bottom-line changes from the prior year.

Speaker #2: The changes over the prior year were driven by three primary factors. First, organic revenues declined by 9 million as recurring growth of about a half a percent only partially offset lower transactional revenues.

Speaker #2: We mitigated the revenue impact through cost efficiencies, leaving a negligible impact to profit. Second, the businesses we are disposing decreased revenue by $24 million but was largely offset by cost reductions due to the wind-downs, yielding a net $7 million reduction in adjusted EBITDA.

Speaker #2: And finally, while the top line was essentially unchanged due to foreign exchange, we experienced an adjusted EBITDA headwind of $7 million due to the appreciation of a basket of foreign currencies compared to the US dollar.

Jonathan Collins: While the top line was essentially unchanged due to foreign exchange, we experienced an Adjusted EBITDA headwind of $7 million due to the appreciation of a basket of foreign currencies compared to the US dollar. In total, disciplined cost management allowed us to maintain our Adjusted EBITDA margin over the same period last year despite the revenue decline. Please turn with me now to page 16 for the same analysis for the H1. While organic revenues are down $5 million over last year, cost discipline has completely mitigated the impact and contributed $8 million to Adjusted EBITDA. The strategic disposals have lowered revenue by $49 million, but have expanded profit margins yielding only a $10 million reduction in Adjusted EBITDA.

Jonathan Collins: While the top line was essentially unchanged due to foreign exchange, we experienced an adjusted EBITDA headwind of $7 million due to the appreciation of a basket of foreign currencies compared to the US dollar. In total, disciplined cost management allowed us to maintain our adjusted EBITDA margin over the same period last year despite the revenue decline. Please turn with me now to page 16 for the same analysis for the H1. While organic revenues are down $5 million over last year, cost discipline has completely mitigated the impact and contributed $8 million to adjusted EBITDA. The strategic disposals have lowered revenue by $49 million, but have expanded profit margins yielding only a $10 million reduction in adjusted EBITDA.

Speaker #2: In total, disciplined cost management allowed us to maintain our adjusted EBITDA margin over the same period last year, despite the revenue decline. Please turn with me now to page 16 for the same analysis for the first half.

Speaker #2: While organic revenues are down $5 million over last year, cost discipline has completely mitigated the impact and contributed $8 million to adjusted EBITDA. The strategic disposals have lowered revenue by $49 million but have expanded profit margins, yielding only a $10 million reduction in adjusted EBITDA.

Speaker #2: For the comparable period in the prior year, the US dollar was weaker against the basket of foreign currencies, which caused a foreign exchange tailwind of $12 million on the top line, but resulted in a profit headwind of $5 million due to transaction gains last year that did not recur this year.

Jonathan Collins: For the comparable period in the prior year, the US dollar was weaker against the basket of foreign currencies, which caused a foreign exchange tailwind of $12 million on the top line, but resulted in a profit headwind of $5 million due to transaction gains last year that did not recur this year. Overall, the strategic disposals and disciplined cost management drove margin expansion of nearly 1 percentage point in the H1 of the year, an improving trend we expect to continue in the H2 of the year. Please turn with me now to page 17 to see how our Adjusted EBITDA converted to free cash flow and how we continued to allocate our capital in a disciplined manner to further strengthen the balance sheet. Free cash flow was $44 million in the Q2, which was $6 million lower than the same period last year.

Speaker #2: Overall, the strategic disposals and discipline cost management drove margin expansion of nearly a full percentage point in the first half of the year and improving trend we expect to continue in the second half of the year.

Speaker #2: Please turn with me now to page 17 to see how our adjusted EBITDA converted to free cash flow, and how we continued to allocate our capital in a disciplined manner to further strengthen the balance sheet.

Speaker #2: Free cash flow was 44 million in the second quarter which was 6 million lower than the same period last year. The change was due to higher working capital largely due to the timing of collections and payments partially offset by lower interest and capital spending.

Jonathan Collins: The change was due to higher working capital, largely due to the timing of collections and payments, partially offset by lower interest and capital spending. We used free cash flow and excess cash on hand to repurchase another $75 million of bonds due in 2028 at a modest discount of about 3%, bringing the H1 debt reduction to $218 million. Please turn with me now to page 18 for a look at our full year financial guidance ranges, which remain unchanged from the guidance we initially provided in February, affirmed in April, and then refined a few weeks ago when we announced the agreement to sell the LS&H segment. Today, we're further refining our indications within these ranges, largely to reflect the impact associated with the divestiture of the LS&H business, which we expect to close by the end of the year.

Speaker #2: We use free cash flow and excess cash on hand to repurchase another $75 million of bonds due in 28 at a modest discount of about 3% bringing the first half debt reduction to $218 million.

Speaker #2: Please turn with me now to page 18 for a look at our full year financial guidance ranges, which remain unchanged from the guidance we initially provided in February, affirmed in April, and then refined a few weeks ago when we announced the agreement to sell the LS&H segment.

Speaker #2: Today, we're further refining our indications within these ranges, largely to reflect the impact associated with the divestiture of the LS&H business, which we expect to close by the end of the year.

Speaker #2: For modeling purposes rather than estimating the closing date we've assumed the transaction will close at year end. If it closes prior we will modify the guidance accordingly at the time to reflect the impact.

Jonathan Collins: For modeling purposes, rather than estimating the closing date, we've assumed the transaction will close at year-end. If it closes prior, we will modify the guidance accordingly at the time to reflect the impact. We now expect our organic annual contract value to be in the lower half of the range entirely due to the fact that LS&H will be excluded from this metric in H2, as it will be moved to discontinued operations. Importantly, we expect A&G to approach 3% and the IP segment to return to growth by year-end to blend to about 2.25% growth. We still expect recurring organic growth of about 1.5% near the midpoint of our range, which remains an improvement of nearly a percentage point over last year.

Speaker #2: We now expect our organic annual contract value to be in the lower half of the range entirely due to the fact that LS and H will be excluded from this metric in the second half as it'll be moved to discontinued operations.

Speaker #2: Importantly, we expect A&G to approach 3% and the IP segment to return to growth by year end to blend to about 2 and a quarter percent growth.

Speaker #2: We still expect recurring organic growth of about 1.5% near the midpoint of our range, which remains an improvement of nearly a percentage point over last year.

Speaker #2: Our revenue is now expected just below the midpoint of the range at 2.35 billion due entirely to foreign exchange and our organic recurring revenue mix will be above the high end of the original range at about 92% as LS and H moves to discounts.

Jonathan Collins: Our revenue is now expected just below the midpoint of the range at $2.35 billion, due entirely to foreign exchange, and our organic recurring revenue mix will be above the high end of the original range at about 92% as LS&H moves to disc ops. Adjusted EBITDA should remain at just over $1 billion for a profit margin of nearly 43% at the midpoint of the range. We still expect adjusted diluted EPS will grow about 9% at the midpoint of the range to $0.75. Finally, free cash flow is now likely to be at the low end of the range as we have contemplated the full transaction cost to close the LS&H divestiture and have also incorporated additional restructuring costs to achieve incremental cost savings to recognize the full benefit next year.

Speaker #2: Adjusted EBITDA should remain at just over a billion dollars for a profit margin of nearly 43% at the midpoint of the range we still expect adjusted diluted EPS will grow about 9% at the midpoint of the range to 75 cents.

Speaker #2: Finally, free cash flow is now likely to be at the low end of the range, as we have contemplated the full transaction cost to close the LS&H divestiture and have also incorporated additional restructuring costs to achieve incremental cost savings and recognize the full benefit next year.

Speaker #2: Please turn with me now to page 19 for a reminder of the full year top and bottom line changes we're expecting compared to last year.

Jonathan Collins: Please turn with me now to page 19 for a reminder of the full year top and bottom line changes we are expecting compared to last year. We continue to expect Adjusted EBITDA margin will expand by about 200 basis points, driven by a return to organic growth, continued cost discipline, and completion of the strategic disposals. We anticipate organic growth of about 1%, led by subscription revenue growth from continued ACV acceleration. We have plans in place to achieve cost efficiencies to fully offset inflation, driving $25 million of profit growth. This will account for about a third of the profit margin expansion.

Speaker #2: We continue to expect adjusted EBITDA margin will expand by about 200 basis points driven by a return to organic growth continued cost discipline and completion of the strategic disposals.

Speaker #2: We anticipate organic growth of about 1% led by subscription revenue growth from continued ACV acceleration. We have plans in place to achieve cost efficiencies to fully offset inflation driving 25 million of profit growth.

Speaker #2: This will account for about a third of the profit margin expansion. The inorganic disposals are expected to lower revenue this year by approximately 125 million and we are reducing operating expenses by about 100 million which yields a profit impact of about 25 million delivering the remaining two thirds of the profit margin expansion.

Jonathan Collins: The inorganic disposals are expected to lower revenue this year by approximately $125 million. We are reducing operating expenses by about $100 million, which yields a profit impact of about $25 million, delivering the remaining two-thirds of the profit margin expansion. As a reminder, our guidance assumes we will own the LS&H business until year-end, and if the transaction closes earlier, a revision to our guidance will be made at that time. We now anticipate foreign exchange will be essentially flat compared to last year, comprising the only change to our revenue and Adjusted EBITDA indication within their respective ranges. Please turn with me now to page 20 to step through the expected seasonality of our revenue and profits this year, which we have refined based on our H1 results.

Jonathan Collins: The inorganic disposals are expected to lower revenue this year by approximately $125 million. We are reducing operating expenses by about $100 million, which yields a profit impact of about $25 million, delivering the remaining two-thirds of the profit margin expansion. As a reminder, our guidance assumes we will own the LS&H business until year-end, and if the transaction closes earlier, a revision to our guidance will be made at that time. We now anticipate foreign exchange will be essentially flat compared to last year, comprising the only change to our revenue and adjusted EBITDA indication within their respective ranges. Please turn with me now to page 20 to step through the expected seasonality of our revenue and profits this year, which we have refined based on our H1 results.

Speaker #2: As a reminder, our guidance assumes we will own the LS and H business until year end and if the transaction closes earlier a revision to our guidance will be made at that time.

Speaker #2: We now anticipate foreign exchange will be essentially flat compared to last year, comprising the only change to our revenue and adjusted EBITDA indication within their respective ranges.

Speaker #2: Please turn with me now to page 20 to step through the expected seasonality of our revenue and profits this year, which we have refined based on our first-half results.

Speaker #2: We continue to anticipate the business will accelerate organically in the second half of the year, led by improved retention and new business sales. The organic growth, further cost efficiencies, and the benefit of the strategic disposals should inflect profit margins as we move through the balance of the year.

Jonathan Collins: We continue to anticipate the business will accelerate organically in H2 of the year, led by improved retention and new business sales. The organic growth, further cost efficiencies, and the benefit of the strategic disposals should inflect profit margins as we move through the balance of the year. Revenue should be seasonally lower in Q3 and then higher in Q4 due to the normal cadence of patent and trademark renewals and transactional revenues. Please turn with me now to page 21 to review how we expect the more than $1 billion of Adjusted EBITDA will convert to free cash flow and how we plan to allocate this capital alongside the proceeds from the LS&H divestiture to reduce our debt this year by about $900 million.

Jonathan Collins: We continue to anticipate the business will accelerate organically in H2 of the year, led by improved retention and new business sales. The organic growth, further cost efficiencies, and the benefit of the strategic disposals should inflect profit margins as we move through the balance of the year. Revenue should be seasonally lower in Q3 and then higher in Q4 due to the normal cadence of patent and trademark renewals and transactional revenues. Please turn with me now to page 21 to review how we expect the more than $1 billion of adjusted EBITDA will convert to free cash flow and how we plan to allocate this capital alongside the proceeds from the LS&H divestiture to reduce our debt this year by about $900 million.

Speaker #2: Revenue should be seasonally lower in Q3 and then higher in Q4 due to the normal cadence of patent and trademark renewals and transactional revenues.

Speaker #2: Please turn with me now to page 21 to review how we expect the more than $1 billion of adjusted EBITDA will convert to free cash flow, and how we plan to allocate this capital, alongside the proceeds from the LS&H divestiture, to reduce our debt this year by about $900 million.

Speaker #2: Due to the transaction cost we will incur at the closing of the LS and H divestiture we now expect free cash flow will be flat compared to last year but the vast majority of the one-time cost of nearly 70 million will not recur next year.

Jonathan Collins: Due to the transaction cost we will incur at the closing of the LS&H divestiture, we now expect free cash flow will be flat compared to last year, but the vast majority of the one-time cost of nearly $70 million will not recur next year. We continue to expect cash interest will improve by about $20 million over last year due to the debt we repaid last year and this year. Cash taxes are still expected to be $5 to 10 million higher than last year, due largely to the new corporate tax in Jersey. We anticipate the change in working capital this year will be a use of approximately $25 million, primarily due to incentive compensation payments. We're also expecting a $10 million benefit associated with lower impaired contractual cost reflected on the other row.

Speaker #2: We continue to expect cash interest will improve by about 20 million over last year due to the debt repaid last year and this year.

Speaker #2: Cash taxes are still expected to be $5 million to $10 million higher than last year, due largely to the new corporate tax in Jersey. We anticipate the change in working capital this year will be a use of approximately $25 million, primarily due to incentive compensation payments.

Speaker #2: We're also expecting a 10 million benefit associated with lower impaired contractual cost reflected on the other row. And while we remain committed to investing in product innovation the disposals and cost efficiencies will improve capital spending by about 20 million.

Jonathan Collins: While we remain committed to investing in product innovation, the disposals and cost efficiencies will improve capital spending by about $20 million. From a capital allocation perspective, we plan to use the free cash flow we generate in H2 of the year and the proceeds from the LS&H divestiture to retire nodes due in the next few years. I will now turn the call back over to Matti for some closing remarks before Q&A.

Speaker #2: From a capital allocation perspective we plan to use the free cash flow we generate in the second half of the year and the proceeds from the LS and H divestiture to retire nodes due in the next few years.

Speaker #2: I will now turn the call back over to Maddie for some Q&A.

Speaker #1: Before we transition to Q&A, I want to touch on our other announcement today. Michael Easton has been appointed as our next Chief Financial Officer, effective August 8.

Matti Shem Tov: Before we transition to Q&A, I want to touch on our other announcement today. Michael Easton has been appointed as our next Chief Financial Officer effective 8 August. Many of you already know Michael. He serves as our Chief Accounting Officer and he's a member of our senior leadership team. He is well regarded and brings more than 25 years of finance and leadership experience. Michael has a deep understanding of our business and has been key to strengthening financial discipline, governance, and operational execution across Clarivate. He will be focused on accelerating growth, improving profitability, strengthening free cash flow generation, and maintaining disciplined capital allocation. I want to thank Jonathan for his leadership. He has made many meaningful contributions to our company over the years.

Speaker #1: Many of you already know Michael. He serves as our Chief Accounting Officer and is a member of our senior leadership team. He is well regarded and brings more than 25 years of finance and leadership experience.

Speaker #1: Michael has a deep understanding of our business and has been key to strengthening financial discipline governance and operational execution across CLARIVATE. He will be focused on accelerating growth improving profitability strengthening free cash flow generation and maintaining disciplined capital allocation.

Speaker #1: I want to thank Jonathan for his leadership. He has made many meaningful contributions to our company over the years. He oversaw the successful integration of the three acquisitions that today comprise Clarivate, setting up the segment operating structure.

Matti Shem Tov: He oversaw the successful integration of the three acquisitions that today comprise Clarivate, setting up the segment operating structure we have today, and transforming the finance organization. Personally, in the last two years, he has been an important partner to me in advancing the VCP, working to improve profitability and strengthening our balance sheet. I wish Jonathan every success in the future. Operator, we will turn to Q&A now.

Speaker #1: We have today and transforming the finance organization. Personally in the last two years he has been an important partner to me in advancing the VCP.

Speaker #1: Working to improve profitability and strengthen our balance sheet. I wish Jonathan every success in the future. Operator, we will turn to Q&A now.

Speaker #3: Thank you. We will begin the question and answer session now. If you would like to ask a question please press star one to raise your hand.

Operator 3: Thank you. We will begin the question and answer session now. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Scott Wurtzel with Wolfe Research. Your line is open. Please go ahead.

Operator: Thank you. We will begin the question and answer session now. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you're muted locally, please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Scott Wurtzel with Wolfe Research. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you're muted locally please remember to unmute your device. Please stand by now while we compile the Q&A roster. Your first question comes from the line of Scott Wirtzel with Wolf Research.

Speaker #3: Your line is open. Please go ahead.

Speaker #4: Hey guys. Good morning and thank you for taking my questions. Just wanted to touch on you guys cited some timing around renewals that may have impacted the ACV growth during the quarter.

Scott Wurtzel: Guys, good morning, and thank you for taking my questions. Just wanted to touch on, you guys cited some timing around renewals that may have impacted ACV growth during the quarter. Is anything around that due to longer sales cycles? Anything we should expect to persist at all in H2?

Speaker #4: Is anything around that due cycles and anything we should expect to persist at all in the second half of the year?

Speaker #1: Hey. Good morning Scott. Thanks for the question. You know we believe that our results for Q2 and the first half are in line with our original expectations if I remind everyone we pointed the equivalent of page 20 in Q1 indicated we expected to see a pullback in recurring organic growth in Q2.

Jonathan Collins: Hey, good morning, Scott. Thanks for the question. We believe that our results for Q2 and H1 are in line with our original expectations. If I remind everyone, we pointed the equivalent of page 20 in Q1 indicated we expected to see a pullback in recurring organic growth in Q2. Subscriptions were a part of that. ACV, we continue to make progress over the last 6 quarters. It's not always going to be linear, but we continue to see strong renewal rates, and good opportunities for the new products to convert to sales.

Speaker #1: Subscriptions were a part of that, so ACV—we continue to make progress over the last six quarters. It's not always going to be linear.

Speaker #1: But we continue to see strong renewal rates and good opportunities for the new products to convert the sales. So the timing of renewals is something we see in the business.

Jonathan Collins: The timing of renewals is something we see in the business from time to time, though we don't think it's an elongation of the renewal cycle and the organic ACV growth of about 1.5% in the end of June is generally in line with our H1 organic growth for subscription revenues at about 1.2%. We're generally where we expected, and as we indicate also on page 20 in this quarter's pack, we expect the ACV and the organic recurring revenue to inflect in the H2 of the year. We have good line of sight to that. At this point in the year, the A&G business, as of the end of July, has 75% of this year's business in the bag. Very similar to what we saw at this point last year.

Speaker #1: You know, from time to time, no, we don't. We think it's in elongation of the renewal cycle and the organic ACV growth of about 1.5% at the end of June.

Speaker #1: It's generally in line with our first half organic growth for subscription revenues at about 1.2%. So we're generally where we expected and as we indicate also on page 20 in this quarter's tech we expect the ACV and the organic recurring revenue to inflect in the second half of the year.

Speaker #1: We have good line of sight to that. At this point in the year the A and G business as of the end of July has 75% of the this year's business in the bag.

Speaker #1: Very similar to what we saw at this point last year, the fall is an important renewal cycle, but we're already well on our way and we have good line of sight to the second half of the year.

Jonathan Collins: The fall is an important renewal cycle, we're already well on our way, and we have good line of sight for the H2 of the year. Thanks for the question, Scott.

Speaker #1: Thanks for the question Scott.

Speaker #3: Your next question comes from the line of Tony Kaplan with Morgan Stanley. Your line is open.

Operator 3: Your next question comes from the line of Toni Kaplan with Morgan Stanley. Your line is open.

Operator: Your next question comes from the line of Toni Kaplan with Morgan Stanley. Your line is open.

Speaker #5: Thanks so much. I was hoping you could talk more about the MCP opportunity—where you think, like, which client types are going to gravitate toward utilizing your data over MCP.

Toni Kaplan: Thanks so much. I was hoping you could talk more about the MCP opportunity, where you think which client types are going to more gravitate towards utilizing your data over MCP, which segments, et cetera. Just how you're thinking about how it could contribute to growth, and is it included in the subscription or is there an upcharge for it? Also, just Jonathan, congratulations on your new opportunity. Thanks.

Speaker #5: Which segments, etc.? And just how you're thinking about how it could contribute to growth, and is it included in the subscription or is there an upcharge for it?

Speaker #5: And also, just Jonathan, congratulations on your new opportunity. Thanks.

Speaker #1: Yeah. So I'll take this one. Thank you. Thank you Tony. Just to maybe take a broader view on the AI innovation we are doing.

Matti Shem Tov: Yeah. I'll take this one. Thank you, Toni. Just to maybe take a broader view on the AI innovation we are doing. We are very much focused, and since I joined or since we started the VCP, we are delivering on 19 different initiatives regarding external, a new product that we are delivering. We are very pleased with the progress so far, which is the AI enablement of our existing product. It's a source for revenue for new logos, new products, and improving retention. I think also to allow us to have some AI-specific pricing for new products. New revenue generation or new revenue stream. For example, Web of Science Research Intelligence, definitely a new revenue stream. Pharma Spektro, a new revenue stream. IP One that I've been talking about, and we are very excited about IP One, definitely a new revenue stream.

Speaker #1: We are very much focused, and since I joined—since we started, you know, the VCP—we are delivering on 19 different initiatives regarding external and new products that we are delivering.

Speaker #1: We are very, very pleased with the progress so far. We see the AI enablement of our existing product as a source of revenue for new logos.

Speaker #1: New products, new and improving retention, and I think also to allow us to have some AI-specific pricing for new products. So, new revenue generation or a new revenue stream—for example, Web of Science Research Intelligence is definitely a new revenue stream.

Speaker #1: Pharma Spectre is a new revenue stream. IP1 and I have been talking about it, and we are very excited about IP1. Definitely a new revenue stream.

Speaker #1: Some will come, Nexus, connect another product from A and G, which involves MCP. And we see the customers, industry segment, including Life Science, otherwise consume our data—our proprietary data—either directly through us with our UX, or a new AI-enabled product, or using their own customers.

Matti Shem Tov: Some will come, Nexus Connect, another product from A&G which involve MCP, and we see the customers in the three segments, including life science, how they want to consume our data, our proprietary data. Either directly through us with our UX or a new AI-enabled product or using their own customers. There's a tendency in some, the bigger customer, who would like us to embed our capabilities, MCP capabilities, into their respective corporate AI product. This is why you see more of our product, whether it's embedded into Anthropic, ChatGPT, and other generic LLMs. By and large, the bigger customer would like to be able to embed this through MCP. Smaller customer may want to use it in our environment, this is just early days.

Speaker #1: There's a tendency in some—the bigger customers would like us to embed our MCP capabilities into their respective, you know, corporate AI products. And this is why you see more of our product—whether it's embedded into Anthropic, ChatGPT, and other generic LLMs.

Speaker #1: By and large the bigger customer would like to be able to embed this through MCP smaller customer may want to use it in our environment.

Speaker #1: But this is just early days overall. We are very pleased with the momentum that we're having introducing AI—either our own native or embedding our proprietary data into the MCP environment of the customer.

Matti Shem Tov: Overall, we are very pleased with the momentum that we're having introducing AI, either our own native or embedding our proprietary data into MCP environment of the customer designation corporate AI infrastructure.

Speaker #1: Basically as a corporate AI infrastructure.

Speaker #5: Thank you.

Toni Kaplan: Thank you.

Speaker #3: Your next question comes from the line of Manav Patnaik with Barclays. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Manav Patnaik with Barclays. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Manav Patnaik with Barclays. Your line is open. Please go ahead.

Speaker #1: Thank you. Firstly, congratulations, Jonathan and Michael, both for your new roles. I just had a question on the acceleration of organic growth. I think you said, sequentially, 100 basis points.

Manav Patnaik: Thank you. Firstly, congratulations, Jonathan and Mike, both for your new roles. I just had a question on the expectation for acceleration of organic growth. I think you said sequentially 100 basis points. Can you flesh that out a bit if it's different between Academia & Government and then the IP side as well? I think just going into 2027, I guess, maybe just is that 100 basis points for the full year as well in 2027? How we should think about that?

Speaker #1: Can you flesh that out a bit, if it's different between academic and government, and then the IT side as well? And, you know, I think just going into 2027—I guess, maybe just, you know, is that 100 basis points for the full year as well in '27, or how should we think about that?

Speaker #2: I think we are pretty positive on both segments. We have a line of sight a certain momentum is building up in IP as IP as well.

Matti Shem Tov: I think we are pretty positive on both segments. We have a line of sight. A certain momentum is building up in IP as well. We are back to reoccurring flat in Q2. We believe that we're going to improve reoccurring in H2 for IP as well, with a great new momentum. Here to re-mention the introduction of all the rejoining of Simon to Clarivate. He's been in the industry for 20 years. We were kind enough for him to come back and support us. He will utilize all his IP knowledge and expertise in accelerating the progress on the IP turnarounds. We do believe IP will be turned around faster with Simon in place and with the great assets, annuity, software intelligence that we have, and with the AI innovation I've mentioned.

Speaker #2: We are back to recurring flat in Q2. We believe that we're going to improve recurring in the second half of the year for IP as well, with great new momentum. And here is, you know, here to remention the introduction of—or the rejoining of—Simon to Clarivate.

Speaker #2: He's been in the industry for 20 years. We were kind enough always to come back and support us. He will utilize all his IP knowledge and expertise and accelerate the progress on the IP turnaround.

Speaker #2: So we do believe IP will return, will be turned around faster with Simon in place and with the great assets and Unity software intelligence that we have.

Speaker #2: And with the AI innovation I've mentioned you know I've mentioned risk mark as a product it's one three of us and I'm also happy about IP1.

Matti Shem Tov: I've mentioned RiskMark as a product that won three awards, and I'm also happy about IP One. IP One is not just intelligence, IP One is in fact an agentic environment. Basically, we're taking a different route. We all know about the data and the other one which has been a little bit contracting. Basically, we are going to disrupt the market using both our agentic capabilities and expertise and our proprietary data. That's on the IP side. On the A&G side, momentum is also building with the new Web of Science Research Intelligence, with the new Pharma Spektro and with obviously Nexus Connect and some of the new innovations coming out from the A&G product house. Optimistic on both sides.

Speaker #2: IP1 is not just intelligence. IP1 is in fact an agentic environment in which IP professionals basically we're taking a different route. So we all know about the derwins and the other one which has been a little bit contracting and basically we are going to stop the market using both our agentic capabilities and expertise and our proprietary data.

Speaker #2: That's on the IP side. On the A and G side momentum is also building with the new Web of Science Research Intelligence with a few with the new you know Alma Spectre and with obviously Nexus Connect and some of the new innovation coming out from the A and G product house.

Speaker #2: So optimistic on both sides.

Speaker #3: Your next question.

Mark Donohue: Your next question.

Operator: Your next question.

Speaker #1: The next question please.

Matti Shem Tov: Next question, please.

Speaker #3: Your next question comes from the line of George Tong with Goldman Sachs. Your line is open.

Operator 3: Your next question comes from the line of George Tong with Goldman Sachs. Your line is open. Please go ahead.

Operator: Your next question comes from the line of George Tong with Goldman Sachs. Your line is open. Please go ahead.

George Tong: Hi, thanks. Good morning. Thank you. I wanted to dive more into transactional revenue performance. To what extent would you say the transaction revenue declines are due to industry factors versus idiosyncratic execution factors? What gives you confidence that there's a path for transactional revenue performance to improve?

Speaker #6: Thank you. Good morning. I wanted to dive more into transactional revenue performance. To what extent would you say the transaction revenue declines are due to industry factors versus idiosyncratic execution factors, and what gives you confidence that there's a path for transactional revenue performance to improve?

Speaker #1: Let me start and I will hand it over to Jonathan. The idea is that we are moving as part of my playbook or the playbook we've used in the VCP is to move away from transactions.

Matti Shem Tov: Let me start, I will hand over to Jonathan. The idea that we are moving is part of my playbook or the playbook we've used in the VCP, is to move away from transactions. Going into this VCP, there were certain businesses we divested completely, like the one-time books, the one-time files, the real-world data. We divested this business completely. The divestiture of Life Sciences & Healthcare, we're also giving away some of the Life Sciences & Healthcare was a little bit higher on transactional. There's still a portion of transactional business that will stay with us, and it's supporting the one-time business we have. Still within this transactional business, there are still business that we as ambitious to transform to subscription. Just one example is the backfiles of Web of Science. This will be gradually improve our subscription rate going even beyond 92%.

Speaker #1: So going into this VCP there were certain businesses that we divested completely like the one-time books, the one-time piles, the real world data. We divested this business completely.

Speaker #1: But the divestiture of Life Sciences, we're also giving away—you know, some of their Life Sciences was a little bit higher on transactional. There's still a portion of transactional business that will stay with us, and it's supporting the one-time business that we had.

Speaker #1: But still within this transactional business there are still businesses that we have ambitious to transform to subscription. Just one simple one example is the tech files of Web of Science.

Speaker #1: This will be gradually improved our subscription rate going even beyond 94 92% that hang over for Jonathan from some more specifics about the quarter.

Matti Shem Tov: I hand over for Jonathan to program some more specifics about the quarter.

Speaker #7: Yeah, thanks, Molly. Just a little bit of a different, additional color on the quarter, George. You know, the life sciences business is still in our organic results in Q2.

Jonathan Collins: Thanks, Matti. Just a little bit of a different additional color on the quarter, George. The Life Sciences & Healthcare business is still in our organic results in Q2. We didn't reach the agreement until after the end of the quarter. That business saw some headwinds in the quarter on transactional in particular. As Matti said, we have been looking to migrate some of those things to subscription. That's a piece of it, also we just saw some headwinds in Life Sciences & Healthcare. In the other two businesses, the business can be lumpy quarter to quarter. We knew we lapped a couple of things in Q2 in both of those businesses that were going to be a bit of a headwind, we do expect that to ameliorate in the H2 of the year. I think we have better line of sight into that.

Speaker #7: We didn't reach the agreement until after the end of the quarter. But that business saw some headwinds in the quarter, particularly on the transactional side.

Speaker #7: As Molly said we are have been looking to migrate some of those things to subscription. That's a piece of it. But also we just saw some headwinds in life sciences.

Speaker #7: Any other two businesses the business can be lumpy quarter to quarter we knew we lapped a couple of things in Q2 and both of those businesses that we're going to be a bit of an admin.

Speaker #7: But we do expect that to ameliorate in the second half of the year. I think we have better line of sight into that. Our full-year guide does contemplate that transactional will be down slightly year over year.

Jonathan Collins: Our full year guide does contemplate that transactional will be down slightly year over year, I think we'll see some improvement on that in the H2. Thanks for the question, George.

Speaker #7: But I think we'll see some improvement on that in the second half. Thanks for the questions, George.

Speaker #6: Thank you.

George Tong: Thank you.

Speaker #3: As a reminder if you would like to ask a question please press star one now to raise your hand and join the queue. Your next question comes from the line of Shlomo Rosenbaum with Stiefel.

Operator 3: As a reminder, if you would like to ask a question, please press star one now to raise your hand and join the queue. Your next question comes from the line of Shlomo Rosenbaum with Stifel. Your line is open. Please go ahead.

Operator: As a reminder, if you would like to ask a question, please press star one now to raise your hand and join the queue. Your next question comes from the line of Shlomo Rosenbaum with Stifel. Your line is open. Please go ahead.

Speaker #3: Your line is open. Please go ahead.

Speaker #5: Hi, this is Adam for Shlomo. Was there any client losses that might have impacted the Life Sciences business that drove the revenue decline, in addition to the kind of transactional movement?

[Analyst] (Stifel): Hi, this is Adam on for Shlomo. Was there any client losses that might have impacted the Life Sciences business that drove the revenue decline in addition to the kind of transactional movement?

Speaker #7: Yeah, thanks for the question. No, there's nothing discrete or specific, as I mentioned. Molly talked about the fact that we've had an emphasis over the last year or so on really providing good subscription alternatives to migrate some of the transactional business away from.

Jonathan Collins: Yeah. Thanks for the question. No, there's nothing discrete or specific. As I mentioned, Moti talked about the fact that we've had an emphasis over the last year or so of really providing good subscription alternatives to migrate some of the transactional business away from. Certainly, that's an item, but nothing specific that we would highlight on an individual basis, other than just some headwinds in that area on the transactional side.

Speaker #7: So, certainly, that is an item, but nothing specific that we would highlight on an individual basis, other than just some headwinds in that area on the transactional side.

Speaker #5: Okay. And did the buyer of the life sciences division know the performance in the second quarter when they announced the deal? Just want to verify what potentially triggered like a MAC clause or anything like that.

[Analyst] (Stifel): Okay. Does the buyer of the Life Sciences division know the performance in Q2 when they announced the deal? Just want to verify it would potentially trigger a sort of like a MAC clause or anything like that.

Speaker #7: No, certainly this is nothing to that level, and you know that process is moving exactly as we would expect. We worked through the process to reach an agreement, and all of the approvals that are required are customary. We expect those to occur in the coming months, and we expect this to close before the end of the year.

Jonathan Collins: No, certainly this is nothing to that level. That process is moving exactly as we would expect. We work through the process to reach an agreement and all of the approvals that are required are customary, and we expect those to occur in the coming months, and we expect this to close before the end of the year.

Speaker #5: Thank you.

[Analyst] (Stifel): Thank you.

Speaker #3: We have reached the end of the Q&A session. I would now like to turn the call back to Motti for closing remarks. Please go ahead.

Operator 3: We have reached the end of the Q&A session. I would now like to turn the call back to Matti for closing remarks. Please go ahead.

Operator: We have reached the end of the Q&A session. I would now like to turn the call back to Matti for closing remarks. Please go ahead.

Speaker #1: As we close I want to just repeat the key takeaways today are very very clear. We have a building block in place to accelerate organic growth and we will continue to deliver on our commitment to drive long-term shareholder value.

Matti Shem Tov: As we close, I want to just repeat the key takeaways today are very, very clear. We have a building block in place to accelerate organic growth, and we will continue to deliver on our commitment to drive long-term shareholder value. Thank you for joining us.

Speaker #1: And thank you for joining us.

Speaker #3: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining CLARIVATE Q2 earnings conference call.

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Clarivate Q2 Earnings Conference Call. The line will disconnect automatically.

Operator: This concludes today's call. Thank you for attending. You may now disconnect. This event has now concluded. Thank you for joining Clarivate Q2 Earnings Conference Call. The line will disconnect automatically.

Q2 2026 Clarivate PLC Earnings Call

Request DemoDemo

Clarivate

Earnings