How Widening Losses and New Board Appointments at Clearwater Analytics (CWAN) Have Changed Its Investment Story

• Clearwater Analytics Holdings reported its second-quarter 2025 results, revealing a year-over-year revenue increase to US$181.94 million alongside a wider net loss of US$23.23 million, and provided revenue guidance for both the next quarter and full year.
• The company also announced the addition of two independent board members experienced in global asset management and enterprise technology, signaling a move to strengthen international expansion and deepen platform expertise.
• Now, we’ll examine how Clearwater’s widened net loss amid robust revenue growth shapes its current investment narrative and outlook.

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Clearwater Analytics Holdings Investment Narrative Recap

To be a shareholder in Clearwater Analytics Holdings today, you’d need to believe that robust revenue growth driven by international expansion and product innovation will eventually translate into sustained profitability, even as short-term net losses persist. The latest widened net loss, despite significant revenue gains, could weigh on progress against near-term profitability targets but does not materially affect the main catalyst, Clearwater’s need to deliver on sequential revenue growth. The largest current risk remains Clearwater’s dependence on hitting its aggressive revenue acceleration targets, as any shortfall could impact confidence in its growth narrative.

Among recent announcements, Clearwater’s confirmed revenue guidance for both the next quarter and the full year stands out as highly relevant. This guidance directly addresses the ongoing risk around achieving meaningful top-line growth, providing a tangible benchmark for progress and clarity on management’s near-term outlook.

But even with strong top-line forecasts, there’s still the issue of whether growth can outpace mounting losses that investors should be aware of…

Read the full narrative on Clearwater Analytics Holdings (it's free!)

Clearwater Analytics Holdings is projected to achieve $1.2 billion in revenue and $106.6 million in earnings by 2028. This outlook is based on an assumed 30.1% annual revenue growth rate, but a significant decrease in earnings of $299.8 million from the current $406.4 million.

Uncover how Clearwater Analytics Holdings' forecasts yield a $30.73 fair value, a 57% upside to its current price.

Exploring Other Perspectives

Six Simply Wall St Community members estimate fair value between US$12.73 and US$35.63 per share, showing a wide range of views. Many remain focused on Clearwater’s ability to achieve sustained sequential revenue growth, a key factor that could shift sentiment and future performance expectations.

Explore 6 other fair value estimates on Clearwater Analytics Holdings - why the stock might be worth 35% less than the current price!

Build Your Own Clearwater Analytics Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Clearwater Analytics Holdings research is our analysis highlighting 5 key rewards and 4 important warning signs that could impact your investment decision.
• Our free Clearwater Analytics Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Clearwater Analytics Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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