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Clear Secure

YOU
67
Software - Application · Technology
Winston Score
67
Winston is curious
A decent business — some strong pillars, some weaker.

Clear Secure runs a biometric identity verification service used mostly at airports across the United States. Members enroll their fingerprints and iris scans, then use CLEAR kiosks to skip the ID-check line before TSA security. The company also sells identity verification tools to sports stadiums, healthcare providers, and other businesses through its platform.

CLEAR makes money by charging members an annual subscription fee, currently around $189 per year, plus fees from enterprise partners who use its identity technology. It operates primarily in the U.S., with over 20 million enrolled members and kiosks at more than 50 airports. The business benefits from high switching costs once members are enrolled and from long-term contracts with airports and venues. The main risk is competition from TSA PreCheck and other government-run programs, as well as any regulatory changes around how biometric data can be collected and stored.

Winston Score History

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Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+16.7% YoY

YoY Growth Rate

Steady revenue growth

EPS Growth

-70.3% YoY

YoY Growth Rate

Earnings declining

Insider Activity

12.3%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$86M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth + cash flow

Clear Secure is a rare growth stock that's already generating positive cash flow while growing at 17%. The Winston Score doesn't fully credit this transition from "burner" to "earner."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin
146.0%
Premium pricing power — 146.0% gross margin
Operating Margin
22.4%
Excellent — 22.4% operating margin
ROCE
30.3%
Exceptional — 30.3% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales YoY
+16.9%
Fast-growing sales (16.9% YoY)
EPS YoY
-37.4%
Earnings shrinking (-37.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
341%
Turns 341% of profit into real cash
FCF Margin
38.1%
Converts sales into free cash efficiently (38.1%)

Free cash flow margin above 20%. Out of every $100 in sales, more than $20 is real cash they keep.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
43.0x
no trend
Pricey — P/E 43.0

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
+11.0
GROWING
Earnings expected to grow meaningfully — cheaper on forward P/E (43.0 → 32.0)

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Dividends

Dividend Yield
1.39%
no trend
Small dividend — 1.39% yield

Modest yield. The bulk of any return needs to come from price appreciation.

Dividend Growth
+0.7%
no trend
Dividend flat

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