This identity verification leader is growing beyond airports — and investors are noticing
Clear Secure ‘s efforts to move beyond the airport to become the leading digital identity verification platform are starting to pay off for investors. In July, CNBC highlighted Clear Secure’s potential to accelerategrowth and margins as it added users to its database, creating network effects and making each reverification of existing users more profitable. Clear Secure’s stock surged 24% on Nov. 4 after it reported third-quarter earnings rose to 52 cents per share on revenue of $292.9 million compared with analysts’ expectations of 48 cents per share in profit and $286.7 million in revenue, according to FactSet. The company also raised its full year 2026 guidance for free cash flow to at least $490 million from at least $480 million, which would be year-over-year growth of at least 42.8%. Fourth -quarter revenue should be between $299 million and $302 million, it said. The results are built on the company’s Clear+ airport product, which delivers a reliable experience that more and more customers are willing to pay a premium for, and a rapidly expanding Clear1 identity verification business, which is being quickly adopted in industries like healthcare and government. Clear+ membership growth Active Clear+ membership grew by 14.5% year-on-year to 8.5 million in the quarter. “Travel trends remain robust, w/eGates now covering ~80% of the network, Concierge offered at 42 airports, and record-high lane experience scores supporting strong retention,” JPMorgan analyst Bryan Smilek wrote in a note. CNBC has said that the airport business is one of its competitive advantages as it serves as a customer acquisition engine. The case for the products rests on how the airport can be the most frantic part of a trip, but Clear+ and its concierge services make it less hectic. “96% of members are getting through in less than 5 minutes, that is a predictability and a consistency, which has moved us from a line to an experience,” CEO Caryn Seidman Becker said on the earnings call. Flyers are even sleeping better when they use Clear as they have more control of their travel day, the company said, citing a study it commissioned with fitness wearable Whoop. “At airports, the company should continue to benefit from expanding its technology platform, such as providing access to international travelers,” Dana Telsey, of Telsey Advisory Group, said. She expects the company to benefit further from increasing membership fees. Clear1 identity growth A new set of risks is driving the Clear1 identity verification business, which grew bookings close to threefold year-on-year in the quarter. “Last year you didn’t have cyber criminals taking money out of crypto companies. You didn’t have North Koreans infiltrating critical infrastructure,” Seidman Becker said on the call, referring to the Binance crypto theft that saw hackers use fake job interviews to infiltrate Binance’s wallet infrastructure. YOU 3M mountain Clear Secure stock over the past three months. “Demand is broadening across our verticals, and GovTech is a great example. We renewed and expanded a multiyear partnership with CMS, the federal agency that oversees Medicare and Medicaid. We also announced a pilot with the [U.S. Department of Veterans Affairs ], and we are off to a strong start,” said Chief Financial Officer Jennifer Hsu on the call. More members, better margins All these new contracts significantly boost Clear Secure’s database, now 46.7 million strong, up 30.7% year-on-year. Spreading their costs across more members who have already gone through the more expensive initial verification process has led to a net income margin of 25.7% in the third quarter, up 600 basis points year-on-year. The members gained from the enterprise Clear1 business also provide warm leads for Clear+. The bigger, more trusted and well-known Clear becomes, the faster it can grow. Revenue was up 27.8% year-on-year in the third quarter compared with a 19.7% gain in the first quarter, when CNBC initially weighed in on the stock. Clear Secure outlook Clear Secure plans to increase its use of digital and mobile ads where penetration is low to drive growth. “If you told us three years ago that you could enroll on your couch with your mobile phone and your passport both as a US citizen and 42 visa waiver countries, that really expands the [total addressable market], and I think that there’s a lot of opportunity there. It’s still really early days there,” Seidman Becker said on the call referring to the use of ads. This opens up another high-potential avenue for scaling overall growth. “Importantly, Clear’s business momentum remains strong, as visible from its 4Q26 guidance,” said Telsey. “In our view, Clear is in the early stages of multi-year growth, driven by broadening its biometric digital identity verification technology platform.” THIS CONTENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE FINANCIAL, INVESTMENT, TAX OR LEGAL ADVICE OR A RECOMMENDATION TO BUY ANY SECURITY OR OTHER FINANCIAL ASSET. THE CONTENT IS GENERAL IN NATURE AND DOES NOT REFLECT ANY INDIVIDUAL’S UNIQUE PERSONAL CIRCUMSTANCES. THE ABOVE CONTENT MIGHT NOT BE SUITABLE FOR YOUR PARTICULAR CIRCUMSTANCES. BEFORE MAKING ANY FINANCIAL DECISIONS, YOU SHOULD STRONGLY CONSIDER SEEKING ADVICE FROM YOUR OWN FINANCIAL OR INVESTMENT ADVISOR. Click here for the full disclaimer.
