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YOU Stock Analysis: Top Mid-Cap Hold (Score 48.9/100) | Blank Capital Research | Blank Capital Research
YOU
Clear Secure, Inc.
$46.17
-2.82 (-5.76%)
Score48.9
Data as of Apr 6, 2026
YOU
Clear Secure, Inc.
TechnologyComputer Software
$46.17
-2.82 (-5.76%)
Open $48.76High $48.76Low $45.38Prev $48.99Vol ---52W: $23.00 – $50.46
Catalyst IntelligenceBearish Factor
Context:Downward pressure following report: "Why Clear Secure (YOU) Is Up 8.3% After Shutdown-Fueled Surge In Airport Demand And App Downloads". The 5.8% decline indicates institutional rebalancing.
Hold
Composite score
01234567890123456789.0123456789
Global rank
#575
Percentile
Top 13%
Business quality
50th
percentile
Standard operational efficiency. The business maintains stable margins and returns in line with broader market averages.
Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
78.1%
Sector: -1.4%
Dividend Analysis audit
INCOME
2.31%
Trailing Yield
$2.31
Per $100 Invested
Solid dividend yield for income-focused strategies.
Est. Payout Ratio
76%MID
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
Sign up for free access to institutional-quality research tools.
Based on our 6-factor quantitative model, Clear Secure, Inc. (YOU) receives a "Hold" rating with a composite score of 48.9/100, ranked #575 out of 4446 stocks. Key factor scores: Quality 50/100, Value 56/100, Momentum 70/100. This is quantitative analysis only — not investment advice.
Clear Secure, Inc. (YOU) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Clear Secure, Inc. Do?
Clear Secure, Inc. provides a member-centric secure identity platform in the United States. The company's secure identity platform is a multi-layered infrastructure consisting of front-end, including enrollment, verification, and linking. It also offers CLEAR Plus, a consumer aviation subscription service, which enables access to predictable entry lanes in airport security checkpoints, as well as access to broader network; and CLEAR app, a consumer-facing digital product that facilitates new user enrollment and member engagement from their mobile device. In addition, the company provides Reserve powered by CLEAR, a virtual queuing technology that provides users with the choice of how they queue either at home or on the move; and Atlas Certified, an automated solution to verify professional licenses and certification data across industries by communicating with certifying organizations for on-demand, current, and trusted data. The company was founded in 2010 and is headquartered in New York, New York. Clear Secure, Inc. (YOU) is classified as a mid-cap stock in the Technology sector, specifically within the Computer Software industry. The company is led by CEO Caryn Seidman-Becker and employs approximately 3,060 people. With a market capitalization of $4.9B, YOU is one of the notable companies in the Technology sector.
Clear Secure, Inc. (YOU) Stock Rating — Hold (April 2026)
As of April 2026, Clear Secure, Inc. receives a Hold rating with a composite score of 48.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.YOU ranks #575 out of 4,446 stocks in our coverage universe. Within the Technology sector, Clear Secure, Inc. ranks #43 of 584 stocks, placing it in the top 10% of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
YOU Stock Price and 52-Week Range
Clear Secure, Inc. (YOU) currently trades at $46.17. The stock lost $2.82 (5.8%) in the most recent trading session. The 52-week high for YOU is $50.46, which means the stock is currently trading -8.5% from its annual peak. The 52-week low is $23.00, putting the stock 100.7% above its annual trough. Recent trading volume was 1.7M shares, reflecting moderate market activity.
Is YOU Overvalued or Undervalued? — Valuation Analysis
Clear Secure, Inc. (YOU) carries a value factor score of 56/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 32.73x, compared to the Technology sector average of 45.27x — a discount of 28%. The price-to-book ratio stands at 25.56x, versus the sector average of 3.16x. The price-to-sales ratio is 6.09x, compared to 1.06x for the average Technology stock. On an enterprise value basis, YOU trades at 31.16x EV/EBITDA, versus 12.79x for the sector.
Overall, YOU's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Clear Secure, Inc. Profitability — ROE, Margins, and Quality Score
Clear Secure, Inc. (YOU) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 78.1%, compared to the Technology sector average of -1.4%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 12.3% versus the sector average of -1.0%.
On a margin basis, Clear Secure, Inc. reports gross margins of 79.0%, compared to 50.9% for the sector. The operating margin is 19.4% (sector: -0.5%). Net profit margin stands at 18.6%, versus -1.5% for the average Technology stock. Revenue growth is running at 22.7% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
YOU Debt, Balance Sheet, and Financial Health
Clear Secure, Inc. has a debt-to-equity ratio of 538.0%, compared to the Technology sector average of 43.0%. This elevated leverage warrants close monitoring, as it increases the company's sensitivity to rising interest rates and economic downturns. The current ratio is 1.01x, suggesting adequate working capital coverage. Total debt on the balance sheet is $0. Cash and equivalents stand at $76M.
YOU has a beta of 0.93, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for Clear Secure, Inc. is 48/100, reflecting average volatility within the normal range for its sector.
Clear Secure, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, Clear Secure, Inc. reported revenue of $858M. Net income for the quarter was $160M. Gross margin was 79.0%. Operating income came in at $168M.
In FY 2025, Clear Secure, Inc. reported revenue of $901M. Net income for the quarter was $168M. Revenue grew 16.9% year-over-year compared to FY 2024. Operating income came in at $186M.
In Q3 2025, Clear Secure, Inc. reported revenue of $229M. Net income for the quarter was $45M. Revenue grew 15.5% year-over-year compared to Q3 2024. Operating income came in at $53M.
In Q2 2025, Clear Secure, Inc. reported revenue of $219M. Net income for the quarter was $38M. Revenue grew 17.5% year-over-year compared to Q2 2024. Operating income came in at $43M.
Over the past 8 quarters, Clear Secure, Inc. has demonstrated a growth trajectory, with revenue expanding from $187M to $858M. Investors analyzing YOU stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
YOU Dividend Yield and Income Analysis
Clear Secure, Inc. (YOU) currently pays a dividend yield of 2.3%. At this yield, a $10,000 investment in YOU stock would generate approximately $$231.00 in annual dividend income. With a net margin of 18.6%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
YOU Momentum and Technical Analysis Profile
Clear Secure, Inc. (YOU) has a momentum factor score of 70/100, indicating strong price momentum with the stock outperforming the majority of the market over recent periods. Stocks with high momentum scores have historically tended to continue their outperformance in the near term. The investment factor score is 25/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 7/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
YOU vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing YOU against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full YOU vs S&P 500 (SPY) comparison to assess how Clear Secure, Inc. stacks up against the broader market across all factor dimensions.
YOU Next Earnings Date
No upcoming earnings date has been announced for Clear Secure, Inc. (YOU) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy YOU? — Investment Thesis Summary
Clear Secure, Inc. presents a balanced picture with arguments on both sides. Price momentum is positive at 70/100, suggesting the trend favors buyers.
In summary, Clear Secure, Inc. (YOU) earns a Hold rating with a composite score of 48.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on YOU stock.
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Institutional Research Dossier
Clear Secure, Inc. (YOU) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Clear Secure, Inc. (YOU). While the company exhibits impressive revenue growth and profitability metrics compared to its sector, driven by its CLEAR Plus subscription service, concerns remain regarding its relatively low free cash flow generation and the sustainability of its growth trajectory as competition intensifies. The current valuation appears fair, reflecting both the company's strengths and potential challenges, warranting a neutral stance.
Clear Secure's strong ROE and margins are attractive, but the low free cash flow and high debt-to-equity ratio raise questions about its long-term financial flexibility. The company's success hinges on its ability to expand its network and maintain its competitive edge in the identity verification market, which is becoming increasingly crowded. Therefore, a Hold rating is appropriate until greater clarity emerges regarding its ability to navigate these challenges and sustain its growth momentum.
Business Strategy & Overview
Clear Secure, Inc. operates a member-centric secure identity platform, primarily focused on streamlining the airport security process through its CLEAR Plus subscription service. This service allows members to bypass traditional security lines at airports by verifying their identity through biometric data. The company generates revenue primarily through these subscriptions, with additional revenue streams from partnerships and other identity verification solutions.
The company's strategic positioning revolves around expanding its network of airport locations and partnerships to increase the value proposition for its members. Clear also focuses on enhancing its technology platform to improve the speed and accuracy of identity verification. The CLEAR app serves as a crucial tool for member enrollment, engagement, and access to various services, including Reserve powered by CLEAR, which offers virtual queuing solutions.
Clear's business model is predicated on providing a premium service that enhances the travel experience for its members. The company aims to differentiate itself through its technology, customer service, and the breadth of its network. By partnering with airlines, stadiums, and other venues, Clear seeks to extend its identity verification platform beyond airports, creating new revenue opportunities and increasing the stickiness of its membership base.
The company's product pipeline includes ongoing enhancements to its biometric verification technology, expansion of its Reserve virtual queuing service, and the development of new identity verification solutions for various industries. Atlas Certified, an automated solution to verify professional licenses and certification data, represents a strategic move to diversify its revenue streams and leverage its identity verification expertise in new markets. The success of these initiatives will be crucial in driving future growth and maintaining its competitive advantage.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
22.7%
Sector: 14.2%
+60% VS SCTR
Economic Moat Analysis
Clear Secure's economic moat is currently assessed as Narrow. The company benefits from network effects, as the value of its CLEAR Plus service increases with the number of participating airports and members. A larger network attracts more members, which in turn incentivizes more airports to partner with Clear, creating a virtuous cycle. However, the strength of this network effect is limited by the availability of alternative expedited security programs, such as TSA PreCheck, which provides a similar service at a lower price point.
Switching costs for CLEAR Plus members are relatively low, as members can easily cancel their subscriptions and switch to alternative programs. While the convenience and time savings offered by Clear may create some stickiness, the lack of significant switching costs weakens its competitive advantage. The company's brand recognition and reputation for providing a reliable and efficient service contribute to its intangible assets, but these assets are not strong enough to create a wide moat.
Clear's ability to secure partnerships with airports and other venues provides a competitive advantage, but these partnerships are not exclusive and can be replicated by competitors. The company's technology platform and biometric verification capabilities are also valuable assets, but they are subject to ongoing innovation and competition. As other companies develop similar technologies, Clear's technological advantage may erode over time.
While Clear has demonstrated impressive growth and profitability, its narrow moat suggests that its competitive advantage is vulnerable to disruption. The company needs to continue to innovate and expand its network to strengthen its moat and maintain its market position. The emergence of new competitors and the potential for regulatory changes could also pose challenges to its long-term competitive advantage.
Financial Health & Profitability
Clear Secure's financial health presents a mixed picture. The company has demonstrated strong revenue growth, with revenue increasing from $613.58 million in FY2023 to $900.78 million in FY2025. This represents a substantial growth rate, indicating strong demand for its services. The company's gross margin of 79.0% is significantly higher than the sector average of 51.2%, reflecting its premium pricing and efficient operations. Operating margin has also improved significantly, from 3.3% in FY2023 to 20.7% in FY2025, showcasing improved profitability.
However, the company's free cash flow generation is relatively weak, with a free cash flow of only $40.00 million. This is a concern, as it limits the company's ability to invest in future growth and return capital to shareholders. The current ratio of 1.01 indicates that the company has just enough current assets to cover its current liabilities, which could pose liquidity risks if short-term obligations increase.
Clear's return on equity (ROE) of 78.1% is exceptionally high compared to the sector average of -1.5%, indicating efficient use of equity. The company has no debt, which provides financial flexibility. However, the debt-to-equity ratio is listed as 538.00, which is unusually high given the zero debt. This discrepancy warrants further investigation, as it could indicate an error in the data or the presence of off-balance-sheet liabilities.
Analyzing the quarterly financial history reveals a consistent trend of revenue and net income growth. Operating margins have also been steadily improving, indicating increasing efficiency. However, the lack of free cash flow data in the quarterly reports makes it difficult to assess the company's cash flow generation on a quarterly basis. Overall, Clear's financial health is strong in terms of revenue growth and profitability, but concerns remain regarding its free cash flow generation and the accuracy of its debt-to-equity ratio.
Valuation Assessment
Clear Secure's valuation appears fair based on its current financial metrics. The company's P/E ratio of 29.9x is lower than the sector average of 45.3x, suggesting that it is relatively undervalued compared to its peers. However, the P/E ratio should be considered in the context of the company's growth rate and risk profile. The EV/EBITDA ratio of 6.4x is also significantly lower than the sector average of 13.0x, further indicating potential undervaluation. This suggests that the market is not fully appreciating the company's earnings potential.
The company's strong revenue growth and profitability metrics support a higher valuation. However, the relatively low free cash flow generation and the narrow economic moat warrant caution. The market may be discounting the company's valuation due to concerns about the sustainability of its growth and its vulnerability to competition. A higher free cash flow yield would typically justify a higher valuation multiple.
Compared to its historical valuation, Clear's current valuation is higher than it was in FY2023, reflecting its improved financial performance. However, the company's valuation has likely fluctuated significantly over time, depending on market sentiment and investor expectations. A more detailed analysis of its historical valuation trends would provide further insights into its current valuation.
Overall, Clear's valuation appears fair, reflecting both its strengths and potential challenges. The company's strong revenue growth and profitability are attractive, but the low free cash flow and narrow moat warrant caution. A Hold rating is appropriate until greater clarity emerges regarding its ability to sustain its growth and strengthen its competitive advantage. A discounted cash flow (DCF) analysis would provide a more comprehensive valuation assessment, but the lack of detailed financial projections makes it difficult to perform such an analysis.
Risk & Uncertainty
Clear Secure faces several specific risks that could impact its business and financial performance. One of the primary risks is increasing competition in the identity verification market. The emergence of new competitors offering similar services could erode Clear's market share and pricing power. The company needs to continuously innovate and differentiate itself to maintain its competitive edge.
Regulatory changes could also pose a significant risk to Clear's business. Changes in privacy regulations or security requirements could increase compliance costs and limit the company's ability to collect and use biometric data. The company needs to stay abreast of regulatory developments and adapt its business practices accordingly.
Another risk is the concentration of its revenue in the CLEAR Plus subscription service. A decline in air travel or a decrease in demand for expedited security services could negatively impact the company's revenue. The company needs to diversify its revenue streams by expanding its services to other industries and venues.
The company's reliance on partnerships with airports and other venues also creates a risk. The loss of key partnerships could significantly impact its network and reduce the value proposition for its members. The company needs to maintain strong relationships with its partners and diversify its network to mitigate this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWClear Secure's strong revenue growth and high operating margins demonstrate its ability to capture market share and generate profits in the identity verification market.
BULL VIEWThe company's expansion into new industries and venues, such as stadiums and healthcare facilities, provides significant growth opportunities beyond its core airport business.
BULL VIEWClear's innovative technology and biometric verification capabilities create a competitive advantage that is difficult for competitors to replicate.
The Bear Case
BEAR VIEWClear Secure's relatively low free cash flow generation raises concerns about its ability to fund future growth and investments.
BEAR VIEWThe company's narrow economic moat and increasing competition in the identity verification market make it vulnerable to disruption.
BEAR VIEWClear's reliance on partnerships with airports and other venues creates a risk of losing key partnerships and impacting its network.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score YOU and 4,400+ other equities.
Clear Secure, Inc. exhibits a 325% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
12.3%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
79.0%
Sector: 50.9%
Operating Margin
Core business profitability
19.4%
Sector: -0.5%
Net Margin
Bottom-line profitability
18.6%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $231 annually in dividends at the current trailing rate.
