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Segment Information | 3 Months Ended
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Mar. 31, 2026
Segment Reporting [Abstract] |
Segment Information | Segment Information As discussed in Note 1 - Nature of Operations and Summary of Significant Accounting Policies, we have organized our business into three reportable segments: Academia & Government, Intellectual Property, and Life Sciences & Healthcare. Our chief operating decision maker (“CODM”) evaluates performance for our reportable segments based primarily on revenues and Adjusted EBITDA. Adjusted EBITDA represents Net income (loss) before the Provision (benefit) for income taxes, Depreciation and amortization, and Interest expense, net, adjusted to exclude share-based compensation, impairments, restructuring expenses, the impact of certain non-cash fair value adjustments on financial instruments, acquisition and/or disposal-related transaction costs, unrealized foreign currency gains/losses, legal settlements, and other items that are included in Net income (loss) for the period that we do not consider indicative of our ongoing operating performance. Significant segment expenses include people-related costs, royalties and other product costs, technology costs (comprised primarily of software licenses and hosting costs), and outside service costs (comprised primarily of professional services and contracted labor). Other costs primarily include facilities costs and product marketing costs. The following table summarizes reportable segment revenues, expenses, and profit and provides a reconciliation of total reportable segment Adjusted EBITDA to Net income (loss) for the periods indicated:
| Three Months Ended March 31,
| 2026 |  | 2025
Academia & Government |  |  |
Revenues | $295.0 |  | $302.7
People-related costs | (85.3) |  | (86.2)
Royalties and other product costs | (45.1) |  | (55.1)
Technology costs | (21.0) |  | (19.6)
Outside service costs | (7.3) |  | (9.1)
Other costs | (9.7) |  | (8.9)
A&G Adjusted EBITDA | $126.6 |  | $123.8
Intellectual Property |  |  |
Revenues | $197.2 |  | $192.7
People-related costs | (73.2) |  | (72.7)
Royalties and other product costs | (15.9) |  | (18.0)
Technology costs | (12.8) |  | (12.3)
Outside service costs | (4.2) |  | (5.7)
Other costs | (5.7) |  | (5.2)
IP Adjusted EBITDA | $85.4 |  | $78.8
Life Sciences & Healthcare |  |  |
Revenues | $93.3 |  | $98.3
People-related costs | (43.7) |  | (46.8)
Royalties and other product costs | (8.8) |  | (8.8)
Technology costs | (6.6) |  | (7.0)
Outside service costs | (2.0) |  | (2.6)
Other costs | (3.0) |  | (2.5)
LS&H Adjusted EBITDA | $29.2 |  | $30.6
Total Reportable Segments |  |  |
Revenues | $585.5 |  | $593.7
People-related costs | (202.2) |  | (205.7)
Royalties and other product costs | (69.8) |  | (81.9)
Technology costs | (40.4) |  | (38.9)
Outside service costs | (13.5) |  | (17.4)
Other costs | (18.4) |  | (16.6)
Total Reportable Segments Adjusted EBITDA | $241.2 |  | $233.2
Benefit (provision) for income taxes | (11.4) |  | (18.8)
Depreciation and amortization | (184.0) |  | (185.4)
Interest expense, net | (59.0) |  | (64.3)
Share-based compensation expense | (14.6) |  | (11.1)
Restructuring costs | (12.0) |  | (24.7)
Transaction related costs | (8.2) |  | (6.3)
Other(1) | 7.8 |  | (26.5)
Net income (loss) | $(40.2) |  | $(103.9)
(1)Includes the net impact of foreign exchange gains and losses related to the remeasurement of balances and other items that do not reflect our ongoing operating performance. Our CODM does not review assets by segment for the purpose of assessing performance or allocating resources due to the significant amount of intangible assets acquired through business combinations, as well as the centralized nature of our working capital management functions.
Commitments and Contingencies | Commitments and Contingencies Lawsuits and Legal Claims We are engaged in various legal proceedings, claims, audits, and investigations that have arisen in the ordinary course of business. These matters may include among others, antitrust/competition claims, intellectual property infringement claims, employment matters, and commercial matters. The outcome of the matters against us are subject to future resolution, including the uncertainties of litigation. From time to time, we are involved in litigation in the ordinary course of our business, including claims or contingencies that may arise related to matters occurring prior to our acquisition of businesses. At the present time, primarily because the matters are generally in early stages, we can give no assurance as to the outcome of any pending litigation to which we are currently a party, and we are unable to determine the ultimate resolution of these matters or the effect they may have on us. We have and will continue to vigorously defend ourselves against these claims. We maintain appropriate levels of insurance, which we expect are likely to provide coverage for some of these liabilities or other losses that may arise from these litigation matters. Between January and March 2022, three putative securities class action complaints were filed in the United States District Court for the Eastern District of New York against Clarivate and certain of its executives and directors alleging that there were weaknesses in the Company’s internal controls over financial reporting and financial reporting procedures that it failed to disclose in violation of federal securities law. The complaints were consolidated into a single proceeding in May 2022. In August 2022, plaintiffs filed a consolidated amended complaint, seeking damages on behalf of a putative class of shareholders who acquired Clarivate securities between July 30, 2020, and February 2, 2022, and/or acquired Clarivate ordinary or preferred shares in connection with offerings on June 10, 2021, or Clarivate ordinary shares in connection with a September 13, 2021, offering. The amended complaint, like the prior complaints, references an error in the accounting treatment of an equity plan included in the Company’s 2020 business combination with CPA Global that was disclosed on December 27, 2021, and related restatements issued on February 3, 2022, of certain of the Company’s previously issued financial statements. The amended complaint also alleges that the Company and certain of its executives and directors made false or misleading statements relating to the Company’s product quality and expected organic revenues and organic growth rate, and that they failed to disclose significant known changes to the Company’s business model. Defendants moved to dismiss the amended complaint in October 2022. Without deciding the motion, the court entered an order in June 2023, allowing plaintiffs limited leave to amend, and plaintiffs filed an amended complaint in July 2023. In August 2023, the court issued an order deeming defendants’ prior motions and briefs to be directed at the amended complaint and permitting defendants to file supplemental briefs to address the new allegations in the amended complaint. Supplemental briefing on the motions was completed in September 2023. In March 2026, the court granted in part and denied in part defendants’ motions to dismiss the amended complaint. In a separate but related litigation, in June 2022, a class action was filed in Pennsylvania state court in the Court of Common Pleas of Philadelphia asserting claims under the Securities Act of 1933, based on substantially similar allegations, with respect to alleged misstatements and omissions in the offering documents for two issuances of Clarivate ordinary shares in June and September 2021. The Company moved to stay this proceeding in August 2022, and filed its preliminary objections to the state court complaint in October 2022. After granting a partial stay in January 2023, the court denied a further stay of the proceedings in April 2023. In April 2024, the court sustained the Company’s preliminary objections, but permitted plaintiff leave to file an amended complaint, which plaintiff filed in May 2024. In August 2024, plaintiff filed a second amended complaint, to which the Company filed preliminary objections in September 2024. In April 2025, the court issued an order permitting the parties to take discovery on issues raised in the Company’s preliminary objections related to standing, and to file supplemental briefs upon completion of such discovery. The parties filed their supplemental briefs in December 2025. In February 2026, following oral argument, the court entered an order sustaining in part the preliminary objections for plaintiff’s failure to plead standing, dismissing the second amended complaint without prejudice, with leave for plaintiff to file a third amended complaint, and overruling the remainder of the preliminary objections without prejudice to being reasserted, if appropriate, in response to any third amended complaint. In March 2026, plaintiff filed a third amended complaint. In April 2026, the Company filed preliminary objections to the third amended complaint. Briefing on the preliminary objections will be completed in June 2026. Clarivate does not believe that the claims alleged against it have merit and will vigorously defend against them. Given the early stage of the proceedings, we are unable to estimate the reasonably possible loss or range of loss, if any, arising from these matters.

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