Has The Time Arrived To Buy This Mid Cap Stock-CWAN

Acrobull Canada Advisory Inc.

June 27			2025
Name	Ticker	Sector/Industry		Market Cap	Risk Factor
ClearWater Analytics Holdings Inc	CWAN-NYSE	Technology		$6.342 Billion	Medium

Clearwater Analytics Holdings, Inc. develops and provides a Software-as-a-Service (SaaS) solution for automated investment data aggregation, reconciliation, accounting, and reporting services to insurers, investment managers, corporations, institutional investors, and government entities in the United States and internationally.

Recent Highlights

Clearwater Analytics completed its $1.5 billion acquisition of Enfusion, a strategic move that enabled the creation of a fully unified front-to-back investment management platform by combining Enfusion’s cloud-native front-office trading and portfolio management capabilities with Clearwater’s robust middle- and back-office accounting, compliance, and reporting infrastructure; additionally.

The company integrated the Beacon Platform—renowned for its advanced quantitative risk modeling, derivatives pricing, and scenario analysis tools—as well as Blackstone’s BISTRO, a high-powered performance analytics and visualization engine originally developed for alternative asset reporting, resulting in a significantly enhanced, end-to-end solution that empowers institutional clients with real-time insights.

First Quarter 2025 Highlights

Revenue: Total revenue for the first quarter of 2025 was $126.9 million, an increase of 23.5%, from $102.7 million in the first quarter of 2024.

Gross Profit: Gross profit for the first quarter of 2025 increased to $92.9 million, which equates to a 73.3% GAAP gross margin, compared with gross profit of $74.5 million and GAAP gross margin of 72.6% in the first quarter of 2024.

Net Income: Net income for the first quarter of 2025 was $6.9 million, compared with net income of $2.2 million in the first quarter of 2024. Non-GAAP net income for the first quarter of 2025 increased to $34.9 million, an increase of 33.1% from $26.2 million in the first quarter of 2024.

Adjusted EBITDA: Adjusted EBITDA for the first quarter of 2025 was $45.1 million, an increase of 40.0%, from $32.2 million in the first quarter of 2024. Adjusted EBITDA margin for the first quarter of 2025 was 35.5%, an increase of 420 basis points over the first quarter of 2024.

Stock Observation- Clearwater Analytics beat expectations with revenue of $126.9 million (up 24% year-over-year) and earnings per share of $0.13, slightly above estimates. The company maintained strong gross margins of 78.9% and grew its annual recurring revenue (ARR) to about $494 million, a 23% increase, Financially, Clearwater remains strong with very low debt (debt-to-equity ratio of 0.04), a healthy quick ratio of 4.8, and a reliable recurring revenue model that supports steady growth.

Risk Involved- Financial performance of the company may have an impact on the company stock performance.

Considering all the factors and financials of the company Acrobull Canada Advisory Inc. maintains Customer Choose Buy for the stock.

Disclaimer- Though our research is fundamentally and technically based on Acrobull Canada Advisory Inc. only provides general advice on the stocks and it is imperative for the investors to do the risk assessment for themselves before investing as Acrobull Canada Advisory Inc. would not be liable for any loss or profit arising out through the investment made by the investors on our recommendations.

It is also advisable for the investors to consult with Financial Advisor, Broker or to seek any legal assistance as the research conducted by Acrobull Canada Advisory Inc. is factually based and recommendations are given in accordance with that, but it is imperative to understand that Acrobull Canada Advisory Inc. does not guarantee returns.

Acrobull Recommendation Based on Evaluation

Current Market Price	$22.38 USD
Acrobull Recommendation	Buy
Target Price	$25.60 USD
RSI Level	14 Day RSI 37
Total Shares Outstanding	254.59 Million
Shares held by Insiders Risk Factor Stop Loss	0.90% Medium 5%