Highlights

  • The Veterans Affairs pilot introduces CLEAR1 identity verification at six medical centres, with enrolment voluntary and free.
  • Second-quarter revenue increased 26.6% to US$277.8 million, while total bookings rose 32.8% to US$295.9 million.
  • CLEAR reported 43.5 million total members and 8.3 million active paying CLEAR+ members at quarter-end.
  • Management raised its full-year free cash flow outlook to at least US$480 million from US$465 million.

A federal pilot is extending CLEAR's identity technology beyond its familiar membership model. Clear Secure (NYSE:YOU) announced on 7 October 2026 that the US Department of Veterans Affairs had integrated its CLEAR1 platform into a trial designed to simplify access to VA.gov. The initiative comes after a second quarter of higher revenue, bookings and membership, but the pilot's financial terms have not been disclosed.

Six Centres Test a Different Sign-In Experience

Under the pilot, veterans complete a one-time enrolment and can subsequently sign in using a selfie, either online or in person. Those without smartphones may enrol with CLEAR Ambassadors at CLEAR Pods. Participation is voluntary, and veterans do not pay to use CLEAR for VA.gov sign-in.

The trial spans six VA medical centres: Brooklyn, Washington DC, Palo Alto, Decatur, Orlando and San Juan. The department and CLEAR will assess whether to extend the offering after reviewing pilot results. No contract value, payment structure or pricing was provided, so the programme cannot yet be assigned a revenue contribution.

Revenue and Bookings Move Higher

For the second quarter ended 30 June 2026, Clear Secure reported revenue of US$277.8 million, up 26.6% year on year. Total bookings climbed 32.8% to US$295.9 million. Net income reached US$72.3 million, representing a 26.0% margin, while operating income was US$83.0 million, or 29.9% of revenue.

Adjusted EBITDA was US$101.1 million, with a 36.4% margin. The company reported a 900-basis-point improvement in that non-GAAP margin. These profitability figures provide context for the new pilot, but the government initiative itself has not been linked to any quantified earnings or bookings impact.

Membership Growth Has Two Speeds

The broader CLEAR membership base reached 43.5 million, an increase of 30.0%. Active CLEAR+ membership, representing paying subscribers, grew 15.2% to 8.3 million. The difference between those rates is significant for understanding the business: total enrolments and paying relationships are distinct measures and should not be treated interchangeably.

The pilot may add another use case for the identity platform, but the document provides neither a target number of veteran users nor a conversion assumption. Its reach will depend on pilot participation and any subsequent decision to expand.

Cash Generation Supports Capital Returns

Operating cash flow was US$201.2 million in the quarter and free cash flow reached US$189.0 million. Cash and equivalents totalled US$128.2 million, supplemented by US$831.0 million of marketable securities.

The company returned approximately US$22.2 million to shareholders through dividends and distributions during the quarter. First-half Class A repurchases amounted to US$1.2 million, compared with US$126.3 million in the corresponding 2025 period. A quarterly dividend of US$0.15 per share was paid on 24 September to holders of record on 10 September.

Guidance Sets the Next Financial Marker

For the third quarter, management forecast revenue of US$284 million to US$287 million and bookings of US$311 million to US$316 million. It increased its full-year free cash flow outlook to at least US$480 million, from at least US$465 million. These remain targets rather than achieved results.

Shares last closed at US$44.31 on 14 October in the supplied material. The next developments are the pilot's results, any expansion decision and whether reported revenue and bookings align with guidance.