Clear Secure has transformed from an airport biometric screening service into a digital identity platform, with its stock trading 84% above its $31 IPO price from 2021 despite quarterly revenue increasing 358% since then. The company's shift responds to growing demand for secure identity verification as artificial intelligence becomes pervasive across digital interactions. Clear Secure's CEO Caryn Seidman Becker told CNBC's Julia Boorstin in July that the company aims to verify individuals '12 times a day' rather than '12 times a year,' leveraging its database of 41 million members that grew 31.3% year-over-year as of the first quarter. The company's Clear1 enterprise verification product serves healthcare, finance and government sectors, with first-quarter bookings growing fivefold year-over-year. Clear Secure's airport business serves as customer acquisition for its broader identity platform, with 8.2 million active Clear+ users including 30% from its American Express partnership that began in 2019.
Clear Secure Expands from Airport Screening to Enterprise Identity Platform
Clear was founded in 2003 as a fast-pass lane for airport security using biometrics for identification. It went bankrupt in 2009, and its assets were purchased in 2010 by Seidman Becker and co-founder Ken Cornick. In 2015, Clear Secure expanded to provide faster and more secure entry for stadiums, inking initial deals with Major League Baseball's Colorado Rockies and New York Yankees.
Delta Air Lines bought a stake in Clear Secure in 2016, and United Airlines followed in 2019. Both airlines helped market the product to their customers at reduced prices. Clear Secure's ongoing partnership with American Express, which began in 2019, accounts for about 30% of Clear Secure's 8.2 million active user base, according to JPMorgan. Some American Express cardholders receive a $219 per calendar year annual statement credit to cover the cost of a Clear+ airport membership.
Clear Secure went public in 2021, raising more than $400 million at an initial offering price of $31.00 per share. Following its IPO, Clear Secure began building its enterprise business, which it rebranded as Clear1 in 2025.
Clear1 Uses Multi-Input Verification for Enterprise Customers
Clear1 uses multiple inputs: a government-issued ID, a live selfie with liveness detection, device information, and data from trusted sources, cross-checked against each other to confirm an identity. Businesses use it generally for employee login verification, password resets, remote access authentication and to allow privileged access.
Healthcare businesses can use it for patient registration, check-in and portal and medical records access. Finance firms can use it for digital account openings, regulatory compliance and verification of high-value transactions like wire transfers. Clear Secure used its inaugural Identity Summit to position identity assurance as a foundation for fraud prevention and enterprise security.
Needham analyst Joshua Reilly said customer feedback at the event was above expectations as the value proposition of a few dollars or less per identity verification can prevent significant costs associated with data breaches or password resets. Reilly noted that the Clear1 business model is built on the concept of reverification, where the gross margin is significantly higher once Clear has a person in their platform.
Clear Secure Reports 19.7% Revenue Growth in First Quarter
Clear Secure's first-quarter revenue grew 19.7% year-over-year. The company expects its second-quarter revenue growth to accelerate to 22.8% year-over-year. At the end of its first quarter, Clear had a database of 41 million members, up 31.3% year-over-year.
Chief Financial Officer Jennifer Hsu said on the company's first-quarter earnings call in May that the platform economies of scale in the business model have become increasingly evident, driving meaningful operating leverage as the company scales. Free cash flow more than doubled year-over-year in the first quarter to $185.5 million, helping Clear Secure build a strong balance sheet.
Seidman Becker said on the earnings call that the strong balance sheet creates optionality to continue to invest in different ways. Clear+ recently launched eGates, a system that verifies identity in under five seconds using facial recognition without the need for a human operator. Dana Telsey of Telsey Advisory Group called eGates transformative as it is expected to help drive new signups and renewals and assist in cost management, including labor.
Clear Secure has also rolled out a concierge service that starts at $99 per use. Customers are met curbside at the airport, assisted with luggage and breezed through security. Clear Secure has raised prices for Clear+ four times over the past four years to its $219 annual rate.
TSA Partnership and Private Competitors Shape Clear Secure's Market Position
Clear Secure partners with government programs like TSA PreCheck, allowing Clear+ members to speed to the front of the line. The company's relationship with the TSA has earned Clear a designation as a qualified anti-terrorism technology. The company announced a contract with the Centers for Medicare and Medicaid Services for Medicare beneficiaries and providers in December.
Seidman Becker said on the earnings call that the company sees opportunities to expand the Medicare concept to Medicaid and other places in the government, noting an executive order to reduce fraud. Clear Secure has mostly private competitors, notably Id.me, that are also working with the government.
Some of Clear Secure's partners also could be considered competitors, including Okta. Okta's platform integrates with Clear IDV, adding an extra layer of protection to help prevent attackers from gaining unauthorized access. Stifel analyst Mark Kelley wrote in a May research note that enrollments grew and retention held up reasonably well during COVID, viewing the business as not nearly as cyclical as the travel industry.
Kelley wrote that the government shutdown earlier this year led to a significant acceleration in Clear+ member growth, aided by longer TSA wait times and improving Clear wait times with the rollout of eGates.
Analysts Set $58.17 Average Price Target with Mixed Ratings
Clear Secure currently has three buy, two hold and one underperform ratings with an average price target of $58.17. In mid-July, Clear Secure was trading at about 18x EBITDA and 27x earnings on a next-twelve-months basis. Needham's Reilly believes the company can sustain a 25%+ revenue compound annual growth rate for the next several years while maintaining attractive unit economics.
In June, Clear Secure amended its certificate of incorporation to remove some supermajority vote requirements that could have served as a hurdle to a potential merger. Clear Secure has a dual class share structure and Seidman Becker maintains majority voting control.
FAQ
What did Clear Secure's stock do since its 2021 IPO?
Clear Secure's stock trades 84% above its initial offering price of $31.00 per share from 2021, despite quarterly revenue increasing 358% since the IPO.
How fast did Clear Secure's Clear1 bookings grow in the first quarter?
Clear1 bookings grew fivefold year-over-year in the first quarter, helping boost the company's overall revenue by 19.7% year-over-year.
What is Clear Secure's relationship with American Express?
Clear Secure's partnership with American Express began in 2019, and some American Express cardholders receive a $219 per calendar year annual statement credit to cover the cost of a Clear+ airport membership. This partnership accounts for about 30% of Clear Secure's 8.2 million active user base, according to JPMorgan.
