Forensic Analysis · Technology / Software · as of Jun 27, 2026
Clearwater Analytics Holdings, Inc. (CWAN)
A forensic read on Clearwater Analytics Holdings, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
2.7
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-2.4%
ROE
$7.3B
Market cap
Clearwater Analytics Holdings, Inc. earns a C (Mixed — selective) forensic quality grade, and its Altman Z-score is 2.7, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+102.0%Accruals ratio.Net operating assets grew +102.0% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -12% of net operating assets.
-0%Return on invested capital.Return on invested capital is -0% and slipping from 2% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+15.4%/yrShare-count dilution.Diluted share count changed +46% over the last 3 years to FY2025 (+15.4%/yr). The count is GROWING — existing holders are being diluted. That's ~15.4% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~46%.
17% of revStock-based comp load.Stock-based compensation ran 17% of revenue and 78% of free cash flow in FY2025 — about $0.47 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
0.92×Cash conversion.Over FY2023–FY2025, operating cash flow was 0.92× cumulative net income. Cash is lagging reported profit — worth checking what's accruing rather than being collected.
Key fundamentals
Net Margin-5.3%
Debt / Equity0.41x
Free Cash Flow$164.3M
Latest Revenue$731.4M
Return on Equity-1.9%
Revenue Growth YoY+61.9%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Clearwater Analytics Holdings, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about CWAN's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown