Clear Secure Inc (YOU)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	66,627	50,612	-117,498	-114,938	-9,294
Revenue	US$ in thousands	770,488	613,579	437,434	253,953	230,796
Pretax margin		8.65%	8.25%	-26.86%	-45.26%	-4.03%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $66,627K ÷ $770,488K
= 8.65%

Clear Secure Inc's pretax margin has shown considerable variation over the years based on the provided data. In December 31, 2020, the company had a negative pretax margin of -4.03%, indicating that its pre-tax income was insufficient to cover its operating expenses. This negative margin widened significantly to -45.26% by December 31, 2021, pointing to a substantial decline in profitability and possible operational challenges.

However, there was improvement in the company's performance in the following year, as the pretax margin moderated to -26.86% by December 31, 2022, indicating some progress in managing expenses relative to revenue. The trend shifted positively in December 31, 2023, where Clear Secure Inc achieved a pretax margin of 8.25%, indicating that the company was able to generate profit before tax, which is a positive indicator of financial health.

Subsequently, Clear Secure Inc's profit trend continued to strengthen, with a pretax margin of 8.65% reported by December 31, 2024. This demonstrates further improvement in the company's profitability, reflecting more efficient management of expenses and potentially increasing revenue. Overall, Clear Secure Inc's pretax margin trajectory shows a turnaround from significant losses to profitability over the years, signaling progress in the company's financial performance and operational efficiency.