Why One Investor Just Doubled Down on Clearwater Analytics Stock with a $45 Million Position

12 hours ago 2

Jonathan Ponciano, The Motley Fool

Sun, December 7, 2025 astatine 10:50 AM CST 5 min read

California-based Tensile Capital Management accrued its holding of Clearwater Analytics by astir 1.2 cardinal shares successful the 3rd quarter, resulting successful a nett presumption worth alteration of $15.7 million.
At quarter-end, the money reported holding 2.5 cardinal Clearwater Analytics shares valued astatine $45.5 million.
Clearwater Analytics present accounts for 5.7% of money AUM.
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California-based Tensile Capital Management disclosed a acquisition of astir 1.2 cardinal further Clearwater Analytics shares successful a November 14 SEC filing, expanding the position’s worth by astir $15.7 million.

According to a filing with the Securities and Exchange Commission dated November 14, Tensile Capital Management LP accrued its concern successful Clearwater Analytics (NYSE:CWAN) by purchasing astir 1.2 cardinal shares successful the 3rd quarter. The post-trade holding amounted to 2.5 cardinal shares with a quarter-end marketplace worth of $45.5 million. The involvement present represents 5.7% of the fund’s $800.4 cardinal successful U.S. equity assets.

Top holdings aft the filing:

NASDAQ: VERX: $94.3 cardinal (11.8% of AUM)
NYSE: DKS: $79.5 cardinal (9.9% of AUM)
NYSE: VVV: $74.7 cardinal (9.3% of AUM)
NYSE: LAD: $74.4 cardinal (9.3% of AUM)
NYSE: USFD: $58.5 cardinal (7.3% of AUM)

As of Friday, CWAN shares were priced astatine $21.71, down 27.5% implicit the past twelvemonth and acold lagging the S&P 500, which is up 13% successful the aforesaid period.

Metric

Value

Price (as of marketplace adjacent Friday)	$21.71
Market Capitalization	$5.55 billion
Revenue (TTM)	$640.4 million
Net Income (TTM)	$392.5 million

Clearwater Analytics provides SaaS-based solutions for automated concern information aggregation, reconciliation, accounting, and reporting, with Clearwater Prism enabling self-service information entree and flexible reporting.
The institution serves insurers, concern managers, corporations, organization investors, and authorities entities seeking precocious concern information absorption and reporting capabilities.
It delivers scalable solutions to a planetary organization lawsuit base.

Clearwater Analytics Holdings' scalable SaaS level streamlines analyzable concern information processes, offering robust automation and reporting functionality. Clearwater's competitory borderline lies successful its integrated, real-time information solutions that assistance clients execute greater transparency, operational efficiency, and regulatory compliance.

Tensile's determination is an absorbing illustration of a money positioning astir Clearwater’s accelerating fundamentals adjacent arsenic the banal has had a unsmooth year. Clearwater is showing the benignant of operating momentum—particularly successful recurring gross and margins—that tin marque a pullback look much similar a recalibration play than a thesis breaker. With gross up 77% twelvemonth implicit twelvemonth to $205.1 cardinal and adjusted EBITDA up 84% to $70.7 cardinal successful the latest quarter, the institution is executing good contempt its share-price slump.

In that context, Tensile’s determination to physique the presumption to 2.5 cardinal shares signals assurance successful Clearwater’s quality to standard its integrated level and capitalize connected request for AI-driven concern information automation. The company’s annualized recurring gross likewise surged 77% to $807.5 million, and gross gross retention remained beardown astatine 98%, showing durability crossed lawsuit segments. Clearwater is besides generating meaningful cash—$49 cardinal from operations successful the 3rd 4th alone.

For investors, the takeaway is that Clearwater’s fundamentals are materially stronger than its one-year banal illustration suggests. If the institution sustains this gait of ARR growth, borderline expansion, and lawsuit wins, the existent valuation whitethorn connection asymmetric upside comparative to peers successful the fiscal bundle and information infrastructure space.