Clarivate Stock Has Tanked 42%, and One Fund Just Ditched a $43 Million Stake

2026-03-04 10:01:23

On February 17, 2026, HG Vora Capital Management reported selling all of its 11,125,000 shares of Clarivate (CLVT +5.84%) in the fourth quarter.

What happened

According to its SEC filing dated February 17, 2026, HG Vora Capital Management reported selling 11,125,000 shares of Clarivate during the fourth quarter. This resulted in the fund holding no shares of Clarivate at quarter-end. The net position change was $42.61 million.

What else to know

Top holdings after the filing:
- NASDAQ: PENN: $92.19 million (34.8% of AUM)
- NASDAQ: DRVN: $77.81 million (29.4% of AUM)
- NYSE: FAF: $41.47 million (15.7% of AUM)
- NYSE: NVRI: $22.40 million (8.5% of AUM)
- NYSE: EQH: $19.06 million (7.2% of AUM)
As of Tuesday, Clarivate shares were priced at $2.45, down 42% over the past year and significantly underperforming the S&P 500, which is instead up about 16% in the same period.

Company overview

Metric	Value
Price (as of Tuesday)	$2.45
Market Capitalization	$1.6 billion
Revenue (TTM)	$2.50 billion
Net Income (TTM)	($396.00 million)

Company snapshot

Clarivate provides information services and analytics, including research platforms (Web of Science, InCites), life sciences intelligence (Cortellis), patent and trademark solutions (Derwent, CompuMark), and online brand protection (MarkMonitor).
The company generates revenue primarily through subscription-based access to proprietary databases, analytics tools, and professional services supporting research, intellectual property, and brand protection.
It serves government and academic institutions, pharmaceutical and biotechnology firms, and corporations engaged in research, development, and intellectual property management worldwide.

Clarivate is a global provider of structured information and analytics, enabling organizations to discover, protect, and commercialize scientific research and innovation. The company leverages a subscription-driven model and a broad suite of proprietary platforms to support mission-critical decisions across research, intellectual property, and brand management.

What this transaction means for investors

Clarivate was not a small speculative bet in this portfolio. It was a large position tied to a subscription-heavy information business that is now in the middle of a strategic reset.

Financially, the firm generated $2.46 billion in revenue in 2025, down from $2.56 billion in 2024, and produced $365.3 million in free cash flow. Organic annualized contract value rose 1.8%, and recurring revenue now represents 88% of total sales, a meaningful improvement in quality. The complication is leverage. Total debt still stands at $4.47 billion, and the company is actively exploring a sale of its Life Sciences segment to reduce that burden.

More broadly, HG Vora’s portfolio tilts heavily toward consumer and event-driven names like PENN and DRVN, suggesting a potential preference for clearer catalysts over multi-year turnarounds. Ultimately, Clarivate is a restructuring story. If recurring revenue growth and deleveraging accelerate, today’s depressed price could look attractive. If divestitures disappoint, the capital structure will continue to weigh on returns.

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