SaaS Firm With Nearly $1 Billion in ARR Loses $20 Million Institutional Investor Amid Steep Stock Slide
Key Points
Sea Cliff Partners Management sold 1,101,680 shares of Clearwater Analytics in the fourth quarter.
The quarter-end position value decreased by $19.85 million as a result.
The position was previously 7.6% of the fund’s AUM as of the prior quarter and marked a full exit from Clearwater.
On February 17, 2026, Sea Cliff Partners Management reported selling out its entire stake in Clearwater Analytics (NYSE:CWAN), an estimated $19.85 million transaction based on last-disclosed position values.
What happened
According to a Securities and Exchange Commission (SEC) filing dated February 17, 2026, Sea Cliff Partners Management exited its entire holding in Clearwater Analytics Holdings. The fund sold 1,101,680 shares, and the net position change as a result was a $19.85 million decrease in quarter-end value.
What else to know
- Top holdings after the filing:
- NASDAQ:BTSG: $38.19 million (16.1% of AUM)
- NYSE:WCC: $23.49 million (9.9% of AUM)
- NYSE:PLNT: $22.24 million (9.4% of AUM)
- NYSE:HXL: $21.86 million (9.2% of AUM)
- NYSE:JHX: $20.72 million (8.7% of AUM)
- As of February 13, 2026, shares of Clearwater Analytics Holdings, Inc. were priced at $23.15, down close to 20% over the past year and well underperforming the S&P 500, which is instead up about 17% in the same period.
Company overview
| Metric | Value |
|---|---|
| Revenue (TTM) | $731.4 million |
| Net Income (TTM) | ($38.8 million) |
| Price (as of market close 2/13/26) | $23.15 |
Company snapshot
- Clearwater Analytics provides cloud-based software solutions for automated investment data aggregation, reconciliation, accounting, and reporting, with core offerings including Clearwater Prism for data integration and flexible reporting.
- The company operates a Software-as-a-Service (SaaS) business model, generating recurring revenue through subscription fees for its analytics and reporting platforms.
- It serves insurers, investment managers, corporations, institutional investors, and government entities seeking scalable investment data management and analytics solutions.
Clearwater Analytics Holdings, Inc. provides SaaS-based investment accounting and analytics platforms, supporting clients with automated data aggregation and reporting capabilities.
What this transaction means for investors
Operationally, Clearwater is growing quickly, but the company certainly remains in a sort of transition phase. Fourth quarter revenue reached $217.5 million, up 72% year over year, while annualized recurring revenue climbed to $841 million, reflecting strong client expansion and larger contract wins and similarly up about 77% on a yearly basis. Adjusted EBITDA for the quarter, meanwhile, jumped to $74.1 million as operating leverage began to show up in the model.
Nevertheless, heavy investment in acquisitions and platform expansion has increased debt and pushed the company into a modest net loss for the quarter ($12.5 million), even as recurring revenue continues to scale.
Within the broader portfolio context, the exit slightly reduces exposure to software and fintech infrastructure. The remaining top holdings lean toward industrial distributors, specialty manufacturing, and consumer services such as fitness chains, businesses that tend to track real economy demand more directly. And with shares falling another 2% this quarter, it’s clear this isn’t an immediate turnaround story.
Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Planet Fitness and Wesco International. The Motley Fool recommends Hexcel. The Motley Fool has a disclosure policy.