Starboard Value LP Opens Major Stake in Clearwater Analytics’ Investment Accounting Platform

2026-02-28 05:30:10

What happened

According to a February 17, 2026, SEC filing, Starboard Value LP disclosed a new position in Clearwater Analytics (CWAN 0.30%), purchasing 9,959,031 shares. At quarter-end, the holding was valued at $240.21 million, with the change reflecting the purchase of a new position.

What else to know

This was a new position, representing 4.55% of Starboard’s 13F reportable assets under management as of December 31, 2025

Top holdings following the filing:

NASDAQ: QRVO: $634.74 million (12.0% of AUM)
NYSE: KVUE: $471.06 million (8.9% of AUM)
NYSE: AQN: $390.46 million (7.4% of AUM)
NYSE: BILL: $383.14 million (7.3% of AUM)
NASDAQ: MTCH: $367.96 million (7.0% of AUM)

As of February 17, 2026, shares of Clearwater Analytics were priced at $22.93, down 17.0% over the past year and underperforming the S&P 500 by 26.7 percentage points

Company overview

Metric	Value
Market Capitalization	$6.99 billion
Revenue (TTM)	$731.37 million
Net Income (TTM)	$-38.81 million
Price (as of market close 2/17/26)	$22.93

Company snapshot

Clearwater Analytics is a technology company specializing in SaaS solutions for automated investment data management. The company leverages its proprietary platform to deliver integrated accounting, compliance, and risk analytics to a diverse institutional client base. Its scalable, cloud-native architecture and focus on automation provide a competitive edge in the investment data services market.

Clearwater Analytic operates a subscription-based business model, generating recurring revenue by delivering automated investment accounting, compliance, performance measurement, and risk analytics services to institutional clients.

Clearwater Analytic serves insurers, investment managers, corporations, institutional investors, and government entities seeking scalable and automated investment data management solutions.

What this transaction means for investors

Clearwater Analytics operates in a back-office corner of enterprise software that institutions rely on. After a period of broad SaaS multiple compression, the stock has trailed the broader market, pushing investors to look past growth narratives and focus on earnings quality. In investment accounting, switching systems is disruptive, and regulatory requirements is also ever-present, which makes the company’s product more structural than cyclical.

Clearwater offers cloud-based investment accounting and reporting tools for insurers and asset managers. Its platform is often the main system used for daily reconciliation and compliance tasks. This setup helps ensure steady recurring revenue, but growing the business means onboarding new clients and integrating their data, which can slow margin growth. The main question is whether more revenue will come from existing clients using the platform more deeply, rather than from new, complex client setups.

For investors, Clearwater’s value will depend on showing that revenue growth can outpace the costs of delivering its services and lead to lasting operating leverage. If the company can prove its platform scales well, it could be seen as essential financial infrastructure rather than another software provider.

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