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

By Eric Trie – Feb 27, 2026 at 10:26PM ESTKey PointsStarboard Value LP acquired 9,959,031 shares in Clearwater Analytics, with an estimated transaction value of $240.21 million based on quarterly average pricesQuarter-end stake value increased by $240.21 million, reflecting the purchase of a new positionDeal represents 4.55% of Starboard’s 13F reportable assets under managementStarboard’s post-trade holding: 9,959,031 shares valued at $240.21 millionThe new stake represents 4.55% of fund AUM, placing it outside the fund’s top five holdingsWhat happenedAccording to a February 17, 2026, SEC filing, Starboard Value LP disclosed a new position in Clearwater Analytics (CWAN 0.19%), 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 knowThis was a new position, representing 4.55% of Starboard’s 13F reportable assets under management as of December 31, 2025Top 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 pointsCompany overviewMetricValueMarket Capitalization$6.99 billionRevenue (TTM)$731.37 millionNet Income (TTM)$-38.81 millionPrice (as of market close 2/17/26)$22.93Company snapshotClearwater 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 investorsClearwater 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.About the AuthorEric Trie is a Motley Fool contributing stock analyst covering technology and semiconductors, healthcare, financial services, and consumer sectors. Previously, he worked in investment analysis and financial writing. He holds a B.A. in Philosophy from Rutgers University. Eric lives in New York City and is an avid sports fan.CMFIdeaMachineStocks MentionedClearwater AnalyticsNYSE: CWAN$23.42(-0.19%)-$0.05QorvoNASDAQ: QRVO$82.86(+0.48%)+$0.40KenvueNYSE: KVUE$19.12(+0.63%)+$0.12Algonquin Power & UtilitiesNYSE: AQN$6.98(+1.45%)+$0.10Bill HoldingsNYSE: BILL$44.55(+2.24%)+$0.98Match GroupNASDAQ: MTCH$31.60(-1.92%)-$0.62*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.