CCC Intelligent Solutions Holdings Inc. Common Stock Q2 Earnings Call Highlights

Key Points

• CCC exceeded Q2 guidance, with revenue rising 10% year over year to $286 million and adjusted EBITDA increasing 7% to $115 million, driven by AI products, cross-selling and customer expansion.
• AI-based solutions generated more than $120 million in annualized revenue, growing nearly 50% year over year and contributing four percentage points to quarterly revenue growth. Customer retention remained strong, with 98% software gross dollar retention and 107% net dollar retention.
• CCC raised and narrowed its 2026 revenue outlook to $1.158 billion-$1.164 billion and expects adjusted EBITDA of $485 million-$491 million; free cash flow surged 36% year over year to $308 million on a trailing-12-month basis.

CCC Intelligent Solutions Holdings Inc. Common Stock NASDAQ: CCC reported second-quarter 2026 revenue and adjusted EBITDA above its guidance range, supported by growth in AI-based products, cross-selling and customer expansions across insurers and collision repair organizations.

Revenue rose 10% year over year to $286 million, while adjusted EBITDA increased 7% to $115 million. Chairman and CEO Githesh Ramamurthy said the results reflected the company’s expanding role in connecting participants across the insurance economy, including insurers, repair facilities, suppliers, OEMs and consumers.

“Customers are not buying a model. They are buying business outcomes,” Ramamurthy said, pointing to demand for accuracy, efficiency, customer experience and economic value from AI tools embedded in existing workflows.

AI Revenue Expands Faster Than Overall Business

CCC said its AI-based solutions generated more than $120 million in annualized revenue and were growing at nearly 50% year over year. Interim CFO Rod Cristo said AI-based products accounted for about 11% of second-quarter revenue and grew approximately 45% from the prior-year period.

AI solutions contributed four percentage points to the company’s 10% revenue growth during the quarter, primarily driven by auto physical damage, subrogation and EvolutionIQ products. Overall, about 7.5 percentage points of revenue growth came from cross-selling, upselling and AI adoption among existing clients, while new customer logos accounted for about 2.5 percentage points.

Ramamurthy said CCC’s AI tools are increasingly being deployed under multiyear commitments and at production scale rather than remaining in pilot programs. The company said it supports more than 900,000 users and has AI trained on tens of millions of claims.

During the quarter, two top-five insurers expanded their use of CCC’s AI-enabled claims workflows by deploying its FirstLook solution. One carrier added FirstLook alongside a multiyear extension of its auto physical damage offerings, while the other added the product under an existing multiyear agreement. FirstLook is designed to identify total-loss claims earlier, which CCC said can help lower rental and storage costs, allow repair facilities to focus on repairable vehicles and speed claim resolution for consumers.

CCC also said a top-five insurer that had previously renewed and expanded its enterprise agreement further enlarged its relationship during the second quarter by becoming the company’s largest carrier adopter of its AI-powered subrogation solution. The deployment is scaling rapidly, according to management.

Customer Retention Remained Stable

CCC reported software gross dollar retention of 98% in the second quarter, unchanged from the first quarter. Cristo said the company’s gross retention has remained between 98% and 99% since it began reporting the metric five years ago, with variation largely tied to churn in the repair-shop industry.

Software net dollar retention was 107%, matching the prior quarter and improving from 106% for full-year 2025. The measure includes cross-selling, upselling and volume changes in the company’s auto physical damage customer base.

The company also renewed and expanded a multiyear agreement with one of the nation’s largest independent collision repair operators. That customer uses CCC’s Jumpstart technology to initiate about 98% of its repair estimates and has begun adopting Mobile Jumpstart 2.0, which uses agentic AI to assist with estimate creation.

Management said other large multi-shop operators also increased adoption of AI-based solutions, with double-digit growth in participating repair facilities and estimates initiated through Jumpstart.

Platform Partnerships Address Claims Complexity

Ramamurthy emphasized the complexity of modern claims, which can involve towing, diagnostics, parts procurement, repair, rentals, medical care, payments and subrogation. CCC said it works with more than 250 ecosystem partners across more than 20 business areas.

Among recent examples, CCC highlighted its partnership with Sunbit, which offers financing options to consumers at vehicle drop-off. Since the solution launched in April, more than 2,000 shops have been onboarded and millions of dollars have been financed, the company said. One of the largest U.S. multi-shop operators has deployed the offering across its network.

CCC also cited its Tempus integration, which enables insurers to access medical-claims analysis and resolution services within the CCC claims workflow. Approximately 20 carriers, including multiple top-10 insurers, use the integrated service, according to the company.

The company said it now works with 10 diagnostic partners and that several OEMs have extended relationships with CCC through connected-car initiatives, including its Accident Advisor offering.

Margins, Cash Flow and Outlook

Adjusted gross profit was $217 million, producing an adjusted gross margin of 76%, compared with 78% a year earlier. Cristo said CCC remains confident in progressing toward its long-term target of approximately 80% as newer solution revenue scales.

Adjusted operating expenses increased 7% year over year to $116 million, reflecting higher personnel-related expenses, professional-services fees and technology investments. Adjusted EBITDA margin was 40%, down about 110 basis points from the prior year. However, excluding a $2 million one-time benefit from a vendor relationship exit in the second quarter of 2025, margins were roughly flat year over year.

CCC ended the quarter with $116 million in cash and cash equivalents, $1.3 billion in debt and net leverage of 2.5 times adjusted EBITDA. Free cash flow totaled $82 million, compared with $27 million a year earlier. Trailing-12-month free cash flow was $308 million, up 36% year over year, though Cristo said about 200 basis points of free-cash-flow margin expansion reflected favorable tax-payment timing.

For the third quarter, CCC expects revenue of $289.5 million to $291.5 million and adjusted EBITDA of $118 million to $120 million. For full-year 2026, the company forecast revenue of $1.158 billion to $1.164 billion and adjusted EBITDA of $485 million to $491 million.

The full-year revenue outlook raises and narrows the midpoint of CCC’s prior growth forecast to a range of 9.5% to 10%. The company said third- and fourth-quarter revenue growth is expected to be about 9% year over year, including an approximately one-percentage-point headwind from the roll-off of legacy first-party business.

About CCC Intelligent Solutions Holdings Inc. Common Stock (NASDAQ:CCC)

CCC Intelligent Solutions Holdings Inc is a provider of cloud, mobile, AI, telematics, hyperscale technologies, and applications for the property and casualty insurance economy. The company's SaaS platform connects trading partners, facilitates commerce, and supports mission-critical, AI-enabled digital workflows. It operates in a single segment being Domestic segment, which provides SAAS platform for the P&C insurance economy and derives revenues from providing customers with software subscriptions to the platform in addition to providing professional services and non-software services.

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