Mobility Global Q2 Earnings Call Highlights

Key Points

• Second-quarter revenue rose 7% organically to $468 million, while adjusted EBITDA increased about 7% to $202 million. Results fell modestly short of expectations due to a less effective CARFAX bundled-sales strategy and weaker automotive activity outside the U.S.
• Mobility Global cut its 2026 guidance to revenue of $1.87 billion–$1.885 billion and adjusted EBITDA of $745 million–$760 million. Standalone costs from the S&P Global spin-off are expected to pressure margins and generate about $100 million in additional one-time cash costs.
• The company approved its first quarterly dividend of $0.06 per share, payable Sept. 10, but does not expect share repurchases until early 2027. Management is also advancing product launches, European expansion and a multiyear effort to integrate its businesses under the “One Mobility Global” platform.

Mobility Global NYSE: MBGL reported second-quarter revenue of $468 million, up 7% year over year on an organic basis, in its first earnings call as a standalone public company following its July 1 spin-off from S&P Global.

The company said results came in modestly below its expectations, citing a CARFAX go-to-market approach that did not produce the anticipated benefits and softer automotive activity outside the United States. Mobility Global lowered its full-year revenue outlook while maintaining that the underlying health of its subscription-based business remains sound.

“We delivered approximately 7% organic revenue growth modestly below our expectations,” CEO Bill Eager said. “We do not view these factors as a change in the underlying health of our business, and we expect to build momentum into 2027.”

Revenue growth varied across segments

CARFAX revenue rose 8% in the second quarter, including approximately 8% subscription revenue growth and 9% growth in transactional revenue. The company said growth was broad-based across most major product lines, with comparatively stronger U.S. performance in service loyalty and consumer products.

However, Eager said CARFAX’s effort to sell its Advantage, Listings and Service Loyalty products together as a “lifetime dealer package” lengthened sales cycles more than expected. The company began changing that approach in June, returning to individual product sales while allowing dealers to add products over time.

“We’re recalibrating that sales approach, recalibrating our sales incentive, and shifting back to where we are selling each of those products individually,” Eager said during the question-and-answer session.

Within CARFAX, Canada generated strong subscription growth but continued to face weakness in transactional products because of softer auto transactions. Europe posted double-digit growth, though transactional revenue there also trailed the company’s expectations.

Mobility Global’s B2B segment grew 4%, down from 8% growth in the first quarter. B2B subscription revenue rose about 6%, while transactional revenue declined 4%. The company cited delayed planning-solutions projects amid macroeconomic uncertainty, difficult comparisons with the prior-year quarter and approximately $1 million in recall revenue that was pushed into the second half pending a final quote.

CFO Matt Calderone said the company expects more of its second-half growth improvement to come from CARFAX, while B2B growth is expected to remain relatively stable. Management said its outlook assumes no improvement in macroeconomic conditions during the second half.

Profitability and standalone costs

Second-quarter adjusted EBITDA was $202 million, up approximately 7% from the prior-year period. Adjusted EBITDA margin was 43.2%, about 40 basis points higher year over year. For the first half, adjusted EBITDA totaled $386 million, up 8%, with a 42% margin.

GAAP net income was $53 million, down 18% year over year. Calderone said the result included $36 million in one-time transaction-related costs associated with the separation from S&P Global, compared with $2 million of such costs in the second quarter of 2025.

Mobility Global ended the quarter with $186 million in cash, $1.8 billion in net debt and a net leverage ratio of 2.4 times trailing-12-month adjusted EBITDA. The company also expects approximately $100 million in one-time cash costs tied to completing the spin-off and establishing its standalone infrastructure, with about half expected to be incurred during 2026.

Management expects standalone corporate costs to reduce full-year margins by roughly 150 basis points on a run-rate basis compared with its 2025 baseline. The discrete effect on 2026 margins is expected to be approximately half that level because the company operated as a standalone entity for only part of the year.

Guidance reduced; dividend announced

Mobility Global now expects full-year 2026 revenue of $1.87 billion to $1.885 billion, representing growth of 6.9% to 7.7%. The company expects adjusted EBITDA of $745 million to $760 million, implying an adjusted EBITDA margin of about 40% at the midpoint.

The outlook incorporates first-half results, typical back-half investment and advertising spending patterns, and the partial-year impact of standalone corporate expenses. Calderone said the guidance assumes no additional currency benefit in the second half and implies modest sequential improvement in constant-currency revenue growth.

The board approved an inaugural quarterly dividend of $0.06 per share, payable Sept. 10 to shareholders of record as of the close of business Aug. 27. The company said it does not expect to begin share repurchases until early 2027 and does not plan to pursue material acquisitions until it is fully separated from S&P Global.

Product launches and integration efforts

During the quarter, Mobility Global launched CARFAX Homegrown, which identifies used vehicles originally sold and subsequently serviced by the same dealership, and CARFAX Showroom, a premium listings product intended to increase dealer inventory visibility and engagement. automotiveMastermind introduced SMS Offers, which uses behavior prediction scores to identify service-lane customers likely to trade in a vehicle and sends personalized appraisal and upgrade offers.

The company also launched CARFAX Germany in early July. Eager said the European expansion draws on data and capabilities across Mobility Global’s businesses and was completed ahead of the company’s original schedule.

Management said it is about halfway through a multiyear effort to create “One Mobility Global,” including connecting data assets and product roadmaps across its five businesses, winding down transition services with S&P Global, retiring duplicative systems and moving toward a common technology foundation.

Eager said automotiveMastermind and CARFAX are developing joint products, including potential use of CARFAX’s 53 million Car Care users to activate customized dealer offers from automotiveMastermind. He said the company expects the broader integration effort to continue over roughly the next two years.

About Mobility Global (NYSE:MBGL)

Mobility Global Inc providing critical data and analytics across the full vehicle lifecycle. Its portfolio of trusted brands and products includes CARFAX, automotiveMastermind, Polk Automotive Solutions and Market Scan, supporting automotive manufacturers, suppliers, dealer groups, media, financial institutions and consumers. Mobility Global Inc is based in NEW YORK.

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