Mobility Global Q3 Earnings Call Highlights

Key Points

• Revenue rose 7.4% year over year to $478 million, with CARFAX growth accelerating to 7.9% on an organic constant-currency basis. B2B growth was about 6.5%, though delayed deals and pressure on automakers and suppliers are lengthening sales cycles.
• Mobility Global raised the lower end of its 2026 adjusted EBITDA outlook to $750 million–$760 million while keeping revenue guidance at $1.87 billion–$1.885 billion. Adjusted EBITDA increased about 2% to $195 million, while GAAP net income fell about 41% to $42 million, partly due to separation costs and interest expense.
• The board authorized about $800 million in share repurchases, with buybacks now expected to begin in 2026; the company targets $350 million–$450 million in repurchases by the end of 2027. It also declared a $0.06 quarterly dividend.

Mobility Global NYSE: MBGL reported third-quarter revenue of $478 million, up 7.4% from a year earlier, as growth at CARFAX and its business-to-business segment helped the automotive data company complete its first quarter as a standalone public company.

The company raised the lower end of its full-year adjusted EBITDA forecast and said it plans to begin repurchasing shares in 2026, earlier than previously anticipated. GAAP net income fell approximately 41% to $42 million, reflecting separation costs and interest expense, among other items.

Chief Executive Officer Bill Eager said changes to CARFAX’s sales strategy helped improve momentum, while pressure on automakers and suppliers lengthened some B2B sales cycles. “The adjustments we made earlier this year were the right ones,” Eager said.

CARFAX Momentum and B2B Timing

Third-quarter revenue grew 7.6% on an organic constant-currency basis, compared with 6.4% in the second quarter. Subscription revenue represented 81% of total revenue and rose 7% year over year; transactional revenue also increased 7%.

CARFAX revenue grew 7.9% on an organic constant-currency basis. U.S. CARFAX revenue rose 8%, its third consecutive quarter of accelerating growth. Chief Financial Officer Matt Calderone said new dealer signups for Advantage and unit sales across Listings, Service Loyalty and Showroom increased from the second quarter.

Eager said the company shifted back to selling CARFAX dealer products individually after focusing on a bundled lifetime package. He said the company also added commercial staff, tools and leadership.

International CARFAX revenue rose approximately 5%, with double-digit growth in Europe partly offset by currency pressure and softer used-vehicle activity in Canada. Germany contributed its first full quarter after launching at the beginning of the third quarter. Eager said the European expansion remains at an early stage and will take time to have a material impact.

B2B revenue grew approximately 6.5% on an organic constant-currency basis. Excluding a benefit from a prior-year revenue true-up, underlying growth was approximately 5%. Calderone said some Sales and Planning Solutions deals did not close during the quarter, offsetting a portion of recall-related revenue.

The company expects B2B growth to moderate in the fourth quarter relative to the third, with second-half growth similar to the first half. Eager said a large global automaker signed a multiyear agreement that included both B2B and CARFAX components. Calderone said the win did not contribute revenue in the third quarter and is expected to begin contributing next year.

Profit, Cash Flow and Share Repurchases

Adjusted EBITDA rose approximately 2% to $195 million, with a 41% margin. The quarter included the company’s first full period of standalone public-company costs. Calderone estimated those costs would reduce the 2027 adjusted EBITDA margin by approximately 150 basis points at a full-year run rate, relative to the 2025 carve-out baseline.

Third-quarter GAAP net income included $16 million in one-time separation and standup costs and $26 million in bond interest expense. Adjusted net income was $119 million, or $0.40 per diluted share.

Free cash flow was $186 million, including one-time separation and standup payments but excluding interest payments and payments for taxes accrued during the quarter. Mobility Global ended the period with $351 million in cash.

The board authorized approximately $800 million in share repurchases. The company now expects to start buying shares in 2026, rather than early 2027, and is targeting $350 million to $450 million in repurchases by the end of 2027. The board also declared a quarterly dividend of $0.06 per share, payable Dec. 14 to shareholders of record on Nov. 30.

Outlook and Product Investment

Mobility Global maintained its 2026 revenue guidance of $1.87 billion to $1.885 billion and raised its adjusted EBITDA forecast to $750 million to $760 million, from $745 million to $760 million. Calderone said the revision reflected third-quarter profitability and better visibility into standalone costs. The company expects the fourth quarter to be its lowest-margin quarter of the year because of seasonal spending and standalone costs.

Eager highlighted artificial intelligence as a tool for processing data and developing products. He said CARFAX had reached 40 billion vehicle history records, received data from more than 100,000 service shops and registered 60 million consumers for Car Care.

The company plans to launch automotiveMastermind’s AI-powered Marketing Lab and, starting next year, allow dealers subscribing to both Mastermind and CARFAX Car Care to combine their capabilities. Eager said traffic to CARFAX from large language models remained small, though it grew by double digits from the second to the third quarter.

Mobility Global expects to complete its systems transition from S&P Global within 18 months of the spin. Calderone said the company anticipates approximately $100 million in one-time standup and spin-related costs through the end of 2027, roughly half in 2026.

About Mobility Global (NYSE:MBGL)

Mobility Global is a blank-check company formed to pursue a merger, acquisition, share exchange or similar business combination with an operating business. It does not have established products or services of its own. The company's stated focus is the mobility sector, which may include businesses involved in transportation, automotive services, logistics and related technologies. Its activities are centered on identifying and completing a suitable business combination.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.