CCC Intelligent Solutions (CCCS) - 2025 Q2 - Quarterly Results

Company Overview and Q2 2025 Highlights CCC Intelligent Solutions reported strong Q2 2025 financial results, with 12% revenue growth and a 42% Adjusted EBITDA margin Introduction and CEO Commentary CCC reported strong Q2 2025 results with 12% revenue growth and a 42% Adjusted EBITDA margin, driven by resilient operations and innovation - CCC achieved strong performance in Q2 2025, with revenue growing 12% and an Adjusted EBITDA margin of 42%[2] - CEO Githesh Ramamurthy stated that results reflect the company's resilient business model, operational efficiency, and sustained investment in innovation[2] - Several large customers expanded new solutions from pilot to broader business applications, indicating wider insurance industry adoption and boosting long-term growth confidence[3] Second Quarter 2025 Financial Highlights Q2 2025 saw significant revenue growth, varied GAAP and adjusted profitability, and a year-over-year decline in cash and free cash flow Revenue Total revenue for Q2 2025 reached $260.5 million, a 12% increase from Q2 2024 Q2 2025 Revenue | Metric | Q2 2025 | Q2 2024 | YoY Growth | | :--- | :--- | :--- | :--- | | Total Revenue | $260.5 Million | $232.6 Million | 12% | Profitability (GAAP & Adjusted) Q2 2025 GAAP net income decreased, but adjusted net income, operating income, and EBITDA all grew, showing improved adjusted profitability Q2 2025 Profitability Overview | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | GAAP Gross Profit | $194.0 Million | $177.3 Million | +9.4% | | GAAP Gross Margin | 74% | 76% | -2% | | Adjusted Gross Profit | $202.5 Million | $182.1 Million | +11.2% | | Adjusted Gross Margin | 78% | 78% | 0% | | GAAP Operating Income | $24.5 Million | $22.5 Million | +8.9% | | Adjusted Operating Income | $94.2 Million | $86.0 Million | +9.5% | | GAAP Net Income | $13.0 Million | $21.4 Million | -39.3% | | Adjusted Net Income | $58.9 Million | $56.2 Million | +4.8% | | Adjusted EBITDA | $108.1 Million | $95.8 Million | +12.8% | | Adjusted EBITDA Margin | 42% | 41% | +1% | Liquidity As of June 30, 2025, cash and cash equivalents were $55.1 million, total debt was $996.0 million, with decreased Q2 cash flows Q2 2025 Liquidity Metrics | Metric | June 30, 2025 | June 30, 2024 | Change | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $55.1 Million | - | - | | Total Debt | $996.0 Million | - | - | | Cash Flow from Operations (Q2) | $43.1 Million | $51.8 Million | -16.8% | | Free Cash Flow (Q2) | $27.4 Million | $36.2 Million | -24.3% | Q2 2025 and Recent Business Highlights The company achieved multiple business advancements in Q2, including new AI solution contracts and a strategic board appointment - Multiple top-ten insurers (based on 2024 direct premiums) signed contracts for CCC's AI-driven Auto Physical Damage (APD) solutions, extending AI photo capabilities to early claims processing and late-stage audit reviews[8] - Another top-twenty insurer signed a contract for the AI-driven subrogation platform, which currently serves 25 CCC customers[8] - CCC's casualty business maintained strong momentum in Q2, renewing and expanding partnerships with top-ten and top-twenty insurers[8] - Barak Eilam was appointed to the Board of Directors on July 14, bringing over 20 years of enterprise software, AI, and customer engagement technology experience to drive CCC's next growth phase[8] Share Repurchase Program In Q2 2025, CCC repurchased 11 million shares for $100 million; year-to-date, 18 million shares totaling $172 million were repurchased Share Repurchase Overview | Metric | Q2 2025 | Year-to-Date 2025 | | :--- | :--- | :--- | | Shares Repurchased | 11 Million Shares | 18 Million Shares | | Repurchase Amount | Approx. $100 Million | Approx. $172 Million | | Total Authorization | - | $300 Million | Business Outlook The company issued Q3 and full-year FY2025 financial guidance, projecting continued growth in revenue and Adjusted EBITDA Financial Guidance The company issued Q3 and full-year FY2025 financial guidance, projecting continued growth in revenue and Adjusted EBITDA FY 2025 Financial Guidance | Metric | Q3 FY 2025 | Full Year FY 2025 | | :--- | :--- | :--- | | Revenue | $263.0 Million to $266.0 Million | $1.046 Billion to $1.056 Billion | | Adjusted EBITDA | $104.0 Million to $107.0 Million | $420.0 Million to $428.0 Million | Company Information CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy, connecting over 35,000 businesses About CCC Intelligent Solutions CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy, connecting over 35,000 businesses - CCC Intelligent Solutions is a leading SaaS platform provider in the trillion-dollar insurance economy[12] - Its CCC Intelligent Experience (IX) Cloud™ platform, powered by AI and event-driven architecture, connects over 35,000 businesses with customized applications and platforms[12] - The company is committed to empowering industries and individuals through innovation and connectivity to navigate critical moments[12] Financial Statements Condensed consolidated balance sheets, statements of operations, and cash flows provide an overview of the company's financial position and performance Condensed Consolidated Balance Sheets The balance sheets present the company's financial position as of June 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets Overview (As of June 30) | Metric (Thousands of USD) | 2025 | 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 55,053 | 398,983 | | Accounts Receivable—Net | 132,450 | 106,578 | | Total Current Assets | 277,705 | 564,650 | | Software, Equipment and Property—Net | 170,341 | 172,079 | | Intangible Assets—Net | 1,056,418 | 934,278 | | Goodwill | 1,956,485 | 1,417,724 | | Total Assets | 3,565,422 | 3,183,218 | | Total Current Liabilities | 223,469 | 154,846 | | Long-Term Debt—Net | 973,298 | 761,053 | | Total Liabilities | 1,452,030 | 1,163,716 | | Total Stockholders’ Equity | 2,177,460 | 1,997,823 | Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) These statements present the company's financial performance for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Overview (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | 260,451 | 232,618 | 512,016 | 459,855 | | Cost of Revenue | 66,435 | 55,321 | 133,008 | 114,695 | | Gross Profit | 194,016 | 177,297 | 379,008 | 345,160 | | Operating Expenses | 169,546 | 154,784 | 365,236 | 314,850 | | Operating Income | 24,470 | 22,513 | 13,772 | 30,310 | | Income (Loss) Before Income Taxes | 5,797 | 25,752 | (24,977) | 20,917 | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Net Income (Loss) Attributable to Common Stockholders | 12,960 | 20,224 | (5,737) | 18,485 | | Basic Net Income (Loss) Per Share | $0.02 | $0.03 | ($0.01) | $0.03 | | Diluted Net Income (Loss) Per Share | $0.02 | $0.03 | ($0.01) | $0.03 | Condensed Consolidated Statements of Cash Flows These statements detail the company's cash flows from operating, investing, and financing activities for the six months ended June 30 Condensed Consolidated Statements of Cash Flows Overview (Thousands of USD, As of June 30) | Metric | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 101,548 | 107,009 | | Net Cash Used in Investing Activities | (445,682) | (31,224) | | Net Cash Provided by (Used in) Financing Activities | 167 | (33,328) | | Net Change in Cash and Cash Equivalents | (343,930) | 42,321 | | Cash and Cash Equivalents at End of Period | 55,053 | 237,893 | Non-GAAP Financial Measures Reconciliations Reconciliations of GAAP to non-GAAP financial measures are provided for key metrics, offering a comprehensive view of financial performance Reconciliation of Gross Profit to Adjusted Gross Profit This reconciliation adjusts GAAP gross profit to adjusted gross profit by adding back amortization of acquired technology and stock-based compensation Reconciliation of Gross Profit to Adjusted Gross Profit (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Gross Profit | 194,016 | 177,297 | 379,008 | 345,160 | | Amortization of Acquired Technology | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 4,137 | 2,693 | 7,238 | 5,280 | | Adjusted Gross Profit | 202,521 | 182,080 | 394,983 | 359,097 | | Gross Margin | 74% | 76% | 74% | 75% | | Adjusted Gross Margin | 78% | 78% | 77% | 77% | Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses This reconciliation adjusts GAAP operating expenses to adjusted operating expenses by excluding various non-cash and non-recurring items Reconciliation of GAAP Operating Expenses to Adjusted Operating Expenses (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Expenses | 169,546 | 154,784 | 365,236 | 314,850 | | Amortization of Intangible Assets | (18,512) | (17,942) | (37,024) | (35,884) | | Stock-Based Compensation and Related Employer Payroll Taxes | (42,121) | (38,075) | (104,939) | (85,520) | | M&A and Integration Costs | (348) | — | (7,967) | (477) | | Equity Transaction Costs | (165) | (1,046) | (452) | (1,738) | | Litigation (Costs) Benefits, Net | (125) | (1,624) | 3,665 | (2,200) | | Debt Refinancing Costs | — | — | (3,119) | — | | Adjusted Operating Expenses | 108,275 | 96,097 | 215,400 | 189,031 | Reconciliation of GAAP Operating Income to Adjusted Operating Income This reconciliation adjusts GAAP operating income to adjusted operating income by adding back various non-cash and non-recurring items Reconciliation of GAAP Operating Income to Adjusted Operating Income (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Operating Income | 24,470 | 22,513 | 13,772 | 30,310 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Adjusted Operating Income | 94,246 | 85,983 | 179,583 | 170,066 | Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA This reconciliation adjusts GAAP net income (loss) to Adjusted EBITDA by adding back non-cash and non-operating items Reconciliation of GAAP Net Income (Loss) to Adjusted EBITDA (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Interest Expense | 17,836 | 16,602 | 34,763 | 33,054 | | Interest Income | (1,220) | (2,625) | (3,168) | (5,092) | | Income Tax (Benefit) Expense | (7,163) | 4,307 | (20,516) | 69 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Depreciation and Amortization of Software, Equipment and Property | 2,231 | 2,299 | 4,495 | 4,164 | | Depreciation and Amortization of Software, Equipment and Property—Cost of Revenue | 11,548 | 7,418 | 22,878 | 14,996 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Fair Value Change of Derivative Instruments | 2,640 | 852 | 8,381 | 134 | | Derivative Income | (492) | (2,008) | (989) | (4,039) | | Fair Value Change of Warrant Liability | — | (15,963) | — | (14,378) | | Adjusted EBITDA | 108,116 | 95,797 | 207,194 | 189,512 | | Adjusted EBITDA Margin | 42% | 41% | 40% | 40% | Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income This reconciliation adjusts GAAP net income (loss) to adjusted net income by adding back non-cash and non-operating items and deducting tax impacts Reconciliation of GAAP Net Income (Loss) to Adjusted Net Income (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Income (Loss) | 12,960 | 21,445 | (4,461) | 20,848 | | Amortization of Intangible Assets | 18,512 | 17,942 | 37,024 | 35,884 | | Amortization of Acquired Technology—Cost of Revenue | 4,368 | 2,090 | 8,737 | 8,657 | | Stock-Based Compensation and Related Employer Payroll Taxes | 46,258 | 40,768 | 112,177 | 90,800 | | M&A and Integration Costs | 348 | — | 7,967 | 477 | | Equity Transaction Costs | 165 | 1,046 | 452 | 1,738 | | Litigation Costs (Benefits), Net | 125 | 1,624 | (3,665) | 2,200 | | Debt Refinancing Costs | — | — | 3,119 | — | | Fair Value Change of Derivative Instruments | 2,640 | 852 | 8,381 | 134 | | Fair Value Change of Warrant Liability | — | (15,963) | — | (14,378) | | Tax Impact of Adjustments | (26,521) | (13,618) | (56,394) | (35,384) | | Adjusted Net Income | 58,855 | 56,186 | 113,337 | 110,976 | | Adjusted Basic Net Income Per Share | $0.09 | $0.09 | $0.18 | $0.18 | | Adjusted Diluted Net Income Per Share | $0.09 | $0.09 | $0.17 | $0.17 | Reconciliation of Net Cash Flow from Operating Activities to Free Cash Flow This reconciliation adjusts net cash flow from operating activities to free cash flow by deducting purchases of software, equipment, and property Reconciliation of Net Cash Flow from Operating Activities to Free Cash Flow (Thousands of USD) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | 43,056 | 51,774 | 101,548 | 107,009 | | Purchases of Software, Equipment and Property | (15,703) | (15,561) | (30,549) | (31,224) | | Free Cash Flow | 27,353 | 36,213 | 70,999 | 75,785 | Other Information This section provides conference call details, forward-looking statements, non-GAAP financial measures disclosure, and investor and media contacts Conference Call Information The company will host a conference call on July 31, 2025, to discuss financial results and guidance, with a webcast and replay available - The conference call will be held on July 31, 2025, at 5:00 PM ET[11] - A webcast and replay will be available on the company's investor relations website at https://ir.cccis.com[11](index=11&type=chunk) Forward-Looking Statements This section contains forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from expectations - This press release contains forward-looking statements based on beliefs, assumptions, and current information, involving risks, uncertainties, and other factors that could cause actual results to differ materially from expectations[13] - Forward-looking statements include future events, objectives, plans, and projections regarding the company's financial condition, operating results, market position, product development, and business strategy[13] - The company does not guarantee the accuracy of forward-looking statements and has no intention to update them in the future, unless required by applicable law[13] Non-GAAP Financial Measures Disclosure Non-GAAP financial measures are included, providing useful insights into financial trends but should be considered supplementary to GAAP measures - Non-GAAP financial measures such as "Adjusted EBITDA," "Adjusted EBITDA Margin," and "Adjusted Net Income" are not measured by GAAP and may exclude items crucial for understanding financial performance[14] - The company believes these non-GAAP metrics provide useful information to management and investors regarding financial condition and operating results, aiding in evaluating ongoing performance and trends, and facilitating comparisons with similar companies[15] - These non-GAAP financial measures have inherent limitations as they reflect management's judgment in determining which expenses and revenues are excluded or included[15] Investor and Media Contacts Contact information is provided for the Vice President of Investor Relations and the Senior Director of Public Relations - Investor Contact: Bill Warmington, VP of Investor Relations, Phone: 312-229-2355, Email: IR@cccis.com[17] - Media Contact: Michelle Hellyar, Senior Director of Public Relations, Email: mhellyar@cccis.com[17]