CCC Intelligent Solutions Holdings Inc. Q3 FY2025 earnings call

• CCC delivered strong top and bottom line results with total revenue up 12% and adjusted EBITDA ahead of guidance. • Adoption of platform continued to improve, especially among large customers, with renewals, expansions, and new business wins. • Proactively investing in organization to harness momentum, including refining go-to-market strategy, augmenting teams, separating CPO and CTO roles, and investing in multisided network. • Progress in casualty with wins like Liberty Mutual and EvolutionIQ showing momentum, including Medhub's success and new workers' comp client. • Repair facilities adopting CCC's solutions like Build Sheets and Mobile Jumpstart, with positive adoption trends.

In the third quarter of 2025, total revenue was $267 million, up 12% year-over-year. Adjusted EBITDA was $110 million with a margin of 41%. Emerging solutions represent about 4 percentage points of total revenue. Casualty contributes approximately 10% of revenue and is a growth area outpacing overall company growth.

• Q4 2025 revenue expected to be $272 million to $277 million, up 10%-12% year-over-year. • Q4 adjusted EBITDA expected to be $106 million to $111 million. • Full year 2025 revenue revised to $1.051 billion to $1.056 billion, up 12% year-over-year. • Full year 2025 adjusted EBITDA expected to be $423 million to $428 million, with midpoint margin 40%. • Excluding EvolutionIQ, midpoint margin expansion of about 100 basis points year-over-year.

• Risks related to market uncertainties that may cause actual results to vary from plans. • Timing of deployments and revenue recognition for EvolutionIQ affecting financial results. • Claim volume decline still being a headwind to growth, though moderating. • Organizational investments may have short-term impact on margins but expected to be temporary.

Q: Congrats on a nice quarter. One of the things that stood out was the customer that went from 15% of business touched by AI to 40%. Can you talk about monetization perspective?

A: As AI solutions expand use cases across claims, there's an incremental opportunity or upcharge. Fully rolled out, could increase about 50% of revenue across APD solution set. On EvolutionIQ, Q3 contribution was 4%, will step up in Q4 with larger contribution but due to timing of deployments.

Q: A question about growth profile into next year, scenarios for high vs low end of revenue target. Why now with organizational changes?

A: Changes are due to clients asking for step function change, not incremental. Augmenting teams to work at higher levels in organizations. Growth driven by adoption of emerging solutions, casualty opportunity, and EvolutionIQ rollout.

Q: On casualty, how much emphasis is from market factors vs platform maturation?

A: Macro factors like medical inflation driving need, and platform investments and differentiated features aiding adoption.

Q: On new logos contribution, types of customers and size?

A: New logos contribute about 3 points of growth, combination of repair facilities, part suppliers, and carriers. Expected to moderate but pleased with current performance.

Q: On claims headwind, how much impact and rounding?

A: Claims decline is a headwind, down 6% in Q3 with roughly 1 point drag. Slight benefit in rounding but marginal, assuming 1 point drag in Q4 too.

Q: On reinvesting in business, product changes and margin impact?

A: Product solutions delivering differentiation, go-to-market investments reallocating resources to higher ROI. Investments are strategically important but not financially material, with efficiencies offsetting costs, expecting margin expansion next year.

Q: On Liberty Mutual and other top 20 carriers, referenceability?

A: Liberty Mutual decision helped by references, but generally don't comment on specific customers, but high-quality implementations validate investments.

Q: On cyclicality of medical claims and gross margins?

A: Medical claims have less cyclicality than auto. Gross margin impact from higher depreciation, product mix, and sunsetting a solution, with largest impact from higher depreciation.