CCC Intelligent Solutions Holdings Inc. Q4 FY2025 earnings call

• 2025 was a strong year with $1 billion revenue milestone, 85% subscription revenue, annual free cash flow over $250 million, and acquisition of EvolutionIQ. - AI is a key theme with it making CCC's platform more important, AI now ~10% of revenue and expected to increase. - Strengthened senior product leadership with Josh Valdez. - Developed IX Cloud and made talent investments. - EvolutionIQ expanded addressable market and seen cross-sell traction. - Adjusted operating expense excluding EvolutionIQ flat year-over-year.

For the fourth quarter of 2025, total revenue was $278 million, up 13% year-over-year. Adjusted EBITDA was $119 million with a margin of 43%. Full year 2025 revenue was $1.057 billion, up 12% year-over-year. Adjusted EBITDA was $436 million with a margin of 41%. 85% of revenue comes from subscriptions. Gross dollar retention was 99%. Emerging solutions contributed over 2 points of Q4 revenue growth, growing over 70% year-over-year and representing ~5% of Q4 revenue.

• Q1 2026 revenue expected $273.5M - $275.5M (8.5%-9.5% growth), adjusted EBITDA $113M - $115M (42% margin midpoint). - Full year 2026 revenue expected $1.147B - $1.157B (~9% growth midpoint), adjusted EBITDA $477M - $485M (42% margin midpoint). - Share-based comp expected to decrease from 17% of revenue in 2025 to 13% in 2026 with path to single digits in 2027.

Q: Touching on the debate around autonomous vehicles, could you anticipate your role, business model or the value you can provide to customers to change in the future?

A: Githesh said while claim frequency may slightly decline, severity and complexity far outweigh it, and data in SF shows slightly higher claim frequency there.

Q: Do you expect your large insurance carrier customers to in-house any software development for parts of the GCC workflows?

A: Githesh said large customers have always built many components, and conversations indicate they're excited to expand with CCC.

Q: Talk about efforts to get EIQ deals implemented and progress in 2026?

A: Githesh said complex implementations led to bringing more expertise, and learnings applied to latest implementations.

Q: How are you thinking about R&D spend in 2026?

A: Brian said continuing to focus on investments, deploying AI tools for efficiency.

Q: Any color on AI adoption curve going into 2026 and beyond?

A: Githesh said more referenceable customers and increased propensity of customers to deploy AI aggressively with clear controls.

Q: Where is $100M of AI-based revenue from most prevalently?

A: Githesh said emerging solutions grew 75% in Q4, including auto physical damage, repair facilities, and casualty with MedHub.

Q: Impact of new solutions on gross margin?

A: Brian said unit economics strong but new products cause short-term gross profit pressure.

Q: Frequency of claims in SF with autonomous vehicles?

A: Githesh said data shows slightly higher claim frequency in SF.

Q: Why concern about SaaS is misplaced?

A: Githesh said combination of hyper-local data, massive network, and deep workflows makes CCC unique.

Q: Which products are driving emerging solutions growth?

A: Brian said AI in APD solutions, build sheets, diagnostics.

Q: Framing casualty opportunity?

A: Githesh said medical inflation rate and customer concern about affordability driving momentum.

Q: Percentage of top 20 insurer customers with three or more AI modules live?

A: Githesh said more engagement across more products with top 20 customers.

Q: EvolutionIQ impact on margin?

A: Brian said EvolutionIQ loss will moderate as integrated.

Q: Customer deployment timelines for emerging solutions?

A: Githesh said better deployments and faster deployments as experience curve progresses.

Q: Competitive threat from AI companies?

A: Githesh said customers work with multiple companies, and CCC's partnership with customers is and, not either/or.

Q: Working with frontier models?

A: Githesh said work with seven different companies for several years.