CCC Intelligent Solutions Holdings Inc. Q1 FY2026 earnings call

Githesh Ramamurthy mentioned strong start to 2026 driven by customer demand and adoption. CCC positioned to thrive in AI-driven world with unique data, embedded workflows, and trusted scale platform. Tangible revenue momentum with large companies increasing commitments to core and AI solutions. Solving rising complexity in insurance economy is long-term growth driver. Brian Herb discussed Q1 results, software GDR and NDR metrics, income statement details, balance sheet and cash flow, and capital allocation including share repurchases. Githesh also announced Brian Herb's departure as CFO and Rod Christo's appointment as Interim CFO.

First quarter total revenue grew 12% to $281 million. Adjusted EBITDA was $120 million, with adjusted EBITDA margin expanding approximately 300 basis points year-over-year to 43%. Emerging solutions contributed about 4 points of growth, accounting for approximately 11% of total revenue in Q1 2026 and growing ~50% year-over-year with largest contribution from AI solutions. Software gross dollar retention (GDR) in Q1 2026 was 98%, down from 99% last quarter. Software net dollar retention (NDR) in Q1 2026 was 107%, up from full year 2025 NDR of 106%.

For Q2 2026, expected revenue between $283 million to $285 million (9% y-o-y growth at midpoint), adjusted EBITDA $111 million to $113 million (39% adjusted EBITDA margin at midpoint). For full year 2026, expected total revenue $1.155 billion to $1.163 billion (~10% y-o-y growth at midpoint), adjusted EBITDA $484 million to $490 million (42% adjusted EBITDA margin at midpoint). Full year revenue guidance raised on back of Q1 strong results. Q2 includes over 1 point impact from onetime items and casualty transactional strength; second half has ~1 point revenue headwind from insurance carrier transitioning legacy first-party casualty business. Confident in margin expansion in 2026.

Q: Great start to the year and congratulations, Brian. Can you dig into casualty business and who you're replacing?

A: Githesh said their third-party solution replaced an incumbent after testing, and Tim added it's a long-term strategic focus with investments and listening to customer needs.

Q: Delineate further on outsized adoption from larger carriers?

A: Githesh said CCC has built AI capabilities over decade with $2T data, customers tested and saw accuracy/ROI, and it's embedded in workflows.

Q: True-ups dynamics in Q1?

A: Brian said 85% revenue is subscription, some subscriptions have volume commitments, and truing up occurs when customers exceed minimum.

Q: New casualty wins phasing?

A: Brian said it phases in as deals are signed and ramped up.

Q: Pricing model and value capture?

A: Githesh said structurally CCC has core, AI on top, new products, and casualty as components, and Brian said they sell on ROI, new solutions are embedded, and renewals can have price impact.

Q: Evaluation of customers ahead of emerging solutions?

A: Githesh said most complex/largest customers test, and Tim said long relationships and trust help.

Q: Recent appointments to Chief Product Officer?

A: Githesh said focus on deepening product suite and AI-enabled ecosystem across customers.

Q: International demand?

A: Githesh and Tim said TAM expansion in US, and international opportunity considering industry structure and TAM.