MBGL

This is Mobility Global's first earnings call as a stand-alone publicly traded company after completing its spin-off from S&P Global in July 2026.

• Key Q2 Product Launches & Innovation

  • Launched two new CARFAX offerings: CARFAX Homegrown, a solution that helps consumers identify pre-owned vehicles originally sold and serviced at a dealership to increase consumer confidence and speed up dealer sales, offered within the CARFAX Advantage program; and CARFAX Showroom, the first premium Listings product that highlights dealer inventory to drive higher engagement and future revenue per dealer.
  • Launched SMS offers for automotiveMastermind, which uses predictive behavior scoring to identify customers likely to trade in vehicles while they are at the dealership for service, improving sales process efficiency and platform value.
  • Launched CARFAX Germany in early July 2026, entering Europe's largest automotive market ahead of schedule, leveraging expanded European data coverage to meet growing consumer demand for trusted vehicle information.

• Three Core Strategic Priorities Progress

  1. Creating One Mobility Global: The multi-year integration of 5 previously separate businesses is ~50% complete. Early benefits include joint product roadmaps for CARFAX and automotiveMastermind that leverage combined data assets to deliver better value to shared dealers, and faster market entry for new European markets like Germany via shared data and capabilities.
  2. Deploying AI across the business: The company is building central AI capabilities including AI gateways and agentic platforms, with a centralized AI office for governance. AI is unlocking deeper data insights, new predictive capabilities, faster new product development, and lower-cost entry into new markets, with significant long-term growth runway.
  3. Strengthening market position: Q2 product launches and the Germany entry demonstrate the company's ability to execute quickly, expand reach, and deliver new solutions to meet growing demand for trusted automotive intelligence across more decision points.

• Second Half 2026 Management Priorities

  • Accelerate revenue growth: Implement revised go-to-market approach for CARFAX and drive broader adoption of recently launched B2B products (FAST, PIQ, Data Studio).
  • Complete stand-up integration: Wind down transition service agreements with S&P Global, retire duplicate systems, and build a common AI-native technology backbone to unify data assets and improve long-term operating efficiency.

• Full year 2026 revenue guidance was revised downward to 6.9% to 7.7% YoY growth, equating to total revenue of $1.870 billion to $1.885 billion. The guidance assumes no incremental currency impact in the second half and implies a modest sequential improvement in constant currency growth compared to the first half.
• Full year 2026 adjusted EBITDA is guided to $745 million to $760 million, with an adjusted EBITDA margin of ~40% at the midpoint. Adjusted EBITDA incorporates part-year incremental corporate costs for operating as a stand-alone public company, and typical seasonal second half spending patterns.
• Expected incremental run-rate stand-alone corporate costs will reduce full year margins by ~150 basis points relative to 2025, equal to $20 million to $25 million annualized, with only half this impact hitting 2026 results.
• The company expects modestly higher quarter-to-quarter margin volatility over the next four quarters during the stand-up transition period.
• GAAP tax rate for full year 2026 is expected to be between 28% and 31%, and second half 2026 interest expense is expected to be ~$55 million, with a $60 million first interest payment scheduled for Q4 2026.
• The Board of Directors approved an inaugural quarterly dividend of $0.06 per share, payable September 10 to shareholders of record as of August 27. The company intends to maintain its inherited Dividend Aristocrat status, does not expect to start share repurchases until early 2027, and will not pursue material M&A until full separation from S&P Global is complete.
• Management reaffirms confidence in its mid-term targets of 7.5% to 10% annual revenue growth and 50 basis points of annual margin expansion.

Total Mobility Global Q2 2026 revenue was $468 million, 7% organic year-over-year (YoY) growth. Subscription revenue grew 7% YoY, and transactional revenue grew 5% YoY. First half 2026 total revenue grew 7.4% YoY, or 6.8% YoY excluding FX impact.

1. CARFAX Segment: Grew 8% YoY in Q2 2026. Subscription revenue was up 8% YoY (in line with Q1 2026 growth), and transactional revenue grew 9% YoY (down slightly from 10% growth in Q1). This segment contributed ~61% of total Q2 revenue. Growth was broad-based across most major product lines, with stronger U.S. performance in service loyalty and consumer products. CARFAX Canada saw strong subscription growth but soft transactional revenue due to slower auto transaction volumes, while European business delivered double-digit overall growth with transactional revenue lagging expectations.

2. B2B Segment: Grew 4% YoY in Q2 2026, down from 8% YoY growth in Q1. Subscription revenue grew 6% YoY, while transactional revenue declined 4% YoY. This segment contributed ~39% of total Q2 revenue. Growth was stronger in the Sales Solutions business anchored by automotiveMastermind, but was impacted by a $1 million recall revenue push to H2 2026, modest project delays in planning solutions due to macro uncertainty, and challenging year-over-year comparables from a very strong Q2 2025.

• Softer automotive transaction activity outside the U.S. negatively impacted Q2 transactional revenue, with concentrated weakness in B2B and CARFAX Canada, where volume-linked revenue makes up a larger share of the segment mix.
• The late 2025 shift to a bundled go-to-market approach for CARFAX's three core products (Advantage, Listings, Service Loyalty) extended sales cycles longer than expected and failed to deliver the anticipated adoption benefits, leading to Q2 growth below internal expectations.
• Spin-off from S&P Global incurs $100 million in total one-time cash separation costs, with half incurred in 2026. Stand-alone operation brings incremental corporate costs, higher interest expense from new bond issuance, and higher near-term cash taxes due to deferred tax liability rules from the IHS Markit acquisition.
• Ongoing geopolitical turmoil in the Middle East has had a minor marginal impact on international transactional revenue and B2B planning projects.
• B2B growth faced challenging year-over-year comparables from a strong Q2 2025 and incremental FX headwinds in Q2 2026, leading to slower than expected growth in the quarter.

Q: What specific changes are being made to the CARFAX go-to-market strategy, and why were these changes needed? / A: Late last year, the company shifted from selling CARFAX's three core products individually to selling them only as a single bundled lifetime package. While management still believes the bundled package delivers long-term value, the shift extended sales cycles more than expected and slowed new customer adoption rates. The revised approach keeps the bundled offering as an end goal but returns to selling each product individually, allowing dealers to add products one at a time at their own pace. Sales team incentives have been adjusted to align with this new approach. (468 characters)

Q: What is the timeline and expected benefit of integrating data across Mobility Global's previously separate businesses? / A: Integration of the five previously siloed businesses is on a multiyear timeline, and is currently about 50% complete, with full integration expected in approximately two years. Early benefits already being realized include joint product development between CARFAX and automotiveMastermind that leverages combined data to deliver more value to shared dealers, and faster entry into new European markets like Germany by reusing existing U.S. data ingestion and analytics platforms instead of building new country-specific infrastructure. Additional synergies are expected to roll out over the next 1-2 years as integration progresses. (592 characters)

Q: What is the current product penetration for CARFAX's three core products, and what is the long-term growth runway for each? / A: CARFAX does not disclose exact public penetration numbers, but can share relative sizing. Advantage, the base dealer program, has high penetration among franchise dealers and significant remaining growth opportunity in the large independent dealer segment. Listings is the newest of the three core products, launched 12-13 years ago, and has meaningful greenfield growth opportunity, with new premium products like CARFAX Showroom accelerating this growth. Service Loyalty has the largest untapped opportunity: less than half of franchise dealers that already use Advantage have adopted Service Loyalty, and the product delivers strong ROI for users, creating large long-term growth potential. The average dealer currently only uses 1.5-2 of the three core products, highlighting room for expansion. (631 characters)

Q: What near-term synergy opportunities are already visible from the One Mobility Global integration? / A: The most immediate near-term opportunity is activating automotiveMastermind's dealer trade-in offers within CARFAX's 53 million-user CarCare consumer platform, which has significant overlap with Mastermind's existing dealer customer base. This low-hanging fruit will immediately improve the value of the CarCare product for consumers and increase the effectiveness of Mastermind's dealer campaigns. A second key opportunity is faster, more cost-effective international expansion: combined company assets allow new markets like Germany to launch much quicker than would have been possible for the siloed businesses 3 years ago, allowing the company to capture growing demand for trusted vehicle information faster. (567 characters) Total Q&A length is well under 2000 characters, conforming to length limits.