CCC Intelligent Solutions Holdings Inc. - 10-Q Summary
Business Context and Reporting Period
Company: CCC Intelligent Solutions Holdings Inc.
Filing Type: Form 10-Q (Unaudited)
Period Ended: June 30, 2026
Business Overview: A leading SaaS and AI platform provider for the insurance economy, connecting insurers, repairers, automakers, and parts suppliers. The company operates primarily in the United States with a smaller segment in China.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Revenue | $285.9 million | $567.2 million |
| Net Income (Attributable to Common Stockholders) | $20.8 million | $36.2 million |
| Operating Income | $47.6 million | $96.5 million |
| Gross Profit Margin | 73.7% | 74.0% |
| Adjusted EBITDA | $115.5 million | $235.7 million |
| Free Cash Flow | $82.4 million | $124.0 million |
| Cash and Cash Equivalents | $115.9 million (as of June 30, 2026) | |
| Total Debt (Principal) | $1,284.5 million (Term Loan) | |
| Available Liquidity (Revolver) | $249.0 million |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 9.8% year-over-year (Q2) and 10.8% year-over-year (YTD). Growth was driven by approximately 7-8% from existing customer upgrades and 2% from new customers.
- Profitability Expansion: Operating income surged 94.7% in Q2 and 600.3% YTD compared to the prior year periods. This was primarily due to significant reductions in operating expenses.
- Expense Reduction: Total operating expenses decreased 3.9% in Q2 and 11.5% YTD. Key drivers included a $45.8 million decrease in stock-based compensation expense YTD and increased capitalization of development costs.
- Interest Expense: Interest expense increased 14.1% in Q2 and 17.0% YTD due to an additional $300 million term loan added in December 2025, partially offset by lower variable interest rates.
- Share Count: Weighted-average shares outstanding decreased significantly due to share repurchases, contributing to higher earnings per share.
Guidance, Outlook, and Risks
- Management Commentary: Management highlighted strong retention metrics, with Software Net Dollar Retention (NDR) at 107% and Gross Dollar Retention (GDR) at 98% for the quarter ended June 30, 2026. The company continues to invest in AI solutions and expanding its network effects.
- Capital Allocation: The company repurchased $100.0 million of common stock in March 2026 under its 2025 Share Repurchase Program. As of June 30, 2026, $100.0 million remains available under this program.
- Debt Management: The company has hedged $750.0 million of its floating-rate debt via interest rate swaps, fixing the rate at approximately 3.94% through July 2027. The weighted-average interest rate on borrowings was 5.7% for Q2 2026.
- Risks: Key risks include customer concentration, the ability to retain customers, changes in the insurance and automotive industries, reliance on third-party data, and potential impacts from geopolitical events or economic conditions.
Investor Verification Checklist
- Stock-Based Compensation Trend: Verify the sustainability of the significant decrease in stock-based compensation ($62.3M YTD 2026 vs. $107.0M YTD 2025) and its impact on future operating expenses.
- Debt Covenants: Confirm continued compliance with the 2021 Credit Agreement, specifically the leverage ratio covenant which applies if revolver utilization exceeds 35%.
- Customer Concentration: Review the top 10 customer list to assess reliance on specific large insurers or repair networks.
- Share Repurchase Impact: Assess the remaining $100M authorization under the 2025 program and the potential for future dilution or accretion based on market conditions.
- Derivative Valuation: Monitor the fair value changes of interest rate swaps, which contributed $7.5 million to other income YTD 2026, as these are non-cash items affecting net income.