0001193125-26-067448
SEC filingRevenue grew 11.9% to $1.06B, driven by existing customer expansion and EvolutionIQ acquisition; net income dropped 94.6% due to increased interest and non-recurring items.
CCC Intelligent Solutions Holdings Inc. is a leading Software-as-a-Service (SaaS) and AI platform provider for the multi-trillion-dollar insurance economy. Founded in 1980, the company powers operations for insurers, repairers, automakers, parts suppliers, and others, connecting over 35,000 businesses through its cloud platform. CCC's business is built on two foundational pillars: automotive insurance claims and automotive collision repair, with a strong network effect driven by Direct Repair Programs (DRP) connecting insurers and repair shops.
CCC reports four revenue segments: CCC Insurance Solutions (49% of 2025 total revenues, 94% software), CCC Repair Solutions (43%, nearly 100% software), CCC Ecosystem and Other Solutions (7%, 89% software), and CCC International Solutions (1%, 100% software). Insurance solutions digitize insurer workflows from intake to claim resolution, including tools for estimating, total loss, subrogation, and casualty. Repair solutions help collision repairers manage estimating, network collaboration, workflow, quality, and business-office functions. Ecosystem solutions serve parts suppliers, automotive manufacturers, diagnostics providers, and offer a payments platform. International solutions are tailored for the Chinese market.
Key products include CCC Workflow (end-to-end digital P&C workflows), CCC Estimating (cloud-based estimating with AI), CCC Total Loss (digital total loss valuations), CCC Subrogation (AI-driven subrogation), CCC Casualty (medical bill processing and negotiation), Medhub (bodily injury claims synthesis), EvolutionIQ (claims guidance for disability and workers' compensation), CCC Network Management (DRP collaboration), CCC Repair Workflow (shop management and parts ordering), CCC Parts Solutions (real-time parts inventory), and CCC Payments (electronic payment flows). The platform is multi-tenant public cloud, with over 888,000 registered users and 5.7 billion database transactions per day, processing more than $200 billion in transactions annually.
CCC's go-to-market combines direct sales through geographically dispersed account teams (small/midsize and enterprise), digital marketing, and strategic partnerships with network participants. Customers include more than 300 insurers (27 of top 30 auto insurers), over 30,500 repair facilities, 6,000 parts suppliers, and 14 of top 15 automotive manufacturers. Insurance contracts average 3-5 years, repair facility contracts average 3 years. Revenue concentration is not disclosed beyond segment percentages.
The market is competitive and fragmented. Competitors include internal IT departments of large customers, insurance software vendors (core systems, underwriting, claims software), horizontal technology providers (large enterprise platforms with data/AI capabilities), and other ecosystem software vendors (collision repair software, parts e-commerce). CCC competes on functionality, performance, innovation, network breadth, and customer support.
CCC's growth strategy focuses on six pillars: growing the customer base, deepening relationships with existing customers through cross-selling, expanding solution breadth to digitize all insurance economy workflows, broadening the network ecosystem to strengthen network effects, expanding geographic footprint outside the U.S., and pursuing targeted acquisitions (e.g., EvolutionIQ in 2025). R&D spend was 22% of revenue (27% including capitalized software) in 2025.
As of December 31, 2025, CCC had approximately 2,185 employees (2,105 in U.S., 80 international) and 568 contingent employees. No union representation. The company emphasizes a flexible work model, comprehensive compensation, and development programs including e-learning, certifications, mentorship, and tuition reimbursement.
Revenue for fiscal year 2025 was $1,057.0 million, an increase of 11.9% compared to $944.8 million in 2024. The growth was driven by 5% from existing customer upgrades and expanded solution adoption, 4% from the January 2025 acquisition of EvolutionIQ, and 3% from new customer conversions. Software subscription revenue remained the dominant source at 96% of total revenue, consistent with prior year.
Gross profit increased 8.8% to $776.8 million, but gross margin contracted from 75.6% to 73.5%. The margin decline was primarily due to a 21.3% increase in cost of revenues, including higher depreciation ($15.9M), third-party fees ($9.5M), personnel costs ($8.1M), and amortization of acquired technologies ($8.5M) from the EvolutionIQ acquisition.
Operating income rose 17.1% to $93.8 million, as revenue growth outpaced operating expense growth of 7.8%. Operating margin improved to 8.9% from 8.5% in 2024. However, net income plummeted 94.6% to $1.7 million from $31.2 million, primarily due to a $36.5 million increase in net other expense, including higher interest expense ($6.4M), the absence of a $14.4 million gain from warrant liability remeasurement in 2024, and a swing from $2.2 million other income to $6.2 million other expense. Adjusted EBITDA grew 9.7% to $436.0 million, with margin slipping to 41% from 42% due to higher stock-based compensation and M&A costs.
CCC operates as a single reportable segment, with its business concentrated on automotive insurance claims and collision repair solutions in the U.S. The company's SaaS platform connects over 35,000 businesses, including more than 300 insurers and 30,500 repair facilities. Revenue growth was broad-based, with existing customer expansion contributing the largest share. The EvolutionIQ acquisition added AI-powered claims solutions for disability and workers' compensation, broadening the addressable market beyond auto physical damage. Software Net Dollar Retention Rate (NDR) for Q4 2025 was 106%, down from 108% in Q4 2023 but stable sequentially from Q3 2025. Software Gross Dollar Retention Rate (GDR) remained at 99% for every quarter in 2025, reflecting high customer stickiness.
Management expects continued investment in research and development (R&D expenses were $227.5M in 2025, up 12.9%) to maintain leadership in AI and SaaS for the insurance economy. Selling and marketing expenses also increased 22.9% to $174.8M, reflecting ongoing expansion. The company anticipates these costs to rise in absolute dollars to support growth. No specific numeric guidance was provided, but the company believes existing cash, operating cash flow, and revolver capacity ($248.9M available as of Dec 31, 2025) are sufficient for at least twelve months. The recent acquisition of EvolutionIQ and the $300M share repurchase program signal confidence in future cash generation. However, higher interest expense (weighted-average rate 6.2% on $1.291B debt) and lower other income may continue to pressure GAAP net income.
CCC's revenue is concentrated among a few large insurance and automotive collision customers. While no single customer exceeded 10% of revenue in 2025, the loss of any key customer could materially impact results. These large customers have significant negotiating leverage, often demanding favorable pricing and terms that compress margins. The company faces ongoing litigation alleging its total loss valuation solution undervalues claims, which could harm its brand and result in damages.
The rapid evolution of AI, including off-the-shelf and agentic AI, introduces new competitors and could disrupt CCC's market. Failure to innovate may lead to obsolescence. The company invests heavily in R&D (22% of revenue), but returns are uncertain. Additionally, reliance on third-party data and open source software creates intellectual property and compliance risks.
CCC is subject to a complex web of data privacy laws (CCPA, GDPR, CPRA) and may face FCRA exposure. Compliance costs are rising. International expansion, particularly in China, exposes the company to corruption risks, trade tariffs, and political instability. AI regulation, such as the EU AI Act, could impose new constraints.
As of December 2025, CCC had $1.29 billion in Term B loan debt. The credit agreement contains restrictive covenants that limit operational and strategic flexibility. Rising interest rates could increase debt service costs. The company's ability to generate sufficient cash flow to service debt is subject to macroeconomic conditions and industry performance.
No cash flow data is provided in the excerpt. The document includes the audit opinion and critical audit matters, but the actual Consolidated Statements of Cash Flows (page 59) are not reproduced. Therefore, analysis of CFO vs Net Income, capex intensity, or FCF coverage is not possible. The only financial figures disclosed relate to the acquisition of EvolutionIQ, Inc., which are not part of the cash flow statement. Anomalies such as working capital swings or one-time tax payments cannot be assessed.