0001193125-26-194147
SEC filingCCC Intelligent Solutions achieved 11.8% revenue growth with improved profitability, driven by subscription software and cost discipline.
For the three months ended March 31, 2026, CCC Intelligent Solutions reported revenue of $281.3 million, an increase of 11.8% compared to $251.6 million in the prior year. This growth was driven by a 9% contribution from existing customer upgrades and expanding solution offerings, and 3% from new customers. Software subscription revenues accounted for 96% of total revenue, underscoring the recurring nature of the business.
Gross profit increased 12.9% to $208.9 million, with gross margin expanding from 73.5% to 74.3%. The margin improvement was attributed to economies of scale from fixed cost arrangements, as cost of revenues grew slower than revenue.
Operating income swung to a profit of $48.8 million from a loss of $10.7 million in the prior year, driven by a 18.2% decline in total operating expenses. Research and development, selling and marketing, and general and administrative expenses all decreased significantly, primarily due to lower stock-based compensation expense ($31.9 million vs. $61.0 million). Net income attributable to common stockholders was $15.4 million, compared to a net loss of $18.7 million in the prior year. Basic EPS improved to $0.03 from ($0.03).
On a non-GAAP basis, adjusted gross profit margin remained stable at 77%, while adjusted EBITDA grew to $120.2 million from $99.1 million, with margin expanding to 43% from 39%. Adjusted net income increased to $66.8 million ($0.11 per diluted share) from $54.5 million ($0.08 per diluted share). Free cash flow was $41.6 million, slightly down from $43.6 million due to higher capital expenditures.
The MD&A does not provide separate segment reporting. However, the company operates across two foundational pillars: automotive insurance claims and automotive collision repair. Revenue growth was primarily driven by existing customer upgrades and new customer additions within these pillars. The platform connects over 35,000 businesses, including more than 300 insurers and over 30,500 repair facilities, benefiting from strong network effects.
The acquisition of EvolutionIQ in January 2025 added claims solutions in disability and workers’ compensation lines, expanding the addressable market beyond automotive. The company’s software net dollar retention rate remained at 107%, indicating strong customer expansion, while gross dollar retention was 98%, reflecting minimal customer churn.
Management expects existing cash, cash flows from operations, and borrowing capacity under the $250 million revolving credit facility to be sufficient for at least the next twelve months. The company continues to invest in digitizing the automotive claims lifecycle and expanding into adjacencies, such as disability and workers' compensation through the EvolutionIQ acquisition. No specific financial guidance was provided for future periods.
As of March 31, 2026, CCC held $36.9 million in cash and cash equivalents, a significant decrease from $111.2 million at December 31, 2025, primarily due to share repurchases and debt repayments. Total debt (net of discount and fees) stood at $1,275.2 million, consisting of $1,287.7 million in term loans less $13.0 million discount and deferred financing fees. The current portion of long-term debt is $13.0 million. Stockholders' equity was $1,721.2 million, down from $1,787.0 million at year-end 2025, mainly due to $100.2 million in share repurchases and $17.3 million in tax withholdings on equity awards, partially offset by net income of $15.4 million. Deferred revenue (current and non-current) totaled $73.1 million, while remaining performance obligations were approximately $1.9 billion, with $814 million expected to be recognized within twelve months.
Note 19 states that purchase obligations under long-term agreements with suppliers for data licensing, outsourced data center, disaster recovery, and SaaS services expire through 2031, but there were no material changes from December 31, 2025 amounts. The filing does not disclose the total dollar amount of these commitments. Guarantees and indemnifications are standard but have not resulted in any material costs. Employment agreements exist with key employees providing severance and bonus payments.
CCC repurchased $100.2 million of common stock in Q1 2026 (26.2 million shares) under the 2025 Share Repurchase Program, which authorized up to $500.0 million in December 2025. As of March 31, 2026, $100.0 million remained available under this program. Additionally, an accelerated share repurchase transaction initiated in December 2025 was settled in February 2026, with a final delivery of 9.6 million shares. No dividends were declared. The company made $3.3 million in mandatory principal payments on its term loan and did not issue new debt in Q1 2026. Capital expenditures (purchases of software, equipment, and property) totaled $15.9 million, representing 5.6% of revenues.
The company operates as a single reportable segment (Domestic) as disclosed in Note 24. For the three months ended March 31, 2026, Domestic segment revenue was $279.6 million (99.4% of total revenue), compared to $249.9 million in the prior year period, an increase of 11.9%. Revenue from China (other operations) was $1.7 million, relatively flat. The chief operating decision maker uses net income to evaluate segment performance and allocate resources. The segment expense breakdown shows adjusted data licenses and royalties of $11.2 million, customer services of $27.5 million, products and technology of $80.8 million, revenue enablement of $35.3 million, and general corporate and administrative of $22.5 million. Net income including non-controlling interest was $15.4 million versus a loss of $17.4 million in Q1 2025.