CCC Intelligent Solutions Raises Full-Year Guidance Amid Margin Compression
The cloud-based automotive claims software provider reported second-quarter revenue of $285.9 million.
CCC Intelligent Solutions Holdings (CCC) reported second-quarter revenue of $285.9 million.
The results showed a deceleration in top-line growth, which rose 9.8% year-over-year. This followed a 12% increase in the first quarter.
Adjusted EBITDA for the quarter was $115.5 million, an increase of 6.8% from $108.1 million in the same period last year. The figure declined sequentially from $120.2 million in the first quarter.
Profitability metrics trended lower during the period. Adjusted EBITDA margin compressed to 40%, down from 42% in the second quarter of 2024 and 43% in the first quarter of 2025. Adjusted gross profit margin also declined to 76%, compared to 78% a year earlier and 77% in the prior quarter.
Cash generation improved significantly. Free cash flow rose to $82.4 million, up from $27.4 million in the second quarter of 2024 and $41.6 million in the first quarter of 2025.
The company expanded its AI footprint with several large clients. A top-five insurer adopted an AI-based subrogation solution, and two other top-five insurers expanded their use of AI-based claims routing.
CCC raised its full-year 2025 revenue guidance to a range of $1.158 billion to $1.164 billion, up from the previous range of $1.147 billion to $1.157 billion. The company also increased its full-year adjusted EBITDA guidance to between $485.0 million and $491.0 million, compared to the prior forecast of $477.0 million to $485.0 million.
In April 2025, the company underwent a leadership change in its finance department. Brian Herb departed as chief financial officer, and Rodney Christo was named interim CFO.