Q2 2026 CCC Intelligent Solutions Inc Earnings Call

July 30, 2026

Operator: Good day, and thank you for standing by. Welcome to the CCC Intelligent Solutions conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill Warmington.

Speaker #1: Good day, and thank you for standing by. Welcome to the CCC Intelligent Solutions conference call. At this time, all participants are in a listen-only mode.

Speaker #1: After the speakers' presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one-one on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your first speaker today, Bill Warmington.

Speaker #2: Thank you, operator. Good morning, and thank you all for joining us today to review CCC's second quarter 2026 financial results. Which we announced in the press release issued earlier this morning.

Bill Warmington: Thank you, operator. Good morning, thank you all for joining us today to review CCC's Q2 2026 financial results, which we announced in the press release issued earlier this morning. Joining me on the call are Githesh Ramamurthy, CCC's Chairman and CEO; Rod Christo, CCC's Interim CFO; Tim Welsh, CCC's President; and Katie Coleman, CCC's Treasurer and GVP Finance. The forward-looking statements we make today about the company's results and plans are subject to risks and uncertainties that may cause the actual results and the implementation of the company's plans to vary materially. These risks are discussed in the earnings releases available on our investor relations website and under the heading Risk Factors in our 2025 Annual Report on Form 10-K filed with the SEC. These comments and the Q&A that follows are copyrighted today by CCC Intelligent Solutions Holdings Inc..

Speaker #2: Joining me on the call are Githesh Ramamurthy, CCC's chairman and CEO; Rod Christo, CCC's interim CFO; Tim Wells, CCC's president; and Katie Coleman, CCC's treasurer and GVP finance.

Speaker #2: The forward-looking statements we make today about the company's results and plans are subject to risks and uncertainties that may cause the actual results and the implementation of the company's plans to vary materially.

Speaker #2: These risks are discussed in the earnings releases available on our investor relations website and under the heading "Risk Factors" in our 2025 annual report on Form 10-K filed with the SEC.

Speaker #2: Further, these comments in the Q&A that follows are copyrighted today by CCC Intelligent Solutions Holdings Incorporated. Any recording, retransmission, or reproduction or other use of the same for profit or otherwise without prior consent of CCC is prohibited in a violation of United States copyright and other laws.

Bill Warmington: Any recording, retransmission, or reproduction, or other use of the same, for profit or otherwise, without prior consent of CCC is prohibited and a violation of United States copyright and other laws. While we will provide a transcript of portions of this call and we've approved the publishing of a transcript of this call by a third party, we take no responsibility for inaccuracies that may appear in the transcripts. Please note that the discussion on today's call includes certain non-GAAP financial measures as defined by the SEC. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the company's financial condition and the results of operations. A reconciliation of GAAP to non-GAAP measures is available in our earnings release and is available on our investor relations website. Thank you.

Speaker #2: Additionally, while we will provide a transcript of portions of this call, and we've approved the publishing of a transcript of this call by a third party, we take no responsibility for inaccuracies that may appear in the transcripts.

Speaker #2: Please note that the discussion on today's call includes certain non-GAAP financial measures as defined by the SEC. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the company's financial condition and the results of operations.

Speaker #2: A reconciliation of GAAP to non-GAAP measures is included in our earnings release and is available on our investor relations website. Thank you. And now, I'll turn the call over to Githesh.

Bill Warmington: Now I'll turn the call over to Githesh.

Speaker #3: Thank you, Bill, and thanks to all of you for joining us today. I'm pleased to report that CCC delivered another quarter of solid top and bottom line results.

Githesh Ramamurthy: Thank you, Bill, and thanks to all of you for joining us today. I'm pleased to report that CCC delivered another quarter of solid top and bottom-line results. These results reinforce our belief that CCC is becoming the connective layer for the insurance economy, helping participants make informed decisions, take action, and operate more effectively across an increasingly complex ecosystem. In Q2 2026, total revenue grew 10% year over year to $286 million, above the high end of our guidance range. Adjusted EBITDA was $115 million, also above the high end of our guidance range. Today, I'd like to focus on three themes that continue to frame both our near-term momentum and our long-term opportunity. The first is how CCC is thriving in an AI-driven world. The second is how that is translating into strong customer and revenue momentum.

Speaker #3: These results reinforce our belief that CCC is becoming the connective layer for the insurance economy. Helping participants make informed decisions take action and operate more effectively across an increasingly complex ecosystem.

Speaker #3: In the second quarter of 2026, total revenue grew 10% year over year, to $286 million. Above the high end of our guidance range. Adjusted EBITDA was $115 million, also above the high end of our guidance range.

Speaker #3: Today, I'd like to focus on three themes that continue to frame both our near-term momentum and our long-term opportunity. The first, how CCC is thriving in an AI-driven world.

Speaker #3: The second is how that is translating into strong customer and revenue momentum. And third is how solving for rising complexity gives us confidence in CCC's long-term growth opportunity.

Githesh Ramamurthy: Third is how solving for rising complexity gives us confidence in CCC's long-term growth opportunity. Let me start with how CCC is winning in an AI-driven world. We are a scale player in AI today, generating more than $120 million of annualized revenue from AI-based solutions that are growing at nearly 50% year over year. The more meaningful takeaway is what that growth tells us about how our customer behavior is evolving. Customers are increasingly focused on deploying CCC's AI to generate measurable business outcomes. Just as importantly, these deployments are frequently backed by multi-year commitments, providing further evidence that customers view AI as a strategic priority and CCC as a long-term technology partner. Customers are not buying a model. They are buying business outcomes. They care about accuracy, efficiency, customer experience, and economic value.

Speaker #3: Let me start with how CCC is winning in an AI-driven world. We are a scale player in AI today. Generating more than $120 million of annualized revenue from AI-based solutions that are growing at nearly 50% year over year.

Speaker #3: But the more meaningful takeaway is what that growth tells us about how our customer behavior is evolving. Customers are increasingly focused on deploying CCC's AI to generate measurable business outcomes.

Speaker #3: Just as importantly, these deployments are frequently backed by multi-year commitments providing further evidence that customers view AI as a strategic priority and CCC as a long-term technology partner.

Speaker #3: Customers are not buying a model. They are buying business outcomes. They care about accuracy, efficiency, customer experience, and economic value. We believe that greatest value from AI comes when it is embedded directly in customer workflows and decision points.

Githesh Ramamurthy: We believe the greatest value from AI comes when it is embedded directly in customer workflows and decision points. That is where CCC's combination of AI, proprietary data, ecosystem connectivity, and deeply integrated workflows can help customers operate more efficiently and make more informed decisions. To understand why this matters, I'll walk you through two examples. When a repair facility asks an insurer to approve a change to an estimate, the request triggers a review process that has historically been slow, manual, and passed back and forth by hand. CCC sits inside that exchange. As a result, customers can configure our AI-based tools based on their own rules and workflows to automate routine request handling and route exceptions for review when appropriate. The result is fewer manual reviews, faster decisions when a review is needed, and greater efficiency, all without asking customers to change how they work.

Speaker #3: That is where CCC's combination of AI, proprietary data, ecosystem connectivity, and deeply integrated workflows can help customers operate more efficiently and make more informed decisions.

Speaker #3: To understand why this matters, I'll walk you through two examples. When a repair facility asks an insurer to approve a change to an estimate, the request triggers a review process that has historically been slow, manual, and passed back and forth by hand.

Speaker #3: CCC sits inside that exchange. As a result, customers can configure our AI-based tools based on their own rules and workflows, to automate routine request handling and route exceptions for review when appropriate.

Speaker #3: The result is fewer manual reviews, faster decisions when a review is needed, and greater efficiency all without asking customers to change how they work.

Speaker #3: Insurers settle claims faster, repair facilities move cars through their base more efficiently, and drivers get back on the road sooner. Another example is parts.

Githesh Ramamurthy: Insurers settle claims faster, repair facilities move cars through their base more efficiently, and drivers get back on the road sooner. Another example is parts. CCC sits at the center of the parts procurement process, connecting OEMs, suppliers, insurers, and repairers through a common platform. Nearly every major OEM now participates in CCC's parts network, and we are embedding AI throughout the procurement process to help streamline sourcing workflows and reduce administrative effort. By simplifying coordination across multiple participants and systems, CCC helps customers operate more efficiently while improving consistency and compliance with buyer policies. These are just two of dozens of essential business processes supported on the CCC platform. We help run day-to-day operations for over 900,000 users, powered by AI, trained on tens of millions of claims, and refined through years of real-world use.

Speaker #3: CCC sits at the center of the parts procurement process, connecting OEMs, suppliers, insurers, and repairers through a common platform. Nearly every major OEM now participates in CCC's parts network, and we are embedding AI throughout the procurement process.

Speaker #3: To help streamline sourcing workflows, and reduce administrative effort, by simplifying coordination across multiple participants, and systems, CCC helps customers operate more efficiently while improving consistency and compliance with buyer policies.

Speaker #3: These are just two of dozens of essential business processes supported on the CCC platform. We help run day-to-day operations for over 900,000 users, powered by AI, trained on tens of millions of claims, and refined through years of real-world use.

Speaker #3: That combination of proprietary data, embedded decision points, and ecosystem connectivity is difficult to replicate and helps make CCC the network of action for the insurance economy.

Githesh Ramamurthy: That combination of proprietary data, embedded decision points, and ecosystem connectivity is difficult to replicate and helps make CCC the network of action for the insurance economy. My second theme is how this positioning is translating into strong customer and revenue momentum. The strongest evidence of customer confidence is what customers demonstrate through multi-year deployments, contract expansions, and adoption of new workflows. Last quarter, we highlighted several important customer wins with Liberty Mutual and Allstate. Liberty Mutual decided to deploy a significant portion of its casualty business on the CCC platform, and Allstate selected CCC for its third-party casualty operations. This momentum continued during Q2, with additional customer expansions and AI adoption milestones. For example, this quarter, we had two top five insurers expand their use of CCC's AI-enabled claims workflows through their deployment of our First Look solution.

Speaker #3: My second theme is how this positioning is translating into strong customer and revenue momentum. The strongest evidence of customer confidence is what customers demonstrate through multi-year deployments, contract expansions, and adoption of new workflows.

Speaker #3: Last quarter, we highlighted several important customer wins with Liberty Mutual and Allstate. Liberty Mutual decided to deploy a significant portion of its casualty business on the CCC platform, and Allstate selected CCC for its third-party casualty operations.

Speaker #3: This momentum continued during the second quarter, with additional customer expansions and AI adoption milestones. For example, this quarter, we had two top-five insurers expand their use of CCC's AI-enabled claims workflows through their deployment of our First Look solution.

Speaker #3: One of these carriers added First Look in conjunction with a multi-year extension of its auto physical damage solutions. While the other added it under an existing multi-year agreement.

Githesh Ramamurthy: One of these carriers added First Look in conjunction with a multi-year extension of its auto physical damage solutions, while the other added it under an existing multi-year agreement. These wins highlight the operational value of the solution. By identifying total loss earlier in the process, insurers can reduce rental and storage costs, repair facilities can focus capacity on repairable vehicles, and consumers receive faster claim resolution. In addition, last quarter, we highlighted a top five insurer that renewed and expanded its partnership with CCC through a new multi-year enterprise agreement covering our core APD platform and the full suite of AI-enabled APD solutions. This quarter, that same insurer further expanded its relationship with CCC, becoming the largest carrier yet to adopt our AI-powered Subrogation solution, with deployment scaling rapidly. These decisions by the industry's largest carriers underscore a broader trend.

Speaker #3: These wins highlight the operational value of the solution. By identifying total loss earlier in the process, insurers can reduce rental and storage costs, repair facilities can focus capacity on repairable vehicles, and consumers receive faster claim resolution.

Speaker #3: In addition, last quarter we highlighted a top five insurer that renewed and expanded its partnership with CCC through a new multi-year enterprise agreement, covering our core APD platform and the full suite of AI-enabled APD solutions.

Speaker #3: This quarter, that same insurer further expanded its relationship with CCC, becoming the largest carrier yet to adopt our AI-powered subrogation solution. With deployment scaling rapidly.

Speaker #3: These decisions by the industry's largest carriers underscore a broader trend. Insurers are increasingly moving AI from pilot programs to production scale deployment across complex high-value workflows where consistency and productivity matter most.

Githesh Ramamurthy: Insurers are increasingly moving AI from pilot programs to production scale deployment across complex, high-value workflows where consistency and productivity matter most. Importantly, these deployments are occurring at renewal and mid-cycle. As customers gain confidence in the business value our solutions deliver, they are more frequently expanding their use of CCC's AI capabilities during existing contract terms. We are seeing similar adoption trends across repair facilities, especially large Multi-Shop Operations or MSOs. Q2, we renewed and expanded our multi-year agreement with one of the nation's largest independent collision repair operators. This MSO has been a leader in adopting AI technology across its repair facility organization and was the first MSO to adopt Mobile Jumpstart back in 2025.

Speaker #3: Importantly, these deployments are occurring at renewal and mid-cycle. As customers gain confidence in the business value our solutions deliver, they're more frequently expanding their use of CCC's AI capabilities during existing contract terms.

Speaker #3: We are seeing similar adoption trends across repair facilities, especially large multi-store operators or MSOs. The second quarter we renewed and expanded our multi-year agreement with one of the nation's largest independent collision repair operators.

Speaker #3: This MSO has been a leader in adopting AI technology across its repair facility organization, and was the first MSO to adopt mobile Jumpstart back in 2025.

Speaker #3: Today, the organization uses Jumpstart to initiate approximately 98% of its repair estimates, and is an early adopter of mobile Jumpstart 2.0, which leverages agentic AI to support faster more consistent estimate creation.

Githesh Ramamurthy: Today, the organization uses Jumpstart to initiate approximately 98% of its repair estimates and is an early adopter of Mobile Jumpstart 2.0, which leverages agentic AI to support faster, more consistent estimate creation. These investments reflect the organization's continued commitment to using AI-enabled workflows to improve efficiency, support teammates, and enhance the consumer experience. We are seeing strong adoption of AI-based solutions across other large MSOs as well, including double-digit increases in participating repair facilities and estimates initiated through Jumpstart. Importantly, this adoption is occurring across some of the industry's largest repair organizations, reinforcing our view that AI-enabled workflows are becoming embedded in day-to-day operations at enterprise scale. Taken together, these examples demonstrate how AI adoption is moving beyond pilots into production across the industry's largest and most sophisticated insurers and repair organizations.

Speaker #3: These investments reflect the organization's continued commitment to using AI-enabled workflows to improve efficiency, support teammates, and enhance the consumer experience. We are seeing strong adoption of AI-based solutions across other large MSOs as well.

Speaker #3: Including double-digit increases in participating repair facilities in estimates initiated through Jumpstart. Importantly, this adoption is occurring across some of the industry's largest repair organizations, reinforcing our view that AI-enabled workflows are becoming embedded in day-to-day operations at enterprise scale.

Speaker #3: Taken together, these examples demonstrate how AI adoption is moving beyond pilots into production, across the industry's largest and most sophisticated insurers and repair organizations.

Speaker #3: Because these organizations typically conduct extensive testing, before deploying new technologies at scale, their move from evaluation to enterprise-wide adoption provides a powerful signal to the rest of the industry that AI-enabled workflows are delivering measurable business value.

Githesh Ramamurthy: Because these organizations typically conduct extensive testing before deploying new technologies at scale, their move from evaluation to enterprise-wide adoption provides a powerful signal to the rest of the industry that AI-enabled workflows are delivering measurable business value. My third theme is how solving for rising complexity gives us confidence in CCC's long-term growth opportunity. Every claim creates its own supply chain: towing, diagnostics, part sourcing, repair, calibration, rental, medical care, payments, and Subrogation, coordinated across insurers, repairers, suppliers, OEMs, and consumers. As vehicles, medical procedures, and regulatory requirements continue to evolve and become more complex, orchestrating that ecosystem is becoming more challenging. That is where CCC's platform becomes even more valuable. Customers want integrated solutions that bring participants together to solve shared business problems. As a result, the ability to help participants coordinate across the ecosystem is becoming a more important strategic differentiator.

Speaker #3: My third theme is how solving for rising complexity gives us confidence in CCC's long-term growth opportunity. Every claim creates its own supply chain. Towing, diagnostics, parts sourcing, repair, calibration, rental, medical care, payments, and subrogation.

Speaker #3: Coordinated across insurers, repairers, suppliers, OEMs, and consumers. As vehicles, medical procedures, and regulatory requirements continue to evolve and become more complex, orchestrating that ecosystem is becoming more challenging.

Speaker #3: That is where CCC's platform becomes even more valuable. Customers want integrated solutions that bring participants together to solve shared business problems. As a result, the ability to help participants coordinate across the ecosystem is becoming a more important strategic differentiator.

Speaker #3: Over the past five years, we have invested heavily in building a robust partner ecosystem. Today, we work with more than 250 ecosystem partners across the insurance economy.

Githesh Ramamurthy: Over the past 5 years, we have invested heavily in building a robust partner ecosystem. Today, we work with more than 250 ecosystem partners across the insurance economy, helping our over 35,000 customers navigate more complex workflows while maintaining consistent processes. These partner relationships span over 20 different business areas, ranging from towing and salvage to consumer engagement. One example of how connected workflows are creating value is our partnership with Sunbit, which offers consumers an integrated financing option when they drop off their vehicles for repair. As insurance deductibles and repair costs continue to increase, this solution can help consumers manage out-of-pocket expenses while enabling repair facilities to convert more estimates into repair orders. Because the financing option is embedded directly into the repair workflow, consumers can access financing at the point of service without leaving the process.

Speaker #3: Helping our over 35,000 customers navigate more complex workflows while maintaining consistent processes. These partner relationships span over 20 different business areas, ranging from towing and salvage to consumer engagement.

Speaker #3: One example of how connected workflows are creating value is our partnership with SunVent, which offers consumers an integrated financing option when they drop off their vehicles for repair.

Speaker #3: As insurance deductibles and repair costs continue to increase, this solution can help consumers manage out-of-pocket expenses while enabling repair facilities to convert more estimates into repair orders.

Speaker #3: Because the financing option is embedded, directly into the repair workflow, consumers can access financing at the point of service without leaving the process. We have seen rapid adoption since launching the solution in April.

Githesh Ramamurthy: We have seen rapid adoption since launching the solution in April, with more than 2,000 shops onboarded and millions of dollars financed. In addition, one of the nation's largest MSOs has deployed the solution across its coast-to-coast network. Another example is our work with Tempus, a partner that helps insurers analyze, evaluate, and resolve medical claims. Rather than requiring adjusters to leave their claims workflow and engage separate vendors, these services are integrated directly into CCC's platform, allowing referrals, reviews, and outcomes to flow automatically through the process. Today, approximately 20 carriers use the integrated solution, including multiple top 10 insurers. A third example of how CCC helps coordinate increasingly specialized repair workflows is our expanding network of diagnostics partners.

Speaker #3: With more than 2,000 shops onboarded, and millions of dollars financed, in addition, one of the nation's largest MSOs has deployed the solution across its coast-to-coast network.

Speaker #3: Another example is our work with Tempus, a partner that helps insurers analyze, evaluate, and resolve medical claims. Rather than requiring adjusters to lead their claims workflow and engage separate vendors, these services are integrated directly into CCC's platform.

Speaker #3: Allowing referrals, reviews, and outcomes to flow automatically through the process. Today, approximately 20 carriers use the integrated solution, including multiple top-10 insurers. A third example of how CCC helps coordinate increasingly specialized repair workflows is our expanding network of diagnostics partners.

Speaker #3: Diagnostic scans after an accident are key to modern vehicle repair, which often requires coordination among insurers, repair facilities, diagnostic providers, OEMs, and parts suppliers—each with information the others need to make decisions.

Githesh Ramamurthy: Diagnostic scans after an accident are key to modern vehicle repair, which often requires coordination among insurers, repair facilities, diagnostic providers, OEMs, and parts suppliers, each with information the others need to make decisions. Today, we work with 10 diagnostics partners across the ecosystem. Our diagnostic solutions help create greater consistency in reporting, improve scan verification, and increase transparency between repairers and insurers. OEM customers have strongly endorsed these capabilities as critical to both repair quality and vehicle safety. In addition, several OEMs have extended their relationships with CCC through connected car initiatives such as our Accident Advisor solution, which helps create a more seamless experience for drivers following an accident. As you can see from the examples we've discussed today, CCC is becoming the network of action for the insurance economy.

Speaker #3: Today, we work with 10 diagnostics partners across the ecosystem. Our diagnostic solutions help create greater consistency in reporting, improve scan verification, and increase transparency between repairers and insurers.

Speaker #3: OEM customers have strongly endorsed these capabilities as critical to both repair quality and vehicle safety. In addition, several OEMs have extended their relationships with CCC through connected car initiatives, such as our Accident Advisor solution, which helps create a more seamless experience for drivers following an accident.

Speaker #3: As you can see from the examples we've discussed today, CCC is becoming the network of action for the insurance economy. Over the past several years, we have developed the core components of that network across auto physical damage, casualty, subrogation, and adjacent workflows.

Githesh Ramamurthy: For the past several years, we have developed the core components of that network across auto physical damage, casualty, Subrogation, and adjacent workflows. As customers shift their AI expectations and deployments from insight generation to operational execution, we see opportunities for agentic orchestration to connect our deeply embedded workflows, improve coordination, streamline operations, and help our customers create better outcomes across the insurance economy. In closing, the common thread we see across all three themes is that customers are operationalizing AI through trusted workflows that connect the insurance economy. AI adoption, customer momentum, and rising complexity are reinforcing one another, strengthening CCC's leadership position and creating additional opportunities for growth. As AI becomes more deeply embedded in day-to-day claims operations, the value of CCC's trusted workflows, ecosystem connectivity, and decision-enabling capabilities continues to increase.

Speaker #3: As customers shift their AI expectations and deployments, from insight generation to operational execution, we see opportunities for agentic orchestration to connect our deeply embedded workflows improve coordination, streamline operations, and help our customers create better outcomes across the insurance economy.

Speaker #3: In closing, the common thread we see across all three themes is that customers are operationalizing AI through trusted workflows that connect the insurance economy.

Speaker #3: AI adoption customer momentum and rising complexity are reinforcing one another. Strengthening CCC's leadership position and creating additional opportunities for growth. Is AI becomes more deeply embedded in day-to-day claims operations, the value of CCC's trusted workflows ecosystem connectivity and decision enabling capabilities continues to increase.

Speaker #3: We believe these trends position CCC to deepen customer relationships, expand our role across the insurance economy, and create long-term value for our customers and shareholders alike.

Githesh Ramamurthy: We believe these trends position CCC to deepen customer relationships, expand our role across the insurance economy, and create long-term value for our customers and shareholders alike. Taken together, they reinforce our confidence in the durability of our business and the long-term growth opportunity ahead. With that, I'll turn the call over to Rod.

Speaker #3: Taken together, they reinforce our confidence in the durability of our business and the long-term growth opportunity ahead. With that, I'll turn the call over to Rod.

Speaker #2: Thanks, Githesh. As Githesh outlined, Q2 was a solid quarter with revenue growth and profitability ahead of expectations. We continue to see momentum in the adoption of our AI-based solutions across many of our large clients.

Rod Christo: Thanks, Githesh. As Githesh outlined, Q2 was a solid quarter with revenue growth and profitability ahead of expectations. We continue to see momentum in the adoption of our AI-based solutions across many of our large clients. Now turning to the numbers. I'll review our Q2 2026 results and then provide guidance for the Q3 and full year. Total revenue in the Q2 was $286 million, up 10% from Q2 2025, and above the high end of our revenue guidance range. Of the 10% growth, approximately 7.5 points was driven by cross-sell, upsell, and the adoption of our AI solutions across our client base. About 2.5 points of growth came from new logos. In the quarter, revenue from AI-based solutions contributed 4 points of growth. This was primarily driven by our APD solutions, Subrogation, and EvolutionIQ.

Speaker #2: Now, turning to the numbers, I'll review our second quarter 2026 results and then provide guidance for the third quarter and full year. Total revenue in the second quarter was $286 million, up 10% from Q2 2025, and above the high end of our revenue guidance range.

Speaker #2: Of the 10% growth, approximately 7.5 points was driven by cross-sell upsell and the adoption of our AI solutions across our client base. About 2.5 points of growth came from new logos.

Speaker #2: In the quarter, revenue from AI-based solutions contributed 4 points of growth. This was primarily driven by our APD solutions, subrogation, and Evolution IQ. AI-based solutions continue to represent an important and expanding part of our portfolio, accounting for approximately 11% of total revenue in the second quarter and growing approximately 45% year over year.

Rod Christo: AI-based solutions continue to represent an important and expanding part of our portfolio, accounting for approximately 11% of total revenue in the Q2 and growing approximately 45% year-over-year. Now turning to our key metrics for software gross dollar retention, or GDR, and software net dollar retention, or NDR. GDR captures the amount of revenue retained for our client base compared to the prior year period. In Q2 2026, our GDR was 98%, in line with last quarter. Please note that since we started reporting this metric 5 years ago, GDR has been between 98% and 99%, and has either rounded up or rounded down primarily because of the churn in the repair shop industry. We view the consistency of this metric as evidence of the value we deliver and the multiple benefits of participating in the CCC network.

Speaker #2: Now turning to our key metrics for software gross dollar retention, or GDR, and software net dollar retention, or NDR. GDR captures the amount of revenue retained from our client base compared to the prior year period.

Speaker #2: In Q2 2026, our GDR with 98%, in line with last quarter. Please note that since we started reporting this metric five years ago, GDR has been between 98 and 99%.

Speaker #2: And as either rounded up or rounded down primarily because of the churn in the repair shop industry. We view the consistency of this metric as evidence of the value we deliver and the multiple benefits of participating in the CCC network.

Speaker #2: Our strong GDR is a core tenet of our predictable and resilient revenue model. Net dollar retention captures the amount of cross-sell and upsell from our existing clients compared to the prior-year period.

Rod Christo: Our strong NDR is a core tenet of our predictable and resilient revenue model. Net dollar retention captures amount of cross-sell and upsell from our existing clients compared to the prior year period, as well as volume movements in our auto physical damage client base. In Q2 2026, our NDR was 107 and in line with Q1 2026 and up from the full year 2025 level of 106%. Now I'd like to review the income statement in more detail. As a reminder, unless otherwise noted, all metrics are non-GAAP. We provide a reconciliation of GAAP to non-GAAP metrics in our press release. Adjusted gross profit was $217 million in the quarter with an adjusted gross margin of 76%, which is down modestly from 77% last quarter and from 78% from a year ago. The underlying economics of the business continues to demonstrate leverage and scalability.

Speaker #2: As well as volume movements in our auto physical damage client base. In Q2 2026, our NDR was 107, in line with Q1 2026 and up from the full-year 2025 level of 106%.

Speaker #2: Now, I'd like to review the income statement in more detail. As a reminder, unless otherwise noted, all metrics are non-GAAP. We provide a reconciliation of GAAP to non-GAAP metrics in our press release.

Speaker #2: Adjusted gross profit was $217 million in the quarter. With an adjusted gross margin of 76%, which is down modestly from 77% last quarter and from 78% from a year ago.

Speaker #2: The underlying economics of the business continues to demonstrate leverage and scalability. We remain confident in our ability to progress towards our long-term targets of approximately 80% as the newer solution revenues scale and offset recent investments.

Rod Christo: We remain confident in our ability to progress towards our long-term target of approximately 80% as newer solution revenues scale and offset recent investments. In terms of expenses, Q2 2026 adjusted operating expenses were $116 million, up 7% year over year, which was due to higher resource-related expenses, professional services, and technology investments. Adjusted EBITDA for the quarter was $115 million, up 7% year over year, and above the high end of our guidance range. Adjusted EBITDA margins were 40%, down about 110 basis points year over year. However, when you normalize for a $2 million one-time benefit related to the exit of a vendor relationship in Q2 2025, margins were roughly flat year over year. Through H1 2026, adjusted EBITDA margins were 41.6%, up about 110 basis points year over year, and up about 150 basis points excluding the vendor benefit.

Speaker #2: In terms of expenses, Q2 2026 adjusted operating expenses were $116 million, up 7% year over year, which was due to higher resource-related expenses, professional service fees, and technology investments.

Speaker #2: Adjusted EBITDA for the quarter was $115 million, up 7% year over year, and above the high end of our guidance range. Adjusted EBITDA margins were 40%, down about $110 basis points year over year.

Speaker #2: However, when you normalize for a $2 million one-time benefit related to the exit of a vendor relationship in Q2 of 2025, margins were roughly flat year over year.

Speaker #2: Through the first half of 2026, adjusted EBITDA margins were 41.6%, up about $110 basis points year over year, and up about $150 basis points excluding the vendor benefit.

Speaker #2: Stock-based compensation as a percent of revenue was 11% in Q2 of 2026, consistent with Q1 of 26 and Q4 of 2025. We now expect full year stock-based compensation in 26 to be in the range of $11 to $12% of revenue, down from our earlier estimate of 13%.

Rod Christo: Stock-based compensation as a percent of revenue was 11% in Q2 2026, consistent with Q1 2026 and Q4 2025. We now expect full year stock-based compensation in 2026 to be in the range of 11% to 12% of revenue, down from our earlier estimate of 13%. We are on a path to high single digits as we move into 2027. Now let's turn to the balance sheet and cash flow. We ended the quarter with $116 million in cash and cash equivalents and $1.3 billion of debt. At the end of the quarter, net leverage was 2.5x adjusted EBITDA. Our track record of strong cash flow generation continued in Q2. We generated $82 million in free cash flow during the quarter, compared to $27 million in Q2 2025.

Speaker #2: We are on a path to high single digits as we move into 2027. Now, let's turn to the balance sheet and cash flow. We ended the quarter with $116 million in cash and cash equivalents, and $1.3 billion of debt.

Speaker #2: At the end of the quarter, net leverage was 2.5 times adjusted EBITDA. Our track record of strong cash flow generation continued in Q2. We generated $82 million in free cash flow during the quarter compared to 27 million in Q2 of 2025.

Speaker #2: On a trailing 12-month basis, free cash flow totaled $308 million, an increase of 36% year over year, and free cash flow margin expanded by 500 basis points to 28%, versus 23% a year ago.

Rod Christo: On a trailing 12-month basis, free cash flow totaled $308 million, an increase of 36% year over year, and a free cash flow margin expansion of 500 basis points to 28% versus 23% a year ago. Approximately 200 basis points of this expansion was the result of favorable timing of tax payments in Q2 2026. We are committed to a disciplined capital allocation framework that balances investment in the business, balance sheet strength, and the return of excess capital to shareholders in order to drive long-term shareholder value. Our strong cash flow generation provides us with significant flexibility to execute against these priorities while maintaining a prudent leverage profile. We'll now turn to guidance. For Q3 2026, we expect revenue of $289.5 to 291.5 million, which represents 9% growth year over year at the midpoint.

Speaker #2: Approximately 200 basis points of this expansion was the result of favorable timing of tax payments in Q2 of 2026. We are admitted to the discipline capital allocation framework that balances investment in the business, balance sheet strength, and the return of excess capital to shareholders in order to drive long-term shareholder value.

Speaker #2: Our strong cash flow generation provides us with significant flexibility to execute against these priorities while maintaining a prudent leverage profile. I'll now turn to guidance.

Speaker #2: For Q3 2026, we expect revenue of $289.5 to $291.5 million, which represents 9% growth year over year at the midpoint. We expect adjusted EBITDA of $118 to $120 million, a 41% adjusted EBITDA margin at the midpoint.

Rod Christo: We expect adjusted EBITDA of $118 to 120 million, a 41% adjusted EBITDA margin at the midpoint. For the full year 2026, we expect revenue of $1.158 to 1.164 billion, which represents approximately 10% year-over-year growth at the midpoint. For adjusted EBITDA, we expect $485 to 491 million, which implies a 42% adjusted EBITDA margin at the midpoint. Three points to keep in mind as you think about the Q3 and full year guide. First, we have narrowed and raised the midpoint of our full year revenue growth guidance range from 9% to 10%, to 9.5% to 10%, reflect Q2 solid performance and the momentum we continue to see across the business. Second, the guide implies year-over-year revenue growth for Q3 and Q4 of about 9%. This is consistent with the guidance we provided in April.

Speaker #2: For the full year 2026, we expect revenue of $1.158 to $1.164 billion, which represents approximately 10% year-over-year growth at the midpoint. For adjusted EBITDA, we expect $485 to $491 million, which implies a 42% adjusted EBITDA margin at the midpoint.

Speaker #2: So three points to keep in mind as we think about the Q3 and full year guide. First, we have nearing and raised the midpoint of our full year revenue growth guidance range from 9 to 10% to 9.5 to 10%.

Speaker #2: Reflect Q2 solid performance and the momentum we continue to see across the business. Second, the guide implies year over year revenue growth for Q3 and Q4 of about 9%.

Speaker #2: This is consistent with the guidance we provided in April. This reflects approximately 1 point of headwind from the rolloff of legacy first-party cash fleet business we discussed last quarter.

Rod Christo: This reflects approximately 1 point of headwind from the roll-off of legacy first-party casualty business we discussed last quarter. Third, our guidance reflects continued progress on our margin expansion objectives. For H2 2026, adjusted EBITDA margin is expected to be approximately 42.5%, up roughly 50 basis points year-over-year. As a reminder, we manage the business to full year profitability objectives, and individual quarters can be affected by the timing of investments, activities, and expenses relative to prior quarter and prior year. At the high end of our full year guidance range, adjusted EBITDA margin expansion is expected to approach 100 basis points year-over-year, and we remain confident in our ability to deliver continued margin expansion through operating leverage and disciplined expense management. In closing, we feel very good about the financial position of the business and the durability of our operating model.

Speaker #2: Third, our guidance reflects continued progress on our margin expansion objectives. For the second half of 2026, adjusted EBITDA margin is expected to be approximately 42.5%, up roughly 50 basis points year over year.

Speaker #2: As a reminder, we manage the business to full year profitability objectives and individual accords can be affected by the timing of investments, activities, and expenses relative to prior quarter and prior year.

Speaker #2: At the high end of our full year guidance range, adjusted EBITDA margin expansion is expected to approach $100 basis points year over year, and we remain confident in our ability to deliver continued margin expansion through operating leverage and disciplined expense management.

Speaker #2: In closing, we feel very good about the financial position of the business and the durability of our operating model. The continued growth of our AI-based solutions which now represent approximately 11% of revenue and our growing substantially faster in the overall business provides additional confidence in our ability to drive durable revenue growth over time.

Rod Christo: The continued growth of our AI-based solutions, which now represent approximately 11% of revenue and are growing substantially faster than the overall business, provides additional confidence in our ability to drive durable revenue growth over time. We delivered solid revenue growth and profitability while delivering exceptional free cash flow generation during the quarter and maintaining a prudent leverage profile. Our strong cash flow generation, reoccurring revenue model, and disciplined expense management continue to provide meaningful financial flexibility as we invest in the business and execute against our long-term growth objectives. Operator, we are now ready to take some questions. Thank you.

Speaker #2: We delivered solid revenue growth and profitability while delivering exceptional free cash flow generation during the quarter and maintaining a prudent leverage profile. Our strong cash flow generation, recurring revenue model, and disciplined expense management continue to provide meaningful financial flexibility as we invest in the business and execute against our long-term growth objectives.

Speaker #2: Operator, we are now ready to take some questions. Thank you.

Speaker #1: Thank you. At this time, we will conduct the question and answer session. As a reminder to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. At this time, we will conduct a question and answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please limit one question at a time. Please stand by while we compile the Q&A roster. Our first question comes from Dylan Becker from William Blair. Your line is open.

Speaker #1: To withdraw your question, please press star 11 again. Please limit one question at a time. Please stand by while we compile the Q&A roster.

Speaker #1: Our first question comes from Dylan Vecker, from William Blair. Your line is open.

Speaker #3: Hey everybody, appreciate it here. Maybe Githesh or Tim, as well for you here. We talked a lot about kind of customers looking to buy outcomes and their ability to now move to the deployment stage.

Dylan Becker: Hey, everybody. Appreciate it here. Maybe Githesh or Tim as well for you here, we talked a lot about customers looking to buy outcomes and their ability to now move to the deployment stage. I got the evidence in the top five momentum you guys are seeing, but your perspective on how this validates the value of your ecosystem and maybe to the extent conviction in those outcomes, being even more clear in the conversations that you're having with large carriers, the conviction those large carriers have in continuing to progress down these conversations. Thanks.

Speaker #3: You got the evidence in the top five momentum you guys are seeing, but your perspective on how this validates kind of the value of your ecosystem and maybe to the extent conviction in those outcomes being even more clear in the conversations that you're having with large carriers, kind of the conviction those large carriers have, and continuing to progress down these conversations.

Speaker #3: Thanks.

Speaker #2: Hey Dylan, I think Tim was going to take this question.

Githesh Ramamurthy: Hey, Dylan. I think Tim was going to take this question.

Speaker #3: Terrific. Thanks, Dylan. Really appreciate your question on this. So as Githesh alluded to in his comments, when carriers pick our solutions, they have done so after extensive testing of the typically the AI solutions at this point.

Tim Welsh: Terrific. Thanks, Dylan. Really appreciate your question on this. As Githesh alluded to in his comments, when carriers pick our solutions, they have done so after extensive testing of typically the AI solutions at this point. You can imagine they want to make sure that they are getting real value for these, however they define value. What we're seeing is a rapid adoption of those because it's becoming clearer and clearer that the tools are robust and really generate value in the near term. Your second point is also important, which it connects broadly to the network. Githesh, in his comments, highlighted an interaction between a repair facility and insurer, which is much more efficient because of our tools. That would be an example of the value that gets created. You're absolutely right.

Speaker #3: And you can imagine they want to make sure that they are getting real value for these, however they define value. And so what we're seeing is a rapid adoption of those, because it's becoming clearer and clearer that the tools are robust and really generate value in the near term.

Speaker #3: But your second point is also important, which is that it connects broadly to the network. And Githesh, in his comments, highlighted an interaction between a repair facility and an insurer, which is much more efficient because of our tools.

Speaker #3: And so that would be an example of the value that gets created. So you're absolutely right. What we're seeing is there's a focus on the value creation for the all of our customers in the system, and that we're demonstrating that value and that is leading to the increased adoption that you're seeing across our various products and across the whole ecosystem.

Tim Welsh: What we're seeing is there's a focus on the value creation for all of our customers in the system, and that we're demonstrating that value, and that is leading to the increased adoption that you're seeing across our various products and across the whole ecosystem. Hope that's helpful.

Speaker #3: Hope that's helpful.

Speaker #2: Yeah, very much so. Thank you, Tim. And then maybe if I could follow up on that too. Appreciate the disclosure. Around and growing kind of 45%.

Dylan Becker: Yeah, very much so. Thank you, Tim. Maybe if I could follow up on that too. Appreciate the disclosure around AI being 11% of the business and growing 45%. Very clear on that pace of adoption. I guess just if we think about the internal change management components, customers committing and signing up for these products, but how quickly can they actually deploy and ramp those deployments, maybe more importantly? As we think about that, the near term implications as that ramp builds relative to the long-term visibility you have once that gets to a broader deployment. Thank you.

Speaker #2: So very clear in that pace of adoption. But I guess just if we think about kind of the internal change management components, customers kind of committing and signing up for these products, but how quickly can they actually deploy and ramp those deployments?

Speaker #2: Maybe more importantly, and as we think about that, the near-term implications as that ramp builds relative to kind of the long-term visibility you have once that gets to a broader deployment.

Speaker #2: Thank you.

Speaker #3: Yeah, sure. Look, this is the benefit of having done this for a very long period of time, right? We are 10 years into our AI journey, and we have been working with many of our customers with our first commercial rollout in five years ago.

Githesh Ramamurthy: Yeah, sure. Look, this is the benefit of having done this for a very long period of time, right? We are 10 years into our AI journey, and we have been working with many of our customers with our first commercial rollout five years ago. We've been working closely with customers, and this is where your earlier point that you made about outcomes are extraordinarily important because just having an AI versus delivering actual cycle time reduction, customer experience differences, efficiency gains. Our customers have actually tested, deployed, and have gained confidence because we have literally tens of thousands of users who have now gotten more comfortable with our AI and the results it's producing. As a result, as our customers have gone through the extensive pilots that Tim talked about and evaluations, they're also starting to look at, how do I deploy this?

Speaker #3: So we've been working closely with customers, and this is where your earlier point that you made about outcomes are extraordinarily important. Because just having an AI versus delivering actual cycle time reduction, customer experience differences, efficiency gains.

Speaker #3: So our customers have actually tested, deployed, and have gained confidence because we have literally tens of thousands of users who have now gotten more comfortable with our AI and the results it's producing.

Speaker #3: And as a result, as our customers have gone through the extensive pilots that Tim talked about and evaluations, they're also starting to look at how do I deploy this?

Speaker #3: How do I deploy this? What changes should I make to my process? And we've also made significant investments in our go-to-market teams, in terms of change management, how we execute the change management.

Rod Christo: What changes should I make to my process? We've also made significant investments in our go-to-market teams in terms of change management, how we execute the change management. As a result, you are seeing our AI starting to generate a larger and larger percentage of our growth. It is all of those things, exactly as you pointed out, working in concert.

Githesh Ramamurthy: What changes should I make to my process? We've also made significant investments in our go-to-market teams in terms of change management, how we execute the change management. As a result, you are seeing our AI starting to generate a larger and larger percentage of our growth. It is all of those things, exactly as you pointed out, working in concert.

Speaker #3: As a result, you are seeing our AI start to generate a larger and larger percentage of our growth. It is all of those things, exactly as you pointed out, working in concert.

Speaker #2: Perfect. Thank you, Githesh.

Dylan Becker: Perfect. Thank you, Githesh.

Speaker #3: Thank you, Dylan.

Githesh Ramamurthy: Thank you, Dylan.

Operator: One moment for our next question. Thank you. Our next question comes from Tyler Radke from Citi. Your line is now open.

Speaker #1: One moment for our next question. Thank you. Our next question comes from Tyler Radkey from Citi. Your line is now open.

Speaker #3: Good morning. Thank you for taking the question here. So you talked about the back half guidance in Q4 specifically implying about a 9% exit rate.

Tyler Radke: Good morning. Thank you for taking the question here. You talked about the back half guidance in Q4 specifically implying about a 9% exit rate, and I know there's some moving pieces there adjusting for some parts of the portfolio. How should we think about how you're looking at the underlying momentum of the business heading into next year? I guess what I'm wondering, obviously the AI momentum, 45% growth is very healthy. At what point do you think that gets us back to a double-digit growth profile? As you think about the conversations and pipeline that you're having with your customers around AI, do you think 2027 is the year we really start to see it meaningfully accelerate the top line? Maybe that's still a bit too early. Just would love your thoughts there. Thank you.

Speaker #3: And I know there's some moving pieces there. Adjusting for some parts of the portfolio. But how should we think about how you're looking at the underlying momentum of the business heading into next year?

Speaker #3: And I guess what I'm wondering, I mean, obviously the AI momentum 45% growth is very healthy. So at what point do you think that gets us back to sort of a double digit growth profile and as you think about the conversations and pipeline that you're having with your customers around AI, do you think 2027 is the year we really start to see it meaningfully accelerate the top line or maybe that's still a bit too early?

Speaker #3: Just would love your thoughts there. Thank you.

Githesh Ramamurthy: I'm going to turn it over to Katie to take that one.

Speaker #2: I'm going to turn it over to Katie to take that one.

Speaker #4: Hey, Tyler. Yeah, I think when you look at the performance of the business right now, we've seen meaningful growth acceleration this year. So if you think about last year, organic revenue growth was 7%.

Katie Coleman: Hey, Tyler. Yeah, I think when you look at the performance of the business right now, we've seen meaningful growth acceleration this year. If you think about last year, organic revenue growth was 7%. Now we're guiding to 10%. That's all organic growth for the full year. Our AI revenue is contributing in a more meaningful way. The core remains very consistent. I think you are seeing that play through. The dynamics that we're seeing in the H2, there's really no change to the underlying growth profile of the business other than we've talked about the 1 point of headwind from the transition of the casualty customer. If you normalize that in the H2, you're still looking at a 10% growth for the guide that we expect.

Speaker #4: Now we're guiding to 10%. That's all organic growth for the full year. Our AI revenue is contributing in a more meaningful way. But the core remains very consistent.

Speaker #4: So I think you are seeing that play through. The dynamics that we're seeing in the second half of the year there's really no change to the underlying growth profile of the business other than we've talked about the one point of headwind from the transition of the casualty customer so if you normalize that in the second half, you're still looking at a 10% growth for the guy that we expect.

Speaker #4: We're not going to guide or provide expectations for 2027 at this point in time, but we feel really good about the momentum of the business and how our solutions both across the core side as well as the AI of being able to deliver solid growth as we go forward.

Katie Coleman: We're not going to guide or provide expectations for 2027 at this point in time, we feel really good about the momentum of the business and how our solutions, both across the core side as well as the AI, of being able to deliver solid growth as we go forward.

Speaker #2: Thank you.

Tyler Radke: Thank you.

Speaker #3: Thanks, Tyler.

Githesh Ramamurthy: Thanks, Tyler.

Speaker #1: One moment for our next question. Thank you. Our next question comes from Alex Gogoff from JP Morgan. Your line is now open.

Operator: One moment for our next question. Thank you. Our next question comes from Alex Gogolev from JPMorgan. Your line is now open.

Operator: One moment for our next question. Thank you. Our next question comes from Alexei Gogolev from JPMorgan. Your line is now open.

Bella Tanajon: Hi, this is Bella Tanajon for Alexei. Thanks for taking our question. Just zooming in on the roughly 4 points of growth coming from AI this quarter. Just breaking that down, how much of that is coming from deeper rollout or through customers that are already live versus new module attach, and which of those two factors do you expect to be the larger driver in H2?

Bella Camaj: Hi, this is Bella Camaj for Alexei. Thanks for taking our question. Just zooming in on the roughly 4 points of growth coming from AI this quarter. Just breaking that down, how much of that is coming from deeper rollout or through customers that are already live versus new module attach, and which of those two factors do you expect to be the larger driver in H2?

Speaker #5: Hi, this is Bella Kolazhan for Alexi. Thanks for taking our question. So, just zooming in on the roughly four points of growth coming from AI this quarter.

Speaker #5: Just breaking that down, how much of that coming from deeper rollout or throughput at customers that are already live versus new module attached? And which of those two factors do you expect to be the larger driver in the back half?

Speaker #3: Hey, your line was breaking up a little bit. I think you were looking for more color around the 4% growth. And whether that's coming from either existing customers or new customers adopting new modules, the short answer is both.

Githesh Ramamurthy: Hey, your line was breaking up a little bit. I think you were looking for more color around the 4% growth, and whether that's coming from either existing customers or new customers adopting new modules. The short answer is both. We're seeing both, right? Existing customers expanding, adding new solutions, like for example, a large top five carrier that we announced not only renewed all of their core solutions, but added a brand-new AI solution that will start getting added. In Q1, we talked about a very large customer that renewed all our core and then added a whole layer of our full suite of AI. In Q2, we saw that customer actually now add our Subrogation solution.

Speaker #3: We are seeing we're seeing both, right? Existing customers expanding, adding new solutions like, for example, a large top five carrier that we announced not only renewed all of their core solutions, but added a brand new AI solution.

Speaker #3: That was start getting added in the first quarter. We talked about a customer that a very large customer that renewed all our core but then started and then added a whole layer of full suite of AI.

Speaker #3: And the second quarter, we saw that customer actually now add our subrogation solution. So the answer the short answer is customers are continuing to convert from evaluations and pilots as well as adding some of our newer solutions like First Look and Sub Row and some of our newer solutions.

Githesh Ramamurthy: The short answer is customers are continuing to convert from evaluations and pilots, as well as adding some of our newer solutions like FirstLook and SubRo and some of our newer solutions.

Speaker #5: Got it. That's very helpful. Thank you.

Bella Tanajon: Got it. That's very helpful. Thank you.

Bella Camaj: Got it. That's very helpful. Thank you.

Speaker #3: Cool.

Githesh Ramamurthy: You're welcome.

Speaker #1: Thank you. One moment for our next question. Thank you. Our next question comes from Chris Quintero from Morgan Stanley. Your line is now open.

Operator: Thank you. One moment for our next question. Thank you. Our next question comes from Chris Quintero from Morgan Stanley. Your line is now open.

Chris Quintero: Hey, good morning. Thank you so much for taking the questions here. I wanted to ask about the go-to-market motion and how you're thinking about that as it relates to your AI solutions. Really interesting to hear about how some of your customers obviously are adopting those solutions at renewal, also some are doing it mid-cycle. Just curious how you're thinking about targeting those customers, which ones to target first, and how that goes forward.

Speaker #6: Hey, good morning. Thank you so much for taking the questions here. I wanted to ask about the Twitter market motion and how you're thinking about that as it relates to your AI solutions.

Speaker #6: Really curious or really interesting to hear about how some of your customers obviously are adopting those solutions at renewal, but also some are doing it mid-cycle.

Speaker #6: So just curious how you're thinking about targeting those customers, which ones to target first and how that goes. Goes forward.

Speaker #3: Thanks so much for this question. What we're seeing with our customers—there are a couple of things, just to build on what Githesh just commented on.

Tim Welsh: Thanks so much for this question. What we're seeing with our customers, a couple of things just to build on what Githesh just commented on. For many of our customers, they have our underlying workflow or estimating solutions. They have those traditional solutions. What they're doing is they are adding on new AI solutions on top of those. This is very important because what we're doing with our AI solutions is building on the strength of the platform we already have, as opposed to trying to replace or in any way cannibalize that growth. AI solutions are additive to what we are doing, and what happens, as has been alluded to in the past couple of quarters, is we're seeing a lot of carriers at renewal do exactly that, adding on the AI solutions.

Speaker #3: For many of our customers, they have our underlying workflow or estimating solutions. They have those traditional solutions. And what they're doing is they are adding on new AI solutions on top of those.

Speaker #3: So this is very important because what we're doing with our AI solutions is building on the strength of the platform we already have, as opposed to trying to replace or in any way cannibalize that growth.

Speaker #3: So AI solutions are additive to what we are doing. And what happens as has been alluded to in the past couple of quarters is we're seeing a lot of carriers at renewal do exactly that, adding on the AI solutions.

Speaker #3: But as your question also suggests, we are seeing carriers get through the testing of the additional AI solutions often before they renew and they want to capture that value right away.

Tim Welsh: As your question also suggests, we are seeing carriers get through the testing of the additional AI solutions often before they renew, and they want to capture that value right away. What we're seeing and was alluded to in some of the examples today, for example, Subrogation, we're seeing new add-ons that are separate from the renewal. It is a parallel go-to-market motion. It is adding on AI at the time of renewal and adding on AI in between renewal cycles because of the value that those products are created. That's we're seeing both elements of what you just described.

Speaker #3: So what we're seeing and was alluded to in some of the examples today for example, subrogation, we're seeing new add-ons that are separate from the renewal.

Speaker #3: So it is a parallel go-to-market motion. It is adding on AI at the time of renewal and adding on AI in between renewal cycles because of the value that those products are created.

Speaker #3: So that's we're seeing both elements of what you just described.

Speaker #6: Excellent. Thank you so much.

Chris Quintero: Excellent. Thank you so much.

Speaker #3: Thank you.

Tim Welsh: Thank you.

Speaker #6: Thank you.

Tim Welsh: Thank you. One moment for our next question. Our next question comes from Shlomo Rosenbaum from Stifel. Your line is open.

Operator: Thank you. One moment for our next question. Our next question comes from Shlomo Rosenbaum from Stifel. Your line is open.

Speaker #1: Thank you. One moment for our next question. Our next question comes from Shalom Rosenbaum from Seifel. Your line is open.

Speaker #3: Hi, is it time for Shalom? Maybe could you discuss the legacy EIQ business? How is the legacy EIQ business performing in terms of sales, implementations, and the pipeline to cross-sell with existing clients?

[Company Representative] (Stifel): Hi, this is Adam on for Shalom. Maybe could you discuss how the legacy EIQ business is performing in terms of sales implementations in the pipeline to cross-sell with existing clients? Thanks.

[Analyst] (Stifel): Hi, this is Adam on for Shlomo. Maybe could you discuss how the legacy EIQ business is performing in terms of sales implementations in the pipeline to cross-sell with existing clients? Thanks.

Speaker #3: Thanks.

Speaker #2: Sure. Look, it continues to be solid. We are feel good about the acquisition. And the other exciting thing about the EIQ, is apart from the fact that it's now expanded, our solutions into the disability market, both for large carriers as well as some of the private insurer private employers so we see that expansion.

Githesh Ramamurthy: Sure. Look, it continues to be solid. We feel good about the acquisition and the other exciting thing about EIQ, is apart from the fact that it's now expanded our solutions into the disability market, both for large carriers as well as some of the private employers. We see that expansion. That's been great. More exciting, and maybe as exciting, is the fact that we now have built new products using that core technology, especially for our casualty operations. It's a solution called MedHub, which uses a synthesis capability to synthesize and provide guidance for very complex medical claims for auto, as opposed to disability. That is also being very well received by our customer base. Hope that answered the question.

Speaker #2: That's been great. But more exciting and maybe as exciting is the fact that we are now have built new products using that core technology especially for our casualty operations.

Speaker #2: It's a solution called MedHub, which uses a synthesis capability to synthesize and provide guidance for very complex medical claims for auto as opposed to disability.

Speaker #2: And that is also being very well received by our customer base. Hope that answered the question.

Speaker #3: Yes. Thank you.

[Company Representative] (Stifel): Yes. Thank you.

[Analyst] (Stifel): Yes. Thank you.

Speaker #1: Thank you. One moment for our next question. Our next question comes from Bill McEnarma from Encore ISS. Your line is now open.

Operator: Thank you. One moment for our next question. Our next question comes from Bill McNamee from Evercore ISI. Your line is now open.

Operator: Thank you. One moment for our next question. Our next question comes from Bill McNamara from Evercore ISI. Your line is now open.

Speaker #7: Hi. This is Bill on for Kirk and thanks for taking my question. You highlighted your largest carrier went to date for the AI enabled subrogation solution.

Bill McNamee: Hi. This is Bill in for Kirk, thanks for taking my question. You highlighted your largest carrier win to date for the AI-enabled Subrogation solution. Can you discuss what differentiated CCC in that evaluation, and whether you view this as an important reference customer that could accelerate adoption across the rest of the customer base?

Bill McNamara: Hi. This is Bill in for Kirk, thanks for taking my question. You highlighted your largest carrier win to date for the AI-enabled Subrogation solution. Can you discuss what differentiated CCC in that evaluation, and whether you view this as an important reference customer that could accelerate adoption across the rest of the customer base?

Speaker #7: Can you discuss what differentiated CCC in that evaluation and whether you view this as an important reference customer that could accelerate adoption across the rest of the customer base?

Speaker #3: Just to thank you for the question about subrogation. This is a bit of an esoteric area of insurance, which is this is where carriers communicate between each other about how to resolve a case or a claim that may have affected two different parties.

Tim Welsh: Thank you for the question about Subrogation. This is a bit of an esoteric area of insurance. This is where carriers communicate between each other about how to resolve a case or a claim that may have affected two different parties. This is a process that has historically been quite manual, in a lot of cases without a lot of really leading-edge technology. What we saw in this particular case is that this is a carrier who was looking to make sure that they could efficiently take in requests from other carriers, and they could resolve those as quickly as possible.

Speaker #3: And this is a process that has historically been quite manual in a lot of cases, without a lot of really leading-edge technology.

Speaker #3: And what we saw in this particular case is that this is a carrier who was looking to make sure that they could efficiently take in requests from other carriers and they could resolve those as quickly as possible.

Speaker #3: And this is a classic example of where our AI solutions not just in subrogation, but throughout the claim because we have all aspects of the pictures and other things that happen in the claim that we can come up with insights about that that allow for more rapid and more accurate resolution.

Tim Welsh: This is a classic example of where our AI solutions, not just in Subrogation, but throughout the claim, because we have all aspects of the pictures and other things that happen in the claim, that we can come up with insights about that that allow for more rapid and more accurate resolution. That is a differentiator. It reflects not only the great use of AI, but it reflects the use of our whole network, our whole ecosystem, to help provide insights. That's part of the distinctiveness of our product and part of the reason that we were able to create such a great value for this particular carrier. We are seeing a lot of momentum for this kind of solution in the market. Absolutely. Definitely a great reference.

Speaker #3: And that is a differentiator. It reflects not only the great use of AI, but it reflects the use of our whole network, our whole ecosystem, to help provide insights.

Speaker #3: And that's part of the distinctiveness of our product and part of the reason that we were able to create such great value for this particular carrier.

Speaker #3: And we are seeing a lot of momentum for this kind of solution in the market. Absolutely.

Speaker #2: And definitely a great reference, but also the point that Tim just made, which is this is the vital key difference between a point solution and a solution that integrates across the entire workflow.

Githesh Ramamurthy: Definitely a great reference. Also the point that Tim just made, which is this is the vital key difference between a point solution and a solution that integrates across the entire workflow.

Githesh Ramamurthy: Also the point that Tim just made, which is this is the vital key difference between a point solution and a solution that integrates across the entire workflow.

Bill McNamee: Super helpful. Thank you.

Bill McNamara: Super helpful. Thank you.

Speaker #7: Super helpful. Thank you.

Speaker #1: Thank you. One moment for our next question. Our next call comes from Samada Samanis from Jeffries. Your line is open.

Operator: Thank you. One moment for our next question. Our next call comes from Samad Samana from Jefferies. Your line is open.

Speaker #5: Hello, all. This is Joey on for Samad. Congrats on the solid results, and thank you for taking our question. Touching back on the full-year adjusted EBITDA guide, it implies a steeper ramp in Q4 relative to Q3.

[Analyst] (Jefferies): Hello, all. This is Joey on for Samad. Congrats on the solid results, thank you for taking our question. Touching back on the full year adjusted EBITDA guide, it implies a steeper ramp in Q4 relative to Q3. I know you mentioned impacts from the timing of expenses. Just to further clarify, did some of the expenses from Q2 slip into Q3, causing that steeper Q4 accel? Is there any incremental color you can provide on the nature of those expenses? Thank you.

Speaker #5: I know you mentioned impacts from the timing of expenses, and just to further clarify, did some of the expenses from Q2 slip into Q3, causing that steeper Q4 exit level?

Speaker #5: And is there any incremental color you can provide on the nature of those expenses? Thank you.

Speaker #2: It's important to note that when we look at margins, we generally look at them over the full year. And that individual quarters things do move between quarters.

Katie Coleman: It's important to note that when we look at margins, we generally look at them over the full year and not individual quarters. Things do move between quarters. Say in Q2, we have our industry conference that can affect margins. When you look at the full year, we still are on track to deliver 100 basis points of expansion at the high end of the guide. I think year to date, we're showing 100 basis points improvement. I think overall, one quarter little being down a bit isn't a concern. We typically look at the full year for margin expansion.

Speaker #2: We do say, in Q2 we have our industry conference, which can affect margins. But when you look at the full year, we're still on track to deliver 100 basis points of expansion.

Speaker #2: At the high end of the guide. And so I think year to date, we're showing 100 basis points improvement. So I think overall, one quarter little being down a bit isn't a concern.

Speaker #2: We took really look at the full year and for margin expansion.

Speaker #5: Understood. Thank you very much.

[Analyst] (Jefferies): Understood. Thank you very much.

Speaker #1: Thank you. As a reminder, to ask a question, you will need to press star 11 on your telephone and wait for your name to be announced.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. This concludes our Q&A session. I would now like to turn it back to Githesh Ramamurthy for the closing remarks.

Speaker #1: To withdraw your question, please press star 11 again. This concludes our Q&A session. I would now like Ramamurthy for the closing remarks.

Speaker #6: Hey. Thank you very much for your questions. What I would do is if there was one takeaway from today's discussion, it is that the same trends reshaping our industry.

Githesh Ramamurthy: Hey, thank you very much for your questions. What I would do is if there was one takeaway from today's discussion, it is that the same trends reshaping our industry are strengthening CCC's position within it. Our customers are operationalizing AI through trusted production-scale workflows. They're deepening their commitments to solutions that deliver measurable business outcome and bottom line, solving complexity. That is a huge part of it. Those three things, those three trends we think are critical, which is why we remain excited about the opportunities in front of us. I'd also like to take this opportunity to thank our customers, our shareholders, and every CCCer who participates in helping make the company who we are today. Thank you for joining us today, and we look forward to keeping you updated in the future.

Speaker #6: Our strengthening CCC's position within it. Our customers are operationalizing AI through trusted production scale workflows. They're deepening their commitments to solutions that deliver measurable business outcome.

Speaker #6: And bottom line, solving complexity. That is a huge part of it. So those three things, those three trends we think are critical. And which is why we remain excited about the opportunities in front of us and I'd also like to take this opportunity to thank our customers, our shareholders, and every CCCer who participates in helping make the company who we are today.

Speaker #6: Thank you for joining us today, and we look forward to keeping you updated in the future.

Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

Q2 2026 CCC Intelligent Solutions Inc Earnings Call

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