Q2 2026 Mobility Global Inc Earnings Call

Speaker #1: Second quarter 2026 earnings conference call and webcast. At this time, all participants are on a listen-only mode. A brief question-and-answer session will follow the formal presentation.

Speaker #1: If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tejo Engman, Managing Director of Investor Relations.

Speaker #1: Thank you. You may go ahead.

Speaker #2: Good morning, and thank you for joining Mobility Global's second quarter 2026 earnings call. Presenting on today's call are Bill Eager, Chief Executive Officer, and Matt Calderón, Chief Financial Officer.

Speaker #2: The earnings release referenced in this call, as well as our quarterly earnings presentation and the associated quarterly report on Form 10-Q, can be found in the Investor Relations section of our website.

Speaker #2: Mobilityglobal.com. The earnings release has also been attached to an 8K that we furnished at the SEC. As set forth in more detail in today's earnings release, I will remind everyone that today's call may include forward-looking statements about Mobility Global's future performance, including those related to our full-year 2026 guidance.

Speaker #2: Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is contained in our recent SEC filings.

Speaker #2: A reconciliation of reported and historic non-GAAP financial measures discussed in this call, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow, is provided in our 8K and in today's earnings presentation posted on the Investor Relations section of our website, which again is mobilityglobal.com.

Speaker #1: Greetings, and welcome to Mobility Global's Q2 2026 earnings conference call and webcast. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation.

Speaker #2: However, we are not able to provide a reconciliation of forward-looking non-GAAP financial measures to the most recently comparable financial measures calculated and reported in accordance with GAAP, as we are unable to estimate significant non-recurring or unusual items without unreasonable effort.

Speaker #1: If anyone should require operator assistance during the conference, please press *0 on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tejo Engman, Managing Director of Investor Relations.

Speaker #2: The amounts and timings of these items are uncertain and could be material to our results, calculated in accordance with GAAP. With that, let me turn the call over to our CEO, Bill Eager.

Speaker #1: Thank you. You may go ahead.

Speaker #2: Good morning, and thank you for joining Mobility Global's Q2 2026 earnings call. Presenting on today's call are Bill Eager, Chief Executive Officer, and Matt Calderon, Chief Financial Officer.

Speaker #3: Thanks, Tejo. And good morning, everyone. It's great to welcome you to Mobility Global's first earnings call. When I spoke with you at Investor Day, we were still part of the S&P Global, today we are a standalone publicly traded company.

Speaker #2: The earnings release referenced in this call, as well as our quarterly earnings presentation and the associated quarterly report on Form 10-Q, can be found in the Investor Relations section of our website.

Speaker #3: Over the past 12 months, our teams have worked tirelessly to make that possible. While also advancing our journey to bring together 5 previously separated businesses.

Speaker #2: MobilityGlobal.com. The earnings release has also been attached to an 8-K that we furnished to the SEC. As set forth, there is some more detail in today's earnings release.

Speaker #2: I would like to remind everyone that today's call may include forward-looking statements about Mobility Global's future performance, including those related to our full-year 2026 guidance. Actual performance could differ materially from what is suggested by our comments today.

Speaker #3: I want to thank them for their dedication, their expertise, and extraordinary effort to help us achieve this complex milestone. Having spent the past 22 years with the company, I am proud of the exceptional assets, strong team, and distinctive capabilities we've built.

Speaker #2: Information about the factors that could affect future performance is contained in our recent SEC filings. A reconciliation of reported and historic non-GAAP financial measures discussed in this call, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow, is provided in our 8-K and in today's earnings presentation, hosted on the Investor Relations section of our website, which, again, is mobilityglobal.com.

Speaker #3: They give me confidence in our opportunity and what we can deliver. Today I'll start with our Q2 results, and key highlights from the quarter.

Speaker #3: Update you on our early progress on the 3 strategic priorities I laid out at Investor Day. And share my focus areas for the second half of the year.

Speaker #2: However, we are not able to provide a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable financial measures calculated and reported in accordance with GAAP, as we are unable to estimate significant non-recurring or unusual items without unreasonable effort.

Speaker #3: Matt will then cover our financials in more depth, including our full-year 2026 guidance and the key assumptions behind our outlook. Turning to our second quarter results, we delivered approximately 7% organic revenue growth, modestly below our expectations.

Speaker #2: The amounts and timings of these items are uncertain and could be material to our results calculated in accordance with GAAP. With that, let me turn the call over to our CEO, Bill Eager.

Speaker #3: CARFAX subscription revenue growth was 8%. We delivered a 43% adjusted EBITDA margin as we operated our business with disciplined and maintained strong profitability. Our second quarter results reflected a combination of factors.

Speaker #3: Thanks, Tejo. And good morning, everyone. It's great to welcome you to Mobility Global's Q1 earnings call. When I spoke with you at Investor Day, we were still part of S&P Global. Today, we are a standalone, publicly traded company.

Speaker #3: For CARFAX, while our vehicle history and listings businesses delivered solid growth, the changes we made to our go-to-market approach late last year did not deliver the full benefits we expected.

Speaker #3: Over the past 12 months, our teams have worked tirelessly to make that possible. While also advancing our journey to bring together five previously separated businesses.

Speaker #3: We're adjusting this approach and expect to see improvements going forward. Secondly, softer automotive activity outside the US weighed on transactional revenue this quarter. The impact was concentrated in our B2B business and in CARFAX Canada, where volume-linked transactional revenue represents a larger share of the mix than the rest of CARFAX.

Speaker #3: I want to thank them for their dedication, their expertise, and extraordinary effort to help us achieve this complex milestone. Having spent the past 22 years with the company, I am proud of the exceptional assets, strong team, and distinctive capabilities we've built.

Speaker #3: They give me confidence in our opportunity and what we can deliver. Today, I'll start with our Q2 results and key highlights from the quarter.

Speaker #3: Given our first half top-line performance, we are lowering our full-year revenue guidance to 6.9 to 7.7% growth for the year. We do not view these factors as a change in the underlying health of our business.

Speaker #3: I'll update you on our early progress on the three strategic priorities I laid out at Investor Day, and share my focus areas for the second half of the year.

Speaker #3: Matt will then cover our financials in more depth, including our full-year 2026 guidance and the key assumptions behind our outlook. Turning to our Q2 results, we delivered approximately 7% organic revenue growth, modestly below our expectations.

Speaker #3: And we expect to build momentum into 2027. Supported by the strength of our subscription base, that gives us high visibility revenue growth over time.

Speaker #3: We continue to execute our broader growth strategy, advancing key initiatives in product innovation and international expansion, Matt will take you through the financial details shortly, but first, let me share with you a few highlights from the quarter.

Speaker #3: CARFAX subscription revenue growth was 8%. We delivered a 43% adjusted EBITDA margin as we operated our business with discipline and maintained strong profitability. Our Q2 results reflected a combination of factors.

Speaker #3: Starting with 2 new CARFAX offerings, that will add further value to our customers. Homegrown and showroom. CARFAX Homegrown is a new solution that enables consumers to easily find pre-owned vehicles on a dealer's lot that were originally sold and then serviced at that dealership throughout its life.

Speaker #3: For CARFAX, while our vehicle history and listings businesses delivered solid growth, the changes we made to our go-to-market approach late last year did not deliver the full benefits we expected.

Speaker #3: Something consumers have long valued. Consumers value these vehicles more because that history signals consistent care strong maintenance records, and greater confidence in the vehicle's condition.

Speaker #3: We're adjusting this approach and expect to see improvements going forward. Secondly, softer automotive activity outside the US weighed on transactional revenue this quarter. The impact was concentrated in our B2B business and in CARFAX Canada, where volume-linked transactional revenue represents a larger share of the mix than the rest of CARFAX.

Speaker #3: Until now, consumers and dealers haven't had a reliable way to identify these vehicles. CARFAX can. Because consumers trust the CARFAX brand and data, we are uniquely positioned to find these homegrown vehicles.

Speaker #3: Given our first-half top-line performance, we are lowering our full-year revenue guidance to 6.9% to 7.7% growth for the year. We do not view these factors as a change in the underlying health of our business.

Speaker #3: Identify them. And surface that information to both the dealer and the consumer. Consumers get vehicles they value, and dealers sell vehicles faster. Homegrown will be offered within the CARFAX Advantage program, and we expect it to increase the value of the program in a meaningful way.

Speaker #3: And we expect to build momentum into 2027, supported by the strength of our subscription base. That gives us high-visibility revenue growth over time.

Speaker #3: CARFAX Showroom. Our first premium listings product, launched in the second quarter. This solution highlights a dealer's inventory in a shopper's search, driving more vehicle detail page views and a higher quality engagement while preserving the trust of the CARFAX consumer experience.

Speaker #3: We continue to execute our broader growth strategy, advancing key initiatives in product innovation and international expansion. Matt will take you through the financial details shortly, but first, let me share with you a few highlights from the quarter.

Speaker #3: Starting with two new CARFAX offerings that will add further value for our customers: Homegrown and Showroom. CARFAX Homegrown is a new solution that enables consumers to easily find pre-owned vehicles on a dealer's lot that were originally sold and then serviced at that dealership throughout their life.

Speaker #3: Over time, we expect CARFAX Showroom to drive higher revenue per dealer. Turning to B2B. Automotive mastermind launched SMS offers. Extending its service to sales functionality in one of the most valuable areas of the dealership.

Speaker #3: The service lane. Using our proprietary behavior prediction score, the solution identifies customers most likely to trade in their vehicle, and sends them a personalized appraisal and upgrade offer.

Speaker #3: Something consumers have long valued. Consumers value these vehicles more because that history signals consistent care strong maintenance records, and greater confidence in the vehicle's condition.

Speaker #3: While they are still at the dealership. Instead of staffing the service lane to chase every opportunity, dealer teams can focus on customers who express interest.

Speaker #3: Until now, consumers and dealers haven't had a reliable way to identify these vehicles. CARFAX can. Because consumers trust the CARFAX brand and data, we are uniquely positioned to find these homegrown vehicles.

Speaker #3: This makes the sales process more efficient, and strengthens the value of the mastermind platform. Delivering additional value to existing customers, while helping us win new ones.

Speaker #3: Identify them and surface that information to both the dealer and the consumer. Consumers get vehicles they value, and dealers sell vehicles faster. Homegrown will be offered within the CARFAX Advantage program, and we expect it to increase the value of the program in a meaningful way.

Speaker #3: Turning to international expansion. We launched CARFAX Germany in early July, leveraging our strategic assets to enter Europe's largest automotive market. As our European dataset continues to expand, and coverage deepens, we are well positioned to meet the growing consumer demand for trusted automotive information.

Speaker #3: CARFAX Showroom—our first premium listings product—launched in the second quarter. This solution highlights a dealer's inventory in a shopper's search, driving more vehicle detail page views and higher quality engagement, while preserving the trust of the CARFAX consumer experience.

Speaker #3: With that context, let me turn to our 3 strategic priorities. Creating one mobility global, deploying AI across our business, and strengthening our market position.

Speaker #3: Creating one mobility global is more than just a structural change. It is a strategic opportunity to operate as one integrated company. Connecting our capabilities, data, and customer relationships to capture the benefits of our scale and deliver greater value to our customers.

Speaker #3: Over time, we expect CARFAX Showroom to drive higher revenue per dealer. Turning to B2B, automotiveMastermind launched SMS offers, extending its service to sales functionality in one of the most valuable areas of the dealership.

Speaker #3: The service lane. Using our proprietary behavior prediction score, the solution identifies customers most likely to trade in their vehicle and sends them a personalized appraisal and upgrade offer.

Speaker #3: We're about halfway through this multi-year effort. And making good progress. By integrating our assets, we can generate new insights and solutions that weren't possible before.

Speaker #3: Add value to our existing products, launch new ones, and expand into new markets globally. We are already seeing some early benefits. Automotive mastermind and CARFAX are building a joint product roadmap that leverages the combined data assets of both businesses to deliver greater value to our shared dealers.

Speaker #3: While they are still at the dealership, instead of staffing the service lane to chase every opportunity, dealer teams can focus on customers who express interest.

Speaker #3: This makes the sales process more efficient and strengthens the value of the Mastermind platform, delivering additional value to existing customers while helping us win new ones.

Speaker #3: In Germany, we combine data and capabilities from across the company to create a compelling value from the outset in this attractive automotive market. There is more work ahead, but the path is clear.

Speaker #3: Turning to international expansion, we launched CARFAX Germany in early July, leveraging our strategic assets to enter Europe’s largest automotive market. As our European data set continues to expand and coverage deepens, we are well positioned to meet the growing consumer demand for trusted automotive information.

Speaker #3: We are focused on leveraging this integration to accelerate product innovation, expand into new markets, and drive stronger growth. Our second strategic priority is deploying AI across our business.

Speaker #3: With that context, let me turn to our three strategic priorities. Creating one mobility global, deploying AI across our business, and strengthening our market position.

Speaker #3: AI is reshaping how companies operate. In our business, our proprietary decision-grade data is a core strategic asset. As AI generates more intelligence from our data, the value of our data only grows.

Speaker #3: Creating one mobility global is more than just a structural change. It is a strategic opportunity to operate as one integrated company, connecting our capabilities, data, and customer relationships to capture the benefits of our scale and deliver greater value to our customers.

Speaker #3: It also unlocks new opportunities for product innovation and efficiency. We're deploying AI across the company and building central capabilities. Including AI gateways and agentic platforms.

Speaker #3: Our centralized AI office provides the governance and consistency to strengthen our data state and generate deeper insights across the business. This moves us beyond adopting tools to transforming our workflows.

Speaker #3: We're about halfway through this multi-year effort and making good progress. By integrating our assets, we can generate new insights and solutions that weren't possible before.

Speaker #3: Add value to our existing products, launch new ones, and expand into new markets globally. We are already seeing some early benefits. Automotive Mastermind and CARFAX are building a joint product roadmap that leverages the combined data assets of both businesses to deliver greater value to our shared dealers.

Speaker #3: And we're already seeing results. From richer signals across our unique data estate to new predictive capabilities. New solutions like those we previewed on Investor Day, and faster low-cost entry into new markets.

Speaker #3: We see significant runway to use AI to transform how we operate. Innovate, and grow. Turning to our third priority. Strengthening our market position. As the automotive industry grows, more complex, dealers consumers and industry partners need timely, trusted intelligence at more decision points.

Speaker #3: In Germany, we combined data and capabilities from across the company to create compelling value from the outset in this attractive automotive market. There is more work ahead, but the path is clear.

Speaker #3: We are focused on leveraging this integration to accelerate product innovation, expand into new markets, and drive stronger growth. Our second strategic priority is deploying AI across our business.

Speaker #3: That need continues to drive our innovation and expansion. In Q2 and into July, we advanced this priority through CARFAX Homegrown, CARFAX Showroom, Innovations at Automotive Mastermind, and in our launch of CARFAX Germany.

Speaker #3: AI is reshaping how companies operate. In our business, our proprietary, decision-grade data is a core strategic asset. As AI generates more intelligence from our data, the value of our data only grows.

Speaker #3: Together these initiatives demonstrated our ability to move quickly, expand our reach, and bring new solutions to market. We have more to do, and our focus is sustaining that momentum with disciplined execution and an effective go-to-market strategy.

Speaker #3: It also unlocks new opportunities for product innovation and efficiency. We're deploying AI across the company and building central capabilities, including AI gateways and agentic platforms.

Speaker #3: Our centralized AI office provides the governance and consistency to strengthen our data state and generate deeper insights across the business. This moves us beyond simply adopting tools to transforming our workflows.

Speaker #3: Let me close with my 2 areas of focus in the second half. These are the items our leadership team is prioritizing as we continue to execute against our long-term strategy.

Speaker #3: The first is accelerating revenue growth. At CARFAX, we are ramping up new products and implementing our revised go-to-market approach. In B2B, we are moving fast, PIQ, and data studio products from launch to broader adoption.

Speaker #3: And we're already seeing results, from richer signals across our unique data estate to new predictive capabilities; new solutions like those we previewed on Investor Day, and faster, low-cost entry into new markets.

Speaker #3: We see significant runway to use AI to transform how we operate, innovate, and grow. Turning to our third priority: strengthening our market position. As the automotive industry grows more complex, dealers, consumers, and industry partners need timely, trusted intelligence at more decision points.

Speaker #3: My second focus area is continuing to bring mobility global's business together. We are focused on winding down transition services with S&P Global. Retiring duplicate systems.

Speaker #3: And moving to a common technology backbone. This is essential not only for efficiency, but also for bringing our data together on a modern AI native foundation that supports the combined business.

Speaker #3: That need continues to drive our innovation and expansion. In Q2 and into July, we advanced this priority through CARFAX Homegrown, CARFAX Showroom, innovations at Automotive Mastermind, and in our launch of CARFAX Germany.

Speaker #3: Together these efforts are building a more integrated, efficient platform for the long-term growth. To close, I am energized by the opportunity ahead. Our combination of proprietary data, trusted brands, scaled customer network, and embeddedness give us a powerful differentiated foundation for growth.

Speaker #3: Together, these initiatives demonstrated our ability to move quickly, expand our reach, and bring new solutions to market. We have more to do, and our focus is on sustaining that momentum with disciplined execution and an effective go-to-market strategy.

Speaker #3: Which remains solid. We know where we need to improve, have adjusted our approach, and are acting with focus and urgency and making good progress.

Speaker #3: We have a clear path forward and strong conviction in our future. And with that, I'll turn it over to Matt.

Speaker #3: Let me close with my two areas of focus in the second half. These are the items our leadership team is prioritizing as we continue to execute against our long-term strategy.

Speaker #1: Thank you, Bill. And good morning everyone. We appreciate you joining us today. I'd very much enjoyed meeting members of our analyst and investor community for the past few months.

Speaker #3: The first is accelerating revenue growth. At CARFAX, we are ramping up new products and implementing our revised go-to-market approach. In B2B, we are moving fast—PIQ and Data Studio products are moving from launch to broader adoption.

Speaker #1: It's a privilege to tell the mobility global story. I look forward to working with you in the months and years ahead. I want to cover 2 topics before diving into the details of our second quarter results.

Speaker #1: And discussing our guidance and expectations for the full fiscal year. First, I want to remind you that the historical numbers we discussed today are not fully indicative of what our financial results would have been as a standalone public company.

Speaker #3: My second focus area is continuing to bring Mobility Global's business together. We are focused on winding down transition services with S&P Global and retiring duplicate systems.

Speaker #1: And therefore are not fully indicative of our financial performance in our go-forward basis. In its 8K published on July 28th, S&P reported mobility's results as a business segment, consistent with its past practice.

Speaker #3: And moving to a common technology backbone—this is essential not only for efficiency, but also for bringing our data together on a modern, AI-native foundation that supports the combined business.

Speaker #3: Together, these efforts are building a more integrated, efficient platform for long-term growth. To close, I am energized by the opportunity ahead. Our combination of proprietary data, trusted brands, a scaled customer network, and embeddedness give us a powerful, differentiated foundation for growth.

Speaker #1: In our 8K this morning, we're reporting carve-out results for prior periods, in a manner consistent with our Form 10 file. However, as we described in our May Investor Day, and in our 10Q filed this morning, going forward we expect our results as a standalone public company to differ from this presentation in certain areas.

Speaker #3: Which remains solid. We know where we need to improve, have adjusted our approach, and are acting with focus and urgency, making good progress.

Speaker #1: These areas include but are not limited to incremental costs associated with splitting a standalone public company, how costs are allocated across our business segments, interest expense from our inaugural bond offering, tax rate and cash taxes, and the one-time costs of standing up the infrastructure required to be a fully standalone public company.

Speaker #3: We have a clear path forward and strong conviction in our future. And with that, I'll turn it over to Matt.

Speaker #2: Thank you, Bill, and good morning, everyone. We appreciate you joining us today. I've very much enjoyed meeting members of our analyst and investor community over the past few months.

Speaker #1: Over the course of my remarks, I'll highlight these differences and attempt to quantify and time phase them where possible. Second, I would like to cover my core takeaways for the quarter.

Speaker #2: It's a privilege to tell the Mobility Global story, and I look forward to working with you in the months and years ahead. I want to cover two topics before diving into the details of our second quarter results.

Speaker #1: To start, we prepared for the successful July 1st spin-off of Mobility Global from S&P Global. This was an immense effort that is a critical milestone on our path to creating one mobility global.

Speaker #2: And discussing our guidance and expectations for the full fiscal year. First, I want to remind you that the historical numbers we discussed today are not fully indicative of what our financial results would have been as a standalone public company.

Speaker #1: In the quarter, we delivered approximately 7% organic revenue growth. 8% growth in our CARFAX segment, and 4% growth in our B2B segment. As Bill noted, while we're confident in the underlying momentum in our business, our growth rate in the second quarter fell modestly short of our expectations.

Speaker #2: And therefore, are not fully indicative of our financial performance on our go-forward basis. In its 8K published on July 28th, S&P reported mobility's results as a business segment consistent with its past practice.

Speaker #1: Our bottom line performance, adjusted even at dollars and adjusted even at margin, was strong as we managed costs effectively while continuing to invest in future growth.

Speaker #2: In our 8-K this morning, we're reporting carve-out results for the prior file. However, as we described at our May investor day and in our 10-Q filed this morning, going forward, we expect our results as a standalone public company to differ from this presentation in certain areas.

Speaker #1: We launched Mobility Global with 186 million dollars of cash on hand and continue to generate meaningful cash flow. Today, we are announcing our first quarterly dividend.

Speaker #2: These areas include, but are not limited to, incremental costs associated with splitting into a standalone public company; how costs are allocated across our business segments; interest expense from our inaugural bond offering; tax rate and cash taxes; and the one-time cost of standing up the infrastructure required to be a fully standalone public company.

Speaker #1: And finally, we are providing guidance for our full fiscal year 2026, which reflects our first half results, our forecast for the second half, and the impact of becoming a standalone public company.

Speaker #1: Turning to our second quarter results. Mobility Global revenue in the second quarter was 468 million dollars, a 7% increase over the prior year period.

Speaker #2: Over the course of my remarks, I'll highlight these differences and attempt to quantify and time phase them where possible. Second, I would like to cover my core takeaways for the quarter.

Speaker #1: All of this revenue was organic. At the Mobility Global level, subscription revenue grew 7% year over year reflecting the durable strength of our brand and the value of our solution.

Speaker #2: To start, we prepared for the successful July 1st spin-off of Mobility Global from S&P Global. This was an immense effort that is a critical milestone on our path to creating one mobility global.

Speaker #1: Transactional revenue grew 5%, largely due to challenging macro conditions that particularly are affected by business outside the US. For the first half, revenue grew 7.4%.

Speaker #2: In the quarter, we delivered approximately 7% organic revenue growth, 8% growth in our CARFAX segment, and 4% growth in our B2B segment. As Bill noted, while we're confident in the underlying momentum in our business, our growth rate in the second quarter fell modestly short of our expectations.

Speaker #1: Including the impact of FX, we grew approximately 6.8%. This reflects a roughly 5 million dollar currency benefit in the first half. Approximately 4 million dollars of which came in the first quarter.

Speaker #1: Performance varied across our 2 business segments. Our CARFAX segment grew 8% in the quarter. With subscription-based revenue up approximately 8% year over year. This is broadly in line with subscription revenue growth in Q1.

Speaker #2: Our bottom line performance, adjusted even at dollars and adjusted even at margin, was strong as we managed costs effectively, while continuing to invest in future growth.

Speaker #1: CARFAX transactional revenue grew approximately 9% year over year. Down slightly from 10% growth in the first quarter. CARFAX growth was broad-based across almost all major product lines in the US and abroad.

Speaker #2: We launched Mobility Global with $186 million of cash on hand and continue to generate meaningful cash flow. Today, we are announcing our first quarterly dividend.

Speaker #2: And finally, we are providing guidance for our full fiscal year 2026, which reflects our first half results, our forecast for the second half, and the impact of becoming a standalone public company.

Speaker #1: In the US, we saw comparatively stronger year over year performance in our service loyalty and consumer product line. As Bill noted, a few quarters ago we shifted our go-to-market approach to emphasize the value of employing all 3 of CARFAX's core products together.

Speaker #2: Turning to our second quarter results, Mobility Global revenue in the second quarter was $468 million, a 7% increase over the prior year period.

Speaker #1: Advantage listings and service loyalty. While we still believe in this value, our go-to-market approach did not deliver what we expected. We're making changes, and expecting to see improvements in the second half.

Speaker #2: All of this revenue was organic. At the Mobility Global level, subscription revenue grew 7% year over year, reflecting the durable strength of our brand and the value of our solution.

Speaker #1: Internationally, our CARFAX Canada business again produced strong subscription growth, but experienced continued softness in the transactional product lines due to recent softness in auto transactions.

Speaker #2: Transactional revenue grew 5%, largely due to challenging macro conditions that particularly affected our business outside the US. For the first half, revenue grew 7.4%.

Speaker #1: In Europe, we saw a strong double-digit growth, but our transactional revenue in the quarter lagged expectations. We continue to adapt our strategy and sales approach as we learn in different countries and we're excited about our launch in Germany.

Speaker #2: Including the impact of FX, we grew approximately 6.8%. This reflects a roughly $5 million currency benefit in the first half, approximately $4 million of which came in the first quarter.

Speaker #1: Overall, we see momentum building on our CARFAX business, and our doubling down on execution in the back half of the year. Our B2B segment grew 4% in the second quarter, a decline from 8% year over year growth in Q1.

Speaker #2: Performance varied across our two business segments. Our CARFAX segment grew 8% in the quarter, with subscription-based revenue up approximately 8% year over year. This is broadly in line with subscription revenue growth in Q1.

Speaker #1: Subscription revenue grew approximately 6% year over year, while transactional revenue declined by 4%. Within B2B, growth was relatively stronger in our sales solutions business, which was anchored by solid performance in automotive masterminds, but was impacted by approximately 1 million dollars in recall revenue that was pushed to the second half of the year as it is dependent on a final quarterly.

Speaker #2: CARFAX transactional revenue grew approximately 9% year over year, down slightly from 10% growth in the first quarter. CARFAX growth was broad-based across almost all major product lines in the US and abroad.

Speaker #2: In the US, we saw comparatively stronger year-over-year performance in our service loyalty and consumer product line. As Bill noted, a few quarters ago we shifted our go-to-market approach to emphasize the value of employing all three of CARFAX's core products together.

Speaker #1: Our B2B business also saw some modest delays in planning solutions projects due to the uncertain macroeconomic environment. And faced challenging comps overall, in Q2 we did relatively strength in the prior year quarter.

Speaker #2: Advantage listings and service loyalty. While we still believe in this value, our go-to-market approach did not deliver what we expected. We're making changes and expect to see improvements in the second half.

Speaker #1: Turning out of profitability, during the second quarter we delivered 202 million dollars in adjusted EBITDA, and approximately 7% increase from the prior year quarter.

Speaker #1: This resulted in an adjusted EBITDA margin of 43.2%, approximately 40 basis points higher than the prior year period. For the first half, we delivered 386 million dollars in adjusted EBITDA, an 8% increase over the prior year at a margin of 42%, which is an approximately 20 basis point improvement over the first half of 2025.

Speaker #2: Internationally, our CARFAX Canada business again produced strong subscription growth, but experienced continued softness in the transactional product lines due to recent softness in auto transactions.

Speaker #2: In Europe, we saw a strong double-digit growth, but our transactional revenue in the quarter lagged expectations. We continue to adapt our strategy and sales approach as we learn in different countries and we're excited about our launch in Germany.

Speaker #1: I am pleased with how we are gaining operating scale and managing our cost base in a dynamic year. This has allowed us to simultaneously pivot spend to fund investment in future growth while maintaining margins and delivering on the bottom line.

Speaker #2: Overall, we see momentum building on our CARFAX business, and we're doubling down on execution in the back half of the year. Our B2B segment grew 4% in the second quarter, a decline from 8% year-over-year growth in Q1.

Speaker #1: Looking forward, we expect adjusted EBITDA margins to decline in the second half of the year for 2 reasons. First, while we manage the business on a full year basis, our margins are typically stronger in the first half.

Speaker #2: Subscription revenue grew approximately 6% year over year, while transactional revenue declined by 4%. Within B2B, growth was relatively stronger in our sales solutions business, which was anchored by solid performance in automotive mastermind, but with impacted by approximately 1 million dollars in recall revenue that was pushed to the second half of the year, as it is dependent on a final quarterly.

Speaker #1: The preponderance of our pricing actions take effect early in the year, while our renewal cycles and our advertising and investment spend are weighted toward the back half.

Speaker #1: Second, as a standalone public company, we will bear incremental corporate expenses compared to our historic cost allocations from S&P. We're making real progress in building towards a modern, scalable corporate infrastructure that will ultimately be a platform for growth.

Speaker #2: Our B2B business also saw some modest delays in planning solutions projects due to the uncertain macroeconomic environment. And faced challenging comps overall, in Q2 we did relative strength in the prior year quarter.

Speaker #1: We expect that on a run-rate basis, the discrete impact of this on incremental corporate expenses will roughly equate to reducing full year margins by approximately 150 basis points relative to our fiscal year 2025 baseline.

Speaker #2: Starting out of profitability, during the second quarter, we delivered 202 million dollars in adjusted EBITDA, and approximately 7% increase from the prior year quarter.

Speaker #2: This resulted in an adjusted EBITDA margin of 43.2%, approximately 40 basis points higher than the prior year period. For the first half, we delivered $386 million in adjusted EBITDA, an 8% increase over the prior year at a margin of 42%, which is an approximately 20 basis point improvement over the first half of 2025.

Speaker #1: This equates to the high end of the 20 to 25 million dollar range we day. Given timing, we anticipate the discrete impact of 2026 margins will be approximately half this level.

Speaker #1: But we are mitigating this somewhat through scale and operating efficiency. Both these factors are reflecting our 2026 guidance. The impact of seasonality and of incremental corporate expenses.

Speaker #2: I am pleased with how we are gaining operating scale and managing our cost base in a dynamic year. This has allowed us to simultaneously pivot spend to fund investment in future growth, while maintaining margins and delivering on the bottom line.

Speaker #1: Moving down the P&L, our reported results this quarter include a significant amount of one-time costs related to the separation from SBGI, gap net income for the quarter was 53 million dollars, down 18% year over year.

Speaker #2: Looking forward, we expect adjusted EBITDA margins to decline in the second half of the year for two reasons. First, while we manage the business on a full-year basis, our margins are typically stronger in the first half.

Speaker #1: However, this included 36 million dollars of one-time transaction-related costs compared to only 2 million dollars of transaction costs in the second quarter last year.

Speaker #2: The preponderance of our pricing actions take effect early in the year, while our renewal cycles and our advertising and investment spend are weighted toward the back half.

Speaker #1: Looking forward, as a standalone company, we expect our tax rate to decrease as we take actions to optimize the legal entity structure that we inherited from S&P Global.

Speaker #2: Second, as a standalone public company, we will bear incremental corporate expenses compared to our historic cost allocations from S&P. We're making real progress in building toward a modern, scalable corporate infrastructure that will ultimately be a platform for growth.

Speaker #1: Conversely, we expect our interest expense to increase as we begin to service our bond issuers. I will cover our expectations for 2026 tax rate and interest rate in the guidance section.

Speaker #2: We expect that, on a run-rate basis, the discrete impact of this on incremental corporate expenses will roughly equate to reducing full-year margins by approximately 150 basis points relative to our fiscal year 2025 baseline.

Speaker #1: Please note that beginning next quarter, we intend to also report adjusted net income and adjusted diluted earnings per share, to provide investors additional insight into the underlying performance of our business.

Speaker #2: This equates to the high end of the $20 to $25 million range we disclosed at our Investor Day. Given timing, we anticipate the discrete impact on 2026 margins will be approximately half this level.

Speaker #1: I will now move to the balance sheet. We are launching Mobility Global with a strong balance sheet that provides us both strategic flexibility and the capacity to deliver consistent, incremental shareholder value.

Speaker #1: We entered the second quarter with 186 million dollars of cash on hand. Net debt of 1.8 billion dollars, and a net leverage ratio of 2.4 times adjusted EBITDA for the trailing 12 months.

Speaker #2: But we are mitigating this somewhat through scale and operating efficiency. Both these factors are reflected in our 2026 guidance. The impact of seasonality and of incremental corporate expenses.

Speaker #1: Looking forward, I want to highlight 4 items that will impact our cash flow. First, we expect to incur approximately 100 million dollars in one-time cash costs associated with completing the spin-off and stand-up of Mobility Global.

Speaker #2: Moving down the P&L, our reported results this quarter include a significant amount of one-time costs related to the separation from SBGI. GAAP net income for the quarter was $53 million, down 18% year over year.

Speaker #1: With approximately half of this incurred in 2026. At this point, we expect that roughly 50% of these one-time costs will be capitalized. Second, we will incur incremental interest expense from our 2 billion dollars in bonds.

Speaker #2: However, this included 36 million dollars of one-time transaction-related costs compared to only 2 million dollars of transaction costs in the second quarter last year.

Speaker #2: Looking forward, as a standalone company, we expect our tax rate to decrease as we take actions to optimize the legal entity structure that we inherited from S&P Global.

Speaker #1: Third, as previously disclosed, for the next 12 years, cash taxes will be approximately 89.90 million dollars higher than our tax provisions. This is due to the disallowance of a portion of amortization of intangible assets related to the IHS market acquisition.

Speaker #2: Conversely, we expect our interest expense to increase as we begin to service our bond issuers. I will cover our expectations for 2026 tax rate and interest rate in the guidance section.

Speaker #1: As reflected in our deferred tax liability. And lastly, our cash taxes will increase as we will now be responsible for federal tax payments previously made by SBGI.

Speaker #2: Please note that, beginning next quarter, we intend to also report adjusted net income and adjusted diluted earnings per share to provide investors with additional insight into the underlying performance of our business.

Speaker #2: I will now move to the balance sheet. We are launching Mobility Global with a strong balance sheet that provides us both strategic flexibility and the capacity to deliver consistent, incremental shareholder value.

Speaker #1: Turning out of capital deployment, our immediate priority is to fund one-time transaction-related costs and initiate a quarterly dividend to return cash to shareholders. Today, we're pleased to announce that our board of directors has approved a quarterly dividend of 6 cents per share which will be payable on September 10th to stockholders of record as of the August 27th close.

Speaker #2: We entered the second quarter with 186 million dollars of cash on hand. Net debt of 1.8 billion dollars and a net leverage ratio of 2.4 times adjusted EBITDA for the trailing 12 months.

Speaker #1: We set this dividend based on an estimate of normalized go-forward net income. By adding back one-time separation costs and adjusting for our estimated standalone interest and tax profile.

Speaker #2: Looking forward, I want to highlight four items that will impact our cash flow. First, we expect to incur approximately 100 million dollars in one-time cash costs, associated with completing the spin-off and stand-up of Mobility Global.

Speaker #1: Looking forward, at this point, we intend to maintain our inherited dividend aristocrat status from SBGI. We also continue to expect that we will not commence share purchases until early 2027.

Speaker #2: With approximately half of this incurred in 2026. At this point, we expect that roughly 50% of these one-time costs will be capitalized. Second, we will incur incremental interest expense from our $2 billion in bonds.

Speaker #1: And that we will not pursue any material M&A until we are fully separated from SBGI. Finally, please turn to slide 9 for Mobility Global's outlook.

Speaker #2: Third, as previously disclosed, for the next 12 years, cash taxes will be approximately $89.90 million higher than our tax provision. This is due to the disallowance of a portion of amortization of intangible assets related to the IHS market acquisition.

Speaker #1: Our full year 2026 guidance reflects the sum of our carve-out results for the first 6 months of the fiscal year and our standalone results for the second 6 months of the fiscal year.

Speaker #1: Given the timing and nature of our spin-off, the remainder of 2026 we are providing guidance only for revenue and adjusted EBITDA at the Mobility Global level.

Speaker #2: As reflected in our deferred tax liability. And lastly, our cash taxes will increase, as we will now be responsible for federal tax payments previously made by SBGI.

Speaker #1: To support your financial modeling, however, I will provide estimates for certain additional financial measures. We anticipate guiding to a broader set of financial metrics for our full fiscal year 2027.

Speaker #2: Turning now to capital deployment, our immediate priority is to fund one-time transaction-related costs and initiate a quarterly dividend to return cash to shareholders. Today, we're pleased to announce that our board of directors has approved a quarterly dividend of $0.06 per share, which will be payable on September 10 to stockholders of record as of the close on August 27.

Speaker #1: We now expect to deliver revenue between 1.87 and 1.885 billion dollars for our full fiscal year 2026. For year-over-year growth of 6.9 to 7.7 percent.

Speaker #1: As we are assuming no incremental currency impact in the second half, our ur revenue guidance implies a modest sequential improvement in our constant currency growth rate versus the first half.

Speaker #2: We set this dividend based on an estimate of normalized go-forward net income. By adding back one-time separation costs and adjusting for our estimated standalone interest and tax profile.

Speaker #1: We now expect adjusted EBITDA to be between 745 million and 760 million dollars. This implies an adjusted EBITDA margin of approximately 40% of the midterm.

Speaker #2: Looking forward, at this point, we intend to maintain our inherited dividend aristocrat status from SBGI. We also continue to expect that we will not commence share purchases until early 2027, and that we will not pursue any material M&A until we are fully separated from SBGI.

Speaker #1: Our adjusted EBITDA guidance incorporates our modest first half margin improvement, typical quarterly spend patterns, and a part-year impact of incremental standalone corporate infrastructure. Please note that for the next 4 quarters, we anticipate the potential for slightly more quarter-to-quarter margin volatility than we've seen historically given the dynamic nature of the stand-up period.

Speaker #2: Finally, please turn to slide 9 for Mobility Global's outlook. Our full-year 2026 guidance reflects the sum of our carve-out results for the first six months of the fiscal year and our standalone results for the second six months of the fiscal year.

Speaker #1: From a cash flow perspective, we anticipate spending roughly half of the 100 million dollars in one-time costs associated with completing the spin-off in the remainder of 2026.

Speaker #2: Given the timing and nature of our spin-off, the remainder of 2026 we are providing guidance only for revenue and adjusted EBITDA at the Mobility Global level.

Speaker #2: To support your financial modeling, however, I will provide estimates for certain additional financial measures. We anticipate guiding to a broader set of financial metrics for our full fiscal year 2027.

Speaker #1: We anticipate interest expense to be approximately 55 million dollars in the second half. On a cash basis, we expect to make our first interest payment of 60 million dollars in Q4, which includes the first half accrual.

Speaker #2: We now expect to deliver revenue between $1.87 and $1.885 billion for our full fiscal year 2026, representing year-over-year growth of 6.9% to 7.7%.

Speaker #1: We anticipate our gap tax rate to be in the 28 to 31 percent range for the full fiscal year. And finally, we anticipate our average share count to be between 295 and 297 million shares.

Speaker #2: As we are assuming no incremental currency impact in the second half, our revenue guidance implies a modest sequential improvement in our constant currency growth rate versus the first half.

Speaker #1: In closing, I want to reiterate my takeaways for the quarter. We accomplished a great deal in the quarter, both operationally and in the market.

Speaker #2: We now expect adjusted EBITDA to be between 745 million and 760 million dollars. This implies an adjusted EBITDA margin of approximately 40% of the mid-term.

Speaker #1: Our growth continued to compound, particularly in the CARFAX segment, but not to the extent we anticipated. Our bottom-line performance was strong, but focused on execution and building momentum towards 2027, and we provided guidance for the full fiscal year.

Speaker #2: Our adjusted EBITDA guidance incorporates our modest first half margin improvement, typical quarterly spend patterns, and a part year impact of incremental standalone corporate infrastructure.

Speaker #1: DecoBill were partway through a multi-year journey to not just create an integrated Mobility Global but to build a business platform that will deliver exceptional, compounding value to our customers, employees, partners, and shareholders.

Speaker #2: Please note that for the next four quarters, we anticipate the potential for slightly more quarter-to-quarter margin volatility than we've seen historically given the dynamic nature of the stand-up period.

Speaker #1: Their significant work ahead of us, but we're confident in both the destination and in our ability to get there. With that, operator, please open the line for questions.

Speaker #2: From a cash flow perspective, we anticipate spending roughly half of the 100 million dollars in one-time costs associated with completing the spin-off in the remainder of 2026.

Speaker #2: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #2: We anticipate interest expense to be approximately $55 million in the second half. On a cash basis, we expect to make our first interest payment of $60 million in Q4, which includes the first half accrual.

Speaker #2: A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #2: We anticipate our gap tax rate to be in the 28 to 31 percent range for the full fiscal year. And finally, we anticipate our average share count to be between 295 and 297 million shares.

Speaker #2: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we pull for questions.

Speaker #2: Our first question comes from Scott Ortzel with Wolf Research. Please proceed with your question.

Speaker #2: In closing, I want to reiterate my takeaways for the quarter. We accomplished a great deal in the quarter, both operationally and in the market.

Speaker #3: Hi, good morning, guys. Thank you for taking my questions. Bill, just wondering if you can talk a little bit more about the changes that you're making on the, you know, go-to-market side on CARFAX and, you know, what we can expect to see going forward now versus the, you know, strategies you had deployed in the past.

Speaker #2: Our growth continued to compound, particularly in the CARFAX segment, but not to the extent we anticipated. Our bottom-line performance was strong, but focused on execution and building momentum towards 2027, and we provided guidance for the full fiscal year.

Speaker #3: Thanks.

Speaker #1: Sure. And thanks, Scott. You know, the we mentioned the CARFAX go-to-market. You know, late last year, we shifted our go-to-market approach at CARFAX. And it really the shift was to go from selling our core 3 products à la carte to selling them together in a package.

Speaker #2: DecoBill, we're partway through a multiyear journey to not just create an integrated Mobility Global, but to build a business platform that will deliver exceptional compounding value to our customers, employees, partners, and shareholders.

Speaker #1: You know, our lifetime dealer package. So containing our advantage, listings, and service loyalty products. And, you know, as I mentioned, at Investor Day, one of the effects we saw early in this process was attended to lengthen the sales cycle a little bit.

Speaker #2: There is significant work ahead of us, but we're confident in both the destination and in our ability to get there. With that, operator, please open the line for questions.

Speaker #1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad.

Speaker #1: And, you know, but early on, the adoption of it was right in the ranges that we expected. You know, over the last quarter or so, we started to see you know, you know, those lengthening sales cycles affect you know, our sales rate on the product.

Speaker #1: A confirmation tone will indicate that your line is in the question queue. You may press star 2 if you would like to remove your question from the queue.

Speaker #1: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment, please, while we queue for questions.

Speaker #1: So the shift you know, that we were make that we're making really is, you know, well, we still believe heavily in the package. We're recalibrating that sales approach, recalibrating our sales incentive.

Speaker #1: Our first question comes from Scott. We'll close with Wolf Research. Please proceed with your question.

Speaker #3: Hi. Good morning, guys. Thank you for taking my questions. Bill, just wondering if you can talk a little bit more about the changes that you're making on the, you know, go-to-market side on CARFAX and, you know, what we can expect to see going forward now versus the, you know, strategies you had deployed in the past.

Speaker #1: And shifting back to where you know, we are selling each of those products individually. And allowing dealers to get to that lifetime program you know, at their own pace by adding product by product as opposed to adding all of the products at the same time.

Speaker #3: Thanks.

Speaker #2: Sure. And thanks, Scott. You know, the we mentioned the CARFAX go-to-market. You know, late last year, we shifted our go-to-market approach at CARFAX. And it really the shift was to go from selling our core three products à la carte to selling them together in a package.

Speaker #1: So you know, we've adjusted the incentive for our sales folks and really you know, gone to an approach where we are selling the products individually.

Speaker #1: And allowing dealers to get to the lifetime program at their own pace.

Speaker #3: Got it. That's that's helpful. And just as a quick follow-up, just on the revenue guidance, wondering if you can give us just any color on how we should think about, you know, revenue growth rates in CARFAX and B2B in the second half of the year.

Speaker #2: You know, our lifetime dealer package. So containing our advantage, listings, and service loyalty products. And, you know, as I mentioned, at Investor Day, one of the effects we saw early in this process was attended to lengthen the sales cycle a little bit.

Speaker #3: Thanks.

Speaker #4: Yeah. I'll start again and jump here. Do you want to chime in? This is Matt. Nice to meet you, Scott. Look, I think, you know, just to echo what Bill said in his remarks, we had a good first half, wasn't quite as good as we thought, and then a subscription-based business, you know, tends to be sticky on both sides a little bit, right?

Speaker #2: And, you know, but early on, the adoption of it was right in the ranges that we expected. You know, over the last quarter or so, we started to see you know, you know, those lengthening sales cycles affect you know, our sales rate on the product.

Speaker #4: So you know, implicit in the midpoint of our guide, is modest improvement, particularly stripping out the impacts of FX in the first half. But I think improvement on a sequential basis, more and more consistent with last year, so I think, you know, a slower build than we saw last year or than than than perhaps we planned over the course of the year, but still building momentum into 2027.

Speaker #2: So the shift you know, that we were make that we're making really is, you know, well, we still believe heavily in the package. We're recalibrating that sales approach, recalibrating our sales incentive.

Speaker #2: And shifting back to where you know, we are selling each of those products individually. And allowing dealers to get to that lifetime program you know, at their own pace by adding product by product as opposed to adding all of the products at the same time.

Speaker #4: Yeah, I think you'll see more of that build in the second half in CARFAX than in B2B. You know, B2B's numbers you know, if you think about Q1 to Q2, you know, that was perhaps more impacted by FX and a strong comp.

Speaker #2: So you know, we've adjusted the incentive for our sales folks and really you know, gone to an approach where we are selling the products individually.

Speaker #4: Then then other parts of the business, you know, B2B has actually been exceeding that relatively flat, and we anticipate, you know, sort of more flat first half, second half.

Speaker #2: And allowing dealers to get to the Lifetime Program at their own pace.

Speaker #4: Scott, but you know, look, there's underlying momentum in the business. You know, for all the reasons that that Bill described, but you know, it's just going to take us a little longer than we thought to to to get to where we want to be.

Speaker #3: Yeah, that's helpful. And just as a quick follow-up, on the revenue guidance, I was wondering if you could give us any color on how we should think about revenue growth rates in CARFAX and B2B in the second half of the year.

Speaker #4: But Bill, 300Q, chime in.

Speaker #1: Yeah. And Scott, stepping back a little bit, you know, what I would say is this is that an enormous amount of work went into our spin.

Speaker #3: Thanks.

Speaker #4: Yeah, I'm sorry. Do you want to chime in? This is Matt. Nice to meet you, Scott. Look, I think, just to echo what Bill said in his remarks, we had a good first half—wasn't quite as good as we thought.

Speaker #1: And you know, the you know, and the conviction we have in the strategic rationale for the spin, just continues to grow as we do that work.

Speaker #1: And you know, we're connecting the data across you know, the 5 businesses of Mobility Global. We're working on getting off the TSAs with S&P you know, I'm encouraged by our subscription revenue growth and the the strength of that over the first half of the year.

Speaker #4: And in a subscription-based business, you know, it tends to be sticky on both sides a little bit, right? So, you know, implicit in the midpoint of our guide is modest improvement, particularly stripping out the impacts of— but I think improvement on a sequential basis; we're more consistent with last year.

Speaker #1: At 8%. You know, with everything we had going on, getting out of S&P and becoming a standalone public company, you know, our innovation engine and you know, bringing new products to market and launching new markets, you know, continued.

Speaker #4: So I think, you know, a slower build than we saw last year or than perhaps we planned over the course of the year, but still building momentum into 2027.

Speaker #4: Yeah, I think you'll see more of that build in the second half in CARFAX than in B2B. You know, B2B's numbers, you know, if you think about Q1 to Q2, you know, that was perhaps more impacted by FX and a strong comp than other parts of the business.

Speaker #1: And so you know, if I look back at Q2, we launched 2 major products at CARFAX US in CARFAX homegrown and CARFAX showroom. Both being received extremely well by the dealer community.

Speaker #4: You know, B2B has actually been excluding—that’s been relatively flat. And we anticipate, you know, sort of more flat in the first half and second half, Scott. But, you know, look, there’s underlying momentum in the business.

Speaker #1: End consumers. And you know, we launched our SMS offers at automotive mastermind in Q2, which is really allowing our current customer base really to take advantage of that service-to-sales motion.

Speaker #4: You know, for all the reasons that Bill described. But you know, it's just going to take us a little longer than we thought to get to where we want to be.

Speaker #1: And then, you know, last but certainly not least, in early July, we were able to launch CARFAX Germany you know, Europe's you know, largest automotive market.

Speaker #4: But Bill, I'll throw you to chime in.

Speaker #2: Yeah. And Scott, stepping back a little bit, you know, what I would say is this is that an enormous amount of work went into our spin.

Speaker #1: Significantly ahead of schedule. So we're really excited about you know, the fact that you know, we're launching new things in you know, into the market right now that will be driving that you know, 27, 28 growth.

Speaker #2: And, you know, the conviction we have in the strategic rationale for the spin just continues to grow as we do that work.

Speaker #2: And, you know, we're connecting the data of Mobility Global. We're working on getting off the TSAs with S&P. You know, I'm encouraged by our subscription revenue growth and the strength of that over the first half of the year.

Speaker #1: So you know, and then you know, while that's going on, you know, we've started returning capital to to to shareholders, you know, Matt talked about that.

Speaker #1: We'll talk about it a little bit more. And you know, as we think about the midterm targets that we put out, we still have you know, strong confidence in that.

Speaker #2: At 8%. You know, with everything we had going on, getting out of S&P and becoming a standalone public company, you know, our innovation engine and you know, bringing new products to market and launching new markets, you know, continued.

Speaker #1: You know, with the 7 and a half to 10% and you know, you know, 50 you know, basis points of margin expansion. So you know, we're we're we're feeling very good about what we laid out at Investor Day.

Speaker #2: And so you know, if I look back at Q2, we launched two major products at CARFAX US in CARFAX homegrown and CARFAX showroom. Both being received extremely well by the dealer community.

Speaker #1: So thank you for the question.

Speaker #3: Great. Thanks, guys.

Speaker #4: Mm-hmm.

Speaker #2: Our next question comes from Craig Huber with Huber Research Partners. Please proceed with your question.

Speaker #2: End consumers. And you know, we launched our SMS offers at automotive mastermind in Q2, which is really allowing our current customer base really to take advantage of that service-to-sales motion.

Speaker #5: Oh, great. Thank you. When you had your Investor Day a few months ago, I thought one of the most interesting things you guys talked about was that you wanted to integrate the your database together with the B2B side versus the CARFAX side.

Speaker #2: And then, you know, last but certainly not least, in early July, we were able to launch CARFAX Germany you know, Europe's you know, largest automotive market.

Speaker #5: Frankly, I was surprised that wasn't done already. Underneath S&P Global or underneath IHS Market, but that's water under the bridge now. Can you just go through for us real quick A, how long that's going to take?

Speaker #2: Significantly ahead of schedule. So we're really excited about you know, the fact that you know, we're launching new things in you know, into the market right now that will be driving that you know, 27, 28 growth.

Speaker #5: What kind of cost that might be that's that's in your numbers, I assume. I think you've talked about that. And what the major benefits are?

Speaker #5: Not real long here, but just what's the highlights here about how that's going to benefit you guys going forward here? And I got I have 2 other questions.

Speaker #5: Thank you.

Speaker #2: So you know, and then you know, while that's going on, you know, we've started returning capital to shareholders. You know, Matt talked about that.

Speaker #1: Sure, Craig. And you know, what I would say is and one of the things I mentioned I was really proud of the team and the way that we've gone through this process.

Speaker #1: You know, we really started the journey 14 months ago of setting up our our business as a standalone public company. The teams and you know, the data operations teams and our tech teams have gone through this process, not just building so that we could function on day 1, but really setting us up for the next you know, 5 to 10 years and are doing the activities that we need to do in order to build that foundation for bringing those 5 businesses together and leveraging it.

Speaker #2: We'll talk about it a little bit more. And you know, as we think about the midterm targets that we put out, we still have you know, strong confidence in that.

Speaker #2: You know, with the 7.5 to 10% and you know, you know, 50 you know, basis points of margin expansion. So you know, we're feeling very good about what we laid out at Investor Day.

Speaker #2: Thank you for the question.

Speaker #1: And so you know, I I would say that we've made a ton of progress on that front. We continue to make more, but you know, I can give you just a couple of examples.

Speaker #3: Great. Thanks, guys.

Speaker #2: Mm-hmm.

Speaker #1: Our next question comes from Craig Huber with Huber Research Partners. Please proceed with your question.

Speaker #5: Oh, great. Thank you. When you had your Investor Day a few months ago, I thought one of the most interesting things you guys talked about was that you wanted to integrate the your database together with the B2B side versus the CARFAX side.

Speaker #1: In the past, the CARFAX business built their product plans. The automotive mastermind, you know, team built their product plans. Those teams have come together and have joint product plans that they've built, where we will be you know, really cross-sharing information and really serving especially our our our our joint dealers between those 2 2 businesses information on the mastermind side and information on the CARFAX side to really draw drive more effective products both at CARFAX and mastermind for those dealers.

Speaker #5: Frankly, I was surprised that wasn't done already. Underneath S&P Global or underneath IHS Market. But that's water under the bridge now. Can you just go through for us real quick A, how long that's going to take?

Speaker #5: What kind of cost that might be? That's in your numbers, I assume. I think you've talked about that. And what the major benefits are.

Speaker #5: Not real long here, but just what's the highlights here about how that's going to benefit you guys going forward here? And I have two other questions.

Speaker #1: Another good example is I mentioned we launched Germany you know, we you know, recently in the in the in the last year launched Italy as well.

Speaker #5: Thank you.

Speaker #2: Sure, Craig. And you know, what I would say is and one of the things I mentioned I was really proud of the team and the way that we've gone through this process.

Speaker #1: And when I think of building our our you know, our data platform in Europe, you know, for ingesting the data as well as creating the insights, that you know, 3 years ago, 4 years ago, would have been done at those respective countries through CARFAX Europe.

Speaker #2: You know, we really started the journey 14 months ago of setting up our business as a standalone public company. The teams, and you know, the data operations teams and our tech teams, have gone through this process not just building so that we could function on day one, but really setting us up for the next, you know, five to ten years, and are doing the activities that we need to do in order to build that foundation for bringing those five businesses together and leveraging it.

Speaker #1: And today we're leveraging the CARFAX US ingestion and insights platform to to one move faster, but get a lot more out of the data coming in.

Speaker #1: So you know, we're already realizing the benefits of it, but you know, it's a multi-year journey. So I look at it as we're seeing you know, really strong benefits today, but we're you know, we have line of sight into more benefits coming online over the next you know, year or 2.

Speaker #2: And so, as you know, I would say that we've made a ton of progress on that front. We continue to make more, but I can give you just a couple of examples.

Speaker #5: Do you think roughly about 2 years from now it'll be complete?

Speaker #2: In the past, the CARFAX business built their product plans. The automotive mastermind, you know, team built their product plans. Those teams have come together and have joint product plans that they've built, where we will be you know, really cross-sharing information and really serving especially our joint dealers between those two businesses information on the mastermind side and information on the CARFAX side to really draw drive more effective products, both at CARFAX and mastermind for those dealers.

Speaker #1: Yeah. That's about what I would say. Yeah, I think that that's a that's a reasonable reasonable assumption.

Speaker #5: Okay. My unrelated question is, with all this renewed on turmoil over in the Middle East, do you feel that that is impacting any of your businesses?

Speaker #5: And if so, which ones? I mean, we have obviously seen it with some other companies getting impacted by that. But I'd like to hear your thoughts on that and your businesses.

Speaker #4: Yeah. I'll I'll start. I think we've seen it on the margins, right? And maybe we talked about this in the prepared remarks, but and you look at the numbers, right?

Speaker #2: Another good example is I mentioned we launched Germany you know, we you know, recently in the last year launched Italy as well. And when I think of building you know, our data platform in Europe you know, for ingesting the data as well as creating the insights, that you know, three years ago, four years ago, would have been done at those respective countries through CARFAX Europe.

Speaker #4: What was affected are transactional business and particularly transactional business internationally, right? So you know, Canadian auto market's been tough. Our planning business you know, felt the impacts.

Speaker #4: You see that in the numbers. And sort of B2Bs, both transactional and international numbers, for the quarter. So I wouldn't say it's a significant driver, but on the margins, it certainly had an impact.

Speaker #2: And today we're leveraging the CARFAX US ingestion and insights platform to one move faster, but get a lot more out of the data coming in.

Speaker #5: And my other question, obviously you guys spent a heck of a lot of time here. Helping to put together the whole spin with the separation of company from S&P and stuff.

Speaker #2: So you know, we're already realizing the benefits of it. But you know, it's a multi-year journey. So I look at it as we're seeing you know, really strong benefits today.

Speaker #5: I mean, took a lot of executives' time to get that done. Just curious, do you think that impacted at all your operations here versus how you were thinking things were going to go say a few months ago?

Speaker #2: But you know, we have line of sight into more benefits coming online over the next you know, year or two.

Speaker #1: Yeah. And you know, Craig, the thing I would say is this, is that of course, I mean, the if you're doing taking on something as large as that, you know, we'd be naive to say it didn't have an impact at all.

Speaker #5: Do you think roughly in about two years from now, it'll be complete?

Speaker #2: Yeah. That's about what I would say. Yeah, I think that that's a that's a reasonable reasonable assumption.

Speaker #5: Okay. My unrelated question is, with all this renewed turmoil over in the Middle East, do you feel that is impacting any of your businesses?

Speaker #1: The reality is and you know, a bit like you your previous question, you know, US business is one of the growth engines of this business.

Speaker #5: And if so, which ones? I mean, we've obviously seen that with some other companies getting impacted by that. But I'd like to hear your thoughts on that and your businesses.

Speaker #1: And we tried something toward the end of last year into the beginning of this year. It worked, but not as well as we thought.

Speaker #4: Yeah, I'll start. I think we've seen it on the margins, right? And maybe we talked about this in the prior remarks, but you look at the numbers, right?

Speaker #1: If it would have worked the way that we thought, you know, I think that in spite of all the things going on, we would have been where we wanted to be.

Speaker #4: What was affected our transactional business and particularly transactional business internationally, right? So you know, Canadian auto market's been tough. Our planning business you know, felt the impacts.

Speaker #1: So you know, we we have a you know, Scott and the team and you know, as a leadership team, a focus coming out of Q2 to say, let's get that go-to-market right, and let's continue to figure out areas where we can execute better.

Speaker #4: You see that in the numbers and sort of B2Bs, both transactional and international numbers. For the quarter. So I wouldn't say it's a significant driver, but on the margins, it certainly had an impact.

Speaker #1: And I feel like the getting our performance to where we want it to be in spite of all those things going on is in our control.

Speaker #5: In my other question, obviously you guys spent a heck of a lot of time here. Helping to put together the whole spin with the separation of company from S&P and stuff.

Speaker #1: And so you know, I think that I'm happy to see the team trying things like that. I'm happy to see them learning from it and and and and pivoting.

Speaker #5: I mean, it took a lot of executives' time to get that done. Just curious, do you think that impacted at all your operations here versus how you were thinking things were going to go, say, a few months ago?

Speaker #1: And you know, I'm confident that they'll make the right adjustments and we'll get it you know, back on track and where it needs to be.

Speaker #1: And you know, I think that that has more to do with how we're executing and going to market than than anything else.

Speaker #2: Yeah. You know, Craig, the thing I would say is this, is that of course, I mean, the if you're doing taking on something as large as that, you know, we'd be naive to say it didn't have an impact at all.

Speaker #5: Great. That's all I had. Thank you.

Speaker #2: Thank you. We ask that each analyst limit themselves to 1 question and a follow-up so that others have an opportunity to do so. Our next question is from Jeff Mueller with Baird.

Speaker #2: The reality is and you know, a bit like your previous question, you know, the CARFAX US business is one of the growth engines of this business.

Speaker #2: Please proceed with your question.

Speaker #3: Yeah. Thank you. For CARFAX US, can you just remind us from a rooftop penetration or runway perspective where things stand for, I guess, the 3 main products advantage listings and service loyalty?

Speaker #2: And we tried something toward the end of last year and into the beginning of this year. It worked, but not as well as we thought.

Speaker #2: If it would have worked the way that we thought, you know, I think that in spite of all the things going on, we would have been where we wanted to be.

Speaker #3: I'd imagine advantage is pretty high, listings you have a lot of revenue. It's less clear to me where service loyalty stands. So it'd be helpful to know where things stand relative to opportunity.

Speaker #2: So you know, we have a you know, Scott and the team and you know, as a leadership team, a focus coming out of Q2 to say, let's get that go-to-market right and let's continue to figure out areas where we can execute better.

Speaker #1: Sure. You know, the you know, we I don't think you know, we haven't given exact numbers on each of those products. But I'm happy to talk to you about you know, kind of how we view the 3 products and the opportunity that exists within each.

Speaker #2: And I feel like getting our performance to where we want it to be, in spite of all those things going on, is in our control.

Speaker #2: And so you know, I think that I'm happy to see the team trying things like that. I'm happy to see them learning from it and pivoting.

Speaker #1: You know, on our advantage program, which is our our our base program, you know, we continue to add value to that program. You know, we think we have the opportunity to add more dealers to that program.

Speaker #2: And you know, I'm confident that they'll make the right adjustments and we'll get it you know, back on track and where it needs to be.

Speaker #2: And, you know, I think that has more to do with how we're executing and going to market than anything else.

Speaker #1: You know, we're highly penned in the franchise dealer space, but we have a lot of opportunity in the independent dealer space. And and think that that you know, product has the ability to be a steady growth product for us for the next 5 years.

Speaker #5: Great. That's all I had. Thank you.

Speaker #1: Thank you. We ask that each analyst limit themselves to one question and a follow-up, so that others have an opportunity to participate. Our next question is from Jeff Mueller with Baird.

Speaker #1: On our listings product, we we we have a lot of green fields in front of us. We're of the 4 players in that space.

Speaker #1: Please proceed with your question.

Speaker #1: We're the newest of the 4. We you know, and so we've had nice steady growth since we launched that product. 12, 13 years ago.

Speaker #3: Yeah. Thank you. For CARFAX US, can you just remind us from a rooftop penetration or runway perspective where things stand for I guess the three main products advantage listings and service loyalty?

Speaker #1: And feel like we can continue to do that. We just launched you know, our premium product this quarter. That's our first premium product. On our listings site.

Speaker #3: I'd imagine advantage is pretty high. Listings, you have a lot of revenue. It's less clear to me where service loyalty stands. So it'd be helpful to know where things stand relative to opportunity.

Speaker #1: And then you know, last but not least, our CARFAX loyalty program. And I would say that you know, if I think of the dealers franchise dealers we have on advantage right now, less than half of them are on that product.

Speaker #2: Sure. You know, the you know, we I don't think you know, we haven't given exact numbers on each of those products. But I'm happy to talk to you about you know, kind of how we view the three products and the opportunity that exists within each.

Speaker #1: And the ones that are seeing a great ROI, and so you know, we just see nothing but good growth coming out of that as we continue to grow that product.

Speaker #2: You know, on our advantage program, which is our base program, you know, we continue to add value to that program. You know, we think we have the opportunity to add more dealers to that program.

Speaker #4: Yeah. Jeff would say.

Speaker #3: Thank you. And.

Speaker #4: The average dealer the average dealer has fewer between 1 and a half and 2 products. And you have to have advantage. So I think to give you a sense of the order of magnitude, you know, behind the relative penetration to the.

Speaker #2: You know.

Speaker #5: Yeah. Thank you. I was just trying to kind of understand the go-to-market changes that are happening in maybe some reason behind them. On B2B subscriptions, so we have I know you gave us more historical data today, but we still have somewhat limited data.

Speaker #5: The subscription growth in B2B was outsized in Q1. It slowed somewhat in Q2. I think there was a call out of a tough comp.

Speaker #5: It's but just can you walk through what's going on there and anything from comps, anniversary, acquisition contribution, and then underlying trends?

Speaker #4: Yeah. I think if you think about comparing Q2 on a year-over-year basis to 2 factors, right? One is FX, right? And then the other is maybe a particularly strong Q2 last year.

Speaker #4: And our sales solutions business, which makes the numbers look a little wonky. And a sequential basis, it's much more stable. So there's nothing really on an underlying basis going on Q1 to Q2 in in the B2B space.

Speaker #4: It came out, you know, certainly on the subscription side, roughly in line with what we anticipated. You know, that said, we need to improve it.

Speaker #4: And I think, you know, that is an area of focus. For for Joe, and Aaron, and Kristen, and the team, is to continue to drive up, you know, the underlying growth rate from whatever was 6% in the first half, you know, to to the to the high single digits.

Speaker #4: So it's got some work to do. But I wouldn't read too much into the Q1 to Q2 numbers this year. As I said, it is it it there's a really more affected by a tough comp.

Speaker #4: From last year and and the impact of FX.

Speaker #3: Thank you.

Speaker #5: Thank you.

Speaker #2: Our next question comes from Ashish Sadra with RBC Capital Markets. Please proceed with your question.

Speaker #6: Hey. Good morning, guys. This is Will Chee on for Ashish Sadra. I appreciate you guys taking a question. Really really great to hear kind of the updates on the One Mobility program with kind of combining datasets, the automotive mastermind collaboration, now that you're on the halfway mark there, what what's kind of the next big opportunities that you see in the pipeline?

Speaker #6: How should we think about, you know, as pace of synergies start to flow through things?

Speaker #1: Sure. And you know, if if you think about it, you know, I I mentioned the mastermind CARFAX. You know, the place that we see the most immediate opportunity is, you know, we mentioned the 53 million car care users at CARFAX.

Speaker #1: And automotive mastermind having 3,200 dealers that they're helping generate new car offers for. We see the opportunity you know, to take the offers for those 3,200 dealers and activate them in our car care platform.

Speaker #1: You know, there's a ton of overlap between those you know, 53 million car care users and the dealer customers that automotive mastermind is is putting customized unique offers to.

Speaker #1: And so you know, as the team met, they feel like that's low hanging fruit that we can go after that will immediately have impact on both the value that we deliver in the car care product as well as the effectiveness of the campaigns that mastermind is running for those dealers.

Speaker #1: The other place that we're seeing opportunity is in international expansion. And as we're bringing you know, the the assets and processes and you know, strength of the company coming together, 2 new markets like Germany, Italy, Spain, you know, we are able to ramp significantly quicker than we would have, say, 3 years ago.

Speaker #1: And building out partner networks, building out dealer networks, establishing the brand, getting the product to a really valuable place for consumers in those markets where demand for a strong vehicle history product is high.

Speaker #1: And we feel like we're able to step in and and and establish our leadership position in those markets. And so you know, we're optimistic on you know, you know, we we had mentioned 3 growth vectors that investor day.

Speaker #1: Processes and, you know, strength of the company coming together. Two new markets, like Germany, Italy, Spain—you know, we are able to ramp significantly quicker than we would have, say, three years ago.

Speaker #1: One was enhancing our current products and adding value to them allowing us to take price and add new customers. And you know, we're seeing that the you know, coming to fruition.

Speaker #1: The second is launching new products and you know, we saw that in Q2. And we you know, we'll continue to see that in the second half.

Speaker #1: And building out partner networks, building out dealer networks, establishing the brand, getting the product to a really valuable place for consumers in those markets where demand for a strong vehicle history product is high, and we feel like we're able to step in and establish our leadership position in those markets.

Speaker #1: And then you know, the third was launching you know, new markets and expanding you know, our footprint. And you know, I'm really excited and happy to see that we're we're accelerating that that schedule and moving markets like Germany up from our original you know, launch day expectation.

Speaker #1: And so, you know, we're optimistic on—you know, we had mentioned three growth vectors at Investor Day. One was enhancing our current products and adding value to them, allowing us to take price and add new customers.

Speaker #1: So. But thank you.

Speaker #6: Got it. Got it. Thank you. And maybe just as a quick follow-up, on on the guidance, if if you guys are able to provide a little bit more color, I guess maybe around assumptions on the macro or industry backdrop, how that kind of feeds in, you know, maybe what considerations are for the for the high end versus low end.

Speaker #1: And, you know, we're seeing that, you know, coming to fruition. The second is launching new products and, you know, we saw that in Q2, and, you know, we'll continue to see that in the second half.

Speaker #6: Are you kind of assuming a continuation of trends that you're seeing right now?

Speaker #1: And then, you know, the third was launching, you know, new markets and expanding, you know, our footprint. And, you know, I'm really excited and happy to see that we're accelerating that schedule and moving markets like Germany up from our original, you know, launch day expectation.

Speaker #4: Yeah. We're not assuming any improvement in the macro in the back half. Right. That's that's that's that's the foundational.

Speaker #2: Our next question comes from Tony Kaplan with Morgan Stanley. Please proceed with your question. Thanks so much. So you've talked about recalibrating the go-to-market approach.

Speaker #1: So. But thank you.

Speaker #2: Got it. Got it. Thank you. And maybe just as a quick follow-up on the guidance — if you guys are able to provide a little bit more color, I guess maybe around assumptions on the macro or industry backdrop, how that kind of feeds in. You know, maybe what the considerations are for the high-end versus the low-end.

Speaker #2: And I wasn't sure on when you started to make those changes. But I was wondering if you're already starting to see improvement there and I was wondering also if that was what was sort of embedded in the point that you made on the guidance slide that revenue implies a sequential improvement in the back half.

Speaker #2: Are you kind of assuming a continuation of the trends that you're seeing right now?

Speaker #3: Yeah, we're not assuming any improvement in the macro or in the back half.

Speaker #2: And so just is that what's driving the improvement, or are there other factors? And do you think that the rev guide is now de-risked and you know, how confident are you?

Speaker #2: Got it. Thank you very much.

Speaker #3: I think that's the foundational.

Speaker #2: Our next question comes from Tony Kaplan with Morgan Stanley. Please proceed with your question. Thanks so much. So you've talked about recalibrating the go-to-market approach, and I wasn't sure on when you started to make those changes, but I was wondering if you're already starting to see improvement there and I was wondering also if that was what was sort of embedded in the point that you made on the guidance slide that revenue implies a sequential improvement in the back half.

Speaker #2: Thanks.

Speaker #4: Yeah. I'll I'll I'll start, Tony. I think we we might make that pivot in June. And you know, I feel comfortable with sort of early momentum in that space.

Speaker #4: That that's part of why there's you know, you're going to see sequential improvement in the back half. Part of it is the new products we launched, the build described, and part of it is you know, just our overall view where the the business is.

Speaker #4: So you know, I think we feel comfortable with the guide. It it doesn't you know, imply excluding FX improvement from the first half, second half, and sequential growth and consistent with last year.

Speaker #2: And so just, is that what's driving the improvement, or are there other factors? And do you think that the rev guide is now de-risked and, you know, how confident are you?

Speaker #4: Again, it sort of bound it from a risk perspective. But we're not assuming as I said in the previous caller any material improvement in the macro situation.

Speaker #2: Thanks.

Speaker #3: Yeah, I'll start, Tony. I think we went with that pivot in June, and, you know, I feel comfortable with sort of early momentum in that space.

Speaker #1: Yeah.

Speaker #2: Okay. And then for my follow-up, you've gotten this question a number of times in the past. But I was hoping you could talk about how your value proposition changes for an autonomous vehicle manufacturer.

Speaker #3: That's part of why there's, you know, you're going to see sequential improvement in the back half. Part of it is the new products we launched—the PhilDescribe—and part of it is, you know, just our overall view of where the business is.

Speaker #3: So, you know, I think we feel comfortable with the guide. It does imply, excluding FX, improvement from the first half to the second half, and sequential growth consistent with last year.

Speaker #2: You know, just putting aside that it's a very small part of the market now and could take a lot of time before it becomes more meaningful.

Speaker #2: But I guess, are there services that you offer AV manufacturers and do you have customers right now that are focused sort of exclusively on on AV?

Speaker #3: Again, it sort of bound it from a risk perspective. But we're not assuming as I said in the previous caller any material improvement in the macro situation.

Speaker #2: Thanks.

Speaker #1: Sure. Sure. And the the answer to that is yes. You know, if you think of things like our global forecast, they involve you know, every type of vehicle being manufactured anywhere in the world.

Speaker #1: Yeah.

Speaker #2: Okay. And then for my follow-up, you've gotten this question a number of times in the past, but I was hoping you could talk about how your value proposition changes for an autonomous vehicle manufacturer.

Speaker #1: And you know, you you you the those you know, we say that we do business with 40 of the top 40 manufacturers globally. And you know, they are all trying to figure out how the vehicles they're manufacturing fit in to that you know, global market.

Speaker #2: You know, just putting aside that it's a very small part of the market now and could take a lot of time before it becomes more meaningful, but I guess, are there services that you offer AV manufacturers and do you have customers right now that are focused sort of exclusively on AV?

Speaker #1: And you know, when I think of tools like FAST that we're releasing now, giving them the capability of running you know, many, many you know, scenarios as they decide you know, how many vehicles they're going to manufacture.

Speaker #2: Thanks.

Speaker #1: Sure. Sure. And the answer to that is yes. You know, if you think of things like our global forecast, they involve, you know, every type of vehicle being manufactured anywhere in the world.

Speaker #1: What markets they're going to you know, introduce those market those vehicles in, how their actions will impact the market, how others putting different assumptions in, so on and so forth.

Speaker #1: And, you know, those, you know, we say that we do business with 40 of the top 40 manufacturers globally. And, you know, they are all trying to figure out how the vehicles they're manufacturing fit in to that, you know, global market.

Speaker #1: And so you know, I think that you know, when you think of the market evolving over time, you know, you had mentioned it. It might be a small portion today.

Speaker #1: But you know, we really want to plan for not just today, but for tomorrow. And so you know, we want to be there and we want to be providing them with the information they need to be making the decisions that impact their next 5 to 10 years.

Speaker #1: And so you know, we provide that today. But you know, that type of data and that type of information is important for all 40 of those OEMs as they plan their their their product set.

Speaker #1: So yes, we we we definitely do business with you know, with those manufacturers. And and the information is critical to them. And it's also critical to you know, the the the the OEMs that are not you know, you know, delivering that type of product right now.

Speaker #2: Thank you. Our next question comes from Manav Patnaik with Barclays. Please proceed with your question.

Speaker #1: And, you know, when I think of tools like FAST that we're releasing now, giving them the capability of running many, many scenarios as they decide, you know, how many vehicles they're going to manufacture, what markets they're going to, you know, introduce those markets, those vehicles in, how their actions will impact the market, how others putting different assumptions in, so on and so forth.

Speaker #5: Hi. Good morning. It's Wahid id Aminov from Manav. Underrevised guidance. And so you're not assuming any macro improvement in B2B is expected to be pretty stable.

Speaker #5: Are you seeing the main variable that'll get you to your guidance range, especially the high end, is the pace of improvement in CARFAX? Or are there other items that conveniently influence where you land?

Speaker #1: And so, you know, I think that, you know, when you think of the market evolving over time, you know, you had mentioned it, it might be a small portion today, but, you know, we really want to plan for not just today but for tomorrow, and so, you know, we want to be there and we want to be providing them with the information they need to be making the decisions that impact their next 5 to 10 years.

Speaker #4: Yeah. I think we talked about how sequentially first half to second half, you know, more of the growth XFX will come from from CARFAX.

Speaker #4: But you know, we gave a reasonably narrow range, right? You know, transactional will have an impact. FX will have an impact. You know, as well as how quickly we build.

Speaker #1: And so, you know, we provide that today, but, you know, that type of data and that type of information is important for all 40 of those OEMs as they plan their product set.

Speaker #4: We do see momentum in the business. We're building. We're building you know, not just for the back half of this year into 2027. But all those factors are incorporated.

Speaker #1: So yes, we definitely do business with, you know, with those manufacturers and the information is critical to them, and it's also critical to, you know, the OEMs that are not, you know, you know, delivering that type of product right now.

Speaker #5: And then on the comment made about fewer than half of the franchise advantage dealers using service loyalty, despite it having a strong ROI, what's been historically the limited adoption?

Speaker #5: And does returning to, you know, different sales motion make that opportunity easier to capture?

Speaker #2: Thank you. Our next question comes from Manav Patnaik with Barclays. Please proceed with your question.

Speaker #1: Yes. And what I would say is this, is that you know, the when I look at how many franchise dealers use our advantage product, you know, we're highly highly penned.

Speaker #4: Hi, good morning. It's Wahid Aminan from Manav. On the revised guidance, since you're not assuming any macro improvement in B2B is expected to be pretty stable, are you seeing the main variable that'll get you to your guidance range, especially the high end, is the pace of improvement in CARFAX?

Speaker #1: So you know, if you look in our space, most most you know, folks that that deliver services to dealers would love to have half the franchise dealers in the country using the their products.

Speaker #4: Or are there other items that conveniently influence where you land?

Speaker #1: I would say that the the service loyalty product is a a longer-term product for the dealer, where they're building over time. And so with us and you know, I'm seeing more and more dealers focused on that, that service loyalty piece of their business.

Speaker #3: Yeah, I think we talked about how sequentially first half to second half, you know, more of the growth, XFX, will come from CARFAX, but, you know, we gave a reasonably narrow range, right?

Speaker #1: You know, I a number of questions on our go-to-market at CARFAX. One of the the reasons that sales cycle is longer is that when we're selling our listings product, that generally is a product that that a a sales manager or a general manager, the dealership is signing up for.

Speaker #3: You know, transactional will have an impact; FX will have an impact, you know, as well as how quickly you build. We do see momentum in the business.

Speaker #3: We're building. We're building not just for the back half of this year into 2027, but all those factors are incorporated.

Speaker #1: Whereas our service loyalty product is one where the service leadership, the service manager, and the dealership is signing up for it. So you're in essence getting two yeses in order to put those products in versus selling them à la carte where you need to get to one yes.

Speaker #4: And then on the comment made about fewer than half of the franchise advantage dealers using service loyalty, despite it having a strong ROI, what's been historically the limited adoption?

Speaker #4: And does returning to, you know, different sales motion make that opportunity easier to capture?

Speaker #1: And so you know, I think that what what we've seen though in our you know, our our service loyalty product is once we have it installed and it's being used at the dealership, it tends to have a very high retention rate because of the ROI.

Speaker #1: Yeah, so what I would say is this, is that, you know, the when I look at how many franchise dealers use our advantage product, you know, we're highly penned.

Speaker #1: And it's you know, it it it it's one that we can go in and work with the dealer so they can see just how many people are coming back to their service lanes based on the the the CARFAX reminding them to do so.

Speaker #1: So, you know, if you look in our space, most folks that deliver services—dealers would love to have half the franchise dealers in the country using their products.

Speaker #1: So it's a product we have a lot of confidence in as we move forward. And it will become a bigger and bigger part of our offering.

Speaker #1: I would say that the service loyalty product is a longer-term product for the dealer, where they're building over time. And so with us, and, you know, I'm seeing more and more dealers focused on that, that service loyalty piece of their business.

Speaker #5: Thank you.

Speaker #2: Our next question comes from Keegan Aniko with Wells Fargo. Please proceed with your question.

Speaker #6: Hey. Good morning. This is Keegan Antico Unford, Jason Haas. Can you just describe the moat around your B2B business and particularly the bulk database?

Speaker #1: You know, there are a number of questions about our go-to-market at CARFAX. One of the reasons the sales cycle is longer is that when we're selling our listings product, that is generally a product that a sales manager or a general manager at the dealership is signing up for, whereas our service loyalty product is one where the service leadership, the service manager at the dealership, is signing up for it.

Speaker #6: I understand that some of this data can be purchased, but I think you might have privilege economics to get the entire data set. So can you just describe why nobody else is able to get this data at the same breadth and depth that you're able to?

Speaker #6: Thanks.

Speaker #1: Yeah. And and and almost think about it in two ways. One way is where the database you know, sits today as we're adding more and more data to it.

Speaker #1: So you're, in essence, getting two yeses in order to put those products in, versus selling them à la carte, where you need to get to one yes.

Speaker #1: And I think we we're fortunate in our unique position in the industry. To be able to capture a lot of data from different connection points that that we have because of that position.

Speaker #1: And so, you know, I think that what we've seen, though, in our service loyalty product is that once we have it installed and it's being used at the dealership, it tends to have a very high retention rate because of the ROI.

Speaker #1: And then the second piece is the the longitudinal nature of that data. A lot of the questions that people have and want answered and insights that are derived are not just derived from the current information, but the trends over the last 10, 15 years, 20 years.

Speaker #1: And it's one that we can go in and work with the dealer so they can see just how many people are coming back to their service lanes, based on the CARFAX reminding them to do so.

Speaker #1: And when you look at a lot of that data, you know, the the data you know, some of that data that's 7 years old, 12 years old, 15 years old, just doesn't exist anymore anywhere else.

Speaker #1: So, it's a product we have a lot of confidence in as we move forward, and it will become a bigger and bigger part of our offering.

Speaker #1: And so that that advantage that we have of having the the the the the past 20 years and all those connection points elevates the the quality of our data.

Speaker #4: Thank you.

Speaker #2: Our next question comes from Keegan Aniko with Wells Fargo. Please proceed with your question.

Operator: Greetings, and welcome to Mobility Global's Q2 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tejal Engman, Managing Director of Investor Relations. Thank you. You may go ahead.

Operator: Greetings, and welcome to Mobility Global's Q2 2026 earnings conference call and webcast. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tejal Engman, Managing Director of Investor Relations. Thank you. You may go ahead.

Speaker #5: Hey, good morning. This is Keegan Aniko. I'm calling for Jason Haas. Can you just describe the moat around your B2B business, and particularly the bulk database?

Speaker #1: And and and in turn, the quality of the insights because of the depth of that data.

Speaker #6: Got it. Thank you.

Speaker #5: I understand that some of this data can be purchased, but I think you might have privilege economics to get the entire data set. So can you just describe why nobody else is able to get this data at the same breadth and depth that you're able to?

Speaker #2: Our next question comes from Rajiv Beja with Morningstar. Please proceed with your question.

Speaker #7: Good morning. Pleasure to join the call. I have a big picture question on the listings business. So since launching it in 2014, it's clearly become an important contributor for you guys.

Speaker #5: Thanks.

Speaker #1: Yeah, and almost think about it in two ways. One way is where the database, you know, sits today as we're adding more and more data to it.

Speaker #7: But as CARFAX has expanded further into listings, how do you think about the potential channel conflict with marketplace customers, particularly given that some marketplaces have switched to experienced auto checks?

Tejal Engman: Good morning, and thank you for joining Mobility Global's Q2 2026 earnings call. Presenting on today's call are Bill Eager, Chief Executive Officer, and Matt Calderone, Chief Financial Officer. The earnings release referenced in this call, as well as our quarterly earnings presentation and the associated quarterly report on Form 10-Q, can be found in the investor relations section of our website, mobilityglobal.com. The earnings release has also been attached to an 8-K that we furnished to the SEC. As set forth in more detail in today's earnings release, I will remind everyone that today's call may include forward-looking statements about Mobility Global's future performance, including those related to our full year 2026 guidance. Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is contained in our recent SEC filings.

Tejal Engman: Good morning, and thank you for joining Mobility Global's Q2 2026 earnings call. Presenting on today's call are Bill Eager, Chief Executive Officer, and Matt Calderone, Chief Financial Officer. The earnings release referenced in this call, as well as our quarterly earnings presentation and the associated quarterly report on Form 10-Q, can be found in the investor relations section of our website, mobilityglobal.com. The earnings release has also been attached to an 8-K that we furnished to the SEC. As set forth in more detail in today's earnings release, I will remind everyone that today's call may include forward-looking statements about Mobility Global's future performance, including those related to our full year 2026 guidance. Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is contained in our recent SEC filings.

Speaker #1: And I think we're fortunate, in our unique position in the industry, to be able to capture a lot of data from different connection points that we have because of that position.

Speaker #7: I guess more broadly, how do you balance the growth opportunity in listings against the risk risk of creating a greater opening for competitors such as auto checks?

Speaker #1: And then the second piece is the longitudinal nature of that data. A lot of the questions that people have and want answered and insights that are derived are not just derived from the current information, but the trends over the last 10, 15 years, 20 years.

Speaker #7: And then I have one follow-up.

Speaker #1: Sure. And you know, the the the way I think of that, you know, and I'll I'll just talk about you know, competition in in general.

Speaker #1: You know, if you think of you know, where we sit, you know, and the the power and uniqueness of our our our core assets, you know, whether that's our brands, data, customer relationships, you know, we great confidence in those.

Speaker #1: And when you look at a lot of that data, you know, the data some of that data that's 7 years old, 12 years old, 15 years old, just doesn't exist anymore anywhere else.

Speaker #1: And so that advantage that we have of having the past 20 years and all those connection points elevates the quality of our data and, in turn, the quality of the insights because of the depth of that data.

Speaker #1: And you know, always been you know, a a a competitive market. You know, and from time you know, time we see different pockets of increased competition.

Tejal Engman: A reconciliation of reported and historic non-GAAP financial measures discussed on this call, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow, is provided in our 8-K and in today's earnings presentation hosted in the investor relations section of our website, which again is mobilityglobal.com. However, we are not able to provide a reconciliation of forward-looking non-GAAP financial measures to the most recently comparable financial measures calculated and reported in accordance with GAAP, as we are unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing for these items are uncertain and could be material to our results calculated in accordance with GAAP. With that, let me turn the call over to our CEO, Bill Eager.

Tejal Engman: A reconciliation of reported and historic non-GAAP financial measures discussed on this call, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow, is provided in our 8-K and in today's earnings presentation hosted in the investor relations section of our website, which again is mobilityglobal.com. However, we are not able to provide a reconciliation of forward-looking non-GAAP financial measures to the most recently comparable financial measures calculated and reported in accordance with GAAP, as we are unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timing for these items are uncertain and could be material to our results calculated in accordance with GAAP. With that, let me turn the call over to our CEO, Bill Eager.

Speaker #1: You know, for us, we've always been hyper-focused on the consumer and the needs of the consumer. And making sure that we're delivering a product that you know, is the best possible product that consumer you know, could have.

Speaker #5: Got it. Thank you.

Speaker #2: Our next question comes from Rajiv Basha with Morningstar. Please proceed with your question.

Speaker #1: And so you know, we we look at where the consumer is getting that report. And the you know, the number one place consumers get their reports are from the dealer, whether it it it's physically at the dealership or from the dealer's website, the form a a a of a a digital report.

Speaker #6: Good morning. It's a pleasure to join the call. I have a big-picture question on the listings business. Since launching it in 2014, it's clearly become an important contributor for you guys.

Speaker #6: But as CARFAX has expanded further into listings, how do you think about the potential channel conflict with marketplace customers, particularly given that some marketplaces have switched to experienced auto-checks?

Bill Eager: Thanks, Tejal, and good morning, everyone. It's great to welcome you to Mobility Global's first earnings call. When I spoke with you at Investor Day, we were still part of S&P Global. Today, we are a standalone publicly traded company. Over the past 12 months, our teams have worked tirelessly to make that possible, while also advancing our journey to bring together five previously separated businesses. I want to thank them for their dedication, their expertise, and extraordinary effort to help us achieve this complex milestone. Having spent the past 22 years with the company, I am proud of the exceptional assets, strong team, and distinctive capabilities we've built. They give me confidence in our opportunity and what we can deliver.

Bill Eager: Thanks, Tejal, and good morning, everyone. It’s great to welcome you to Mobility Global’s first earnings call. When I spoke with you at Investor Day, we were still part of S&P Global. Today, we are a standalone, publicly traded company. Over the past 12 months, our teams have worked tirelessly to make that possible, while also advancing our journey to bring together five previously separated businesses. I want to thank them for their dedication, their expertise, and extraordinary effort to help us achieve this complex milestone. Having spent the past 22 years with the company, I am proud of the exceptional assets, strong team, and distinctive capabilities we’ve built. They give me confidence in our opportunity and in what we can deliver.

Speaker #6: I guess more broadly, how do you balance the growth opportunity in listings against the risk of creating a greater opening for competitors such as auto-checks?

Speaker #1: And so we kind of you know, kind of look at that situation a a a as one where carfax.com and the dealer's websites benefit from having the best product in the marketplace.

Speaker #6: And then I have one follow-up.

Speaker #1: Sure. And, you know, the way I think of that, you know, and I'll just talk about, you know, competition in general. You know, if you think of, you know, where we sit, you know, and the power and uniqueness of our core assets, you know, whether that's our brands, data, customer relationships, you know, great confidence in those and, you know, I think that, you know, our space has always been a competitive market.

Speaker #1: And we're we're we're good with that, you know, arrangement in that situation.

Speaker #7: Oh, got it. That's helpful. And then as my follow-up, I wanted to drill down on advertising spend, you know, which was about 10% of the company's expense base in 2025.

Speaker #7: And you know, increased somewhat in recent years and sounds like it will increase in the back half of 2026. I guess what was advertising expense in the quarter and how should we think about advertising as a percentage of revenue over the next few years?

Speaker #7: And then I assume the advertising spend is pretty much all CARFAX, but are certain parts of CARFAX such as listings more advertising intensive? I just want to get a sense as to how you're managing the potential for rising customer acquisition costs.

Speaker #1: You know, from time to time, we see different pockets of increased competition. For us, we've always been hyper-focused on the consumer and the needs of the consumer.

Bill Eager: Today, I'll start with our Q2 results and key highlights from the quarter, update you on our early progress on the three strategic priorities I laid out at Investor Day, and share my focus areas for H2 of the year. Matt will cover our financials in more depth, including our full year 2026 guidance and the key assumptions behind our outlook. Turning to our Q2 results, we delivered approximately 7% organic revenue growth modestly below our expectations. CARFAX subscription revenue growth was 8%. We delivered a 43% adjusted EBITDA margin as we operated our business with discipline and maintained strong profitability. Our Q2 results reflected a combination of factors. For CARFAX, while our vehicle history and listings businesses delivered solid growth, the changes we made to our go-to-market approach late last year did not deliver the full benefits we expected.

Bill Eager: Today, I'll start with our Q2 results and key highlights from the quarter, update you on our early progress on the three strategic priorities I laid out at Investor Day, and share my focus areas for H2 of the year. Matt will cover our financials in more depth, including our full year 2026 guidance and the key assumptions behind our outlook. Turning to our Q2 results, we delivered approximately 7% organic revenue growth modestly below our expectations. CARFAX subscription revenue growth was 8%. We delivered a 43% adjusted EBITDA margin as we operated our business with discipline and maintained strong profitability. Our Q2 results reflected a combination of factors. For CARFAX, while our vehicle history and listings businesses delivered solid growth, the changes we made to our go-to-market approach late last year did not deliver the full benefits we expected.

Speaker #8: Yeah. I'll I'll take that one. We are spending you know, modestly more on ad and promo. And that's that's a good thing, right? I think the fact that we've able been able to generate real scale and operating leverage out of the business has allowed us you know, not just to drive margins up, but to fund proportionally more investment.

Speaker #1: And making sure that we're delivering a product that, you know, is the best possible product that consumer could have. And so, you know, we look at where the consumer is getting that report and the, you know, the number one place consumers get their reports are from the dealer, whether it's physically at the dealership or from the dealer's website, the form of a digital report.

Speaker #8: So you know, we're constantly working you know, not just broadly, but certainly in our listings business from a traffic perspective, you know, to optimize that spend.

Speaker #8: And we've been very efficient in in doing so. So you know, we view it as an investment in the business. Not making any predictions on where we're headed, but I think we'd like to spend more.

Speaker #1: And so we kind of, you know, kind of look at that situation as one where CARFAX.com and the dealer's websites benefit from having the best product in the marketplace.

Speaker #8: And we'd like to spend more because we're getting more efficient in other parts of the business. We think the next wave of efficiency is is there using AI once we you know, particularly once we you know, make a little more progress in building one mobility global.

Speaker #1: And we're good with that, you know, arrangement in that situation.

Speaker #6: Got it. That's helpful. And then, as my follow-up, I wanted to drill down on advertising spend, you know, which was about 10% of the company's expense base in 2025.

Bill Eager: We're adjusting this approach and expect to see improvements going forward. Secondly, softer automotive activity outside the US weighed on transactional revenue this quarter. The impact was concentrated in our B2B business and in CARFAX Canada, where volume linked transactional revenue represents a larger share of the mix than the rest of CARFAX. Given our H1 top line performance, we are lowering our full year revenue guidance to 6.9% to 7.7% growth for the year. We do not view these factors as a change in the underlying health of our business, and we expect to build momentum into 2027, supported by the strength of our subscription base that gives us high visibility revenue growth over time. We continue to execute our broader growth strategy, advancing key initiatives in product innovation and international expansion.

Bill Eager: We're adjusting this approach and expect to see improvements going forward. Secondly, softer automotive activity outside the US weighed on transactional revenue this quarter. The impact was concentrated in our B2B business and in CARFAX Canada, where volume linked transactional revenue represents a larger share of the mix than the rest of CARFAX. Given our H1 top line performance, we are lowering our full year revenue guidance to 6.9% to 7.7% growth for the year. We do not view these factors as a change in the underlying health of our business, and we expect to build momentum into 2027, supported by the strength of our subscription base that gives us high visibility revenue growth over time. We continue to execute our broader growth strategy, advancing key initiatives in product innovation and international expansion.

Speaker #8: And and then off we go.

Speaker #6: And, you know, increased somewhat in recent years and sounds like it'll increase in the back half of 2026. I guess, what was advertising expense in the quarter, and how should we think about advertising as a percentage of revenue over the next few years?

Speaker #2: We have reached the end of our question and answer session now. I would like to turn the floor back over to Bill Eager for closing comments.

Speaker #1: Thank you. And and thank you, everyone, for joining us today. We look forward to speaking with you at conferences this fall. And have a great day, everyone.

Speaker #6: And then I assume the advertising spend is pretty much all CARFAX, but are certain parts of CARFAX, such as listings, more advertising intensive? I just want to get a sense as to how you're managing the potential for rising customer acquisition costs.

Speaker #3: Yeah, I'll take that one. We are spending, you know, modestly more on ad and promo, and that's a good thing, right? I think the fact that we've been able to generate real scale and operating leverage out of the business has allowed us, you know, not just to drive margins up, but to fund proportionately more investment.

Speaker #3: So, you know, we're constantly working not just broadly, but certainly in our listings business, from a traffic perspective, you know, to optimize that spend.

Bill Eager: Matt will take you through the financial details shortly, but first, let me share a few highlights from the quarter, starting with two new CARFAX offerings that will add further value to our customers: Homegrown and Showroom. CARFAX Homegrown is a new solution that enables consumers to easily find pre-owned vehicles on a dealer's lot that were originally sold and then serviced at that dealership throughout their life—something consumers have long valued. Consumers value these vehicles more because that history signals consistent care, strong maintenance records, and greater confidence in the vehicle's condition. Until now, consumers and dealers haven't had a reliable way to identify these vehicles. CARFAX can. Because consumers trust the CARFAX brand and data, we are uniquely positioned to find these Homegrown vehicles, identify them, and surface that information to both the dealer and the consumer.

Bill Eager: Matt will take you through the financial details shortly, but first, let me share with you a few highlights from the quarter, starting with two new CARFAX offerings that will add further value to our customers, Homegrown and Showroom. CARFAX Homegrown is a new solution that enables consumers to easily find pre-owned vehicles on a dealer's lot that were originally sold and then serviced at that dealership throughout its life, something consumers have long valued. Consumers value these vehicles more because that history signals consistent care, strong maintenance records, and greater confidence in the vehicle's condition. Until now, consumers and dealers haven't had a reliable way to identify these vehicles. CARFAX can. Because consumers trust the CARFAX brand and data, we are uniquely positioned to find these Homegrown vehicles, identify them, and surface that information to both the dealer and the consumer.

Speaker #3: And we've been very efficient in doing so. So, you know, we view it as an investment in the business. Not making any predictions on where we're headed, but I think we'd like to spend more.

Speaker #3: I mean, we'd like to spend more because we're getting more efficient in other parts of the business. We think the next wave of efficiency is there using AI once we particularly once we make a little more progress in building more mobility global.

Speaker #3: And then off we go.

Speaker #2: We have reached the end of our question-and-answer session now. I would like to turn the floor back over to Bill Eager for closing comments.

Speaker #1: Thank you, and thank you everyone for joining us today. We look forward to speaking with you at conferences this fall. Have a great day, everyone.

Bill Eager: Consumers get vehicles they value and dealers sell vehicles faster. Homegrown will be offered within the CARFAX Advantage program, and we expect it to increase the value of the program in a meaningful way. CARFAX Showroom, our first premium listings product, launched in Q2. This solution highlights a dealer's inventory in a shopper's search, driving more vehicle detail page views, and higher quality engagement while preserving the trust of the CARFAX consumer experience. Over time, we expect CARFAX Showroom to drive higher revenue per dealer. Turning to B2B, Automotive Mastermind launched SMS offers, extending its service to sales functionality in one of the most valuable areas of the dealership, the service lane. Using our proprietary behavior prediction score, the solution identifies customers most likely to trade in their vehicle and sends them a personalized appraisal and upgrade offer while they are still at the dealership.

Bill Eager: Consumers get vehicles they value and dealers sell vehicles faster. Homegrown will be offered within the CARFAX Advantage program, and we expect it to increase the value of the program in a meaningful way. CARFAX Showroom, our first premium listings product, launched in Q2. This solution highlights a dealer's inventory in a shopper's search, driving more vehicle detail page views, and higher quality engagement while preserving the trust of the CARFAX consumer experience. Over time, we expect CARFAX Showroom to drive higher revenue per dealer. Turning to B2B, Automotive Mastermind launched SMS offers, extending its service to sales functionality in one of the most valuable areas of the dealership, the service lane. Using our proprietary behavior prediction score, the solution identifies customers most likely to trade in their vehicle and sends them a personalized appraisal and upgrade offer while they are still at the dealership.

Bill Eager: Instead of staffing the service lane to chase every opportunity, dealer teams can focus on customers who express interest. This makes the sales process more efficient and strengthens the value of the Mastermind platform, delivering additional value to existing customers while helping us win new ones. Turning to international expansion, we launched CARFAX Germany in early July, leveraging our strategic assets to enter Europe's largest automotive market. As our European data set continues to expand and coverage deepens, we are well-positioned to meet the growing consumer demand for trusted automotive information. With that context, let me turn to our three strategic priorities, creating One Mobility Global, deploying AI across our business, and strengthening our market position. Creating One Mobility Global is more than just a structural change.

Bill Eager: Instead of staffing the service lane to chase every opportunity, dealer teams can focus on customers who express interest. This makes the sales process more efficient and strengthens the value of the Mastermind platform, delivering additional value to existing customers while helping us win new ones. Turning to international expansion, we launched CARFAX Germany in early July, leveraging our strategic assets to enter Europe's largest automotive market. As our European data set continues to expand and coverage deepens, we are well-positioned to meet the growing consumer demand for trusted automotive information. With that context, let me turn to our three strategic priorities, creating One Mobility Global, deploying AI across our business, and strengthening our market position. Creating One Mobility Global is more than just a structural change.

Bill Eager: It is a strategic opportunity to operate as one integrated company, connecting our capabilities, data, and customer relationships to capture the benefits of our scale and deliver greater value to our customers. We're about halfway through this multi-year effort and making good progress. By integrating our assets, we can generate new insights and solutions that weren't possible before, add value to our existing products, launch new ones, and expand into new markets globally. We are already seeing some early benefits. Automotive Mastermind and CARFAX are building a joint product roadmap that leverages the combined data assets of both businesses to deliver greater value to our shared dealers. In Germany, we combine data and capabilities from across the company to create a compelling value from the outset in this attractive automotive market. There is more work ahead, but the path is clear.

Bill Eager: It is a strategic opportunity to operate as one integrated company, connecting our capabilities, data, and customer relationships to capture the benefits of our scale and deliver greater value to our customers. We're about halfway through this multi-year effort and making good progress. By integrating our assets, we can generate new insights and solutions that weren't possible before, add value to our existing products, launch new ones, and expand into new markets globally. We are already seeing some early benefits. Automotive Mastermind and CARFAX are building a joint product roadmap that leverages the combined data assets of both businesses to deliver greater value to our shared dealers. In Germany, we combine data and capabilities from across the company to create compelling value from the outset in this attractive automotive market. There is more work ahead, but the path is clear.

Bill Eager: We are focused on leveraging this integration to accelerate product innovation, expand into new markets, and drive stronger growth. Our second strategic priority is deploying AI across our business. AI is reshaping how companies operate. In our business, our proprietary decision-grade data is a core strategic asset. As AI generates more intelligence from our data, the value of our data only grows. It also unlocks new opportunities for product innovation and efficiency. We're deploying AI across the company and building central capabilities, including AI gateways and agentic platforms. Our centralized AI office provides the governance and consistency to strengthen our data estate and generate deeper insights across the business. This moves us beyond adopting tools to transforming our workflows, and we're already seeing results. From richer signals across our unique data estate to new predictive capabilities.

Bill Eager: We are focused on leveraging this integration to accelerate product innovation, expand into new markets, and drive stronger growth. Our second strategic priority is deploying AI across our business. AI is reshaping how companies operate. In our business, our proprietary decision-grade data is a core strategic asset. As AI generates more intelligence from our data, the value of our data only grows. It also unlocks new opportunities for product innovation and efficiency. We're deploying AI across the company and building central capabilities, including AI gateways and agentic platforms. Our centralized AI office provides the governance and consistency to strengthen our data estate and generate deeper insights across the business. This moves us beyond adopting tools to transforming our workflows, and we're already seeing results. From richer signals across our unique data estate to new predictive capabilities.

Bill Eager: New solutions like those we previewed on Investor Day, faster, low-cost entry into new markets. We see significant runway to use AI to transform how we operate, innovate, and grow. Turning to our third priority, strengthening our market position. As the automotive industry grows more complex, dealers, consumers, and industry partners need timely, trusted intelligence at more decision points. That need continues to drive our innovation and expansion. In Q2 and into July, we advanced this priority through CARFAX Homegrown, CARFAX Showroom, innovations at Automotive Mastermind, and in our launch of CARFAX Germany. Together, these initiatives demonstrated our ability to move quickly, expand our reach, and bring new solutions to market. We have more to do, and our focus is sustaining that momentum with disciplined execution and an effective go-to-market strategy. Let me close with my two areas of focus in the H2.

Bill Eager: New solutions like those we previewed on Investor Day, faster, low-cost entry into new markets. We see significant runway to use AI to transform how we operate, innovate, and grow. Turning to our third priority, strengthening our market position. As the automotive industry grows more complex, dealers, consumers, and industry partners need timely, trusted intelligence at more decision points. That need continues to drive our innovation and expansion. In Q2 and into July, we advanced this priority through CARFAX Homegrown, CARFAX Showroom, innovations at Automotive Mastermind, and in our launch of CARFAX Germany. Together, these initiatives demonstrated our ability to move quickly, expand our reach, and bring new solutions to market. We have more to do, and our focus is sustaining that momentum with disciplined execution and an effective go-to-market strategy. Let me close with my two areas of focus in the H2.

Bill Eager: These are the items our leadership team is prioritizing as we continue to execute against our long-term strategy. The first is accelerating revenue growth. At CARFAX, we are ramping up new products and implementing our revised go-to-market approach. In B2B, we are moving fast PIQ and Data Studio products from launch to broader adoption. My second focus area is continuing to bring Mobility Global's business together. We are focused on winding down transition services with S&P Global, retiring duplicate systems, and moving to a common technology backbone. This is essential not only for efficiency, but also for bringing our data together on a modern, AI-native foundation that supports the combined business. Together, these efforts are building a more integrated, efficient platform for the long-term growth. To close, I am energized by the opportunity ahead.

Bill Eager: These are the items our leadership team is prioritizing as we continue to execute against our long-term strategy. The first is accelerating revenue growth. At CARFAX, we are ramping up new products and implementing our revised go-to-market approach. In B2B, we are moving fast PIQ and Data Studio products from launch to broader adoption. My second focus area is continuing to bring Mobility Global's business together. We are focused on winding down transition services with S&P Global, retiring duplicate systems, and moving to a common technology backbone. This is essential not only for efficiency, but also for bringing our data together on a modern, AI-native foundation that supports the combined business. Together, these efforts are building a more integrated, efficient platform for the long-term growth. To close, I am energized by the opportunity ahead.

Bill Eager: Our combination of proprietary data, trusted brands, scaled customer network, and embeddedness gives us a powerful, differentiated foundation for growth, which remains solid. We know where we need to improve, have adjusted our approach, and are acting with focus and urgency, making good progress. We have a clear path forward and strong conviction in our future. With that, I'll turn it over to Matt.

Bill Eager: Our combination of proprietary data, trusted brands, scaled customer network, and embeddedness give us a powerful, differentiated foundation for growth, which remains solid. We know where we need to improve, have adjusted our approach, and are acting with focus and urgency and making good progress. We have a clear path forward and strong conviction in our future. With that, I'll turn it over to Matt.

Matt Calderone: Thank you, Bill, and good morning, everyone. We appreciate you joining us today. I very much enjoyed meeting members of our analyst and investor community over the past few months. It's a privilege to tell the Mobility Global story. I look forward to working with you in the months and years ahead. I want to cover two topics before diving into the details of our Q2 results and discussing our guidance and expectations for the full fiscal year. First, I want to remind you that the historical numbers we discussed today are not fully indicative of what our financial results would have been as a standalone public company, and therefore are not fully indicative of our financial performance on a go-forward basis. In its 8-K published on 28 July, S&P reported Mobility's results as a business segment consistent with its past practice.

Matt Calderone: Thank you, Bill, and good morning, everyone. We appreciate you joining us today. I very much enjoyed meeting members of our analyst and investor community over the past few months. It's a privilege to tell the Mobility Global story. I look forward to working with you in the months and years ahead. I want to cover two topics before diving into the details of our Q2 results and discussing our guidance and expectations for the full fiscal year. First, I want to remind you that the historical numbers we discussed today are not fully indicative of what our financial results would have been as a standalone public company, and therefore are not fully indicative of our financial performance on a go-forward basis. In its 8-K published on 28 July, S&P reported Mobility's results as a business segment consistent with its past practice.

Matt Calderone: In our 8-K this morning, we're reporting carve-out results for prior periods in a manner consistent with our Form 10 filings. However, as we described at our May Investor Day and in our 10-Q filed this morning, going forward, we expect our results as a standalone public company to differ from this presentation in certain areas. These areas include, but are not limited to, incremental costs associated with becoming a standalone public company, how costs are allocated across our business segments, interest expense from our inaugural bond offering, tax rate and cash taxes, and the one-time cost of standing up the infrastructure required to be a fully standalone public company. Over the course of my remarks, I'll highlight these differences and attempt to quantify and time phase them where possible. Second, I would like to cover my core takeaways for the quarter.

Matt Calderone: In our 8-K this morning, we're reporting carve-out results for prior periods in a manner consistent with our Form 10 filings. However, as we described at our May Investor Day and in our 10-Q filed this morning, going forward, we expect our results as a standalone public company to differ from this presentation in certain areas. These areas include, but are not limited to, incremental costs associated with becoming a standalone public company, how costs are allocated across our business segments, interest expense from our inaugural bond offering, tax rate and cash taxes, and the one-time cost of standing up the infrastructure required to be a fully standalone public company. Over the course of my remarks, I'll highlight these differences and attempt to quantify and time phase them where possible. Second, I would like to cover my core takeaways for the quarter.

Matt Calderone: To start, we prepared for the successful 1 July spinoff of Mobility Global from S&P Global. This was an immense effort that is a critical milestone on our path to creating One Mobility Global. In the quarter, we delivered approximately 7% organic revenue growth, 8% growth in our CARFAX segment, and 4% growth in our B2B segment. As Bill noted, while we are confident in the underlying momentum in our business, our growth rate in Q2 fell modestly short of our expectations. Our bottom line performance, adjusted EBITDA dollars and adjusted EBITDA margin, was strong as we managed costs effectively while continuing to invest in future growth. We launched Mobility Global with $186 million of cash on hand and continue to generate meaningful cash flow. Today, we are announcing our first quarterly dividend.

Matt Calderone: To start, we prepared for the successful 1 July spinoff of Mobility Global from S&P Global. This was an immense effort that is a critical milestone on our path to creating One Mobility Global. In the quarter, we delivered approximately 7% organic revenue growth, 8% growth in our CARFAX segment, and 4% growth in our B2B segment. As Bill noted, while we are confident in the underlying momentum in our business, our growth rate in Q2 fell modestly short of our expectations. Our bottom line performance, adjusted EBITDA dollars and adjusted EBITDA margin, was strong as we managed costs effectively while continuing to invest in future growth. We launched Mobility Global with $186 million of cash on hand and continue to generate meaningful cash flow. Today, we are announcing our first quarterly dividend.

Matt Calderone: Finally, we are providing guidance for our full fiscal year 2025, which reflects our H1 results, our forecast for the H2, and the impact of becoming a standalone public company. Turning to our Q2 results. Mobility Global revenue in Q2 was $468 million, a 7% increase over the prior year period. All of this revenue was organic. At the Mobility Global level, subscription revenue grew 7% year over year, reflecting the durable strength of our brand and the value of our solution. Transactional revenue grew 5%, largely due to challenging macro conditions that particularly affected our business outside the US. For H1, revenue grew 7.4%. Including the impact of FX, we grew approximately 6.8%. This reflects a roughly $5 million currency benefit in H1, approximately $4 million of which came in Q1.

Matt Calderone: Finally, we are providing guidance for our full fiscal year 2025, which reflects our H1 results, our forecast for the H2, and the impact of becoming a standalone public company. Turning to our Q2 results. Mobility Global revenue in Q2 was $468 million, a 7% increase over the prior year period. All of this revenue was organic. At the Mobility Global level, subscription revenue grew 7% year over year, reflecting the durable strength of our brand and the value of our solution. Transactional revenue grew 5%, largely due to challenging macro conditions that particularly affected our business outside the US. For H1, revenue grew 7.4%. Including the impact of FX, we grew approximately 6.8%. This reflects a roughly $5 million currency benefit in H1, approximately $4 million of which came in Q1.

Matt Calderone: Performance varied across our two business segments. Our CARFAX segment grew 8% in the quarter, with subscription-based revenue up approximately 8% year over year. This is broadly in line with subscription revenue growth in Q1. CARFAX transactional revenue grew approximately 9% year over year, down slightly from 10% growth in Q1. CARFAX growth was broad-based across almost all major product lines in the US and abroad. In the US, we saw comparatively stronger year-over-year performance in our Service Loyalty and consumer products. As Bill noted, a few quarters ago, we shifted our go-to-market approach to emphasize the value of employing all three of CARFAX's core products together: CARFAX Advantage, CARFAX Used Car Listings, and Service Loyalty. While we still believe in this value, our go-to-market approach did not deliver what we expected. We are making changes and expecting to see improvements in the H2.

Matt Calderone: Performance varied across our two business segments. Our CARFAX segment grew 8% in the quarter, with subscription-based revenue up approximately 8% year over year. This is broadly in line with subscription revenue growth in Q1. CARFAX transactional revenue grew approximately 9% year over year, down slightly from 10% growth in Q1. CARFAX growth was broad-based across almost all major product lines in the US and abroad. In the US, we saw comparatively stronger year-over-year performance in our Service Loyalty and consumer products. As Bill noted, a few quarters ago, we shifted our go-to-market approach to emphasize the value of employing all three of CARFAX's core products together: CARFAX Advantage, CARFAX Used Car Listings, and Service Loyalty. While we still believe in this value, our go-to-market approach did not deliver what we expected. We are making changes and expecting to see improvements in the H2.

Matt Calderone: Internationally, our CARFAX Canada business again produced strong subscription growth, but experienced continued softness in its transactional pipeline due to recent softness in auto transactions. In Europe, we saw strong double-digit growth, but our transactional revenue in the quarter lagged expectations. We continue to adapt our strategy and sales approach as we learn in different countries, and we are excited about our launch in Germany. Overall, we see momentum building on our CARFAX business and are doubling down on execution in the H2 of the year. Our B2B segment grew 4% in Q2, a decline from 8% year-over-year growth in Q1. Subscription revenue grew approximately 6% year over year, while transactional revenue declined by 4%.

Matt Calderone: Internationally, our CARFAX Canada business again produced strong subscription growth, but experienced continued softness in its transactional pipeline due to recent softness in auto transactions. In Europe, we saw strong double-digit growth, but our transactional revenue in the quarter lagged expectations. We continue to adapt our strategy and sales approach as we learn in different countries, and we are excited about our launch in Germany. Overall, we see momentum building on our CARFAX business and are doubling down on execution in the H2 of the year. Our B2B segment grew 4% in Q2, a decline from 8% year-over-year growth in Q1. Subscription revenue grew approximately 6% year over year, while transactional revenue declined by 4%.

Matt Calderone: Within B2B, growth was relatively stronger in our sales solutions business, which was anchored by solid performance in Automotive Mastermind but was impacted by approximately $1 million in recall revenue that was pushed to H2 of the year as it is dependent on a final court order. Our B2B business also saw some modest delays in planning solutions projects due to the uncertain macroeconomic environment and faced challenging comps overall in Q2 due to relative strength in the prior year quarter. Starting now to profitability. During Q2, we delivered $202 million in adjusted EBITDA, an approximately 7% increase from the prior year quarter. This resulted in an adjusted EBITDA margin of 43.2%, approximately 40 basis points higher than the prior year period.

Matt Calderone: Within B2B, growth was relatively stronger in our sales solutions business, which was anchored by solid performance in Automotive Mastermind but was impacted by approximately $1 million in recall revenue that was pushed to H2 of the year as it is dependent on a final court order. Our B2B business also saw some modest delays in planning solutions projects due to the uncertain macroeconomic environment and faced challenging comps overall in Q2 due to relative strength in the prior year quarter. Starting now to profitability. During Q2, we delivered $202 million in adjusted EBITDA, an approximately 7% increase from the prior year quarter. This resulted in an adjusted EBITDA margin of 43.2%, approximately 40 basis points higher than the prior year period.

Matt Calderone: For H1, we delivered $386 million in adjusted EBITDA, an 8% increase over the prior year at a margin of 42%, which is an approximately 20 basis point improvement over H1 of 2025. I am pleased with how we are gaining operating scale and managing our cost base in a dynamic year. This has allowed us to simultaneously pivot spend to fund investment in future growth while maintaining margins and delivering on the bottom line. Looking forward, we expect adjusted EBITDA margins to decline in H2 of the year for two reasons. First, while we manage the business on a full year basis, our margins are typically stronger in H1. The preponderance of our pricing actions take effect early in the year, while our renewal cycles and our advertising and investment spend are weighted toward the back half.

Matt Calderone: For H1, we delivered $386 million in adjusted EBITDA, an 8% increase over the prior year at a margin of 42%, which is an approximately 20 basis point improvement over H1 of 2025. I am pleased with how we are gaining operating scale and managing our cost base in a dynamic year. This has allowed us to simultaneously pivot spend to fund investment in future growth while maintaining margins and delivering on the bottom line. Looking forward, we expect adjusted EBITDA margins to decline in H2 of the year for two reasons. First, while we manage the business on a full year basis, our margins are typically stronger in H1. The preponderance of our pricing actions take effect early in the year, while our renewal cycles and our advertising and investment spend are weighted toward the back half.

Matt Calderone: Second, as a standalone public company, we will bear incremental corporate expenses compared to our historic cost allocations from S&P. We're making real progress in building towards a modern, scalable corporate infrastructure that will ultimately be a platform for growth. We expect that on a run rate basis, the discrete impact of this on incremental corporate expenses will roughly equate to reducing full-year margins by approximately 150 basis points relative to our fiscal year 2025 baseline. This equates to the high end of the $20 to $25 million range we disclosed at our Investor Day. Given timing, we anticipate the discrete impact to 2026 margins will be approximately half this level, but we are mitigating this somewhat through scale and operating efficiency. Both these factors are reflected in our 2026 guidance, the impact of seasonality, and of incremental corporate expense.

Matt Calderone: Second, as a standalone public company, we will bear incremental corporate expenses compared to our historic cost allocations from S&P. We're making real progress in building towards a modern, scalable corporate infrastructure that will ultimately be a platform for growth. We expect that on a run rate basis, the discrete impact of this on incremental corporate expenses will roughly equate to reducing full-year margins by approximately 150 basis points relative to our fiscal year 2025 baseline. This equates to the high end of the $20 to $25 million range we disclosed at our Investor Day. Given timing, we anticipate the discrete impact to 2026 margins will be approximately half this level, but we are mitigating this somewhat through scale and operating efficiency. Both these factors are reflected in our 2026 guidance, the impact of seasonality, and of incremental corporate expense.

Matt Calderone: Moving down the P&L, our reported results this quarter include a significant amount of one-time costs related to the separation from SPGI. GAAP net income for the quarter was $53 million, down 18% year over year. However, this included $36 million of one-time transaction related costs, compared to only $2 million of transaction costs in Q2 last year. Looking forward, as a standalone company, we expect our tax rate to decrease as we take actions to optimize the legal entity structure that we inherited from S&P Global. Conversely, we expect our interest expense to increase as we begin to service our bond issue. I will cover our expectations for 2026 tax rate and interest rate in the guidance section.

Matt Calderone: Moving down the P&L, our reported results this quarter include a significant amount of one-time costs related to the separation from SPGI. GAAP net income for the quarter was $53 million, down 18% year over year. However, this included $36 million of one-time transaction-related costs, compared to only $2 million of transaction costs in Q2 last year. Looking forward, as a standalone company, we expect our tax rate to decrease as we take actions to optimize the legal entity structure that we inherited from S&P Global. Conversely, we expect our interest expense to increase as we begin to service our bond issue. I will cover our expectations for the 2026 tax rate and interest rate in the guidance section.

Matt Calderone: Please note that beginning next quarter, we intend to also report adjusted net income and adjusted diluted earnings per share to provide investors additional insight into the underlying performance of our business. I will now move to the balance sheet. We are launching Mobility Global with a strong balance sheet that provides us both strategic flexibility and the capacity to deliver consistent incremental shareholder value. We ended Q2 with $186 million of cash on hand, net debt of $1.8 billion, and a net leverage ratio of 2.4x adjusted EBITDA for the trailing 12 months. Looking forward, I want to highlight four items that will impact our cash flow. First, we expect to incur approximately $100 million in one-time cash costs associated with completing the spin-off and stand up of Mobility Global, with approximately half of this incurred in 2026.

Matt Calderone: Please note that beginning next quarter, we intend to also report adjusted net income and adjusted diluted earnings per share to provide investors additional insight into the underlying performance of our business. I will now move to the balance sheet. We are launching Mobility Global with a strong balance sheet that provides us both strategic flexibility and the capacity to deliver consistent incremental shareholder value. We ended Q2 with $186 million of cash on hand, net debt of $1.8 billion, and a net leverage ratio of 2.4x adjusted EBITDA for the trailing 12 months. Looking forward, I want to highlight four items that will impact our cash flow. First, we expect to incur approximately $100 million in one-time cash costs associated with completing the spin-off and stand up of Mobility Global, with approximately half of this incurred in 2026.

Matt Calderone: At this point, we expect that roughly 50% of these one-time costs will be capital. Second, we will incur incremental interest expense from our $2 billion in bonds. Third, as previously disclosed, for the next 12 years, cash taxes will be approximately $80 to $90 million higher than our tax provision. This is due to the disallowance of a portion of amortization of intangible assets related to the IHS Markit acquisition, as reflected in our deferred tax liability. Lastly, our cash taxes will increase as we will now be responsible for federal tax payments previously made by SPGI. Turning now to capital deployment. Our immediate priority is to fund one-time transaction related costs and initiate a quarterly dividend to return cash to shareholders.

Matt Calderone: At this point, we expect that roughly 50% of these one-time costs will be capital. Second, we will incur incremental interest expense from our $2 billion in bonds. Third, as previously disclosed, for the next 12 years, cash taxes will be approximately $80 to $90 million higher than our tax provision. This is due to the disallowance of a portion of amortization of intangible assets related to the IHS Markit acquisition, as reflected in our deferred tax liability. Lastly, our cash taxes will increase as we will now be responsible for federal tax payments previously made by SPGI. Turning now to capital deployment. Our immediate priority is to fund one-time transaction related costs and initiate a quarterly dividend to return cash to shareholders.

Matt Calderone: Today, we're pleased to announce that our board of directors has approved a quarterly dividend of $0.06 per share, which will be payable on 10 September to stockholders of record as of the 27 August close. We set this dividend based on an estimate of normalized go forward net income by adding back one-time separation costs and adjusting for estimated standalone interest and tax profile. Looking forward, at this point, we intend to maintain our inherited dividend aristocrat status from SPGI. We also continue to expect that we will not commence share repurchases until early 2027, and that we will not pursue any material M&A until we are fully separated from SPGI. Finally, please turn to slide nine for Mobility Global's outlook.

Matt Calderone: Today, we're pleased to announce that our board of directors has approved a quarterly dividend of $0.06 per share, which will be payable on 10 September to stockholders of record as of the 27 August close. We set this dividend based on an estimate of normalized go forward net income by adding back one-time separation costs and adjusting for estimated standalone interest and tax profile. Looking forward, at this point, we intend to maintain our inherited dividend aristocrat status from SPGI. We also continue to expect that we will not commence share repurchases until early 2027, and that we will not pursue any material M&A until we are fully separated from SPGI. Finally, please turn to slide nine for Mobility Global's outlook.

Matt Calderone: Our full year 2026 guidance reflects the sum of our carve-out results for H1 of the fiscal year, and our standalone results for H2 of this year. Given the timing and nature of our spin-off, for the remainder of 2026, we are providing guidance only for revenue and adjusted EBITDA at the Mobility Global level. To support your financial modeling, however, I will provide estimates for certain additional financial metrics. We anticipate guiding to a broader set of financial metrics for our full fiscal year 2027. We now expect to deliver revenue between $1.87 to $1.885 billion for our full fiscal year 2026. For year-over-year growth of 6.9% to 7.7%. As we are assuming no incremental currency impact in H2, our revenue guidance implies a modest sequential improvement in our constant currency growth rate versus H1.

Matt Calderone: Our full year 2026 guidance reflects the sum of our carve-out results for H1 of the fiscal year, and our standalone results for H2 of this year. Given the timing and nature of our spin-off, for the remainder of 2026, we are providing guidance only for revenue and adjusted EBITDA at the Mobility Global level. To support your financial modeling, however, I will provide estimates for certain additional financial metrics. We anticipate guiding to a broader set of financial metrics for our full fiscal year 2027. We now expect to deliver revenue between $1.87 to $1.885 billion for our full fiscal year 2026. For year-over-year growth of 6.9% to 7.7%. As we are assuming no incremental currency impact in H2, our revenue guidance implies a modest sequential improvement in our constant currency growth rate versus H1.

Matt Calderone: We now expect adjusted EBITDA to be between $745 to 760 million. This implies an adjusted EBITDA margin of approximately 40% at the midpoint. Our adjusted EBITDA guidance incorporates our modest H1 margin improvement, typical quarterly spend patterns, and the part year impact of incremental standalone corporate infrastructure. Please note that for the next four quarters, we anticipate the potential for slightly more quarter-to-quarter margin volatility than we've seen historically, given the dynamic nature of the stand-up period. From a cash flow perspective, we anticipate spending roughly half of the $100 million one-time costs associated with completing the spin-off in the remainder of 2026. We anticipate interest expense to be approximately $55 million in H2. On a cash basis, we expect to make our first interest payment of $60 million in Q4, which includes the H1 accrual.

Matt Calderone: We now expect adjusted EBITDA to be between $745 million and $760 million. This implies an adjusted EBITDA margin of approximately 40% at the midpoint. Our adjusted EBITDA guidance incorporates our modest H1 margin improvement, typical quarterly spend patterns, and the part-year impact of incremental standalone corporate infrastructure. Please note that for the next four quarters, we anticipate the potential for slightly more quarter-to-quarter margin volatility than we've seen historically, given the dynamic nature of the stand-up period. From a cash flow perspective, we anticipate spending roughly half of the $100 million in one-time costs associated with completing the spin-off in the remainder of 2026. We anticipate interest expense to be approximately $55 million in H2. On a cash basis, we expect to make our first interest payment of $60 million in Q4, which includes the H1 accrual.

Matt Calderone: We anticipate our GAAP tax rate to be in the 28% to 31% for the full fiscal year. Finally, we anticipate our average share count to be between 295 and 297 million shares. In closing, I want to reiterate my takeaways for the quarter. We accomplished a great deal in the quarter, both operationally and in the market. Our growth continued to compound, particularly in the CARFAX segment, but not to the extent we anticipated. Our bottom line performance was strong. We're focused on execution and building momentum towards 2027, and we provided guidance for the full fiscal year. Dekko Bill, we're partway through a multi-year journey to not just create an integrated Mobility Global, but to build a business platform that will deliver exceptional compounding value to our customers, employees, partners, and shareholders.

Matt Calderone: We anticipate our GAAP tax rate to be in the 28% to 31% for the full fiscal year. Finally, we anticipate our average share count to be between 295 and 297 million shares. In closing, I want to reiterate my takeaways for the quarter. We accomplished a great deal in the quarter, both operationally and in the market. Our growth continued to compound, particularly in the CARFAX segment, but not to the extent we anticipated. Our bottom line performance was strong. We're focused on execution and building momentum towards 2027, and we provided guidance for the full fiscal year. Dekko Bill, we're partway through a multi-year journey to not just create an integrated Mobility Global, but to build a business platform that will deliver exceptional compounding value to our customers, employees, partners, and shareholders.

Matt Calderone: There's significant work ahead of us, but we're confident in both the destination and in our ability to get there. With that, operator, please open the line for questions.

Matt Calderone: There's significant work ahead of us, but we're confident in both the destination and in our ability to get there. With that, operator, please open the line for questions.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Scott Wurtzel with Wolfe Research. Please proceed with your question.

Operator: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate that your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Our first question comes from Scott Wurtzel with Wolfe Research. Please proceed with your question.

Scott Wurtzel: Hi. Good morning, guys. Thank you for taking my questions. Bill, just wondering if you can talk a little bit more about the changes that you're making on the go-to-market side on CARFAX and what we can expect to see going forward now versus the strategies you had deployed in the past. Thanks.

Scott Wurtzel: Hi. Good morning, guys. Thank you for taking my questions. Bill, just wondering if you can talk a little bit more about the changes that you're making on the go-to-market side on CARFAX and what we can expect to see going forward now versus the strategies you had deployed in the past. Thanks.

Bill Eager: Sure. Thanks, Scott. We mentioned the CARFAX go-to-market. Late last year, we shifted our go-to-market approach at CARFAX. Really, the shift was to go from selling our core three products a la carte to selling them together in a package, our lifetime dealer package, so containing our Advantage listings and Service Loyalty products. As I mentioned at Investor Day, one of the effects we saw early in this process was it tended to lengthen the sales cycle a little bit. Early on, the adoption of it was right in the ranges that we expected. Over the last quarter or so, we started to see those lengthening sales cycles affect our sales rate on the product.

Bill Eager: Sure. Thanks, Scott. We mentioned the CARFAX go-to-market. Late last year, we shifted our go-to-market approach at CARFAX. Really, the shift was to go from selling our core three products a la carte to selling them together in a package, our lifetime dealer package, so containing our Advantage listings and Service Loyalty products. As I mentioned at Investor Day, one of the effects we saw early in this process was it tended to lengthen the sales cycle a little bit. Early on, the adoption of it was right in the ranges that we expected. Over the last quarter or so, we started to see those lengthening sales cycles affect our sales rate on the product.

Bill Eager: The shift that we're making really is, while we still believe heavily in the package, we're recalibrating that sales approach, recalibrating our sales incentives, and shifting back to where we are selling each of those products individually. This allows dealers to get to that lifetime program at their own pace by adding product by product, as opposed to adding all of the products at the same time. We've adjusted the incentive for our sales folks and really gone to an approach where we are selling the products individually, allowing dealers to get to the lifetime program at their own pace.

Bill Eager: The shift that we're making really is while we still believe heavily in the package, we're recalibrating that sales approach, recalibrating our sales incentives and shifting back to where we are selling each of those products individually. Allowing dealers to get to that lifetime program at their own pace by adding product by product as opposed to adding all of the products at the same time. We've adjusted the incentive for our sales folks and really gone to an approach where we are selling the products individually, and allowing dealers to get to the lifetime program at their own pace.

Scott Wurtzel: That's helpful. Just as a quick follow-up, just on the revenue guidance, wondering if you can give us just any color on how we should think about revenue growth rates in CARFAX and B2B in H2 of the year. Thanks.

Scott Wurtzel: That's helpful. Just as a quick follow-up—just on the revenue guidance—wondering if you can give us any color on how we should think about revenue growth rates in CARFAX and B2B in the second half of the year. Thanks.

Matt Calderone: Yeah. I'll start. Bill, I'm sure you want to chime in. This is Matt. Nice to meet you, Scott. Look, I think just to echo what Bill said in his remarks, we had a good H1. It wasn't quite as good as we thought, and in a subscription-based business, they tend to be sticky on both sides a little bit, right? Implicit in the midpoint of our guide is modest improvement, particularly stripping out the impact of FX in the H1. I think improvement on a sequential basis were more consistent last year. I think a slower build than we saw last year, or than perhaps we planned over the course of the year, but still building momentum into 2027. Yeah, I think you'll see more of that build in the H2 in CARFAX than in B2B.

Matt Calderone: Yeah, I'll start. Bill, I'm sure you want to chime in. This is Matt. Nice to meet you, Scott. Look, I think just to echo what Bill said in his remarks, we had a good H1. It wasn't quite as good as we thought, and in a subscription-based business, they tend to be sticky on both sides a little bit, right? Implicit in the midpoint of our guide is modest improvement, particularly stripping out the impact of FX in H1. I think improvement on a sequential basis—we were more consistent last year. I think a slower build than we saw last year, or than perhaps we planned over the course of the year, but still building momentum into 2027. Yeah, I think you'll see more of that build in H2 in CARFAX than in B2B.

Matt Calderone: B2B's numbers, if you think about Q1 to Q2, that was perhaps more impacted by FX and a strong comp than other parts of the business. B2B has actually been executing that relatively flat, and we anticipate sort of more flat H1, H2, Scott. Look, there's underlying momentum in the business for all the reasons that Bill described, but it's just going to take us a little longer than we thought to get to where we want to be. Bill, if you want to chime in.

Matt Calderone: B2B's numbers, if you think about Q1 to Q2, that was perhaps more impacted by FX and a strong comp than other parts of the business. B2B has actually been executing that relatively flat, and we anticipate sort of more flat H1, H2, Scott. Look, there's underlying momentum in the business for all the reasons that Bill described, but it's just going to take us a little longer than we thought to get to where we want to be. Bill, if you want to chime in.

Bill Eager: Yeah. Scott, stepping back a little bit, what I would say is this, is that an enormous amount of work went into our spin and the conviction we have in the strategic rationale for the spin just continues to grow as we do that work. We're connecting the data across the five businesses of Mobility Global. We're working on getting off the TSAs with S&P. I'm encouraged by our subscription revenue growth and the strength of that over the H1 of the year at 8%. With everything we had going on, getting out of S&P and becoming a standalone public company, our innovation engine and bringing new products to market and launching new markets continued. I look back at Q2, we launched two major products at CARFAX US, in CARFAX Homegrown and CARFAX Showroom, both being received extremely well by the dealer community and consumers.

Bill Eager: Yeah. Scott, stepping back a little bit, what I would say is this, is that an enormous amount of work went into our spin and the conviction we have in the strategic rationale for the spin just continues to grow as we do that work. We're connecting the data across the five businesses of Mobility Global. We're working on getting off the TSAs with S&P. I'm encouraged by our subscription revenue growth and the strength of that over the H1 of the year at 8%. With everything we had going on, getting out of S&P and becoming a standalone public company, our innovation engine and bringing new products to market and launching new markets continued. I look back at Q2, we launched two major products at CARFAX US, in CARFAX Homegrown and CARFAX Showroom, both being received extremely well by the dealer community and consumers.

Bill Eager: We launched our SMS offers at Automotive Mastermind in Q2, which is really allowing our current customer base really to take advantage of that service to sales motion. Last but certainly not least, in early July, we were able to launch CARFAX Germany, Europe's largest automotive market, significantly ahead of schedule. We're really excited about the fact that we're launching new things into the market right now that will be driving that 2027, 2028 growth. While that's going on, we've started returning capital to shareholders. Matt talked about that. We'll talk about it a little bit more. As we think about the midterm targets that we put out, we still have strong confidence in that with the 7.5% to 10% and 50 basis points of margin expansion. We're feeling very good about what we laid out at Investor Day.

Bill Eager: We launched our SMS offers at Automotive Mastermind in Q2, which is really allowing our current customer base really to take advantage of that service to sales motion. Last but certainly not least, in early July, we were able to launch CARFAX Germany, Europe's largest automotive market, significantly ahead of schedule. We're really excited about the fact that we're launching new things into the market right now that will be driving that 2027, 2028 growth. While that's going on, we've started returning capital to shareholders. Matt talked about that. We'll talk about it a little bit more. As we think about the midterm targets that we put out, we still have strong confidence in that with the 7.5% to 10% and 50 basis points of margin expansion. We're feeling very good about what we laid out at Investor Day.

Bill Eager: Thank you for the question.

Bill Eager: Thank you for the question.

Scott Wurtzel: Great. Thanks, guys.

Scott Wurtzel: Great. Thanks, guys.

Operator: Our next question comes from Craig Huber with Huber Research Partners. Please proceed with your question.

Operator: Our next question comes from Craig Huber with Huber Research Partners. Please proceed with your question.

Craig Huber: Great. Thank you. When you had your Investor Day a few months ago, I thought one of the most interesting things you guys talked about was that you wanted to integrate your database together with the B2B side versus the CARFAX side. Frankly, I was surprised that wasn't done already underneath S&P Global or underneath IHS Markit, but that's water under the bridge now. Can you just go through for us real quick, A, how long that's going to take? What kind of cost that might be? That's in your numbers, I assume. I think you've talked about that. What the major benefits are. Not real long here, just what's the highlights here about how that's going to benefit you guys going forward here?

Craig Huber: Great. Thank you. When you had your Investor Day a few months ago, I thought one of the most interesting things you guys talked about was that you wanted to integrate your database together with the B2B side versus the CARFAX side. Frankly, I was surprised that wasn't done already underneath S&P Global or underneath IHS Markit, but that's water under the bridge now. Can you just go through for us real quick, A, how long that's going to take? What kind of cost that might be? That's in your numbers, I assume. I think you've talked about that. What the major benefits are. Not real long here, just what's the highlights here about how that's going to benefit you guys going forward here?

Bill Eager: Yeah.

Bill Eager: Yeah.

Craig Huber: I have two other questions. Thank you.

Craig Huber: I have two other questions. Thank you.

Bill Eager: Sure, Craig. One of the things I mentioned, I was really proud of the team and the way that we've gone through this process. We really started the journey 14 months ago of setting up our business as a standalone public company. The teams and the data operations teams and our tech teams have gone through this process, not just building so that we could function on day one, but really setting us up for the next five to 10 years and are doing the activities that we need to do in order to build that foundation for bringing those five businesses together and leveraging it. I would say that we've made a ton of progress on that front. We continue to make more, but I can give you just a couple of examples. In the past, the CARFAX business built their product plans.

Bill Eager: Sure, Craig. One of the things I mentioned, I was really proud of the team and the way that we've gone through this process. We really started the journey 14 months ago of setting up our business as a standalone public company. The teams and the data operations teams and our tech teams have gone through this process, not just building so that we could function on day one, but really setting us up for the next five to 10 years and are doing the activities that we need to do in order to build that foundation for bringing those five businesses together and leveraging it. I would say that we've made a ton of progress on that front. We continue to make more, but I can give you just a couple of examples. In the past, the CARFAX business built their product plans.

Bill Eager: The Automotive Mastermind team built their product plans. Those teams have come together and have joint product plans that they've built where we will be really cross-sharing information and really serving, especially our joint dealers between those two businesses, information on the Mastermind side and information on the CARFAX side to really drive more effective products, both at CARFAX and Mastermind, for those dealers. Another good example, as I mentioned, we launched Germany. We recently, in the last year, launched Italy as well. When I think of building our data platform in Europe for ingesting the data as well as creating the insights, that three years ago, four years ago, would have been done at those respective countries through CARFAX Europe. Today, we're leveraging the CARFAX US ingestion and insights platform to, one, move faster, but get a lot more out of the data coming in.

Bill Eager: The Automotive Mastermind team built their product plans. Those teams have come together and have joint product plans that they've built where we will be really cross-sharing information and really serving, especially our joint dealers between those two businesses, information on the Mastermind side and information on the CARFAX side to really drive more effective products, both at CARFAX and Mastermind for those dealers. Another good example, as I mentioned, we launched Germany. We recently, in the last year, launched Italy as well. When I think of building our data platform in Europe for ingesting the data as well as creating the insights, that three years ago, four years ago, would've been done at those respective countries through CARFAX Europe. Today, we're leveraging the CARFAX US ingestion and insights platform to, one, move faster, but get a lot more out of the data coming in.

Bill Eager: We're already realizing the benefits of it, but it's a multi-year journey. I look at it as we're seeing really strong benefits today, but we have line of sight into more benefits coming online over the next year or two.

Bill Eager: We're already realizing the benefits of it, but it's a multi-year journey. I look at it as we're seeing really strong benefits today, but we have line of sight into more benefits coming online over the next year or two.

Craig Huber: You think roughly in about two years from now it'll be complete?

Craig Huber: You think roughly in about two years from now it'll be complete?

Bill Eager: Yeah. That's about what I would say. Yeah, I think that's a reasonable assumption.

Bill Eager: Yeah. That's about what I would say. Yeah, I think that's a reasonable assumption.

Craig Huber: Okay. My unrelated question is, with all this renewed turmoil over in the Middle East, do you feel that that has impacted any of your businesses? If so, which ones? I mean, we've obviously seen that with some other companies getting impacted by that, I would like to hear your thoughts on that and your businesses.

Craig Huber: Okay. My unrelated question is, with all this renewed turmoil over in the Middle East, do you feel that that has impacted any of your businesses? If so, which ones? I mean, we've obviously seen that with some other companies getting impacted by that, I would like to hear your thoughts on that and your businesses.

Matt Calderone: Yeah, I'll start. I think we've seen it on the margins, right? Maybe we talked about this in the comparative marks, but when you look at the numbers, right, well, it affected our transactional business and particularly transactional business internationally, right? Getting out of market's been tough. Our planning business felt the impact. You see that in the numbers in sort of B2B, both transactional and international numbers for the quarter. I wouldn't say it's a significant driver, but on the margins, it certainly had an impact.

Matt Calderone: Yeah, I'll start. I think we've seen it on the margins, right? Maybe we talked about this in the comparative marks, but when you look at the numbers, right, well, it affected our transactional business and particularly transactional business internationally, right? Getting out of market's been tough. Our planning business felt the impact. You see that in the numbers in sort of B2B, both transactional and international numbers for the quarter. I wouldn't say it's a significant driver, but on the margins, it certainly had an impact.

Craig Huber: My other question, obviously, you guys spent a heck of a lot of time here helping to put together the whole spin with the separation of company from S&P and stuff. I mean, took a lot of executives' time to get that done. Just curious, do you think that impacted at all your operations here versus how you were thinking things were going to go, say, a few months ago?

Craig Huber: My other question, obviously, you guys spent a heck of a lot of time here helping to put together the whole spin with the separation of company from S&P and stuff. I mean, took a lot of executives' time to get that done. Just curious, do you think that impacted at all your operations here versus how you were thinking things were going to go, say, a few months ago?

Bill Eager: Yeah. Craig, the thing I would say is this. Of course. I mean, if you're taking on something as large as that, we'd be naive to say it didn't have an impact at all. The reality is, and a bit like your previous question, the CARFAX US business is one of the growth engines of this business. We tried something toward the end of last year and the beginning of this year. It worked, but not as well as we thought. If it would've worked the way that we thought, I think that in spite of all the things going on, we would've been where we wanted to be.

Bill Eager: Yeah. Craig, the thing I would say is this. Of course. I mean, if you're taking on something as large as that, we'd be naive to say it didn't have an impact at all. The reality is, and a bit like your previous question, the CARFAX US business is one of the growth engines of this business. We tried something toward the end of last year and the beginning of this year. It worked, but not as well as we thought. If it would've worked the way that we thought, I think that in spite of all the things going on, we would've been where we wanted to be.

Bill Eager: We have a, Scott and the team, and as a leadership team, a focus coming out of Q2 to say, let's get that go to market right and let's continue to figure out areas where we can execute better. I feel like the getting our performance to where we want it to be, in spite of all those things going on, is in our control. I think that I'm happy to see the team trying things like that. I'm happy to see them learning from it and pivoting. I'm confident that we'll make the right adjustments and we'll get it back on track and where it needs to be. I think that has more to do with how we're executing and going to market than anything else.

Bill Eager: We have a, Scott and the team, and as a leadership team, a focus coming out of Q2 to say, let's get that go to market right and let's continue to figure out areas where we can execute better. I feel like the getting our performance to where we want it to be, in spite of all those things going on, is in our control. I think that I'm happy to see the team trying things like that. I'm happy to see them learning from it and pivoting. I'm confident that we'll make the right adjustments and we'll get it back on track and where it needs to be. I think that has more to do with how we're executing and going to market than anything else.

Craig Huber: Great. That's all I had. Thank you.

Craig Huber: Great. That's all I had. Thank you.

Operator: Thank you. We ask that each analyst limit themselves to one question and a follow-up so that others have an opportunity to do so. Our next question is from Jeff Meuler with Baird. Please proceed with your question.

Operator: Thank you. We ask that each analyst limit themselves to one question and a follow-up so that others have an opportunity to do so. Our next question is from Jeff Meuler with Baird. Please proceed with your question.

Jeff Meuler: Yeah, thank you. For CARFAX US, can you just remind us from a rooftop penetration or runway perspective where things stand for, I guess, the three main products, Advantage, Listings, and Service Loyalty? I'd imagine Advantage is pretty high. Listings, you have a lot of revenue. It's less clear to me where Service Loyalty stands. It'd be helpful to know where things stand relative to opportunity.

Jeff Meuler: Yeah, thank you. For CARFAX US, can you just remind us from a rooftop penetration or runway perspective where things stand for, I guess, the three main products, Advantage, Listings, and Service Loyalty? I'd imagine Advantage is pretty high. Listings, you have a lot of revenue. It's less clear to me where Service Loyalty stands. It'd be helpful to know where things stand relative to opportunity.

Bill Eager: Sure. We haven't given exact numbers on each of those products. I'm happy to talk to you about how we view the three products and the opportunity that exists within each. On our Advantage program, which is our base program, we continue to add value to that program. We think we have the opportunity to add more dealers to that program.

Bill Eager: Sure. We haven't given exact numbers on each of those products. I'm happy to talk to you about how we view the three products and the opportunity that exists within each. On our Advantage program, which is our base program, we continue to add value to that program. We think we have the opportunity to add more dealers to that program.