CCC Intelligent Solutions Holdings Inc. (CCCS) Q3 2025 Earnings Call Transcript

Total Revenue $267 million, up 12% year-over-year. Approximately 5 points of growth driven by cross-sell, upsell, and adoption of solutions, 3 points from new logos, and 4 points from EvolutionIQ. Industry claim volumes declined 6% year-over-year, representing a 1 percentage point headwind to growth.

Adjusted EBITDA $110 million, up 8% year-over-year. Adjusted EBITDA margin was 41%. Growth attributed to revenue flow-through and phasing of costs into the fourth quarter.

Adjusted Gross Profit $199 million, with an adjusted gross profit margin of 75%, down from 78% last year. Decline due to higher depreciation from new solutions, a one-time write-off of a discontinued solution, and revenue mix.

Free Cash Flow $79 million in Q3, up from $49 million in the prior year period. Trailing 12-month free cash flow was $255 million, up 28% year-over-year. Improvement driven by strong collections and favorable working capital timing.

Stock-Based Compensation 15% of revenue in Q3, down from 24% in Q1 and 18% in Q2. Expected to trend down further in Q4 and into 2026.

Software Gross Dollar Retention (GDR) 99%, consistent with prior years, reflecting strong client retention.

Software Net Dollar Retention (NDR) 105%, down from 107% in Q2 2025, primarily due to timing of deals.

Share Repurchases 4.8 million shares repurchased in Q3 for $45 million. Year-to-date repurchases total approximately 30 million shares for $280 million.