How quickly can customers deploy and ramp AI solutions, and what are the near-term and long-term implications for top-line acceleration, especially for 2027?

CCC's 10-year AI journey and close customer collaboration have built confidence in delivering outcomes like cycle time reduction and efficiency. Customers are now ready to deploy at scale, making process changes, supported by CCC's investments in go-to-market teams and change management, which is driving a larger percentage of growth from AI. “we have literally tens of thousands of users who have now gotten more comfortable with our AI and the results it's producing. And as a result, as our customers have gone through the extensive pilots that Tim talked about in evaluations, they're also starting to look at how do I deploy this? How do I deploy this? What changes should I make to my process?”

How should we think about underlying momentum heading into next year, and when will AI meaningfully accelerate top-line growth, potentially reaching double-digit growth in 2027?

The business has seen meaningful growth acceleration, from 7% organic revenue growth last year to 10% guided for FY26. AI revenue is contributing more, but the core remains consistent. The Q3/Q4 guide reflects a 1-point headwind from a casualty customer transition, but the underlying growth profile is unchanged. No specific guidance for 2027, but strong momentum is noted. “we've seen meaningful growth acceleration this year. So if you think about last year, organic revenue growth was 7%. Now we're guiding to 10%. That's all organic growth for the full year.”

How much of the 4 points of AI growth comes from deeper rollout with existing customers versus new module attach, and which will be a larger driver in H2?

Both existing customers expanding and new customers adopting new modules contribute to AI growth. Examples include a top 5 carrier renewing core solutions and adding a new AI solution, and another adding the subrogation solution after initially adopting a full suite of AI. Customers are converting from evaluations/pilots and adding newer solutions like First Look. “Existing customers expanding, adding new solutions, like, for example, a large top 5 carrier that we announced not only renewed all of their core solutions, but added a brand-new AI solution, that will start getting added.”

CCC

CCC Intelligent Solutions (CCC) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Jul 30, 2026

Source: earnings call transcript

Executive summary

CCC Intelligent Solutions Q2 FY26 — Strong AI-driven Growth and Margin Expansion

CCC Intelligent Solutions delivered solid Q2 FY26 results, driven by strong adoption and expansion of its AI-based solutions across major insurers and repair facilities. The company is leveraging its integrated platform and proprietary data to operationalize AI within customer workflows, leading to multiyear commitments and increased revenue contribution from AI. Management remains confident in its long-term growth opportunity by solving rising complexity in the insurance economy and deepening customer relationships.

Highlights

Total revenue grew 10% year-over-year to $286 million, exceeding the high end of guidance.
Adjusted EBITDA reached $115 million, also above the high end of guidance.
AI-based solutions revenue grew nearly 50% year-over-year, contributing 4 points to total revenue growth.
Free cash flow increased 36% year-over-year to $82 million in Q2, with trailing 12-month FCF up 36% to $308 million.
Full-year 2026 revenue growth guidance midpoint was raised from 9.5% to 10%.

Concerns

Adjusted gross margin decreased modestly to 76% in Q2 2026, down from 78% a year ago.
Adjusted EBITDA margins were 40%, down 110 basis points year-over-year (or roughly flat when normalizing for a $2 million one-time benefit in Q2 2025).
Q3 and Q4 revenue growth implies a 1-point headwind from the roll-off of legacy first-party cat fleet business.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$289.5M to $291.5M high materiality	Q3 · FY26	High
Adjusted EBITDA	$118M to $120M high materiality	Q3 · FY26	High
Revenue	$1.158B to $1.164B high materiality	FY26	High
Adjusted EBITDA	$485M to $491M high materiality	FY26	High
Stock-based compensation as % of revenue	11% to 12% medium materiality	FY26	High
Stock-based compensation as % of revenue	high single digits medium materiality	FY27	Medium
Adjusted EBITDA margin	approximately 42.5% high materiality	H2 FY26	High
Adjusted EBITDA margin expansion	approach 100 basis points year-over-year high materiality	FY26	High

Orderbook & backlog

Software gross dollar retention (GDR) 98% Q2 FY26

in line with last quarter

Has been between 98% and 99% for the past 5 years, primarily due to churn in the repair shop industry.

Software net dollar retention (NDR) 107% Q2 FY26

in line with Q1 FY26, up from 106% FY25

Captures cross-sell and upsell from existing clients, as well as volume movements in the auto physical damage client base.

Product announcements

Product	Type	Timeline
First Look solution	expansion	Q2 FY26
AI-powered subrogation solution	expansion	Q2 FY26
Mobile Jumpstart 2.0	launch	Q2 FY26
Medhub	launch	current
Accident Advisor solution	expansion	current

Deals & partnerships

Sunbit Integrated financing option for consumers at repair shops. millions of dollars financed

Partnership launched in April, with more than 2,000 shops onboarded and millions of dollars financed. One of the nation's largest MSOs has deployed the solution across its network.

Tempus Integrated medical claims analysis and resolution for insurers.

Tempus helps insurers analyze, evaluate, and resolve medical claims. These services are integrated directly into CCC's platform. Approximately 20 carriers, including multiple top 10 insurers, use the integrated solution.

Various Diagnostics Partners Expanding network of diagnostic solutions for modern vehicle repair.

CCC works with 10 diagnostics partners across the ecosystem to coordinate diagnostic scans after an accident.

Various OEMs Connected car initiatives, such as Accident Advisor solution.

Several OEMs have extended their relationships with CCC through connected car initiatives.

Risks & headwinds

Legacy first-party cat fleet business roll-off H2 FY26

1 point headwind to revenue growth

Mitigation:Underlying growth momentum of the business is expected to offset this, with full-year revenue guidance midpoint raised.

Adjusted gross margin decline Q2 FY26

down modestly from 78% to 76% YoY

Mitigation:Confident in ability to progress towards long-term target of approximately 80% as newer solution revenue scales and offsets recent investments.

Adjusted EBITDA margin decline Q2 FY26

down about 110 basis points YoY to 40%

Mitigation:When normalizing for a $2 million one-time benefit in Q2 2025, margins were roughly flat YoY. Management remains confident in delivering continued margin expansion through operating leverage and disciplined expense management, targeting ~100 bps expansion for FY26 at the high end of guidance.

What to watch in Q3 FY26

AI-based solutions revenue growth

Next quarter

Current approximately 45% YoY

Target Continued strong growth, contributing meaningfully to overall revenue acceleration

Why it matters

AI adoption is a key driver of CCC's growth and future valuation, indicating successful product-market fit and monetization.

AI-based solutions continue to represent an important and expanding part of our portfolio, accounting for approximately 11% of total revenue in the second quarter and growing approximately 45% year-over-year.

Find out whether CCC delivers this. Inve re-checks your case every morning.

Q&A highlights

How does the customer focus on outcomes and deployment validate CCC's ecosystem, and what is the conviction of large carriers in progressing AI conversations?

Carriers extensively test AI solutions to ensure real value, leading to rapid adoption. The tools are robust and generate near-term value, which is amplified by the network effect, making interactions across the ecosystem more efficient.

“when carriers pick our solutions. They have done so after extensive testing of the -- typically, the AI solutions at this point. And you can imagine they want to make sure that they are getting real value for these, however they define value.”

asked by Dylan Becker · answered by Timothy Welsh

3 min read 6 chapters

Detailed narrative

AI-Driven World and Business Outcomes

CCC is a scaled player in AI, generating over $120 million in annualized revenue from AI-based solutions, which are growing at nearly 50% year-over-year and account for 11% of total revenue. Customers are increasingly focused on deploying CCC's AI to achieve measurable business outcomes, such as accuracy, efficiency, and economic value.

These deployments are frequently backed by multiyear commitments, indicating that customers view AI as a strategic priority and CCC as a long-term technology partner. The company emphasizes that the greatest value from AI comes when it is embedded directly in customer workflows and decision points, leveraging CCC's combination of AI, proprietary data, ecosystem connectivity, and deeply integrated workflows.

Customer and Revenue Momentum

The company reported strong customer confidence, evidenced by multiyear deployments, contract expansions, and adoption of new workflows. In Q2, two top 5 insurers expanded their use of CCC's AI-enabled claims workflows through the deployment of the First Look solution. One of these carriers added First Look with a multiyear extension of its Auto Physical Damage solutions, while the other added it under an existing multiyear agreement.

Additionally, a top 5 insurer further expanded its relationship by adopting CCC's AI-powered subrogation solution, becoming the largest carrier to do so, with deployment scaling rapidly. These decisions by large carriers underscore a broader trend of moving AI from pilot programs to production scale deployment across complex, high-value workflows.

Repair Facility AI Adoption

Similar AI adoption trends are observed across repair facilities, particularly large multi-store operators (MSOs). In Q2, CCC renewed and expanded a multiyear agreement with one of the nation's largest independent collision repair operators. This MSO, an early adopter of Mobile Jumpstart in 2025, now uses it to initiate approximately 98% of its repair estimates and is an early adopter of Mobile Jumpstart 2.0, which leverages generative AI for faster, more consistent estimate creation.

Strong adoption of AI-based solutions is also seen across other large MSOs, including double-digit increases in participating repair facilities and estimates initiated through Jumpstart, reinforcing that AI-enabled workflows are becoming embedded in day-to-day operations at enterprise scale.

Solving Rising Complexity

The insurance economy faces increasing complexity as vehicles, medical procedures, and regulatory requirements evolve. CCC's platform becomes more valuable by orchestrating this ecosystem, as customers seek integrated solutions that bring participants together to solve shared business problems. The ability to coordinate across the ecosystem is a strategic differentiator.

CCC has invested heavily in building a robust partner ecosystem, now working with over 250 partners across 20 different business areas, helping over 35,000 customers navigate complex workflows while maintaining consistent processes.

Ecosystem Partnerships and Integrated Workflows

Examples of connected workflows creating value include a partnership with Sunbit, offering integrated financing options for consumers at repair shops. Since its April launch, over 2,000 shops have been onboarded, and millions of dollars financed. Another example is the collaboration with Tempus, which helps insurers analyze and resolve medical claims directly within CCC's platform, currently used by approximately 20 carriers.

CCC also works with 10 diagnostics partners to coordinate modern vehicle repair, improving scan verification and transparency. Several OEMs have extended relationships through connected car initiatives like Accident Advisor, highlighting the platform's role as a network of action for the insurance economy.

Operationalizing AI for Long-Term Growth

The common thread across all themes is that customers are operationalizing AI through trusted workflows that connect the insurance economy. AI adoption, customer momentum, and rising complexity are mutually reinforcing, strengthening CCC's leadership position and creating additional growth opportunities. As AI becomes more deeply embedded in day-to-day claims operations, the value of CCC's trusted workflows, ecosystem connectivity, and decision-enabling capabilities continues to increase.

These trends position CCC to deepen customer relationships, expand its role across the insurance economy, and create long-term value for customers and shareholders, reinforcing confidence in the durability of the business and its long-term growth opportunity.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.