CCC Intelligent Solutions (NASDAQ: CCC) lifts Q2 2026 revenue to 285,931
CCC Intelligent Solutions Holdings Inc. reported higher revenue and profitability for the quarter ended June 30, 2026. Revenue was 285,931 (in thousands), up from 260,451 (in thousands) a year earlier, lifting gross profit to 210,637 (in thousands). Operating income increased to 47,633 (in thousands) from 24,470 (in thousands).
Net income attributable to common stockholders rose to 20,787 (in thousands), or $0.04 per diluted share, compared with 12,960 (in thousands), or $0.02 per diluted share. For the first six months, net income was 36,204 (in thousands) versus a prior-period loss of 5,737 (in thousands).
Net cash provided by operating activities for the six months was 159,035 (in thousands), and cash and cash equivalents were 115,857 (in thousands) at June 30, 2026. The company carried a Term Loan with 1,284,474 (in thousands) of principal outstanding and disclosed remaining performance obligations of approximately 1,854 million.
Positive
- None.
Negative
- None.
Filing Explained
As of June 30, 2026, 100 million dollars remained authorized for repurchases while 25.5 million equity awards remained unvested.
This Form 10-Q is an unaudited quarterly report, and it reports that CCC completed no share repurchases during the quarter ended
During the first six months, CCC repurchased and retired 16,565,982 shares for
The remaining
At June 30, 25,472,300 equity awards remained unvested, including restricted stock units and restricted stock awards.
If those awards vest and are settled in shares, issuing the additional shares would increase the total share count and reduce an existing holder’s percentage ownership absent offsetting changes.
The next quarterly filing should show whether CCC uses any of the remaining repurchase authorization and how the unvested awards change.
Key Figures
Key Terms
remaining performance obligations financial
redeemable non-controlling interest financial
accelerated share repurchase financial
interest rate swap financial
stock-based compensation financial
goodwill impairment financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
FAQ
How did CCC (symbol CCC) perform financially in Q2 2026?
What were CCC (CCC) results for the first six months of 2026?
What is CCC (CCC) cash flow and cash position as of June 30, 2026?
How much debt does CCC (CCC) have outstanding?
What are CCC (CCC) remaining performance obligations?
What share repurchases has CCC (CCC) completed under its programs?
How significant is EvolutionIQ to CCC (CCC)’s balance sheet?
di
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ________________ to ________________
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) |
(Commission File Number) |
(IRS Employer Identification No.) |
(Address Of Principal Executive Offices) |
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(Zip Code) |
(
Registrant’s telephone number, including area code
Not Applicable
(Former name or former address, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
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Non-accelerated filer |
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Smaller reporting company |
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Emerging growth company |
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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
As of July 28, 2026,
CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
Form 10-Q
For the Quarter Ended June 30, 2026
Table of Contents
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Page |
PART I. FINANCIAL INFORMATION` |
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Cautionary Statement Regarding Forward-Looking Statements |
3 |
Item 1. |
Financial Statements (Unaudited) |
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Condensed Consolidated Balance Sheets as of June 30, 2026 (unaudited) and December 31, 2025 |
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Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for the three and six months ended June 30, 2026 and 2025 |
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Unaudited Condensed Consolidated Statements of Mezzanine Equity and Stockholders’ Equity for the three and six months ended June 30, 2026 and 2025 |
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Unaudited Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2026 and 2025 |
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Notes to Condensed Consolidated Financial Statements |
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Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
26 |
Item 3. |
Quantitative and Qualitative Disclosures about Market Risk |
39 |
Item 4. |
Controls and Procedures |
39 |
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PART II. OTHER INFORMATION
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Item 1. |
Legal Proceedings |
40 |
Item 1A. |
Risk Factors |
40 |
Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds from Registered Securities |
40 |
Item 3. |
Defaults Upon Senior Securities |
40 |
Item 4. |
Mine Safety Disclosures |
40 |
Item 5. |
Other Information |
40 |
Item 6. |
Exhibits |
41 |
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2
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
The section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” as well as other parts of this Quarterly Report on Form 10-Q contain “forward-looking statements” for purposes of the federal securities laws. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future, including those relating to the future financial performance and business strategies and expectations for our business. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements may include information concerning our possible or assumed future results of operations, client demand, business strategies, technology developments, financing and investment plans, competitive position, our industry and regulatory environment, potential growth opportunities and the effects of competition.
Important factors that could cause actual results to differ materially from our expectations include:
3
The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described above and under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. There may be additional risks that we consider immaterial or which are unknown. It is not possible to predict or identify all such risks. We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
4
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
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June 30, |
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December 31, |
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2026 |
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2025 |
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(Unaudited) |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
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Accounts receivable—Net of allowances of $ |
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Income taxes receivable |
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Deferred contract costs |
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Other current assets |
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Total current assets |
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SOFTWARE, EQUIPMENT, AND PROPERTY—Net |
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OPERATING LEASE ASSETS |
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INTANGIBLE ASSETS—Net |
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GOODWILL |
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DEFERRED FINANCING FEES, REVOLVER—Net |
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DEFERRED CONTRACT COSTS |
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EQUITY METHOD INVESTMENT |
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OTHER ASSETS |
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TOTAL |
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$ |
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$ |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Accounts payable |
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$ |
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$ |
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Accrued expenses |
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Current portion of long-term debt |
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Current portion of long-term licensing agreement—Net |
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Operating lease liabilities |
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Deferred revenues |
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Note payable to minority investor |
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Total current liabilities |
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LONG-TERM DEBT—Net |
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DEFERRED INCOME TAXES—Net |
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LONG-TERM LICENSING AGREEMENT—Net |
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OPERATING LEASE LIABILITIES |
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OTHER LIABILITIES |
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Total liabilities |
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COMMITMENTS AND CONTINGENCIES (Notes 19 and 20) |
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STOCKHOLDERS’ EQUITY: |
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Preferred stock—$ |
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Common stock—$ |
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Additional paid-in capital |
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Accumulated deficit |
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Accumulated other comprehensive loss |
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Total stockholders’ equity |
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TOTAL |
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$ |
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$ |
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See notes to condensed consolidated financial statements.
5
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(In thousands, except share and per share data)
(Unaudited)
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For the Three Months Ended |
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For the Six Months Ended |
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June 30, |
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June 30, |
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2026 |
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2025 |
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2026 |
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2025 |
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REVENUES |
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$ |
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$ |
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$ |
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$ |
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COST OF REVENUES |
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Cost of revenues, exclusive of amortization of acquired technologies |
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Amortization of acquired technologies |
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Total cost of revenues |
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GROSS PROFIT |
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OPERATING EXPENSES: |
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Research and development |
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Selling and marketing |
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General and administrative |
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Amortization of intangible assets |
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Total operating expenses |
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OPERATING INCOME |
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INTEREST EXPENSE |
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( |
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INTEREST INCOME |
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OTHER INCOME (EXPENSE)—NET |
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PRETAX INCOME (LOSS) |
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INCOME TAX (PROVISION) BENEFIT |
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NET INCOME (LOSS) INCLUDING NON-CONTROLLING |
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LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST |
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NET INCOME (LOSS) ATTRIBUTABLE TO CCC INTELLIGENT |
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$ |
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$ |
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$ |
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$ |
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Net income (loss) per share attributable to common stockholders: |
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Basic |
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$ |
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$ |
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$ |
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$ |
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Diluted |
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$ |
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$ |
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$ |
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$ |
( |
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Weighted-average shares used in computing net income (loss) per share |
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Basic |
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Diluted |
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COMPREHENSIVE INCOME (LOSS): |
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Net income (loss) including non-controlling interest |
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Other comprehensive income—Foreign currency translation |
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COMPREHENSIVE INCOME (LOSS) INCLUDING |
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Less: accretion of redeemable non-controlling interest |
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( |
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COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO CCC |
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$ |
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$ |
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$ |
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$ |
( |
) |
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See notes to condensed consolidated financial statements.
6
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
(In thousands, except number of shares)
(Unaudited)
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Preferred Stock—Issued and Outstanding |
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Common Stock—Issued and Outstanding |
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Accumulated |
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Additional |
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Other |
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Total |
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Number of |
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Par |
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Number of |
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Par |
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Paid-In |
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Accumulated |
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Comprehensive |
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Stockholders’ |
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Shares |
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Value |
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Shares |
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Value |
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Capital |
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Deficit |
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Loss |
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Equity |
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BALANCE—December 31, 2025 |
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$ |
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$ |
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$ |
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$ |
( |
) |
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$ |
( |
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$ |
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Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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— |
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Exercise of stock options |
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— |
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— |
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— |
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— |
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— |
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Issuance of common stock under employee stock purchase plan |
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— |
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— |
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— |
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— |
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— |
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Issuance of common stock upon vesting of RSUs—net of tax |
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— |
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— |
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( |
) |
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— |
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— |
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( |
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||
Repurchase and retirement of common stock |
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— |
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— |
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( |
) |
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( |
) |
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— |
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( |
) |
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— |
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( |
) |
Excise tax on repurchases of common stock |
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— |
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— |
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— |
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— |
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— |
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( |
) |
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— |
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( |
) |
Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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— |
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Net income |
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— |
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— |
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— |
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— |
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— |
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— |
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BALANCE—March 31, 2026 |
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( |
) |
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( |
) |
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||||||
Stock-based compensation expense |
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— |
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— |
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— |
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— |
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— |
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— |
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Exercise of stock options |
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— |
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— |
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— |
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— |
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— |
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Issuance of common stock upon |
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— |
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— |
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— |
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( |
) |
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— |
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— |
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( |
) |
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Excise tax on repurchases of common stock |
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— |
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— |
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— |
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— |
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— |
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— |
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Foreign currency translation adjustment |
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— |
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— |
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— |
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— |
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— |
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— |
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Net income |
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— |
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— |
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— |
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— |
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— |
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— |
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BALANCE—June 30, 2026 |
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$ |
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$ |
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$ |
( |
) |
|
$ |
( |
) |
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$ |
|
||||||
See notes to condensed consolidated financial statements.
7
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
(In thousands, except number of shares)
(Unaudited)
|
|
Redeemable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Non-Controlling |
|
|
|
Preferred Stock—Issued and Outstanding |
|
|
Common Stock—Issued and Outstanding |
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|
|||||||||||||||
|
|
Interest |
|
|
|
|
|
Additional |
|
|
|
|
|
Other |
|
|
Total |
|
|||||||||||||||||||
|
|
|
|
|
|
Number of |
|
|
Par |
|
|
Number of |
|
|
Par |
|
|
Paid-In |
|
|
Accumulated |
|
|
Comprehensive |
|
|
Stockholders’ |
|
|||||||||
|
|
|
|
|
|
Shares |
|
|
Value |
|
|
Shares |
|
|
Value |
|
|
Capital |
|
|
Deficit |
|
|
Loss |
|
|
Equity |
|
|||||||||
BALANCE—December 31, 2024 |
|
$ |
|
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||||
Stock-based compensation expense |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Exercise of stock options |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|||
Issuance of common stock under employee stock purchase plan |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|||
Issuance of common stock upon vesting of RSUs—net of tax |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
||
Issuance of restricted stock awards for business acquisition |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Issuance of common stock for business acquisition (1) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||||
Repurchase and retirement of common stock |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Accretion of redeemable non-controlling interest |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
Reclassification of redeemable non-controlling interest to note payable to minority investor |
|
|
( |
) |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Foreign currency translation adjustment |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
Net loss |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
BALANCE—March 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|||||||
Stock-based compensation expense |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
||
Exercise of stock options |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|||
Issuance of common stock upon |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
— |
|
|
|
( |
) |
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
Repurchase and retirement of common stock |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
( |
) |
|
|
( |
) |
|
|
|
|
|
|
( |
) |
|
|
— |
|
|
|
( |
) |
Foreign currency translation adjustment |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
||
Net income |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||
BALANCE—June 30, 2025 |
|
$ |
|
|
|
|
|
|
$ |
|
|
|
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|
$ |
( |
) |
|
$ |
|
|||||||
(1) Issuance of common stock for business acquisition includes
See notes to condensed consolidated financial statements.
8
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
For the Six Months Ended |
|
|||||
|
|
June 30, |
|
|||||
|
|
2026 |
|
|
2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
|
|
$ |
( |
) |
|
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization of software, equipment, and property |
|
|
|
|
|
|
||
Amortization of intangible assets |
|
|
|
|
|
|
||
Deferred income taxes |
|
|
|
|
|
( |
) |
|
Stock-based compensation |
|
|
|
|
|
|
||
Amortization of deferred financing fees |
|
|
|
|
|
|
||
Amortization of discount on debt |
|
|
|
|
|
|
||
Change in fair value of derivative instruments |
|
|
( |
) |
|
|
|
|
Noncash interest expense |
|
|
|
|
|
|
||
Changes in: |
|
|
|
|
|
|
||
Accounts receivable—Net |
|
|
( |
) |
|
|
( |
) |
Deferred contract costs |
|
|
|
|
|
( |
) |
|
Other current assets |
|
|
( |
) |
|
|
|
|
Deferred contract costs—Non-current |
|
|
( |
) |
|
|
( |
) |
Other assets |
|
|
( |
) |
|
|
( |
) |
Operating lease assets |
|
|
|
|
|
|
||
Income taxes |
|
|
|
|
|
( |
) |
|
Accounts payable |
|
|
( |
) |
|
|
( |
) |
Accrued expenses |
|
|
( |
) |
|
|
( |
) |
Operating lease liabilities |
|
|
( |
) |
|
|
( |
) |
Deferred revenues |
|
|
( |
) |
|
|
|
|
Other liabilities |
|
|
( |
) |
|
|
( |
) |
Net cash provided by operating activities |
|
|
|
|
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
||
Purchases of software, equipment, and property |
|
|
( |
) |
|
|
( |
) |
Acquisition of EvolutionIQ, Inc., net of cash acquired |
|
|
|
|
|
( |
) |
|
Net cash used in investing activities |
|
|
( |
) |
|
|
( |
) |
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Proceeds from exercise of stock options |
|
|
|
|
|
|
||
Proceeds from employee stock purchase plan |
|
|
|
|
|
|
||
Payments for employee taxes withheld upon vesting of equity awards |
|
|
( |
) |
|
|
( |
) |
Repurchase of common stock |
|
|
( |
) |
|
|
( |
) |
Proceeds from issuance of long-term debt |
|
|
|
|
|
|
||
Payments of fees associated with the debt modification |
|
|
|
|
|
( |
) |
|
Principal payments on long-term debt |
|
|
( |
) |
|
|
( |
) |
Net cash (used in) provided by financing activities |
|
|
( |
) |
|
|
|
|
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS |
|
|
|
|
|
|
||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
|
|
|
|
|
( |
) |
|
CASH AND CASH EQUIVALENTS: |
|
|
|
|
|
|
||
Beginning of period |
|
|
|
|
|
|
||
End of period |
|
$ |
|
|
$ |
|
||
NONCASH INVESTING AND FINANCING ACTIVITIES: |
|
|
|
|
|
|
||
Noncash purchases of software, equipment, and property |
|
$ |
|
|
$ |
|
||
Stock issued related the acquisition of EvolutionIQ, Inc. |
|
$ |
|
|
$ |
|
||
Issuance of promissory note to minority investor of redeemable preferred securities |
|
$ |
|
|
$ |
|
||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
||
Cash paid for interest |
|
$ |
|
|
$ |
|
||
Cash paid for income taxes—Net |
|
$ |
|
|
$ |
|
||
See notes to condensed consolidated financial statements.
9
CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
CCC Intelligent Solutions Holdings Inc. (the “Company”), a Delaware corporation, is a leading software as a service (“SaaS”) and artificial intelligence (“AI”) platform provider for the multi-trillion-dollar insurance economy powering operations for insurers, repairers, automakers, part suppliers, and more. CCC’s cloud technology connects businesses digitizing mission-critical workflows, commerce and customer experiences.
The Company’s cloud-based SaaS platform connects trading partners, facilitates commerce, and supports mission-critical, AI enabled digital workflows.
The Company is headquartered in Chicago, Illinois. The Company’s primary operations are in the United States (“U.S.”) and it also has operations in China.
Basis of Presentation—The condensed consolidated balance sheets as of June 30, 2026 and December 31, 2025, the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2026 and 2025, the condensed consolidated statements of mezzanine equity and stockholders’ equity for the three and six months ended June 30, 2026 and 2025, and the condensed consolidated statements of cash flows for the six months ended June 30, 2026 and 2025 have been prepared by the Company and have not been audited. In the opinion of management, all adjustments (which include only normal recurring adjustments except where disclosed) necessary for the fair presentation of the financial position, results of operations and cash flows have been made. The results of operations for any interim period are not necessarily indicative of the results to be expected for the full year or any future period.
The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission (“SEC”). The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with GAAP have been condensed or omitted, pursuant to the rules and regulations of the SEC for interim financial reporting. Accordingly, the condensed consolidated financial statements may not include all the information and footnotes necessary for a complete presentation of the Company’s financial position, results of operations or cash flows. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
The Company’s significant accounting policies are described in Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes to the significant accounting policies since December 31, 2025.
Basis of Accounting—The accompanying condensed consolidated financial statements are prepared in accordance with GAAP and include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements include 100% of the accounts of wholly-owned and majority-owned subsidiaries. The ownership interest of the minority investor as of December 31, 2024 is recorded as a non-controlling interest in CCCIS Cayman Holdings Limited (“CCC Cayman”), the parent of the Company’s China operations.
Use of Estimates—The preparation of the condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts, and the disclosures of contingent amounts, in the Company’s condensed consolidated financial statements and the accompanying notes. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Although the Company regularly assesses its estimates, actual results could differ from management’s estimates if past experience or other assumptions are not substantially accurate. Changes in estimates are recorded in the period in which they become known. Significant estimates in these condensed consolidated financial statements include the estimation of contract transaction prices, the determination of the amortization period for contract assets, the valuation of goodwill and intangible assets, and the estimates and assumptions associated with stock incentive plans.
10
Recently Issued Accounting Pronouncements—In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2025-06, Intangibles-Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. Among other things, this update removes the accounting consideration of software project development stages, and requires an entity to start capitalizing software costs when management has authorized and committed to funding the software project, and it is probable that the project will be completed and used to perform its intended function. The guidance can be applied on a prospective basis, modified basis, or retrospective basis. The amendments in this update are effective for fiscal years beginning after December 15, 2027, and interim periods in those fiscal years. The Company is evaluating the impact of the adoption of ASU 2025-06 to its consolidated financial statements.
In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This update requires new disclosures aimed at enhancing transparency in financial reporting by requiring disaggregation of specific expense captions within the statement of operations. Under the update, entities are required to disclose a breakdown of certain expense categories, such as: employee compensation; depreciation; amortization, and other material components. This ASU is effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is evaluating the disclosure requirements related to this update.
There have been no other recent accounting pronouncements or changes in accounting pronouncements that are of significance or potential significance to us.
EvolutionIQ
On January 6, 2025, the Company completed its acquisition of EvolutionIQ, Inc. (“EvolutionIQ”), a privately held provider of AI-driven solutions for disability and injury claims management, for total consideration of $
The acquisition was accounted for as a business combination in accordance with Accounting Standard Codification 805. The purchase price allocation was finalized during the quarter ended December 31, 2025. The transaction resulted in the recognition of $
In accordance with the acquisition agreement, $
No business combinations were completed during the three and six months ended June 30, 2026.
Disaggregation of Revenue—The Company provides disaggregation of revenue based on type of service as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
The following table summarizes revenue by type of service for the three and six months ended June 30, 2026 and 2025 (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Software subscriptions |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
11
Transaction Price Allocated to the Remaining Performance Obligations—Remaining performance obligations represent contracted revenue that has not yet been recognized, which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. As of June 30, 2026, approximately $
Deferred Revenue—Revenue recognized for the three months ended June 30, 2026 from amounts in deferred revenue as of March 31, 2026 was $
Contract Assets and Liabilities—
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Accounts receivables—Net of allowances |
|
$ |
|
|
$ |
|
||
Deferred contract costs |
|
|
|
|
|
|
||
Long-term deferred contract costs |
|
|
|
|
|
|
||
Other assets (accounts receivable, non-current) |
|
|
|
|
|
|
||
Deferred revenues |
|
|
|
|
|
|
||
Other liabilities (deferred revenues, non-current) |
|
|
|
|
|
|
||
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Interest Rate Swaps—In February 2025, the Company entered into three interest rate swap agreements to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt (see Note 14). The fair value of the interest rate swap agreements was estimated using inputs that were observable or that could be corroborated by observable market data and therefore was classified within Level 2 of the fair value hierarchy as of June 30, 2026.
The Company does not designate its interest rate swap agreements as hedging instruments and records the changes in fair value within other income (expense)-net on the condensed consolidated statements of operations and comprehensive income (loss). As of June 30, 2026, the Company's interest rate swap agreements were in both asset and liability positions, with a total fair value of $
The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis at June 30, 2026 (in thousands):
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total Assets |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis at December 31, 2025 (in thousands):
|
|
Fair Value |
|
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
||||
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest rate swap |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Total liabilities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
12
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis—The Company has assets that under certain conditions are subject to measurement at fair value on a nonrecurring basis. These assets include those associated with acquired businesses, including goodwill and other intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired.
The Company did
Fair Value of Other Financial Instruments—
|
|
June 30, 2026 |
|
|
December 31, 2025 |
|
||||||||||
|
|
Carrying |
|
|
Estimated |
|
|
Carrying |
|
|
Estimated |
|
||||
Description |
|
Amount |
|
|
Fair Value |
|
|
Amount |
|
|
Fair Value |
|
||||
Term Loan, including current maturities |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
The fair value of the Company’s long-term debt, including current maturities, was estimated based on the quoted market prices for the same or similar instruments and fluctuates with changes in applicable interest rates among other factors. The fair value of long-term debt is classified as a Level 2 measurement in the fair value hierarchy and is established based on observable inputs in less active markets.
The Company recognized an income tax provision of $
The Company recognized an income tax provision of $
The Company made income tax payments of $
The Company made income tax payments of $
As of June 30, 2026, unrecognized tax benefits were materially consistent with the amount as of December 31, 2025. The Company believes its liability for unrecognized tax benefits, excluding interest and penalties, will not materially change over the following twelve months.
13
Accounts receivable—Net as of June 30, 2026 and December 31, 2025, consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Accounts receivable |
|
$ |
|
|
$ |
|
||
Allowance for credit losses and sales reserves |
|
|
( |
) |
|
|
( |
) |
Accounts receivable—Net |
|
$ |
|
|
$ |
|
||
As of June 30, 2026,
Changes to the allowance for credit losses and sales reserves during the three and six months ended June 30, 2026 and 2025 consist of the following (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Balance at beginning of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Charges to bad debt and sales reserves |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Write-offs—Net |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Balance at end of period |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Other current assets as of June 30, 2026 and December 31, 2025 consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Prepaid SaaS costs |
|
$ |
|
|
$ |
|
||
Prepaid service fees |
|
|
|
|
|
|
||
Prepaid insurance |
|
|
|
|
|
|
||
Prepaid software and equipment maintenance |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Total other current assets |
|
$ |
|
|
$ |
|
||
Software, equipment, and property as of June 30, 2026 and December 31, 2025 consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Software, licenses and database |
|
$ |
|
|
$ |
|
||
Leasehold improvements |
|
|
|
|
|
|
||
Building and land |
|
|
|
|
|
|
||
Computer equipment |
|
|
|
|
|
|
||
Furniture and other equipment |
|
|
|
|
|
|
||
Total software, equipment, and property |
|
|
|
|
|
|
||
Less accumulated depreciation and amortization |
|
|
( |
) |
|
|
( |
) |
Software, equipment, and property—Net |
|
$ |
|
|
$ |
|
||
Depreciation and amortization expense related to software, equipment and property was $
14
The Company leases real estate in the form of office space and data center facilities. Generally, at the inception of the contract, the term for real estate leases ranges from
The components of lease expense for the three and six months ended June 30, 2026 and 2025 were as follows (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Operating lease costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Variable lease costs |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total lease costs |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
During the six months ended June 30, 2026 and 2025, the Company made cash payments for operating leases of $
During the three and six months ended June 30, 2026, the Company recognized operating lease right‑of‑use assets in exchange for lease liabilities of $
Goodwill and intangible assets are primarily the result of business acquisitions.
The Company performs its annual impairment assessment of goodwill and indefinite life intangible assets as of November 30 of each year.
The following table presents the gross amount, accumulated impairment loss and carrying amount of goodwill as of June 30, 2026 and December 31, 2025.
|
|
|
|
Accumulated |
|
|
Net |
|
|||
|
Gross Amount |
|
|
Impairment Loss |
|
|
Carrying Amount |
|
|||
Balance as of June 30, 2026 |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Balance as of December 31, 2025 |
$ |
|
|
$ |
( |
) |
|
$ |
|
||
The accumulated impairment loss is due to impairment charges of $
There were no changes in the carrying amount of goodwill during the three and six months ended June 30, 2026.
Intangible Assets—
The intangible assets balance as of June 30, 2026 is reflected below (in thousands):
|
|
|
|
Weighted- |
|
|
|
|
|
|
|
|
|
|
Average |
|
|
|
|
|
|
|
|
Estimated |
|
Remaining |
|
Gross |
|
|
|
Net |
|
|
Useful Life |
|
Useful Life |
|
Carrying |
|
Accumulated |
|
Carrying |
|
|
(Years) |
|
(Years) |
|
Amount |
|
Amortization |
|
Amount |
|
|
|
|
|
|
|
|
|
|
|
Intangible assets: |
|
|
|
|
|
|
|
|
|
|
Customer relationships |
|
|
|
$ |
|
$( |
|
$ |
||
Acquired technologies |
|
|
|
|
( |
|
||||
Trademarks |
|
|
|
|
( |
|
||||
Subtotal |
|
|
|
|
|
|
( |
|
||
Trademarks—indefinite life |
|
|
|
|
|
|
— |
|
||
Total intangible assets |
|
|
|
|
|
$ |
|
$( |
|
$ |
15
The intangible assets balance as of December 31, 2025 is reflected below (in thousands):
|
|
|
|
Weighted- |
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
Average |
|
|
|
|
|
|
|
|
|
|||
|
|
Estimated |
|
Remaining |
|
Gross |
|
|
|
|
|
Net |
|
|||
|
|
Useful Life |
|
Useful Life |
|
Carrying |
|
|
Accumulated |
|
|
Carrying |
|
|||
|
|
(Years) |
|
(Years) |
|
Amount |
|
|
Amortization |
|
|
Amount |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Customer relationships |
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||||
Acquired technologies |
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Trademarks |
|
|
|
|
|
|
|
( |
) |
|
|
|
||||
Subtotal |
|
|
|
|
|
|
|
|
|
( |
) |
|
|
|
||
Trademarks—indefinite life |
|
|
|
|
|
|
|
|
|
— |
|
|
|
|
||
Total intangible assets |
|
|
|
|
|
$ |
|
|
$ |
( |
) |
|
$ |
|
||
Amortization expense for intangible assets was $
Future amortization expense for the remainder of the year ended December 31, 2026 and the following four years ended December 31 and thereafter for intangible assets as of June 30, 2026 is as follows (in thousands):
Years Ending December 31: |
|
|
|
|
|
|
|
|
|
2026 |
|
|
|
|
2027 |
|
|
|
|
2028 |
|
|
|
|
2029 |
|
|
|
|
2030 |
|
|
|
|
Thereafter |
|
|
|
|
Total |
|
$ |
|
|
Accrued expenses as of June 30, 2026 and December 31, 2025 consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Compensation |
|
$ |
|
|
$ |
|
||
Sales tax |
|
|
|
|
|
|
||
Software license agreement |
|
|
|
|
|
|
||
Royalties and licenses |
|
|
|
|
|
|
||
Employee insurance benefits |
|
|
|
|
|
|
||
Professional services |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Total accrued expenses |
|
$ |
|
|
$ |
|
||
Other liabilities as of June 30, 2026 and December 31, 2025 consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Income taxes payable—non-current |
|
$ |
|
|
$ |
|
||
Fair value of interest rate swaps |
|
|
|
|
|
|
||
Deferred revenue—non-current |
|
|
|
|
|
|
||
Other |
|
|
|
|
|
|
||
Total other liabilities |
|
$ |
|
|
$ |
|
||
16
On September 21, 2021, CCC Intelligent Solutions Inc., the Company’s operating subsidiary, entered into a credit agreement (as amended, the “2021 Credit Agreement”). Refer to Note 15, “Long-Term Debt,” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 for a full description of the 2021 Credit Agreement (including detailed terms and amendments). The Company’s long-term debt comprises a senior secured term loan (the “Term Loan”) and a revolving credit facility (the “2021 Revolving Credit Facility”) under the 2021 Credit Agreement.
Term Loan and Revolving Credit Facility – At June 30, 2026, the Term Loan had an outstanding principal balance of $
As of June 30, 2026, the Company had $
Interest Rates – Borrowings under the 2021 Credit Agreement bear interest at variable rates (Term Secured Overnight Financing Rate ("SOFR") or base rate) plus an applicable margin. Under the 2021 Credit Agreement’s current terms, the Term Loan interest margin is
During the three months ended June 30, 2026 and 2025, the weighted-average interest rate on the outstanding borrowings under the Term Loan was
During the six months ended June 30, 2026 and 2025, the weighted-average interest rate on the outstanding borrowings under the Term Loan was
Collateral and Covenants – The Term Loan and Revolving Credit Facility are senior secured obligations, guaranteed by the Cypress Intermediate Holdings II, LLC, and certain of the Company's other U.S. subsidiaries, and secured by first-priority liens on the equity of CCC Intelligent Solutions Inc. and substantially all of its assets (subject to customary exceptions). The 2021 Credit Agreement contains customary affirmative and negative covenants (including limitations on additional debt, liens, mergers, dividends, and investments) and a financial covenant requiring that if Revolver borrowings exceed
Long-term debt as of June 30, 2026 and December 31, 2025, consists of the following (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
Term Loan |
|
$ |
|
|
$ |
|
||
Term Loan—discount |
|
|
( |
) |
|
|
( |
) |
Term Loan—deferred financing fees |
|
|
( |
) |
|
|
( |
) |
Term Loan—Net of discount & fees |
|
|
|
|
|
|
||
Less: Current portion |
|
|
( |
) |
|
|
( |
) |
Total long-term debt—Net of current portion |
|
$ |
|
|
$ |
|
||
Interest Rate Swaps – The Company utilizes interest rate swap agreements to hedge a portion of its floating-rate debt. These swaps (not designated as hedges for accounting purposes) effectively fix the interest rate on a $
17
For additional information regarding the Series A Preferred Stock issued by CCCIS Cayman Holdings Limited, an indirect majority owned subsidiary of the Company and parent of the Company's China subsidiaries (“CCC Cayman”), including the terms of the related stock purchase agreements and redemption features, see “Note 17. Redeemable Non-Controlling Interest” of our Annual Report on Form 10-K for the year ended December 31, 2025.
On March 17, 2025, the Company received a notice of redemption under the Series A Preferred Stock purchase agreement and related documents. Upon receipt of the notice, the Series A Preferred Stock became mandatorily redeemable and payable by CCC Cayman, without recourse to the Company, and was no longer presented within mezzanine equity as a redeemable non-controlling interest.
As of June 30, 2026,
There was
In connection with the notice of redemption of the Series A Preferred Stock of CCC Cayman and in accordance with the provisions of the Series A Preferred Stock purchase agreement and related documents (see Note 15), on May 16, 2025, CCC Cayman issued a promissory note (the “Promissory Note”) to the holder of the Series A Preferred Stock of CCC Cayman. The obligors under the Promissory Note are CCC Cayman and its subsidiaries, without recourse to the Company.
The Promissory Note has an initial principal amount outstanding of $
The Promissory Note’s maturity date is defined as the date CCC Cayman has available funds and assets, as defined in the Series A Preferred Stock purchase agreement and related documents, that are available and sufficient to pay in full the redemption price for the holder's shares of Series A Preferred Stock. The Promissory Note allows for CCC Cayman to prepay, in whole or in part, any outstanding principal or interest prior to the maturity date without penalty.
As of June 30, 2026, the total amount outstanding under the Promissory Note was $
Preferred Stock—The Company is authorized to issue up to
Common Stock—The Company is authorized to issue up to
There were
Restricted Common Stock—As part of the acquisition of EvolutionIQ in January 2025 (see Note 3), the Company issued
18
Secondary Offerings and Stock Repurchase—There were no secondary offerings during the three and six months ended June 30, 2026.
In March 2025, a secondary offering was completed and
Share Repurchase Program—In December 2025, the Company’s board of directors authorized the repurchase of up to $
In March 2026,
In December 2024, the Company’s board of directors authorized the repurchase of up to $
During the three months ended June 30, 2025, the Company repurchased
Accelerated Share Repurchase Transaction—On December 12, 2025, the Company entered into an accelerated share repurchase (“ASR”) transaction with a third-party financial institution to repurchase $
On February 27, 2026, the Company received a final delivery of
19
In July 2021, the 2021 Equity Incentive Plan (the “2021 Plan”) was adopted and approved by the Company’s board of directors and stockholders.
Restricted Stock Units and Restricted Stock Awards—
|
|
|
|
|
Weighted- |
|
||
|
|
|
|
|
Average |
|
||
|
|
Shares |
|
|
Fair Value |
|
||
Unvested —December 31, 2025 |
|
|
|
|
$ |
|
||
Granted |
|
|
|
|
|
|
||
Vested |
|
|
( |
) |
|
|
|
|
Forfeited |
|
|
( |
) |
|
|
|
|
Unvested —June 30, 2026 |
|
|
|
|
$ |
|
||
In connection with the acquisition of EvolutionIQ (see Note 3), the Company granted
During the six months ended June 30, 2026, the Company granted
During the six months ended June 30, 2026,
Stock Options—
|
|
|
|
|
|
|
|
Weighted- |
|
|
|
|
||||
|
|
|
|
|
|
|
|
Average |
|
|
|
|
||||
|
|
|
|
|
Weighted- |
|
|
Remaining |
|
|
Aggregate |
|
||||
|
|
|
|
|
Average |
|
|
Contractual |
|
|
Intrinsic |
|
||||
|
|
|
|
|
Exercise |
|
|
Life |
|
|
Value |
|
||||
|
|
Shares |
|
|
Price |
|
|
(in years) |
|
|
(in thousands) |
|
||||
Options outstanding—December 31, 2025 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Exercised |
|
|
( |
) |
|
|
|
|
|
|
|
|
|
|||
Forfeited and canceled |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Options outstanding—June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
Options exercisable—June 30, 2026 |
|
|
|
|
$ |
|
|
|
|
|
$ |
|
||||
The fair value of the options which vested during the six months ended June 30, 2026 was $
Cayman Equity Incentive Plan—In December 2022, the Company adopted the CCCIS Cayman Holdings Employees Equity Incentive Plans (“Cayman Incentive Plans”), which provide for the issuance of stock option awards in CCC Cayman (“Cayman Awards”) to eligible employees of the Company’s China subsidiaries.
Awards under the Cayman Incentive Plans are settled in cash and thus accounted for as liability awards. Awards granted under the Cayman Incentive Plans have time-based vesting and expire on the tenth anniversary of the grant date.
There were
20
Employee Stock Purchase Plan—In July 2021, the Company adopted the CCC 2021 Employee Stock Purchase Plan (“ESPP”).
During the six months ended June 30, 2026,
The fair value of the ESPP purchase rights sold during the six months ended June 30, 2026 was estimated using the Black-Scholes option pricing model with the following assumptions:
Expected term (in years) |
|
|
Expected volatility |
|
|
Expected dividend yield |
|
|
Risk-free interest rate |
|
Stock-Based Compensation—Stock-based compensation expense has been recorded in the accompanying condensed consolidated statements of operations and comprehensive income (loss) as follows for the three and six months ended June 30, 2026 and 2025 (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Cost of revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Research and development |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Sales and marketing |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General and administrative |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total stock-based compensation expense |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
As of June 30, 2026, there was $
Purchase Obligations—The Company has long-term agreements with suppliers and other parties related to licensing data used in its services, outsourced data center, disaster recovery and SaaS that expire at various dates through
Guarantees—The Company’s services and solutions are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and substantially in accordance with the Company’s services and solutions documentation under normal use and circumstances. The Company’s services and solutions are generally warranted to be performed in a professional manner and to materially conform to the specifications set forth in the related customer contract. The Company’s arrangements also include certain provisions for indemnifying customers against liabilities if its services and solutions infringe a third party’s intellectual property rights.
To date, the Company has not incurred any material costs as a result of such indemnifications or commitments and has not accrued any liabilities related to such obligations in the accompanying condensed consolidated financial statements.
In the ordinary course of business, the Company is from time to time, involved in various pending or threatened legal actions. The litigation process is inherently uncertain, and it is possible that the resolution of such matters might have a material adverse effect upon the Company’s consolidated financial condition and/or results of operations. The Company’s management believes, based on current information, matters currently pending or threatened are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.
21
The Company has engaged in transactions within the ordinary course of business with entities affiliated with its principal equity owners and directors.
The following table summarizes revenues recognized and expenses incurred with entities affiliated with one of its principal equity owners and directors for the three and six months ended June 30, 2026 and 2025 (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Software subscriptions |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Credit card processing |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Employee health insurance benefits |
|
^ |
|
|
|
|
|
^ |
|
|
|
|
||||
IT security software |
|
^ |
|
|
|
|
|
^ |
|
|
|
|
||||
Board of director fees for services, including related travel and out-of-pocket reimbursements |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
^ Not a related party during the three and six months ended June 30.
As of June 30, 2026 and 2025, all receivables and payables from related parties were de minimis.
Other income (expense)—Net consists of the following (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Gain (loss) from change in fair value of interest rate swaps |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
Loss from change in fair value of interest rate caps |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
(Loss) income from derivative instruments |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Other income—Net |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total other income (expense)—Net |
|
$ |
|
|
$ |
( |
) |
|
$ |
|
|
$ |
( |
) |
||
The Company calculates basic earnings per share by dividing the net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding for the period. The diluted earnings per share is computed by assuming the exercise, settlement and vesting of all potential dilutive common stock equivalents outstanding for the period using the treasury stock method. The Company excludes common stock equivalent shares from the calculation if their effect is anti-dilutive. In a period where the Company is in a net loss position, the diluted loss per share is calculated using the basic share count.
22
The following table sets forth a reconciliation of the numerator and denominator used to compute basic and diluted earnings per share of common stock (in thousands, except for share and per share data).
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Numerator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||
Accretion of redeemable non-controlling interest |
|
|
|
|
|
|
|
|
|
|
|
( |
) |
|||
Net income (loss) attributable to common stockholders |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Denominator |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares of common stock—basic and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dilutive effect of stock-based awards |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares of common stock—diluted |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||
Diluted |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||
With respect to the July 30, 2021 business combination involving Dragoneer Growth Opportunities Corp. and Cypress Holdings Inc., pursuant to which Dragoneer changed its name to CCC Intelligent Solutions Holdings Inc. (the “2021 Business Combination”), see “Note 19. Capital Stock” of our Annual Report on Form 10-K for the year ended December 31, 2025. As part of the 2021 Business Combination,
The Company organizes its segments around its operations by geographic region and operates in
The Company does not have intra-entity sales or transfers.
The chief operating decision maker (“CODM”) of the Domestic Segment is the Company’s chief executive officer. The CODM assesses performance for the Domestic Segment at the segment level and uses the segment’s performance when making strategic decisions on how to allocate resources and capital. In addition, the segment’s performance is used when reviewing actual financial performance against internal budgets and for establishing incentive compensation targets.
The Company’s financial information and performance measures used by the CODM do not include a metric or measure including segment assets and thus, no asset information is provided to the CODM for the purpose of making strategic decisions or allocating resources.
23
The following table presents the Company’s financial information about reported segment revenue, significant segment expenses, and the Company’s reconciliation of segment profit (loss) to condensed consolidated net income (loss) (in thousands):
|
|
For the Three Months |
|
|
For the Six Months Ended June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue—Domestic Segment |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Revenue—Other (1) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Segment Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Data licenses and royalties—adjusted (2) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Customer services—adjusted (3) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Products and technology—adjusted (4) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue enablement—adjusted (5) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
General corporate and administrative—adjusted (6) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Other segment items (7) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Amortization expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Depreciation expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
|
|
( |
) |
Significant non-cash items (8) |
|
|
( |
) |
|
|
|
|
|
( |
) |
|
|
|
||
Income tax provision (benefit) |
|
|
|
|
|
( |
) |
|
|
|
|
|
( |
) |
||
Total segment expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net income (loss) including non-controlling interest |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
( |
) |
|||
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
24
Revenues by geographic area, presented based upon the location of the customer are as follows (in thousands):
|
|
For the Three Months Ended |
|
|
For the Six Months Ended |
|
||||||||||
|
|
June 30, |
|
|
June 30, |
|
||||||||||
|
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
United States |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
China |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Total revenues |
|
$ |
|
|
$ |
|
|
$ |
|
|
$ |
|
||||
Software, equipment and property—Net by geographic area are as follows (in thousands):
|
|
June 30, |
|
|
December 31, |
|
||
|
|
2026 |
|
|
2025 |
|
||
United States |
|
$ |
|
|
$ |
|
||
China |
|
|
|
|
|
|
||
Total software, equipment and property—Net |
|
$ |
|
|
$ |
|
||
25
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following discussion and analysis of our financial condition and results of operations should be read together with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from the forward-looking statements included herein. Factors that could cause or contribute to such differences include, but are not limited to, those identified below and those discussed in the section titled “Cautionary Statement Regarding Forward-Looking Statements” and “Risk Factors” as set forth elsewhere in this Quarterly Report on Form 10-Q.
Unless otherwise indicated or the context otherwise requires, references to “CCC,” the “Company,” “we,” “us,” “our” and other similar terms refer to CCC Intelligent Solutions Holdings Inc. and its consolidated subsidiaries.
Business Overview
Founded in 1980, CCC is a leading Software as a Service (“SaaS”) and Artificial Intelligence (“AI”) platform provider for the multi-trillion-dollar insurance economy powering operations for insurers, repairers, automakers, part suppliers, and more. CCC cloud technology connects more than 35,000 businesses digitizing mission-critical workflows, commerce, and customer experiences. A trusted leader in AI, customer experience, network and workflow management, CCC delivers technology that turns crucial moments into intelligent experiences, with the goal of shaping a world where life just works.
Our business has been built upon two foundational pillars: automotive insurance claims and automotive collision repair. For decades we have delivered leading software solutions to both the insurance and repair industries, including pioneering Direct Repair Programs (“DRP”) in the United States (“U.S.”) beginning in 1992. DRP connects auto insurers and collision repair shops to create business value for both parties, and requires digital tools to facilitate interactions and manage partner programs. Insurer-to-shop DRP connections have created a strong network effect for CCC’s platform, as insurers and repairers both benefit by joining the largest network to maximize opportunities. This has led to a virtuous cycle in which more insurers on the platform drives more value for the collision shops on the platform, and vice versa.
We believe we have become a leading insurance and repair SaaS and AI provider in the U.S. by increasing the depth and breadth of our SaaS offerings over many years. Our insurance solutions help insurance carriers manage mission-critical workflows across the claims lifecycle, while building intelligent experiences for their customers. Our software integrates seamlessly with both legacy and modern systems and enables insurers to rapidly innovate on our platform. Our repair solutions help collision repair facilities achieve better performance throughout the collision repair cycle by digitizing processes to drive business growth, streamline operations, and improve repair quality. We have more than 300 insurers on our network, connecting with more than 30,500 repair facilities through our multi-tenant cloud platform. We believe our software is the architectural backbone of insurance DRP systems and is a primary driver of material revenue for our collision repair shop customers and a source of material efficiencies for our insurance carrier customers.
Our platform is designed to solve the “many-to-many” problem faced by the insurance economy. There are numerous internally and externally developed insurance software solutions in the market today, with the vast majority of applications focused on insurance-only use cases and not on serving the broader insurance ecosystem. We have prioritized building a leading network around our automotive insurance and collision repair pillars to further digitize interactions and maximize value for our customers. We have tens of thousands of companies on our platform that participate in the insurance economy, including insurers, repairers, parts suppliers, and automotive manufacturers. Our solutions create value for each of these parties by enabling them to connect to our vast network to collaborate with other companies, streamline operations, and reduce processing costs and dollars lost through claims management inefficiencies, or claims leakage. Expanding our platform has added new layers of network effects, further accelerating the adoption of our software solutions.
We have processed more than $2 trillion of historical data across our network, allowing us to build proprietary data assets that leverage insurance claims, vehicle repair, automotive parts and other vehicle-specific information. We believe we are uniquely positioned to provide data-driven insights, analytics, and AI-enhanced workflows that strengthen our solutions and improve business outcomes for our customers. Our AI solutions streamline existing insurance and repair processes including vehicle damage detection, claim triage, claim handling, repair estimating, intelligent claim review, and claim subrogation. We deliver real-world AI with more than 125 U.S. insurers and more than 15,000 U.S. collision repairers actively using AI-powered solutions in production environments.
One of the primary obstacles facing the insurance economy is increasing complexity which is driven by technological advancements, supply-chain disruption, social inflation, medical inflation, and Internet-of-Things (“IOT”) data. We believe digitization plays a critical role in managing this growing complexity while meeting consumer expectations. Our technology investments are focused on digitizing complex processes and interactions across our ecosystem, and we believe we are well positioned to power the insurance economy of the future with our data, network, and platform.
26
While our position in the insurance economy is grounded in the automotive insurance sector, the largest Property & Casualty (“P&C”) insurance sector in the U.S. representing nearly half of P&C Direct Written Premium (“DWP”), we believe our integrations and cloud platform are capable of driving innovation across the broader insurance economy. Our customers are increasingly looking for CCC to expand its solutions to other parts of their business where they can benefit from our technology, service, and partnership. In response, we are investing in new solutions that we believe will enable us to digitize the entire automotive claims lifecycle, and over time expand into adjacencies including other insurance lines. For example, CCC’s acquisition of EvolutionIQ, Inc. (“EvolutionIQ”) in January 2025 added claims solutions in disability and workers’ compensation insurance lines to CCC’s solution suite.
We have strong customer relationships in the end-markets we serve, and these relationships are a key component of our success given the long-term nature of our contracts and the interconnectedness of our network. We have customer agreements with more than 300 insurers (including carriers, self-insurers and other entities processing insurance claims), including 27 of the top 30 automotive insurance carriers and 9 of the top 15 disability insurance carriers in the U.S., based on DWP, and hundreds of regional carriers. We have more than 35,000 total customers, including more than 30,500 automotive collision repair facilities (including repairers and other entities that estimate damaged vehicles), more than 6,500 parts and diagnostics suppliers, 14 of the top 15 automotive manufacturers based on vehicles in operation, and numerous other companies that participate in the insurance economy.
Key Performance Measures and Operating Metrics
In addition to our GAAP and non-GAAP financial measures, we rely on Software Net Dollar Retention Rate (“Software NDR”) and Software Gross Dollar Retention Rate (“Software GDR”) to measure and evaluate our business and to make strategic decisions. Software NDR and Software GDR may not be comparable to or calculated in the same way as other similarly titled measures used by other companies.
Software NDR
We believe that Software NDR provides our management and our investors with insight into our ability to retain and grow revenue from our existing customers, as well as their potential long-term value to us. We also believe the results shown by this metric reflect the stability of our revenue base, which is one of our core competitive strengths. We calculate Software NDR by dividing (a) annualized software revenue recorded in the last month of the measurement period, for example, March for a quarter ending March 31, for unique billing accounts that generated revenue during the corresponding month of the prior year by (b) annualized software revenue as of the corresponding month of the prior year. The calculation includes changes for these billing accounts, such as changes in the solutions purchased, changes in pricing and transaction volume, but does not reflect revenue for new customers added. The calculation excludes: (a) changes in estimates related to the timing of one-time revenue and other revenue, including professional services, and (b) annualized software revenue for smaller customers with annualized software revenue below the threshold of $100,000 for carriers and $4,000 for shops. The customers that do not meet the revenue threshold are small carriers and shops that tend to have different buying behaviors, with a narrower solution focus, and different tenure compared to our core customers (excluded small carriers and shops represent less than 5% of total revenue within these sales channels). Our Software NDR includes carriers and shops who subscribe to our auto physical damage solutions, and carriers who subscribe to our claims synthesis and claims guidance solutions, which account for most of the Company’s revenue, and excludes revenue from smaller emerging solutions with international subsidiaries or other ecosystem solutions, such as parts suppliers and other automotive manufacturers, and also excludes CCC casualty solutions which are largely usage and professional service based.
|
|
Quarter Ended |
|
2026 |
|
2025 |
Software NDR |
|
March 31 |
|
107% |
|
107% |
|
|
June 30 |
|
107% |
|
107% |
|
|
September 30 |
|
|
|
105% |
|
|
December 31 |
|
|
|
106% |
27
Software GDR
We believe that Software GDR provides our management and our investors with insight into the value our solutions provide to our customers as represented by our ability to retain our existing customer base. We believe the results shown by this metric reflect the strength and stability of our revenue base, which is one of our core competitive strengths. We calculate Software GDR by dividing (a) annualized software revenue recorded in the last month of the measurement period in the prior year, reduced by annualized software revenue for unique billing accounts that are no longer customers as of the current period end by (b) annualized software revenue as of the corresponding month of the prior year. The calculation reflects only customer losses and does not reflect customer expansion or contraction for these billing accounts and does not reflect revenue for new customer billing accounts added. Our Software GDR calculation represents our annualized software revenue that is retained from the prior year and demonstrates that the vast majority of our customers continue to use our solutions and renew their subscriptions. The calculation excludes: (a) changes in estimates related to the timing of one-time revenue and other revenue, including professional services, and (b) annualized software revenue for smaller customers with annualized software revenue below the threshold of $100,000 for carriers and $4,000 for shops. The customers that do not meet the revenue threshold are small carriers and shops that tend to have different buying behaviors, with a narrower solution focus, and different tenure compared to our core customers (excluded small carriers and shops which represent less than 5% of total revenue within these sales channels). Our Software GDR includes carriers and shops who subscribe to our auto physical damage solutions, and carriers who subscribe to our claims synthesis and claims guidance solutions, which account for most of the Company’s revenue, and excludes revenue from smaller emerging solutions with international subsidiaries or other ecosystem solutions, such as parts suppliers and other automotive manufacturers, and excludes CCC casualty solutions which are largely usage and professional service based.
|
|
Quarter Ended |
|
2026 |
|
2025 |
Software GDR |
|
March 31 |
|
98% |
|
99% |
|
|
June 30 |
|
98% |
|
99% |
|
|
September 30 |
|
|
|
99% |
|
|
December 31 |
|
|
|
99% |
28
Results of Operations
Comparison of the three months ended June 30, 2026 to the three months ended June 30, 2025
|
|
Three Months Ended June 30, |
|
|
|
|||||||||
(dollar amounts in thousands, except share and per share data) |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
Revenues |
|
$ |
285,931 |
|
|
$ |
260,451 |
|
|
$ |
25,480 |
|
|
9.8% |
Cost of revenues, exclusive of amortization of acquired technologies |
|
|
70,925 |
|
|
|
62,067 |
|
|
|
8,858 |
|
|
14.3% |
Amortization of acquired technologies |
|
|
4,368 |
|
|
|
4,368 |
|
|
|
— |
|
|
0.0% |
Cost of revenues(1) |
|
|
75,294 |
|
|
|
66,435 |
|
|
|
8,859 |
|
|
13.3% |
Gross profit |
|
|
210,637 |
|
|
|
194,016 |
|
|
|
16,621 |
|
|
8.6% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||
Research and development(1) |
|
|
52,990 |
|
|
|
59,929 |
|
|
|
(6,939 |
) |
|
-11.6% |
Selling and marketing(1) |
|
|
43,499 |
|
|
|
43,475 |
|
|
|
24 |
|
|
0.1% |
General and administrative(1) |
|
|
48,003 |
|
|
|
47,630 |
|
|
|
373 |
|
|
0.8% |
Amortization of intangible assets |
|
|
18,512 |
|
|
|
18,512 |
|
|
|
— |
|
|
0.0% |
Total operating expenses |
|
|
163,004 |
|
|
|
169,546 |
|
|
|
(6,542 |
) |
|
-3.9% |
Operating income |
|
|
47,633 |
|
|
|
24,470 |
|
|
|
23,163 |
|
|
94.7% |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
(20,359 |
) |
|
|
(17,836 |
) |
|
|
(2,523 |
) |
|
14.1% |
Interest income |
|
|
743 |
|
|
|
1,220 |
|
|
|
(477 |
) |
|
-39.1% |
Other income (expense) —Net |
|
|
2,567 |
|
|
|
(2,057 |
) |
|
|
4,624 |
|
|
NM |
Total other expense |
|
|
(17,049 |
) |
|
|
(18,673 |
) |
|
|
1,624 |
|
|
-8.7% |
Pretax income |
|
|
30,584 |
|
|
|
5,797 |
|
|
|
24,787 |
|
|
427.6% |
Income tax (provision) benefit |
|
|
(9,797 |
) |
|
|
7,163 |
|
|
|
(16,960 |
) |
|
NM |
Net income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders |
|
$ |
20,787 |
|
|
$ |
12,960 |
|
|
$ |
7,827 |
|
|
60.4% |
Net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.04 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
Diluted |
|
$ |
0.04 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Weighted-average shares used in computing net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
573,413,846 |
|
|
|
637,578,033 |
|
|
|
|
|
|
|
Diluted |
|
|
584,920,956 |
|
|
|
660,622,703 |
|
|
|
|
|
|
|
NM—Not Meaningful |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
(1) Includes stock-based compensation expense as follows (in thousands): |
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Three Months Ended June 30, |
|
|
|
|
|
|
||||||
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
|||
Cost of revenues |
|
$ |
2,257 |
|
|
$ |
4,110 |
|
|
|
|
|
|
|
Research and development |
|
|
11,886 |
|
|
|
14,535 |
|
|
|
|
|
|
|
Sales and marketing |
|
|
8,272 |
|
|
|
12,522 |
|
|
|
|
|
|
|
General and administrative |
|
|
7,971 |
|
|
|
14,808 |
|
|
|
|
|
|
|
Total stock-based compensation expense |
|
$ |
30,386 |
|
|
$ |
45,975 |
|
|
|
|
|
|
|
Revenues
Revenues increased by $25.5 million to $285.9 million, or 9.8%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The Company’s software subscription revenues accounted for $274.0 million and $250.6 million, or 96% of total revenue, during the three months ended June 30, 2026 and 2025, respectively.
29
The increase in revenue was primarily a result of approximately 7% growth from existing customer upgrades and expanding solution offerings to these existing customers and approximately 2% growth from new customers.
Cost of Revenues
Cost of revenues increased by $8.9 million to $75.3 million, or 13.3%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025.
Cost of Revenues, exclusive of amortization of acquired technologies
Cost of revenues, exclusive of amortization of acquired technologies, increased by $8.9 million to $70.9 million, or 14.3%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was primarily due to a $5.1 million increase in information technology (“IT”) related costs, a $1.8 million increase in third-party fees and direct costs associated with revenue growth, and a $2.8 million increase in personnel-related costs, partially offset by a $1.9 million decrease in stock-based compensation expense.
Amortization of Acquired Technologies
Amortization of acquired technologies was $4.4 million for the three months ended June 30, 2026 and three months ended June 30, 2025.
Gross Profit
Gross profit increased by $16.6 million to $210.6 million, or 8.6%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. Our gross profit margin was 73.7% for the three months ended June 30, 2026, compared to 74.5% for the three months ended June 30, 2025. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements.
Research and Development
Research and development expense decreased by $6.9 million to $53.0 million, or 11.6%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The decrease was primarily due to a $3.6 million increase in the amount of capitalized time on platform and customer solution enhancements and a $2.6 million decrease in stock-based compensation expense.
Selling and Marketing
Selling and marketing was relatively flat at $43.5 million for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The immaterial change primarily reflected offsetting movements, including a $4.2 million decrease in stock-based compensation and a $4.1 million increase in personnel-related costs.
General and Administrative
General and administrative expense increased by $0.4 million to $48.0 million, or 0.8%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was primarily due to a $2.8 million increase in personnel-related costs, a $2.5 million increase in professional service costs and a $1.5 million increase in IT related costs, mostly offset by a $6.8 million decrease in stock-based compensation.
Amortization of Intangible Assets
Amortization of intangible assets was $18.5 million for the three months ended June 30, 2026 and 2025.
Interest Expense
Interest expense increased by $2.5 million to $20.4 million, or 14.1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025. The increase was due to the interest incurred on an additional $300 million term loan as part of the Fifth Amendment to the 2021 Credit Agreement entered into in December 2025, partially offset by lower variable interest rates during the three months ended June 30, 2026 as compared to the variable interest rates during the three months ended June 30, 2025.
Interest Income
Interest income decreased by $0.5 million to $0.7 million, or 39.1%, for the three months ended June 30, 2026, compared to the three months ended June 30, 2025, due to lower average balances on interest earning deposits and money market funds during the three months ended June 30, 2026 compared to the balances during the three months ended June 30, 2025.
30
Other Income (Expense)—Net
We recognized other income—Net of $2.6 million for the three months ended June 30, 2026 compared to other expense—Net of $2.1 million for the three months ended June 30, 2025. The income recognized during the three months ended June 30, 2026 was primarily due to the decrease in the fair value of derivative instrument liabilities, driven by the fair value of the Company’s three interest rate swap agreements. The expense recognized during the three months ended June 30, 2025 was primarily due to the increase in the fair value of derivative instruments, driven by the fair value of the Company's three interest rate swap agreements entered into during the three months ended June 30, 2025.
Income Tax (Provision) Benefit
The Company recognized an income tax provision of $9.8 million and an income tax benefit of $7.2 million for the three months ended June 30, 2026 and 2025, respectively. The income tax provision during the three months ended June 30, 2026 was primarily due to the Company's pre-tax book income, as well as the tax impact related to stock-based compensation expense. The income tax benefit for the three months ended June 30, 2025 was primarily due to the Company’s year-to-date pre-tax book loss and the annual effective tax rate impact related to stock based compensation.
31
Comparison of the six months ended June 30, 2026 to the six months ended June 30, 2025
|
|
Six Months Ended June 30, |
|
|
|
|||||||||
(dollar amounts in thousands, except share and per share data) |
|
2026 |
|
|
2025 |
|
|
$ |
|
|
% |
|||
Revenue |
|
$ |
567,205 |
|
|
$ |
512,016 |
|
|
$ |
55,189 |
|
|
10.8% |
Cost of revenue, exclusive of amortization of acquired technologies |
|
|
138,952 |
|
|
|
124,271 |
|
|
|
14,681 |
|
|
11.8% |
Amortization of acquired technologies |
|
|
8,737 |
|
|
|
8,737 |
|
|
|
— |
|
|
0.0% |
Cost of revenues(1) |
|
|
147,689 |
|
|
|
133,008 |
|
|
|
14,681 |
|
|
11.0% |
Gross profit |
|
|
419,516 |
|
|
|
379,008 |
|
|
|
40,508 |
|
|
10.7% |
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|||
Research and development(1) |
|
|
105,514 |
|
|
|
121,692 |
|
|
|
(16,178 |
) |
|
-13.3% |
Selling and marketing(1) |
|
|
82,917 |
|
|
|
91,772 |
|
|
|
(8,855 |
) |
|
-9.6% |
General and administrative(1) |
|
|
97,611 |
|
|
|
114,748 |
|
|
|
(17,137 |
) |
|
-14.9% |
Amortization of intangible assets |
|
|
37,024 |
|
|
|
37,024 |
|
|
|
— |
|
|
0.0% |
Total operating expenses |
|
|
323,066 |
|
|
|
365,236 |
|
|
|
(42,170 |
) |
|
-11.5% |
Operating income |
|
|
96,450 |
|
|
|
13,772 |
|
|
|
82,678 |
|
|
600.3% |
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
|||
Interest expense |
|
|
(40,659 |
) |
|
|
(34,763 |
) |
|
|
(5,896 |
) |
|
17.0% |
Interest income |
|
|
1,685 |
|
|
|
3,168 |
|
|
|
(1,483 |
) |
|
-46.8% |
Other income (expense)—Net |
|
|
6,533 |
|
|
|
(7,154 |
) |
|
|
13,687 |
|
|
NM |
Total other expense |
|
|
(32,441 |
) |
|
|
(38,749 |
) |
|
|
6,308 |
|
|
-16.3% |
Pretax income (loss) |
|
|
64,009 |
|
|
|
(24,977 |
) |
|
|
88,986 |
|
|
NM |
Income tax (provision) benefit |
|
|
(27,805 |
) |
|
|
20,516 |
|
|
|
(48,321 |
) |
|
NM |
Net income (loss) including non-controlling interest |
|
|
36,204 |
|
|
|
(4,461 |
) |
|
|
40,665 |
|
|
NM |
Less: accretion of redeemable non-controlling interest |
|
|
- |
|
|
|
(1,276 |
) |
|
|
1,276 |
|
|
100.0% |
Net income (loss) attributable to CCC Intelligent Solutions Holdings Inc. Common Stockholders |
|
$ |
36,204 |
|
|
$ |
(5,737 |
) |
|
$ |
41,941 |
|
|
NM |
Net income (loss) per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
$ |
0.06 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
Diluted |
|
$ |
0.06 |
|
|
$ |
(0.01 |
) |
|
|
|
|
|
|
Weighted-average shares used in computing net income per share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|||
Basic |
|
|
580,442,460 |
|
|
|
637,207,185 |
|
|
|
|
|
|
|
Diluted |
|
|
596,340,210 |
|
|
|
637,207,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
(1) Includes stock-based compensation expense as follows (in thousands): |
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Six Months Ended June 30, |
|
|
|
|
|
|
||||||
|
|
2026 |
|
|
2025 |
|
|
|
|
|
|
|||
Cost of revenues |
|
$ |
4,281 |
|
|
$ |
6,795 |
|
|
|
|
|
|
|
Research and development |
|
|
23,175 |
|
|
|
32,136 |
|
|
|
|
|
|
|
Sales and marketing |
|
|
16,357 |
|
|
|
25,650 |
|
|
|
|
|
|
|
General and administrative |
|
|
18,445 |
|
|
|
42,442 |
|
|
|
|
|
|
|
Total stock-based compensation expense |
|
$ |
62,258 |
|
|
$ |
107,023 |
|
|
|
|
|
|
|
Revenues
Revenues increased by $55.2 million to $567.2 million, or 10.8%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The Company’s software subscription revenues accounted for $544.1 million and $493.1 million, or 96% of total revenue, during the six months ended June 30, 2026 and 2025, respectively.
The increase in revenue was primarily a result of approximately 8% growth from existing customer upgrades and expanding solution offerings to these existing customers and approximately 2% growth from new customers.
32
Cost of Revenues
Cost of revenues increased by $14.7 million to $147.7 million, or 11.0% for the six months ended June 30, 2026, compared to the six months ended June 30, 2025.
Cost of Revenues, exclusive of amortization of acquired technologies
Cost of revenues, exclusive of amortization of acquired technologies, increased by $14.7 million to $139.0 million, or 11.8%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was primarily due to an $8.4 million increase in IT related costs and a $5.1 million increase in personnel-related costs.
Amortization of Acquired Technologies
Amortization of acquired technologies was $8.7 million for the six months ended June 30, 2026 and six months ended June 30, 2025.
Gross Profit
Gross profit increased by $40.5 million to $419.5 million, or 10.7%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. Our gross profit margin was 74.0% for the six months ended June 30, 2026, compared to 74.0% for the six months ended June 30, 2025. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements.
Research and Development
Research and development expense decreased by $16.2 million to $105.5 million, or 13.3%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease was primarily due to a $9.0 million decrease in stock-based compensation expense, a $5.0 million decrease in IT related costs and a $4.1 million increase in the amount of capitalized time on platform and customer solution enhancements, partially offset by a $2.9 million increase in personnel related costs.
Selling and Marketing
Selling and marketing expense decreased by $8.9 million to $82.9 million, or 9.6%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease was due to a $9.3 million decrease in stock-based compensation, partially offset by a $0.2 million increase in personnel related costs.
General and Administrative
General and administrative expense decreased by $17.1 million to $97.6 million, or 14.9%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The decrease was primarily due to a $24.0 million decrease in stock-based compensation, partially offset by a $4.6 million increase in personnel related costs and $3.4 million increase in IT related costs.
Amortization of Intangible Assets
Amortization of intangible assets was $37.0 million for the six months ended June 30, 2026 and 2025.
Interest Expense
Interest expense increased by $5.9 million to $40.7 million, or 17.0%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025. The increase was due to the interest incurred on an additional $300 million term loan as part of the Fifth Amendment to the 2021 Credit Agreement entered into in December 2025, partially offset by lower variable interest rates during the six months ended June 30, 2026 as compared to the same period in the prior year.
Interest Income
Interest income decreased by $1.5 million to $1.7 million, or 46.8%, for the six months ended June 30, 2026, compared to the six months ended June 30, 2025, due to lower average balances on interest-earning deposits and money market funds during the six months ended June 30, 2026 as compared to the same period in the prior year.
Other Income (Expense)—Net
We recognized other income—net of $6.5 million for the six months ended June 30, 2026 compared to other expense—net of $7.2 million for the six months ended June 30, 2025. The income recognized during the six months ended June 30, 2026 was primarily due to the decrease in the fair value of derivative instrument liabilities, driven by the fair value of the Company’s three interest rate
33
swap agreements. The expense recognized during the six months ended June 30, 2025 was primarily due to the increase in the fair value of derivative instruments, driven by the fair value of the Company's three interest rate swap agreements entered into during the six months ended June 30, 2025.
Income Tax (Provision) Benefit
The Company recognized an income tax provision of $27.8 million and an income tax benefit of $20.5 million for the six months ended June 30, 2026 and 2025, respectively. The income tax provision during the six months ended June 30, 2026 was primarily due to the Company's pre-tax book income, as well as the tax impact related to stock-based compensation expense. The income tax benefit for the six months ended June 30, 2025 was primarily due to the Company’s pre-tax book loss and the annual effective tax rate impact related to stock based compensation.
Non-GAAP Financial Measures
In addition to our results determined in accordance with GAAP, we believe that Adjusted Gross Profit, Adjusted Operating Expenses, Adjusted Operating Income, Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share, and Free Cash Flow, which are each non-GAAP measures, are useful in evaluating our operational performance. We use this non-GAAP financial information to evaluate our ongoing operations and for internal planning, budgeting and forecasting purposes and setting management bonus programs. We believe that non-GAAP financial information, when taken collectively with GAAP measures, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies, which may present similar non-GAAP financial measures to investors. Our computation of these non-GAAP measures may not be comparable to other similarly titled measures computed by other companies, because all companies may not calculate these measures in the same fashion. We endeavor to compensate for the limitation of the non-GAAP measure presented by also providing the most directly comparable GAAP measure and a description of the reconciling items and adjustments to derive the non-GAAP measure. These non-GAAP measures should be considered in addition to results prepared in accordance with GAAP, but should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using non-GAAP measures on a supplemental basis.
Adjusted Gross Profit
We believe that Adjusted Gross Profit, as defined below, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. Adjusted Gross Profit is defined as gross profit, adjusted for amortization of acquired technologies and stock-based compensation and related employer payroll tax, which are not indicative of our recurring core business operating results. Adjusted Gross Profit Margin is defined as Adjusted Gross Profit divided by Revenue.
The following table reconciles Gross Profit to Adjusted Gross Profit for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(amounts in thousands, except percentages) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Gross Profit |
|
$ |
210,637 |
|
|
$ |
194,016 |
|
|
$ |
419,516 |
|
|
$ |
379,008 |
|
Amortization of acquired technologies |
|
|
4,368 |
|
|
|
4,368 |
|
|
|
8,737 |
|
|
|
8,737 |
|
Stock-based compensation and related employer payroll tax |
|
|
2,267 |
|
|
|
4,137 |
|
|
|
4,649 |
|
|
|
7,238 |
|
Adjusted Gross Profit |
|
$ |
217,272 |
|
|
$ |
202,521 |
|
|
$ |
432,902 |
|
|
$ |
394,983 |
|
Gross Profit Margin |
|
|
74 |
% |
|
|
74 |
% |
|
|
74 |
% |
|
|
74 |
% |
Adjusted Gross Profit Margin |
|
|
76 |
% |
|
|
78 |
% |
|
|
76 |
% |
|
|
77 |
% |
Adjusted Operating Expenses
We believe that Adjusted Operating Expenses, as defined below, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. Adjusted Operating Expenses is defined as operating expenses adjusted for amortization of intangible assets, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential mergers and acquisitions (“M&A”), costs related to equity transactions, including secondary offerings, litigation expenses (proceeds), net for matters in which we are the plaintiff and related antitrust matters and debt refinancing costs.
34
The following table reconciles operating expenses to Adjusted Operating Expenses for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Operating expenses |
|
$ |
163,004 |
|
|
$ |
169,546 |
|
|
$ |
323,066 |
|
|
$ |
365,236 |
|
Amortization of intangible assets |
|
|
(18,512 |
) |
|
|
(18,512 |
) |
|
|
(37,024 |
) |
|
|
(37,024 |
) |
Stock-based compensation expense and related employer payroll tax |
|
|
(28,268 |
) |
|
|
(42,121 |
) |
|
|
(60,954 |
) |
|
|
(104,939 |
) |
M&A and integration costs |
|
|
(507 |
) |
|
|
(348 |
) |
|
|
(507 |
) |
|
|
(7,967 |
) |
Equity transaction costs, including secondary offerings |
|
|
— |
|
|
|
(165 |
) |
|
|
— |
|
|
|
(452 |
) |
Litigation proceeds, net |
|
|
— |
|
|
|
(125 |
) |
|
|
— |
|
|
|
3,665 |
|
Debt refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(3,119 |
) |
Adjusted Operating Expenses |
|
$ |
115,717 |
|
|
$ |
108,275 |
|
|
$ |
224,581 |
|
|
$ |
215,400 |
|
Adjusted Operating Income
We believe that Adjusted Operating Income, as defined below, provides meaningful supplemental information regarding our performance by excluding certain items that may not be indicative of our recurring core business operating results. Adjusted Operating Income is defined as operating income (loss) adjusted for amortization of intangible assets and acquired technologies, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential M&A, costs related to equity transactions, including secondary offerings, litigation expenses (proceeds), net, and debt refinancing costs.
The following table reconciles operating income (loss) to Adjusted Operating Income for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Operating income |
|
$ |
47,633 |
|
|
$ |
24,470 |
|
|
$ |
96,450 |
|
|
$ |
13,772 |
|
Amortization of intangible assets |
|
|
18,512 |
|
|
|
18,512 |
|
|
|
37,024 |
|
|
|
37,024 |
|
Amortization of acquired technologies—Cost of revenue |
|
|
4,368 |
|
|
|
4,368 |
|
|
|
8,737 |
|
|
|
8,737 |
|
Stock-based compensation expense and related employer payroll tax |
|
|
30,535 |
|
|
|
46,258 |
|
|
|
65,603 |
|
|
|
112,177 |
|
M&A and integration costs |
|
|
507 |
|
|
|
348 |
|
|
|
507 |
|
|
|
7,967 |
|
Equity transaction costs, including secondary offerings |
|
|
— |
|
|
|
165 |
|
|
|
— |
|
|
|
452 |
|
Litigation proceeds, net |
|
|
— |
|
|
|
125 |
|
|
|
— |
|
|
|
(3,665 |
) |
Debt refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,119 |
|
Adjusted Operating Income |
|
$ |
101,555 |
|
|
$ |
94,246 |
|
|
$ |
208,321 |
|
|
$ |
179,583 |
|
Adjusted EBITDA
We believe that Adjusted EBITDA, as defined below, is useful in evaluating our operational performance distinct and apart from financing costs, certain expenses and non-operational expenses. Adjusted EBITDA is defined as net income (loss) adjusted for interest, taxes, amortization of intangible assets and acquired technologies, depreciation, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential M&A, litigation expenses (proceeds), net, debt refinancing costs, costs related to equity transactions, including secondary offerings, change in fair value of derivative instruments, and income from derivative instruments. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue.
35
The following table reconciles net income (loss) to Adjusted EBITDA for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net income (loss) |
|
$ |
20,787 |
|
|
$ |
12,960 |
|
|
$ |
36,204 |
|
|
$ |
(4,461 |
) |
Interest expense |
|
|
20,359 |
|
|
|
17,836 |
|
|
|
40,659 |
|
|
|
34,763 |
|
Interest income |
|
|
(743 |
) |
|
|
(1,220 |
) |
|
|
(1,685 |
) |
|
|
(3,168 |
) |
Income tax provision (benefit) |
|
|
9,797 |
|
|
|
(7,163 |
) |
|
|
27,805 |
|
|
|
(20,516 |
) |
Amortization of intangible assets |
|
|
18,512 |
|
|
|
18,512 |
|
|
|
37,024 |
|
|
|
37,024 |
|
Amortization of acquired technologies—Cost of revenue |
|
|
4,368 |
|
|
|
4,368 |
|
|
|
8,737 |
|
|
|
8,737 |
|
Depreciation and amortization of software, equipment and property |
|
|
2,001 |
|
|
|
2,231 |
|
|
|
4,020 |
|
|
|
4,495 |
|
Depreciation and amortization of software, equipment and property—Cost of revenue |
|
|
11,913 |
|
|
|
11,548 |
|
|
|
23,288 |
|
|
|
22,878 |
|
Stock-based compensation expense and related employer payroll tax |
|
|
30,535 |
|
|
|
46,258 |
|
|
|
65,603 |
|
|
|
112,177 |
|
M&A and integration costs |
|
|
507 |
|
|
|
348 |
|
|
|
507 |
|
|
|
7,967 |
|
Litigation proceeds, net |
|
|
— |
|
|
|
125 |
|
|
|
— |
|
|
|
(3,665 |
) |
Debt refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,119 |
|
Equity transaction costs, including secondary offerings |
|
|
— |
|
|
|
165 |
|
|
|
— |
|
|
|
452 |
|
Change in fair value of derivative instruments |
|
|
(3,110 |
) |
|
|
2,640 |
|
|
|
(7,505 |
) |
|
|
8,381 |
|
Expense (Income) from derivative instruments |
|
|
552 |
|
|
|
(492 |
) |
|
|
1,021 |
|
|
|
(989 |
) |
Adjusted EBITDA |
|
$ |
115,478 |
|
|
$ |
108,116 |
|
|
$ |
235,678 |
|
|
$ |
207,194 |
|
Adjusted EBITDA Margin |
|
|
40 |
% |
|
|
42 |
% |
|
|
42 |
% |
|
|
40 |
% |
Adjusted Net Income and Adjusted Earnings Per Share
We believe that Adjusted Net Income, as defined below, and Adjusted Earnings Per Share are useful in evaluating our operational performance distinct and apart from financing costs, certain expenses and non-operational expenses. Adjusted Net Income is defined as net income (loss) adjusted for the after-tax effects of amortization of intangible assets and acquired technologies, stock-based compensation expense and related employer payroll tax, costs associated with the acquisition and integration of completed and potential M&A, litigation expenses (proceeds), net for matters in which we are the plaintiff and related antitrust matters, debt refinancing costs, costs related to equity transactions, including secondary offerings and the change in fair value of derivative instruments.
36
The following table reconciles net income (loss) to Adjusted Net Income and Adjusted Earnings per Share for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net income (loss) |
|
$ |
20,787 |
|
|
$ |
12,960 |
|
|
$ |
36,204 |
|
|
$ |
(4,461 |
) |
Amortization of intangible assets |
|
|
18,512 |
|
|
|
18,512 |
|
|
|
37,024 |
|
|
|
37,024 |
|
Amortization of acquired technologies—Cost of revenue |
|
|
4,368 |
|
|
|
4,368 |
|
|
|
8,737 |
|
|
|
8,737 |
|
Stock-based compensation expense and related employer payroll tax |
|
|
30,535 |
|
|
|
46,258 |
|
|
|
65,603 |
|
|
|
112,177 |
|
M&A and integration costs |
|
|
507 |
|
|
|
348 |
|
|
|
507 |
|
|
|
7,967 |
|
Litigation proceeds, net |
|
|
— |
|
|
|
125 |
|
|
|
— |
|
|
|
(3,665 |
) |
Debt refinancing costs |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,119 |
|
Equity transaction costs, including secondary offerings |
|
|
— |
|
|
|
165 |
|
|
|
— |
|
|
|
452 |
|
Change in fair value of derivative instruments |
|
|
(3,110 |
) |
|
|
2,640 |
|
|
|
(7,505 |
) |
|
|
8,381 |
|
Tax effect of adjustments |
|
|
(10,319 |
) |
|
|
(26,521 |
) |
|
|
(12,481 |
) |
|
|
(56,394 |
) |
Adjusted Net Income |
|
$ |
61,280 |
|
|
$ |
58,855 |
|
|
$ |
128,089 |
|
|
$ |
113,337 |
|
Adjusted Net Income Per Share attributable to common stockholders: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
$ |
0.11 |
|
|
$ |
0.09 |
|
|
$ |
0.22 |
|
|
$ |
0.18 |
|
Diluted |
|
$ |
0.10 |
|
|
$ |
0.09 |
|
|
$ |
0.21 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic |
|
|
573,413,846 |
|
|
|
637,578,033 |
|
|
|
580,442,460 |
|
|
|
637,207,185 |
|
Diluted |
|
|
584,920,956 |
|
|
|
660,622,703 |
|
|
|
596,340,210 |
|
|
|
666,130,181 |
|
Free Cash Flow
We believe that Free Cash Flow, as defined below, provides meaningful supplemental information regarding our ability to generate cash and fund our operations and capital expenditures. Free Cash Flow is defined as net cash provided by operating activities less cash used for the purchases of software, equipment, and property.
The following table reconciles net cash provided by operating activities to Free Cash Flow for the three and six months ended June 30, 2026 and 2025:
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
||||||||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
||||
Net cash provided by operating activities |
|
$ |
101,574 |
|
|
$ |
43,056 |
|
|
$ |
159,035 |
|
|
$ |
101,548 |
|
Purchases of software, equipment, and property |
|
|
(19,126 |
) |
|
|
(15,703 |
) |
|
|
(35,002 |
) |
|
|
(30,549 |
) |
Free Cash Flow |
|
$ |
82,448 |
|
|
$ |
27,353 |
|
|
$ |
124,033 |
|
|
$ |
70,999 |
|
Liquidity and Capital Resources
We have financed our operations with cash flows from operations. The Company generated $159.0 million of cash flows from operating activities during the six months ended June 30, 2026. As of June 30, 2026, the Company had cash and cash equivalents of $115.9 million, a working capital surplus of $118.4 million and an accumulated deficit totaling $1,759.5 million. As of June 30, 2026, the Company had $1,284.5 million aggregate principal outstanding on its term loan.
We believe that our existing cash and cash equivalents, our cash flows from operating activities and our borrowing capacity under our 2021 Revolving Credit Facility will be sufficient to fund our operations, fund required long-term debt repayments and meet our commitments for capital expenditures for at least the next twelve months.
Although we are not currently a party to any material definitive agreement regarding potential investments in, or acquisitions of, complementary businesses, applications or technologies, we may enter into these types of arrangements, which could reduce our cash and cash equivalents or require us to seek additional equity or debt financing. Additional funds from financing arrangements may not be available on terms favorable to us or at all.
Debt
Our debt capital structure remained stable during the second quarter of 2026. As of June 30, 2026, we had $1,284.5 million outstanding under our senior secured term loan (“Term Loan”), compared to $1,291.0 million as of December 31, 2025. The small reduction reflects principal payments of approximately $3.3 million made during the first two quarters of 2026. We did not incur any
37
new borrowings in 2026. The Term Loan, which matures in January 2032, is part of our 2021 Credit Agreement and requires only modest quarterly payments (approximately $13 million per year) until maturity. We also have a $250.0 million revolving credit facility under the 2021 Credit Agreement that was undrawn at June 30, 2026, providing approximately $249.0 million of additional liquidity net of outstanding letters of credit. Our nearest significant debt maturity is the 2021 Revolving Credit Facility’s expiration in September 2029 (subject to a springing maturity in June 2028 if the Term Loan balance remains above $234.0 million at that time), giving us a long-dated maturity profile.
The interest rates on our Term Loan and any 2021 Revolving Credit Facility borrowings are variable and tied to market rates (Secured Overnight Financing Rate ("SOFR) or base rate) plus an applicable margin. We have proactively managed our floating interest rate exposure by using interest rate swaps to effectively fix the rate on $750.0 million of our Term Loan at approximately 3.94% through July 2027. These actions helped keep our weighted-average interest rate for the quarter ended June 30, 2026 at about 5.7%, slightly lower than the weighted-average interest rate of 6.4% in the same period last year, despite higher debt levels. The weighted-average interest rate represents the average rate on our outstanding borrowings during the period is calculated based on actual interest incurred and time-weighted average principal balances. A portion of our debt remains unhedged and subject to interest rate fluctuations, so we continue to monitor interest rate trends and consider additional risk management strategies as needed to contain our borrowing costs.
We believe our current liquidity position and cash flow generation are sufficient to meet our ongoing debt service obligations and other funding requirements. At June 30, 2026, we held $115.9 million in cash and cash equivalents, and the full capacity of our $250.0 million 2021 Revolving Credit Facility (minus letters of credit) remained available, bolstering our liquidity. Our indebtedness is secured by substantially all of our assets and is governed by customary affirmative, negative, and financial covenants. We were in full compliance with all covenants as of June 30, 2026. Notably, the 2021 Credit Agreement’s springing financial covenant (a first lien net leverage ratio test) did not apply at quarter-end because utilization of the Revolver was below the 35% threshold. We will continue to manage our capital structure prudently, balancing the use of cash for debt reduction, strategic opportunities, and shareholder returns as conditions warrant.
For further details of our long-term debt obligations and related terms, refer to Note 14, “Long-Term Debt,” in the Notes to Condensed Consolidated Financial Statements of this Form 10-Q, and to the “Long-Term Debt” disclosure in our Annual Report on Form 10-K for the year ended December 31, 2025.
Cash Flows
The following table provides a summary of cash flow data for the six months ended June 30, 2026 and 2025:
|
|
Six Months Ended June 30, |
|
|||||
(dollar amounts in thousands) |
|
2026 |
|
|
2025 |
|
||
Net cash provided by operating activities |
|
$ |
159,035 |
|
|
$ |
101,548 |
|
Net cash used in investing activities |
|
|
(35,002 |
) |
|
|
(445,682 |
) |
Net cash (used in) provided by financing activities |
|
|
(119,492 |
) |
|
|
167 |
|
Net effect of exchange rate change |
|
|
124 |
|
|
|
37 |
|
Change in cash and cash equivalents |
|
$ |
4,665 |
|
|
$ |
(343,930 |
) |
Net cash provided by operating activities was $159.0 million for the six months ended June 30, 2026. Net cash provided by operating activities consists of a net income of $36.2 million, adjusted for $137.9 million of non-cash items, partially offset by a $10.3 million decrease in working capital and a $4.8 million decrease in other operating assets and liabilities. Significant non-cash adjustments include stock-based compensation expense of $62.3 million, depreciation and amortization of $73.1 million and deferred income taxes of $7.5 million, partially offset by a change in fair value of derivative instruments of $7.5 million. The change in working capital was primarily a result of a decrease in accounts payable of $10.8 million due to the timing of suppliers' payments.
Net cash used in investing activities was $35.0 million for the six months ended June 30, 2026. Net cash used in investing activities was due to $35.0 million of capitalized internally developed software projects and purchases of software, equipment, and property.
Net cash used in financing activities was $119.5 million for the six months ended June 30, 2026. Net cash used in financing activities was primarily due to $100.2 million for repurchases of common stock, $18.0 million of payments for employee tax liabilities related to the net share settlement of employee equity awards and $6.5 million of principal payments of long-term debt.
Recent Accounting Pronouncements
See Note 2 to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for more information about recent accounting pronouncements, the timing of their adoption, and our assessment, to the extent we have made one, of their potential impact on our financial condition and our results of operations.
38
Critical Accounting Estimates
Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these financial statements requires our management to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue, costs, and expenses and related disclosures. Our estimates are based on our historical experience, trends and various other assumptions that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these judgments and estimates under different assumptions or conditions and any such differences may be material.
There have been no material changes to our critical accounting estimates as compared to the critical accounting policies and estimates disclosed in our audited consolidated financial statements and notes thereto for the year ended December 31, 2025, in our Annual Report on Form 10-K.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes in our market risk compared to the disclosures in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on this evaluation, our principal executive officer and principal financial officer have concluded that as of June 30, 2026, our disclosure controls and procedures were effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.
Changes in Internal Control over Financial Reporting
There were no changes in our internal control over financial reporting during the three months ended June 30, 2026 identified in management’s evaluation pursuant to Rules 13a-15(d) and 15d-15(d) of the Exchange Act that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
39
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
In the ordinary course of business, the Company is from time to time, involved in various pending or threatened legal actions. The litigation process is inherently uncertain, and it is possible that the resolution of such matters might have a material adverse effect on the Company’s consolidated financial condition and/or results of operations. The Company’s management believes, based on current information, matters currently pending or threatened are not expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.
Item 1A. Risk Factors
For risk factors relating to our business, please refer to the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. Any of these factors could result in a significant or material adverse effect on the results of our operations or financial condition. Additional risk factors not presently known to us or that we currently deem immaterial may also impair our business or results of operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3. Defaults upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
Arrangement Intended to Satisfy the Affirmative Defense of Rule 10b5-1(c)
During the three months ended June 30, 2026,
Appointment of Interim Chief Technology Officer
On July 14, 2026, the Company appointed Josh Valdez to the position of Interim Chief Technology Officer. Mr. Valdez will continue in his role as Chief Product Officer while concurrently serving as the Company’s Interim Chief Technology Officer. No modifications were made to Mr. Valdez’s compensation in connection with this appointment.
40
Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
Exhibit Number |
|
Description |
31.1* |
|
Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2* |
|
Certification of Chief Financial Officer (Principal Financial and Accounting Officer) Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1** |
|
Certification of Chief Executive Officer (Principal Executive Officer) Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2** |
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101.INS* |
|
Inline XBRL Instance Document |
101.SCH* |
|
Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents |
104* |
|
Cover Page Interactive Data File - The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document |
__________
* Filed herewith
** Furnished herewith
41
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: July 30, 2026 |
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. |
|
|
|
|
|
By: |
/s/ Githesh Ramamurthy |
|
Name: |
Githesh Ramamurthy |
|
Title: |
Chief Executive Officer and Chairman of the Board of Directors (Principal Executive Officer)
|
Dated: July 30, 2026 |
|
|
|
|
|
|
By: |
/s/ Rodney Christo |
|
Name: |
Rodney Christo |
|
Title: |
Interim Chief Financial Officer and Chief Accounting Officer (Principal Financial Officer) |
42