CCC Intelligent Solutions (NASDAQ:CCCS) reported fourth-quarter and full-year 2025 results that management said capped a “milestone year,” highlighted by revenue surpassing $1 billion for the first time, continued margin strength, and an expanded share repurchase program. Executives also emphasized accelerating adoption of AI-driven products across the company’s insurance and repair ecosystem, as well as early cross-sell progress following the EvolutionIQ acquisition.
Quarterly and full-year results
For the fourth quarter of 2025, CCC posted total revenue of $278 million, up 13% year-over-year and above the company’s guidance range of $272 million to $277 million. Adjusted EBITDA was $119 million, also above guidance, with an adjusted EBITDA margin of 43%.
Herb said fourth-quarter revenue growth included approximately 8 percentage points from organic CCC performance and 5 points from EvolutionIQ. Within organic growth, about 5.5 points came from cross-sell and upsell activity and broader adoption across the client base, while roughly 2.5 points came from new logos.
Subscription shift and retention trends
Management highlighted a continued shift toward recurring revenue, with subscriptions representing about 85% of total revenue. Herb said CCC has proactively moved clients from transactional arrangements to subscription contracts upon renewal, and management expects the business to become less sensitive to claim volume fluctuations over time.
Industry claim volumes declined 6% year-over-year in the fourth quarter, though Herb said the prior-year quarter included “a large number of severe weather events.” Normalizing for those events, CCC said underlying claim volume in the quarter was down less than 3% year-over-year, with the decline moderating through the year.
On retention, the company reported fourth-quarter gross dollar retention of 99%, consistent with prior years. Net dollar retention was 106 in Q4, up from 105 in Q3, reflecting ongoing cross-sell, upsell, and volume movements in the auto physical damage client base.
AI and Emerging Solutions: growth drivers and customer adoption
CEO Githesh Ramamurthy positioned AI as a long-term tailwind that increases demand for “trusted data, governed workflows, and platforms that can operate safely at scale” in regulated, multiparty industries like insurance. He said CCC’s advantage stems from combining proprietary and hyperlocal data, a connected network, and embedded workflows designed for governance and compliance.
Ramamurthy said CCC’s AI capabilities are built on a repository of proprietary data representing more than $2 trillion of real-world outcomes, and that CCC’s operational systems process millions of daily business events across pricing, parts, insurer rules, supplier quotes, and jurisdictional complexity.
Management said AI is now roughly 10% of total revenue and remains the company’s fastest-growing portfolio area, with utilization rates across solutions ranging from low single-digit to low double-digit percentages of total claims processed, depending on the product. Ramamurthy said CCC saw a “notable acceleration” of AI adoption across the customer base during 2025 as customers moved beyond early-stage experimentation.
Emerging Solutions represented approximately 5% of total revenue in the fourth quarter and grew more than 70% year-over-year, according to Herb. He cited AI-based auto physical damage (APD) solutions as a key driver, along with subrogation, diagnostics, and Build Sheets.
In response to a question about where AI revenue is most prevalent, Ramamurthy described three broad buckets:
- AI for auto physical damage, including applications such as subrogation and re-inspection, and tools used by insurers and repairers
- EvolutionIQ’s AI-driven disability and workers’ compensation products
- AI for casualty, including Medhub, which uses AI to synthesize medical documents
CCC also announced the appointment of Josh Valdez as chief product officer. Ramamurthy said Valdez has focused on roadmap discipline and accelerating delivery of capabilities customers can deploy at scale.
EvolutionIQ integration and expanding beyond auto
CCC highlighted progress from the EvolutionIQ acquisition, which management said expanded CCC’s addressable market beyond auto into disability and workers’ compensation. Ramamurthy said EvolutionIQ’s 2025 new logo wins resulted in a customer roster that includes nine of the top 15 disability carriers in the U.S. He also said EvolutionIQ partnered with the “largest TPA in the world” to serve the self-insured workers’ comp market and has seen early client traction.
On cross-sell, Ramamurthy said the company signed its first casualty customer for Medhub for Casualty and has several additional carriers in advanced stages of evaluation. He also said CCC cross-sold EvolutionIQ’s workers’ compensation offering to an existing CCC customer for the first time.
Ramamurthy acknowledged that implementations can be complex, and said CCC added implementation expertise and applied learnings from earlier deployments. He said that contributed to an increase in EvolutionIQ-related revenue from Q3 to Q4.
Margins, cash flow, buybacks, and 2026 outlook
In the fourth quarter, CCC reported adjusted gross profit of $211 million and an adjusted gross margin of 76%, which was flat year-over-year and up sequentially. Herb said the company remains confident in progressing toward a long-term target of approximately 80% gross margin as newer solution revenue scales, though depreciation from recent investments is a headwind. He added that new solutions can pressure gross profit initially because support and depreciation costs ramp before revenue reaches scale.
Adjusted operating expense in Q4 rose 13% year-over-year, including EvolutionIQ, but was flat excluding the acquisition, which management attributed to cost discipline and flat headcount year-over-year. Herb said the fourth-quarter EBITDA outperformance reflected cost discipline, some phasing (including timing of hires moving into 2026), and stronger-than-expected revenue flow-through.
CCC ended the quarter with $111 million in cash and cash equivalents and $1.3 billion of debt, with net leverage of 2.7x adjusted EBITDA. Free cash flow in Q4 was $105 million, and trailing 12-month free cash flow was $255 million, up 10% year-over-year, with a trailing free cash flow margin of 24%.
On capital allocation, CCC completed a $300 million repurchase program in Q4 and received a new $500 million authorization. The company initiated a $300 million accelerated share repurchase (ASR) transaction, delivering 80% of the value—approximately 33.2 million shares—in mid-December. Herb said upon completion of the ASR and the remaining $200 million commitment, CCC will have returned more than $1.1 billion to shareholders via repurchases over the last two and a half years.
For 2026, CCC guided first-quarter revenue of $273.5 million to $275.5 million (8.5% to 9.5% growth) and adjusted EBITDA of $113 million to $115 million, implying a 42% margin at the midpoint. For the full year, the company forecast revenue of $1.147 billion to $1.157 billion (about 9% growth at the midpoint) and adjusted EBITDA of $477 million to $485 million (about a 42% margin at the midpoint).
Herb said the company expects continued margin expansion in 2026, with approximately 200 basis points of year-over-year margin expansion in Q1 at the midpoint, moderating in Q2 due to spend phasing, then resuming in the second half. He also said stock-based compensation is expected to decline from 17% of revenue in 2025 to 13% in 2026, with a stated path to single digits in 2027.
During the Q&A, Ramamurthy addressed questions about autonomous vehicles by emphasizing CCC’s focus on claim frequency, severity, and complexity. He said CCC has observed that while frequency can decline modestly, severity and complexity can outweigh that shift, and he cited CCC data indicating San Francisco claim frequency has been slightly higher than the rest of California in recent quarters.
About CCC Intelligent Solutions (NASDAQ:CCCS)
CCC Intelligent Solutions Holdings Inc provides cloud, mobile, AI, telematics, hyperscale technologies, and applications for the property and casualty insurance economy. It SaaS platform digitizes mission-critical AI-enabled workflows, facilitates commerce, and connects businesses across the insurance economy, including insurance carriers, collision repairers, parts suppliers, automotive manufactures, financial institution, and others. The company offers CCC Insurance solutions, including CCC workflow, CCC estimating, CCC total loss, CCC AI and analytics, and CCC casualty; CCC Repair solutions, such as CCC network management, CCC repair workflow, and CCC repair quality; CCC Other Ecosystem solutions, comprising CCC parts solutions, CCC automotive manufacturer solutions, CCC lender solutions, and CCC payments; and CCC International solutions.
