CCC Intelligent Solutions Holdings Inc.

Good day and thank you for standing by. Welcome to the CCC Intelligence Solutions fourth quarter 2025 earnings call. At this time, all participants are in a listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. We ask that you please limit yourself to one question and one follow-up question. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Bill Warmington, Vice President of Investor Relations. Please go ahead.

Thank you, Operator. Good afternoon, and thank you all for joining us today to review CCC's fourth quarter and full year 2025 financial results, which we announced in the press release issued following the close of the market today. Joining me on the call are Gitesh Ramamurthy, CCC's Chairman and CEO, and Brian Herb, CCC's CFO. The forward-looking statements we make today about the company's results and plans are subject to risks and uncertainties that may cause the actual results and the implementation of the company's plans to vary materially. These risks are discussed in the earnings releases available on our investor relations website and under the heading Risk Factors in our 2025 Annual Report on Form 10-K, which we will file with the SEC later today. Further, these comments and the Q&A that follows are copyrighted today by CCC Intelligence Solutions Holdings Incorporated. Any recording, retransmission, or reproduction or other use of the same, for profit or otherwise, without prior consent of CCC is prohibited and a violation of United States copyright and other laws. Additionally, while we will provide a transcript of portions of this call and we've approved the publishing of a transcript of this call by a third party, we take no responsibility for inaccuracies that may appear in the transcripts. Please note that the discussion on today's call includes certain non-GAAP financial measures as defined by the SEC. The company believes these non-GAAP financial measures provide useful information to management and investors regarding certain financial and business trends relating to the company's financial condition and the results of operations. A reconciliation of GAAP to non-GAAP measures is available in our earnings release that is available on our investor relations website. Thank you. I'll now turn the call over to Katesh.

Thank you, Bill, and thanks to all of you for joining us today. I'm pleased to report that CCC delivered another quarter of strong top and bottom line performance to cap off a solid 2025. For the fourth quarter of 2025, CCC's total revenue was $278 million, up 13% year-over-year and above the high end of our guidance range. Adjusted EBITDA for the fourth quarter was $119 million, also above the high end of our guidance range. And adjusted EBITDA margin was 43%. Looking at the full year 2025, revenue was $1.057 billion, up 12% year over year. Adjusted EBITDA was $436 million, 2025 was a year of many significant milestones for CCC. We crossed the $1 billion revenue threshold for the first time, up more than $350 million since we went public in late 2021. 85% of our revenue now comes from subscriptions. We continued strong EBITDA margins and annual free cash flow, crossing $250 million for the year, also a record high. We also continue to benefit from exceptionally strong customer relationships. During 2025, we renewed and expanded numerous clients across the business, including several tier one insurers and the largest collision repair provider in the United States. We also continue to add significant new customers across our markets. For example, adding two new auto manufacturers so that we now serve 14 of the top 15 OEMs in the United States. Our gross dollar retention was once again 99%, a testament to the value we provide and the strength of our client relationships. In aggregate, we ended the year with approximately 900,000 registered users of our solutions who collectively process over $200 billion of commerce per year. We were thrilled to complete our acquisition of Evolution IQ, a pioneer in AI claims guidance and the leader in bodily injury claims resolution. Throughout 2025, Evolution IQ continued to add new customers and modules across disability and workers' comp product lines. And we were excited to introduce Evolution IQ's capabilities to CCC. We anticipate continued momentum there in the years ahead. Looking ahead to 2026, we see a generational opportunity in front of us, and CCC is uniquely well positioned to capitalize on it. I will cover this in three themes. Our excitement around the opportunity AI represents for our industry and CCC, how this reinforces our durable economic model and long-term growth, And finally, how we are approaching go-forward capital allocation in light of that strength. Turning to my first theme, the reason we're so excited about AI is that it's a powerful force that makes CCC's platform even more important over time. CCC's advantage has never been just a single model or feature. It is the combination of proprietary and hyperlocal data a deeply connected network and embedded workflows that allow complex decisions to be made reliably, consistently, and at scale in an industry with a very high bar for governance, compliance, and accountability. A common question we hear is whether rapid advances in AI have mis-established platforms. Our experience says the opposite. In regulated multi-party industries like insurance, AI increases the need for trusted data, governed workflows, and platforms that can operate safely at scale. As many of you know, CCC has been an AI pioneer and leader for over a decade. We were an early innovator in deep learning computer vision AI, having been among the first companies in any sector to bring AI solutions to market and have stayed at the forefront of every major AI lead since. Our AI solutions have been used to process tens of millions of unique real-world claims representing many billions of dollars. AI is embedded in our products, our support, and our internal operations. While other companies talk about AI in theory, we have been in production, at scale, For years, nearly $100 billion of our annual billion dollars of revenue comes from real-world AI products that our customers use in their businesses every day. Importantly, these solutions are not standalone tools. They are embedded directly into mission-critical workflows where decisions carry financial, regulatory, and operational consequences. All of this gives us a unique perspective into the generational opportunity AI represents for our industry and for CCC. Our industry, the insurance economy, is attempting to navigate many challenges, some common to other industries and some all its own. Like many industries, the insurance economy is facing a massive structural labor shortfall in the coming years. Insurance appraisers, collision repair technicians, and many other roles are facing a wave of requirements with insufficient power pipelines to fill the gap, macro pressures, and uncertainties after this dynamic. After that, the enormous never-expanding complexity of the insurance economy itself An ecosystem with tens of thousands of companies, rapidly advancing vehicle technology, persistent medical inflation, changing regulations, and many other forces are why more than a billion days elapse every year from auto claims being open to auto claims being closed. We began investing in AI more than a decade ago because we knew automation would be a short-term technology cycle. There is a saying that fortune favors the prepared, and we have been preparing for the insurance economy's inflection on AI for some time. We believe the industry is now entering a phase where AI moves from experimentation to scale deployment, and CCC is positioned to be the platform on which that deployment occurs. As we look to scale this opportunity, This is why we strengthen senior product leadership with the addition of Josh Valdez as Chief Product Officer. Josh brings deep experience leading large-scale, platform-centric product organizations, most recently overseeing global product management at Dayforce and previously at Workday. His background is directly relevant as we embed AI more deeply into mission-critical workflows and expand across products, customers and markets. Since joining CCC, Josh has been focused on sharpening prioritization, strengthening roadmap discipline, and accelerating the delivery of capabilities that customers can deploy at scale. CCC has been a system of action for decades. While our platform does many things, at its core, CCC is a collection of incredibly complex, deeply interconnected, and massively real-time position engines for a highly regulated industry where outcomes must be governed, explainable, and defensible. Hundreds of billions of dollars in payouts cross the insurance economy every year, and the path for AI to supercharge them Let's make this real. We were able to build highly effective AI solutions because we have an enormous repository of proprietary data representing more than $2 trillion of actual real-world outcomes. That data is contextual, claim-specific, and continuously validated through real transactions, which is what makes it usable in regulated environments. Scale alone is not the challenge. The challenge is complexity. Insurance decisions depend on hyper-local pricing, insurer-specific rules, regulatory requirements, and the coordination across many parties. What matters most is not what something costs on average. We do this for more than 20 million unique vehicles per year. And to do that, our systems process more than 2 million business events every day across 2 million labor rate profiles, 7.4 million part SKUs, 62,000 insurer audit rules, 5.5 billion live park quotes, and more than 200,000 insurer-to-shop relationships, and 13,000 unique jurisdictions. This is not a static data repository. It is a living operational system that reflects how work actually gets done in the insurance economy. From there, the output of those decision engines needs to be put into action. And the path for that is through the CCC network. CCC connects more than 35,000 companies, including 27 of the top 30 auto insurers, 30,000 plus repair facilities, over 6,000 parts suppliers, 14 of the 15 top OEMs, and hundreds of software and service partners, all of them interacting and negotiating constantly throughout the day. These are not just workflows. They are the core operating rails of one of the largest industries on earth. The combination of our AI platform and network are contributing to customers increasingly looking to standardize their operations on CCC. There are also many product advantages to doing so. For example, at the beginning of a claim, our AI can triage both damage to a vehicle and potential injuries to its occupants with substantial synergies in claims handling efficiency and customer experience. These benefits continue across the life of the claim or repair and are one of the reasons we are seeing auto fiscal damage customers increasingly choose CCC for casualty and also why we are seeing customers of all types purchase more of our core solutions in general. Over time, we anticipate that customers will increasingly want to leverage the full set of CCC solutions to maximize their investments in AI, regardless of where or how those investments are developed. We fundamentally believe that AI is most valuable when it performs real work in our customers' businesses That impacts their and customers' lives. As customers increasingly embrace this reality, it drives greater reliance on CCC's platform, data, and network. This dynamic is a massive long-term tailwind for both the industry and for CCC, and we are ready to enable it. I'd like to turn next to how this trend reinforces our durable economic model and long-term growth. While our AI has been battle tested and is in production across more than 125 insurers and over 15,000 collision repairs, we are still just scratching the surface of AI product penetration and monetization. Every client using our AI is different in terms of the particular AI products they've chosen to adopt, and they also differ in the velocity of that adoption. Over the past few years, our teams have spent a considerable amount of time educating customers on AI and helping them work through the change management needed to leverage AI at scale within their organizations. This gave us great learnings from our early adopters, and we started to see a notable acceleration of AI adoption across our entire customer base in 2025. Our AI suite is the fastest growing part of the CCC portfolio. AI has now grown to roughly 10% of total revenue, and we expect that contribution to increase over time. While adoption continues to scale, utilization today ranges from low single-digit to low double-digit percentages of total claims processed, depending on the solution. This dynamic highlights both accelerating customer adoption and how early we remain in the adoption curve, giving us, in effect, a long runway for growth as usage scales. Because of our long track record in AI, we know how to build and deploy these solutions cost-effectively. Our AI portfolio has a similar economic profile to the rest of our products, and they are configurable by customer instead of custom model build. We have also seen strong results from the deployment of AI in our internal operations, and we anticipate additional gains as these grow in scope and usage. The strength of our business model has also enabled us to make other investments to capitalize on this opportunity. We developed and launched our event-based architecture, IX Cloud, to make it easier for customers to use our AI-enabled products and have made substantial investments in talent to build on our leadership position. This includes key hires in sales and product management functions who bring deep experience in building, scaling, and selling AI-driven solutions to enterprise and SME clients. We have streamlined many of our packages and selling motions and will continue to optimize these in the spirit of delivering top-tier value, and reference-level service. Our acquisition of Evolution IQ didn't just bring world-class AI capabilities and a strong extension to our casualty portfolio, it also expanded CCC's addressable market beyond auto. Evolution IQ's continued new logo wins in 2025 now gives us a customer roster of nine of the top 15 disability carriers in the United States. Evolution IQ also brought CCC into workers' compensation, the third largest PNC insurance line after auto and home. Evolution IQ further expanded the scale of its workers' compensation opportunity by partnering with the largest PPA in the world to serve the self-insured market with strong early client traction. In addition, as we integrate evolution IQ more deeply into our auto casualty suite, we are beginning to see tangible progress in the cross-sell motion with our casualty customers. MedHub for casualty is gaining interest as insurers look to apply AI-driven medical record insights within complex injury claims and we have signed our first casualty customer for this solution with several additional carriers in advanced stages of evaluation. We also cross-sold EvolutionIQ's workers' compensation offering to an existing CCC customer for the first time. This early traction supports our view that EvolutionIQ meaningfully expands our addressable opportunity casualty and P&C in general over time. The strength of our economic model allowed us to deliver 41% EBITDA margins for the year, despite making large-scale investments in R&D and absorbing some near-term losses from evolution IQ. The size of the opportunity ahead of us gives us confidence in our ability to grow at attractive rates while also increasing margins and free cash flow for many years to come. Finally, I'd like to make a few comments on capital allocation. We are incredibly excited about the growth pathways in front of us, and we are fortunate to have made many long-term investments ahead of this cycle to prepare us for this moment. While our top priority will always be product innovation, the strength of our business model enabled us to deliver more than $250 million in free which affords us the flexibility to decide how we allocate excess cash and optimize our capital allocation. In recent years, we have been deliberate about returning cash to shareholders by buying back a significant number of shares. In Q4, we completed a $300 million share repurchase program, and our board of directors authorized an additional $500 million in repurchases. which we immediately activated by entering into a $300 million accelerated share repurchase transaction. We believe repurchasing shares is the best use of our excess cash, particularly at current levels that we believe meaningfully undervalues this business. As Brian will detail, CCC's strong fundamentals support ongoing top-line growth margin expansion, and free cash flow generation, which will give us many opportunities to maximize total shareholder return while continuing to reinforce our position as the leader and product innovator in our industry. We look forward to a very exciting 2026. With that, I'll turn the call over to Brian, who will walk you through our financial results and outlook in more detail.