CCC Intelligent 2025 Q2 Earnings Revenue Up 12%, Net Income Falls 39%

CCC Intelligent Solutions Holdings Inc. (CCCS) reported its fiscal 2025 Q2 earnings on July 31, 2025. The company achieved a 12% increase in total revenue year-over-year, reaching $260.45 million, driven by strong client relationships and the adoption of AI-enabled solutions by major insurers. However, net income fell 39.6% from the previous year to $12.96 million, reflecting higher non-operating expenses. CCC Intelligent's guidance for Q3 2025 anticipates revenue growth between 10% and 12%, with full-year revenue expected to reach $1.046 billion to $1.056 billion.

Revenue

CCC Intelligent Solutions experienced a robust 12% increase in total revenue for Q2 2025, reaching $260.45 million compared to $232.62 million in the same quarter last year. This growth was primarily driven by the software subscriptions segment, which contributed $250.58 million, while other revenue streams added $9.87 million. The company's strategic focus on expanding its AI-enabled solutions and deepening client relationships has played a significant role in achieving this revenue boost.

Earnings/Net Income

CCC Intelligent reported a decline in earnings per share (EPS) of 33.3%, dropping to $0.02 in Q2 2025 compared to $0.03 in Q2 2024. Net income also decreased significantly, reaching $12.96 million, a 39.6% decline from the $21.45 million reported in the previous year. The company faces challenges with higher non-operating expenses affecting profitability.

The EPS performance indicates a negative trend due to declining profitability.

Post-Earnings Price Action Review

The strategy of purchasing CCC Intelligent shares following a quarter with increased revenue, and holding for 30 days, has yielded a 28.84% return over the past three years, although it has underperformed relative to the benchmark, which delivered a 60.78% return in the same period. This approach has demonstrated a maximum drawdown of 0.00%, a Sharpe ratio of 0.37, and a volatility of 27.53%. Despite the positive return, the strategy's lower performance compared to the benchmark suggests room for improvement. Investors should consider these factors when evaluating the potential for future gains using this strategy.

CEO Commentary

Githesh Ramamurthy, Chairman and CEO of CCC Intelligent Solutions, expressed strong optimism about the company's growth trajectory, highlighting the successful transition of large customers from pilot phases to broader implementations of AI-enabled solutions. He emphasized the tangible ROI and efficiency gains delivered by these products, as well as the importance of balancing operational efficiency with innovation investments. Ramamurthy noted the company's recurring revenue subscription model provides a flexible and scalable business framework, and he sees significant expansion potential in the casualty sector.

Guidance

CCC Intelligent Solutions projects revenue between $263 million and $266 million for Q3 2025, marking a year-over-year growth of 10% to 12%. The company maintains its full-year revenue guidance at $1.046 billion to $1.056 billion, with an anticipated adjusted EBITDA of $420 million to $428 million. This guidance reflects confidence in core business performance while acknowledging challenges related to implementation delays in signed contracts.

Additional News

CCC Intelligent Solutions Holdings Inc. has been active in strategic initiatives recently. On December 20, 2024, the company announced its acquisition of EvolutionIQ for $730 million, which is expected to enhance its capabilities in the casualty claims sector and integrate advanced medical record synthesis technology. Additionally, CCC Intelligent has initiated a $300 million stock buyback program to improve shareholder value, having repurchased $172 million in shares year-to-date. Furthermore, the company appointed Barak Eilam to its Board of Directors on July 14, 2025, bringing valuable expertise to guide the firm through its growth and strategic endeavors.