CCC Intelligent Solutions (CCC) Q1 2025 earnings summary

Executive summary

• Achieved Q1 2025 revenue of $252 million, up 11% year-over-year, surpassing guidance and reaching a $1 billion run rate, driven by cross-sell, upsell, new logos, and the integration of EvolutionIQ.

• Adjusted EBITDA reached $99.1 million with a 39% margin, both ahead of guidance.

• Net loss attributable to common stockholders was $18.7 million, reflecting higher operating expenses and acquisition-related costs.

• Major contract renewals and new wins, including Caliber Collision and a leading EV OEM, contributed to strong performance.

• Integration of EvolutionIQ is on track, with accelerated launch of MedHub for casualty claims.

Financial highlights

• Q1 2025 revenue: $251.6 million, up 10.7% year-over-year; software subscription revenue was $242.5 million, 96% of total revenue.

• Adjusted gross profit: $192.5 million (77% margin); GAAP gross profit: $185.0 million (74% margin).

• Adjusted operating expense: $107 million, up 15% year-over-year; operating expenses rose 22.3% to $195.7 million due to EvolutionIQ integration and higher stock-based compensation.

• Adjusted EBITDA: $99.1 million, up 6% year-over-year; margin 39%.

• Free cash flow: $44 million in Q1, up 10% year-over-year; cash and cash equivalents were $130.3 million as of March 31, 2025.

Outlook and guidance

• Q2 2025 revenue expected at $255.5–$257.5 million; adjusted EBITDA $99–$101 million, 39% margin.

• Full-year 2025 revenue guidance: $1.046–$1.056 billion; adjusted EBITDA $420–$428 million, 40% margin.

• EvolutionIQ expected to contribute $45–$50 million in 2025 revenue.

• Guidance reduction reflects ongoing claim volume pressure and potential for longer sales cycles due to macro uncertainty.

• Management expects existing cash, cash flows, and borrowing capacity to fund operations and capital needs for at least the next twelve months.