These terms and conditions govern your use of the website alphaminr.com and its related
services.
These Terms and Conditions (“Terms”) are a binding contract between you and Alphaminr,
(“Alphaminr”, “we”, “us” and “service”). You must agree to and accept the Terms. These Terms
include the provisions in this document as well as those in the Privacy Policy. These terms may
be modified at any time.
Subscription
Your subscription will be on a month to month basis and automatically renew every month. You may
terminate your subscription at any time through your account.
Fees
We will provide you with advance notice of any change in fees.
Usage
You represent that you are of legal age to form a binding contract. You are responsible for any
activity associated with your account. The account can be logged in at only one computer at a
time.
The Services are intended for your own individual use. You shall only use the Services in a
manner that complies with all laws. You may not use any automated software, spider or system to
scrape data from Alphaminr.
Limitation of Liability
Alphaminr is not a financial advisor and does not provide financial advice of any kind. The
service is provided “As is”. The materials and information accessible through the Service are
solely for informational purposes. While we strive to provide good information and data, we make
no guarantee or warranty as to its accuracy.
TO THE EXTENT PERMITTED BY APPLICABLE LAW, UNDER NO CIRCUMSTANCES SHALL ALPHAMINR BE LIABLE TO
YOU FOR DAMAGES OF ANY KIND, INCLUDING DAMAGES FOR INVESTMENT LOSSES, LOSS OF DATA, OR ACCURACY
OF DATA, OR FOR ANY AMOUNT, IN THE AGGREGATE, IN EXCESS OF THE GREATER OF (1) FIFTY DOLLARS OR
(2) THE AMOUNTS PAID BY YOU TO ALPHAMINR IN THE SIX MONTH PERIOD PRECEDING THIS APPLICABLE
CLAIM. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL OR
CERTAIN OTHER DAMAGES, SO THE ABOVE LIMITATION AND EXCLUSIONS MAY NOT APPLY TO YOU.
If any provision of these Terms is found to be invalid under any applicable law, such provision
shall not affect the validity or enforceability of the remaining provisions herein.
Privacy Policy
This privacy policy describes how we (“Alphaminr”) collect, use, share and protect your personal
information when we provide our service (“Service”). This Privacy Policy explains how
information is collected about you either directly or indirectly. By using our service, you
acknowledge the terms of this Privacy Notice. If you do not agree to the terms of this Privacy
Policy, please do not use our Service. You should contact us if you have questions about it. We
may modify this Privacy Policy periodically.
Personal Information
When you register for our Service, we collect information from you such as your name, email
address and credit card information.
Usage
Like many other websites we use “cookies”, which are small text files that are stored on your
computer or other device that record your preferences and actions, including how you use the
website. You can set your browser or device to refuse all cookies or to alert you when a cookie
is being sent. If you delete your cookies, if you opt-out from cookies, some Services may not
function properly. We collect information when you use our Service. This includes which pages
you visit.
Sharing of Personal Information
We use Google Analytics and we use Stripe for payment processing. We will not share the
information we collect with third parties for promotional purposes.
We may share personal information with law enforcement as required or permitted by law.
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
September 30,
2025
OR
☐
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________________ to ________________
CCC INTELLIGENT SOLUTIONS HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Delaware
001-39447
98-1546280
(State or other jurisdiction
of incorporation or organization)
(Commission
File Number)
(IRS Employer
Identification No.)
167 N. Green Street
,
9th Floor
Chicago
,
Illinois
(Address Of Principal Executive Offices)
60607
(Zip Code)
(
800
)
621-8070
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:
Title of each class
Trading
Symbol(s)
Name of each exchange on which registered
Common stock, par value $0.0001 per share
CCCS
The Nasdaq Stock Market LLC
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.
Yes
☒ No ☐
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).
Yes
☒ No ☐
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.
Large accelerated filer
☒
Accelerated filer
☐
Non-accelerated filer
☐
Smaller reporting company
☐
Emerging growth company
☐
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 October 23 2025,
642,019,656
shares of common stock, $0.0001 par value per share, were issued and outstanding.
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:
•
our revenues, the concentration of our customers and the ability to retain our current customers;
•
our ability to negotiate with our customers on favorable terms;
•
our ability to maintain and grow our brand and reputation cost-effectively;
•
the execution of our growth strategy;
•
the impact of public health outbreaks, epidemics or pandemics on our business and results of operations;
•
our projected financial information, growth rate and market opportunity;
•
the health of our industry, claim volumes, and market conditions;
•
changes in the insurance and automotive collision industries, including the adoption of new technologies;
•
global economic conditions and geopolitical events, including the imposition of trade tariffs, supply chain disruption and inflationary pressures;
•
competition in our market and our ability to retain and grow market share;
•
our ability to develop, introduce and market new enhanced versions of our solutions;
•
our sales and implementation cycles;
•
the ability of our research and development efforts to create significant new revenue streams;
•
changes in applicable laws or regulations;
•
changes in international economic, political, social and governmental conditions and policies, including corruption risks in China and other countries;
•
our reliance on third-party data, technology and intellectual property;
•
our ability to protect our intellectual property;
•
our ability to keep our data and information systems secure from data security breaches;
•
changes in our customers' or the public's perceptions regarding the use of artificial intelligence ("AI");
•
our ability to acquire or invest in companies or pursue business partnerships;
•
our ability to raise financing in the future and improve our capital structure;
•
our success in retaining or recruiting, or changes required in, our officers, key employees or directors;
•
our estimates regarding expenses, future revenue, capital requirements and needs for additional financing;
•
our ability to expand or maintain our existing customer base; and
•
our ability to service our indebtedness.
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
3
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. Fin
ancial Statements (Unaudited)
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
September 30,
December 31,
2025
2024
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
$
97,141
$
398,983
Accounts receivable—Net of allowances of $
4,101
and $
4,692
as of September 30, 2025 and December 31, 2024, respectively
140,702
106,578
Income taxes receivable
38,476
7,743
Deferred contract costs
22,939
22,373
Other current assets
31,422
28,973
Total current assets
330,680
564,650
SOFTWARE, EQUIPMENT, AND PROPERTY—Net
167,960
172,079
OPERATING LEASE ASSETS
36,748
29,762
INTANGIBLE ASSETS—Net
1,033,538
934,278
GOODWILL
1,956,497
1,417,724
DEFERRED FINANCING FEES, REVOLVER—Net
1,459
1,743
DEFERRED CONTRACT COSTS
20,594
18,692
EQUITY METHOD INVESTMENT
10,228
10,228
OTHER ASSETS
33,923
34,062
TOTAL
$
3,591,627
$
3,183,218
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Accounts payable
$
22,633
$
18,393
Accrued expenses
73,307
72,543
Income taxes payable
80
80
Current portion of long-term debt
10,010
8,000
Current portion of long-term licensing agreement—Net
3,413
3,257
Operating lease liabilities
7,707
7,658
Deferred revenues
76,450
44,915
Note payable to minority investor
24,446
—
Total current liabilities
218,046
154,846
LONG-TERM DEBT—Net
971,208
761,053
DEFERRED INCOME TAXES—Net
180,552
164,844
LONG-TERM LICENSING AGREEMENT—Net
21,855
24,435
OPERATING LEASE LIABILITIES
52,750
47,235
OTHER LIABILITIES
17,394
11,303
Total liabilities
1,461,805
1,163,716
COMMITMENTS AND CONTINGENCIES
(Notes 20 and 21)
MEZZANINE EQUITY:
Redeemable non-controlling interest
—
21,679
STOCKHOLDERS’ EQUITY:
Preferred stock—$
0.0001
par;
100,000,000
shares authorized;
no
shares issued or outstanding
—
—
Common stock—$
0.0001
par;
5,000,000,000
shares authorized;
647,182,603
and
629,207,115
shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively
65
63
Additional paid-in capital
3,449,971
3,094,182
Accumulated deficit
(
1,319,140
)
(
1,095,227
)
Accumulated other comprehensive loss
(
1,074
)
(
1,195
)
Total stockholders’ equity
2,129,822
1,997,823
TOTAL
$
3,591,627
$
3,183,218
See notes to condensed consolidated financial statements.
5
CCC INTELLIGENT SOLUTIONS HOLDINGS INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE (LOSS) INCOME
(In thousands, except share and per share data)
(Unaudited)
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
REVENUES
$
267,120
$
238,481
$
779,136
$
698,336
COST OF REVENUES
Cost of revenues, exclusive of amortization of acquired technologies
69,779
54,890
194,050
160,929
Amortization of acquired technologies
4,368
171
13,105
8,828
Total cost of revenues
74,147
55,061
207,155
169,757
GROSS PROFIT
192,973
183,420
571,981
528,579
OPERATING EXPENSES:
Research and development
52,947
49,525
174,639
148,255
Selling and marketing
44,208
34,347
135,980
106,254
General and administrative
47,332
52,918
162,080
161,247
Amortization of intangible assets
18,512
17,942
55,536
53,826
Total operating expenses
162,999
154,732
528,235
469,582
OPERATING INCOME
29,974
28,688
43,746
58,997
INTEREST EXPENSE
(
18,103
)
(
16,379
)
(
52,866
)
(
49,434
)
INTEREST INCOME
1,065
3,343
4,233
8,435
CHANGE IN FAIR VALUE OF WARRANT LIABILITIES
—
—
—
14,378
OTHER INCOME (EXPENSE)—NET
466
(
2,587
)
(
6,688
)
1,606
PRETAX INCOME (LOSS)
13,402
13,065
(
11,575
)
33,982
INCOME TAX (PROVISION) BENEFIT
(
15,373
)
(
8,933
)
5,143
(
9,002
)
NET(LOSS) INCOME INCLUDING NON-CONTROLLING
INTEREST
(
1,971
)
4,132
(
6,432
)
24,980
LESS: ACCRETION OF REDEEMABLE NON-CONTROLLING INTEREST
—
(
1,320
)
(
1,276
)
(
3,683
)
NET (LOSS) INCOME ATTRIBUTABLE TO CCC INTELLIGENT
SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS
$
(
1,971
)
$
2,812
$
(
7,708
)
$
21,297
Net (loss) income per share attributable to common stockholders:
Basic
$
(
0.00
)
$
0.00
$
(
0.01
)
$
0.04
Diluted
$
(
0.00
)
$
0.00
$
(
0.01
)
$
0.03
Weighted-average shares used in computing net (loss) income per share
attributable to common stockholders:
Basic
631,440,015
615,857,231
635,263,670
608,073,087
Diluted
631,440,015
642,404,517
635,263,670
639,069,491
COMPREHENSIVE (LOSS) INCOME:
Net (loss) income including non-controlling interest
(
1,971
)
4,132
(
6,432
)
24,980
Other comprehensive income—Foreign currency translation
adjustment
83
117
121
26
COMPREHENSIVE (LOSS) INCOME INCLUDING
NON-CONTROLLING INTEREST
(
1,888
)
4,249
(
6,311
)
25,006
Less: accretion of redeemable non-controlling interest
—
(
1,320
)
(
1,276
)
(
3,683
)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CCC
INTELLIGENT SOLUTIONS HOLDINGS INC. COMMON STOCKHOLDERS
$
(
1,888
)
$
2,929
$
(
7,587
)
$
21,323
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)
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
$
21,679
—
$
—
629,207,115
$
63
$
3,094,182
$
(
1,095,227
)
$
(
1,195
)
$
1,997,823
Stock-based compensation expense
—
—
—
—
—
61,048
—
—
61,048
Exercise of stock options
—
—
—
330,413
—
956
—
—
956
Issuance of common stock under
employee stock purchase plan
—
—
—
174,906
—
1,650
—
—
1,650
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
9,095,994
1
(
43,472
)
—
—
(
43,471
)
Issuance of restricted stock awards
for business acquisition
—
—
—
792,174
—
—
—
—
—
Issuance of common stock for business
acquisition
(1)
—
—
—
26,035,603
3
250,438
—
—
250,441
Repurchase and retirement of common stock
—
—
—
(
7,000,000
)
(
1
)
—
(
72,274
)
—
(
72,275
)
Accretion of redeemable non-controlling
interest
1,276
—
—
—
—
(
1,276
)
—
—
(
1,276
)
Reclassification of redeemable non-controlling
interest to note payable to minority investor
(
22,955
)
—
—
—
—
—
—
—
—
Foreign currency translation adjustment
—
—
—
—
—
—
—
(
15
)
(
15
)
Net loss
—
—
—
—
—
—
(
17,421
)
—
(
17,421
)
BALANCE—March 31, 2025
—
—
—
658,636,205
66
3,363,526
(
1,184,922
)
(
1,210
)
2,177,460
Stock-based compensation expense
—
—
—
—
—
45,975
—
—
45,975
Exercise of stock options
—
—
—
360,029
—
1,003
—
—
1,003
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
986,566
—
(
881
)
—
—
(
881
)
Repurchase and retirement of common stock
—
—
—
(
10,988,327
)
(
1
)
—
(
100,219
)
—
(
100,220
)
Foreign currency translation adjustment
—
—
—
—
—
—
—
53
53
Net income
—
—
—
—
—
—
12,960
—
12,960
BALANCE—June 30, 2025
$
—
—
$
—
648,994,473
$
65
3,409,623
$
(
1,272,181
)
$
(
1,157
)
$
2,136,350
Stock-based compensation expense
—
—
—
—
—
39,193
—
—
39,193
Exercise of stock options
—
—
—
548,441
—
1,671
—
—
1,671
Issuance of common stock under
employee stock purchase plan
—
—
—
424,270
—
3,394
—
—
3,394
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
1,994,729
—
(
3,910
)
—
—
(
3,910
)
Repurchase and retirement of common stock
—
—
(
4,779,310
)
—
—
(
44,988
)
—
(
44,988
)
Foreign currency translation adjustment
—
—
—
—
—
—
—
83
83
Net loss
—
—
—
—
—
—
(
1,971
)
—
(
1,971
)
BALANCE—September 30, 2025
$
—
—
$
—
647,182,603
$
65
$
3,449,971
$
(
1,319,140
)
$
(
1,074
)
$
2,129,822
(1)
Issuance of common stock for business acquisition includ
es
10,356,096
of restricted sh
ares of common stock subject to re-vesting requirements (see Note 17).
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, 2023
$
16,584
—
$
—
603,128,781
$
60
$
2,909,757
$
(
1,126,467
)
$
(
1,073
)
$
1,782,277
Stock-based compensation expense
—
—
—
—
—
44,971
—
—
44,971
Exercise of stock options
—
—
—
3,346,599
—
8,822
—
—
8,822
Issuance of common stock under
employee stock purchase plan
—
—
—
194,307
—
1,833
—
—
1,833
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
7,588,048
1
(
52,581
)
—
—
(
52,580
)
Accretion of redeemable non-controlling
interest
1,142
—
—
—
—
(
1,142
)
—
—
(
1,142
)
Foreign currency translation adjustment
—
—
—
—
—
—
—
(
75
)
(
75
)
Net loss
—
—
—
—
—
—
(
597
)
—
(
597
)
BALANCE—March 31, 2024
17,726
—
—
614,257,735
61
2,911,660
(
1,127,064
)
(
1,148
)
1,783,509
Stock-based compensation expense
—
—
—
—
—
40,125
—
—
40,125
Exercise of stock options
—
—
—
4,518,651
1
12,823
—
—
12,824
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
209,515
—
(
142
)
—
—
(
142
)
Warrant redemption
—
—
—
3,809,200
—
37,122
—
—
37,122
Accretion of redeemable non-controlling
interest
1,221
—
—
—
—
(
1,221
)
—
—
(
1,221
)
Foreign currency translation adjustment
—
—
—
—
—
—
—
(
16
)
(
16
)
Net income
—
—
—
—
—
—
21,445
—
21,445
BALANCE—June 30, 2024
$
18,947
—
$
—
622,795,101
$
62
$
3,000,367
$
(
1,105,619
)
$
(
1,164
)
$
1,893,646
Stock-based compensation expense
—
—
—
—
—
42,125
—
—
42,125
Exercise of stock options
—
—
—
878,686
—
2,303
—
—
2,303
Issuance of common stock under
employee stock purchase plan
—
—
—
414,584
—
3,912
—
—
3,912
Issuance of common stock upon
vesting of RSUs—net of tax
—
—
—
1,237,335
1
(
4,797
)
—
—
(
4,796
)
Accretion of redeemable non-controlling
interest
1,320
—
—
—
—
(
1,320
)
—
—
(
1,320
)
Foreign currency translation adjustment
—
—
—
—
—
—
—
117
117
Net income
—
—
—
—
—
—
4,132
—
4,132
BALANCE—September 30, 2024
$
20,267
—
$
—
625,325,706
$
63
$
3,042,590
$
(
1,101,487
)
$
(
1,047
)
$
1,940,119
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 Nine Months Ended
September 30,
2025
2024
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) income
$
(
6,432
)
$
24,980
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization of software, equipment, and property
44,376
29,520
Amortization of intangible assets
68,641
62,654
Deferred income taxes
(
1,208
)
(
32,941
)
Stock-based compensation
146,216
127,221
Amortization of deferred financing fees
1,405
1,452
Amortization of discount on debt
117
191
Change in fair value of derivative instruments
8,441
4,775
Change in fair value of warrant liabilities
—
(
14,378
)
Loss on disposal of software, equipment and property
—
302
Noncash interest expense
1,491
—
Other
—
163
Changes in:
Accounts receivable—Net
(
33,743
)
(
27,237
)
Deferred contract costs
(
566
)
(
1,807
)
Other current assets
(
2,770
)
1,670
Deferred contract costs—Non-current
(
1,902
)
906
Other assets
139
1,724
Operating lease assets
1,855
1,580
Income taxes
(
30,733
)
(
203
)
Accounts payable
3,813
5,483
Accrued expenses
(
6,720
)
(
14,896
)
Operating lease liabilities
(
3,277
)
(
2,878
)
Deferred revenues
10,073
3,024
Other liabilities
(
2,901
)
(
1,064
)
Net cash provided by operating activities
196,315
170,241
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of software, equipment, and property
(
46,684
)
(
45,073
)
Acquisition of EvolutionIQ, Inc., net of cash acquired
(
410,412
)
—
Net cash used in investing activities
(
457,096
)
(
45,073
)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options
3,603
23,997
Proceeds from employee stock purchase plan
5,044
5,745
Payments for employee taxes withheld upon vesting of equity awards
(
48,262
)
(
57,519
)
Repurchase of common stock
(
212,485
)
—
Proceeds from issuance of long-term debt
225,000
—
Payments of fees associated with the debt modification
(
6,565
)
(
661
)
Principal payments on long-term debt
(
7,508
)
(
6,000
)
Net cash used in financing activities
(
41,173
)
(
34,438
)
NET EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
112
1
NET CHANGE IN CASH AND CASH EQUIVALENTS
(
301,842
)
90,731
CASH AND CASH EQUIVALENTS:
Beginning of period
398,983
195,572
End of period
$
97,141
$
286,303
NONCASH INVESTING AND FINANCING ACTIVITIES:
Stock issued related the acquisition of EvolutionIQ, Inc.
$
250,441
$
—
Issuance of promissory note to minority investor of redeemable preferred securities
$
22,955
$
—
Noncash purchases of software, equipment, and property
$
—
$
7,305
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest
$
51,893
$
48,294
Cash paid for income taxes—Net
$
26,199
$
42,137
See notes to condensed consolidated financial statements.
9
NOTES TO CONDENSED CONSOLI
DATED FINANCIAL STATEMENTS
(Unaudited)
1.
ORGANIZATION AND nature of operations
CCC Intelligent Solutions Holdings Inc. (the "Company"), a Delaware corporation, is a leading software as a service ("SaaS") platform for the multi-trillion-dollar insurance economy, powering operations for insurers, repairers, automakers, parts 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 artificial intelligence ("AI") enabled digital workflows.
The Company is headquartered in Chicago, Illinois. The Company’s primary operations are in the United States ("US") and it also has operations in China.
The Company was originally incorporated as a Cayman Islands exempted company on July 3, 2020 as a special purpose acquisition company under the name Dragoneer Growth Opportunities Corp ("Dragoneer"). On February 2, 2021, Cypress Holdings Inc., a Delaware corporation, entered into a business combination agreement with Dragoneer. In connection with the closing of the business combination ("Business Combination"), Dragoneer changed its jurisdiction of incorporation by deregistering as an exempted company in the Cayman Islands and continuing and domesticating as a Delaware corporation on July 30, 2021, upon which Dragoneer changed its name to CCC Intelligent Solutions Holdings Inc.
10
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
—The condensed consolidated balance sheets as of September 30, 2025 and December 31, 2024, the condensed consolidated statements of operations and comprehensive (loss) income for the three and nine months ended September 30, 2025 and 2024, the condensed consolidated statements of mezzanine equity and stockholders’ equity for the three and nine months ended September 30, 2025 and 2024, and the condensed consolidated statements of cash flows for the nine months ended September 30, 2025 and 2024 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, 2024.
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, 2024. There have been no material changes to the significant accounting policies since December 31, 2024
.
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 and the ownership interest of the minority investor is recorded as a non-controlling interest in a subsidiary.
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. Although the Company regularly assesses these estimates, actual results could differ from those estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. Actual results could differ from management’s estimates if past experience or other assumptions are not substantially accurate. 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, the valuation of the warrant liabilities, and the estimates and assumptions associated with stock incentive plans.
Recently Issued Accounting Pronouncements
—In September 2025, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") 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 perspective 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
11
effective for fiscal years beginning after December 15, 2026, with early adoption permitted. The Company is evaluating the disclosure requirements related to this update.
In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This update requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements may be applied on a prospective basis, with the option to apply them retrospectively. The amendments in this update are effective for fiscal years beginning after December 15, 2024. The Company is continuing to evaluate the disclosure requirements but does not believe the adoption of ASU 2023-09 will have a significant impact on its consolidated financial statements.
There have been no other recent accounting pronouncements or changes in accounting pronouncements during the nine months ended September 30, 2025, as compared to the recent accounting pronouncements described in our Annual Report on Form 10-K for the year ended December 31, 2024
, that are of significance or potential significance to us.
3.
BUSINESS ACQUISITION
On January 6, 2025, the Company completed its acquisition of EvolutionIQ, Inc. (“EvolutionIQ”), a privately held company that provides AI-powered guidance for disability and injury claims management. Leveraging EvolutionIQ’s platform, the acquisition will broaden the Company’s portfolio of AI-based solutions available to insurance customers.
The Company acquired all the outstanding shares of EvolutionIQ in exchange for total consi
deration of $
674.3
million upon closing, subject to certain post-closing adjustments. In accordance with the acquisition agreement, the Company placed $
8.9
million in escrow for general indemnity and purchase price adjustment holdbacks to be paid to the sellers
within 90 days of closing for the adjustment holdbacks and 36 months of closing for the general indemnity, subject to reduction for certain indemnifications and other potential obligations of the selling shareholder
s. During the three months ended September 30, 2025, the adjustment escrow was distributed with the sellers receiving $
2.6
million and the Company receiving $
4.7
million. As of September 30, 2025, the remaining escrow balance of $
1.6
million relates to the general indemnity.
The acquisition date fair value of the consideration transferred consisted of the following (in thousands):
Cash consideration
$
420,642
Fair value of common stock issued
250,441
Fair value of option holdback
3,184
Total acquisition date fair value of the consideration transferred
$
674,267
As part of the acquisition, the Company issued
26,035,603
shares of common stock. The number of shares of common stock issued was based on a 9-day volume weighted average price of $
11.83
, established prior to the closing date of January 6, 2025. On the date of acquisition, the Company's closing stock price was $
11.41
.
Included in the shares of common stock issued are
10,356,096
restricted shares of common stock subject to re-vesting provisions. The restricted shares have a fair value as of the acquisition date of $
118.2
million, of which $
71.5
million is included in the consideration transferred in the table above, and the remaining $
46.7
million will be recognized as stock-based compensation expense over the vesting period (see Note 17).
The fair value of the option holdback corresponds to the fair value of certain unvested EvolutionIQ stock options subject to future vesting as of the acquisition date. If the optionholder does not meet the time-based vesting requirement, the corresponding holdback amount will be released to the selling shareholders. If the optionholder does meet the time-based vesting requirement, the optionholder will receive the corresponding holdback amount in shares of CCC common stock, and the holdback cash amount is retained by the Company.
The acquisition of EvolutionIQ was accounted for as a business combination and reflects the application of acquisition accounting in accordance with Accounting Standards Codification ("ASC") 805,
Business Combinations
. The total purchase consideration was allocated to the assets acquired and liabilities assumed based on fair value as of the acquisition date with the excess purchase price assigned to goodwill. Goodwill was primarily attributable to expected synergies from the combined service offerings and the value of the acquired workforce. Goodwill and intangible assets are not deductible for tax purposes.
The Company’s estimates of the fair values of the assets acquired and liabilities assumed are based on information available at the date of acquisition. During the measurement period, which may be up to one year from the acquisition date, adjustments may be recorded to the fair values of these tangible and intangible assets acquired and liabilities assumed, including uncertain tax positions and tax-related valuation allowances, with the corresponding offset to goodwill. As of September 30, 2025, there have been no significant changes to the preliminary purchase price allocation.
12
The following table summarizes the preliminary allocation of the consideration to the fair values of the assets acquired and liabilities assumed at the acquisition date (in thousands):
Assets acquired:
Current assets
$
11,250
Intangible assets
167,900
Other non-current assets
8,935
Total assets acquired
188,085
Liabilities assumed:
Deferred revenue
21,461
Other current liabilities
3,976
Deferred tax liabilities
16,916
Non-current liabilities
10,238
Total liabilities assumed
52,591
Net assets acquired
135,494
Goodwill
538,773
Total purchase price
$
674,267
A summary of the fair values, discount rates and estimated useful lives of the acquired intangible assets is as follows (dollars in thousands):
Intangible Asset
Fair Value
Discount Rate
Estimated Useful Life
Acquired technology
$
134,300
12.0
%
8
years
Customer relationships
32,300
11.5
%
16
years
Trademark
1,300
11.5
%
5
years
The Company utilized different valuation approaches and methodologies to determine the fair values of acquired intangible assets. The valuation approaches and methodologies were based on estimates of future operating projections as well as judgments on the discount rate and other variables. These fair values were based on significant unobservable inputs, including management estimates and assumptions and thus represent Level 3 measures in the fair value hierarchy.
Acquired technology was valued using the multi-period excess earnings method. This method of valuation reflects the present value of the projected cash flows that are expected to be generated by the acquired technology less charges representing the contribution of other assets to those cash flows.
Customer relationships were valued using a distributor method, which uses market-based inputs to value an asset. Under the distributor method, the value of the customer relationships is a function of several components, including revenue associated with the existing customers, distributor profit margin, charges for use of other assets and discount rate.
The trademark was valued under the relief from royalty method, which is equal to the present value of the after-tax royalty savings attributable to owning the trademark as opposed to paying a third party for its use.
The acquired intangible assets, with a weighted average useful life of
9.5
years, are being amortized on a straight-line basis.
For the period from the date of acquisition through September 30, 2025
, EvolutionIQ's revenues were less than
5.0
% of the Company's total revenues and not material. For the
three months ended September 30, 2025, EvolutionIQ's pretax loss w
as $
23.1
mill
ion, including
$
14.7
million of stock-based compensation expense and
$
4.8
million of amortization expense. For the period from the date of acquisition through September 30, 2025, EvolutionIQ's pretax loss w
as $
74.9
mill
ion, including
$
49.6
million of stock-based compensation expense and
$
14.3
million of amortization expense.
The Company incurred transaction costs associated with the acquisition of $
16.6
million. During the
three and nine months ended September 30, 2025, the Company incurred transaction costs of
$
0.2
million and
$
7.8
million, respectively, included in general and administrative expenses within the condensed consolidated statements of operations and comprehensive (loss) income
.
4. REvenue
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.
13
The following table summarizes revenue by type of service for the
three and nine months ended September 30, 2025 and 2024 (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Software subscriptions
$
256,656
$
229,425
$
749,771
$
670,335
Other
10,464
9,056
29,365
28,001
Total revenues
$
267,120
$
238,481
$
779,136
$
698,336
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 September 30, 2025
, approximately $
1,741
million of revenue is expected to be recognized from remaining performance obligations in the amount of approximately $
752
million during the following twelve months, and approximately $
989
million thereafter. The estimated revenue
s do not include unexercised contract renewals. The remaining performance obligations exclude future transaction revenue where revenue is recognized as the services are rendered and in the amount to which the Company has the right to invoice.
Deferred Revenue
—Revenue recognized for the three months ended September 30, 2025
from amounts in deferred revenue as of June 30, 2025 was $
54.9
million. Revenue recognized for the
three months ended September 30, 2024
from amounts in deferred revenue as of June 30, 2024 was $
42.8
million
.
Revenue recognized for the nine months ended September 30, 2025
from amounts in deferred revenue as of December 31, 2024 was $
43.6
million. Revenue recognized for the
nine months ended September 30, 2024
from amounts in deferred revenue as of December 31, 2023 was $
41.1
million.
Contract Assets and Liabilities
—
The opening and closing balances of the Company’s receivables, contract assets and contract liabilities from contracts with customers are as follows (in thousands):
September 30,
December 31,
2025
2024
Accounts receivables—Net of allowances
$
140,702
$
106,578
Deferred contract costs
22,939
22,373
Long-term deferred contract costs
20,594
18,692
Other assets (accounts receivable, non-current)
23,619
16,946
Deferred revenues
76,450
44,915
Other liabilities (deferred revenues, non-current)
1,679
1,415
A summary of the activity impacting deferred revenue balances during the
three and nine months ended September 30, 2025 and 2024 is presented below (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Balance at beginning of period
$
72,292
$
48,101
$
46,330
$
44,940
Revenue recognized
1
(
135,931
)
(
120,315
)
(
468,517
)
(
353,523
)
Additional amounts deferred
1
141,768
120,561
500,316
356,930
Balance at end of period
$
78,129
$
48,347
$
78,129
$
48,347
Classified as:
Current
$
76,450
$
46,577
$
76,450
$
46,577
Non-current
1,679
1,770
1,679
1,770
Total deferred revenue
$
78,129
$
48,347
$
78,129
$
48,347
1
Amounts include total revenue deferred and recognized during each respective period.
The additional amount deferred during the nine months ended September 30, 2025
includes $
21.5
million related to the deferred revenue recorded at the time of the acquisition of EvolutionIQ.
14
A summary of the activity impacting the deferred contract costs during the
three and nine months ended September 30, 2025 and 2024 is presented below (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Balance at beginning of period
$
43,439
$
41,093
$
41,065
$
40,202
Costs amortized
(
6,060
)
(
5,651
)
(
17,743
)
(
16,222
)
Additional amounts deferred
6,154
5,661
20,211
17,123
Balance at end of period
$
43,533
$
41,103
$
43,533
$
41,103
Classified as:
Current
$
22,939
$
19,707
$
22,939
$
19,707
Non-current
20,594
21,396
20,594
21,396
Total deferred contract costs
$
43,533
$
41,103
$
43,533
$
41,103
5. FAIR VALUE measurements
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 September 30, 2025.
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 (loss) income. As of September 30, 2025, the interest rate swap agreements had a fair value liability of
$
7.5
million. The fair value of the interest rate swap agreements is classified within other liabilities in the accompanying condensed consolidated balance sheet as of September 30, 2025.
Interest Rate Caps
—In August 2022, the Company entered into two interest rate cap agreements to reduce its exposure to increases in interest rates applicable to its floating rate long-term debt (see Note 14). The fair value of the interest rate cap 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 December 31, 2024
. The interest rate cap agreements expired in
July 2025
.
The Company does not designate its interest rate cap agreements as hedging instruments and recorded the changes in fair value within other income (expense)
—
net on the condensed consolidated statements of operations and comprehensive (loss) income. As of December 31, 2024, the interest rate cap agreements had a fair value of
$
1.0
million. The fair value of the interest rate cap agreements was classified within other current assets in the accompanying condensed consolidated balance sheets as of
December 31, 2024.
The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis as of
September 30, 2025 (in thousands):
Fair Value
Level 1
Level 2
Level 3
Liabilities
Interest rate swaps
7,466
—
7,466
—
Total liabilities
$
7,466
$
—
$
7,466
$
—
The following table presents the fair value of the assets and liabilities measured at fair value on a recurring basis as of December 31, 2024 (in thousands):
Fair Value
Level 1
Level 2
Level 3
Assets
Interest rate caps
975
—
975
—
Total assets
$
975
$
—
$
975
$
—
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
15
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
no
t recognize any impairment charges related to these assets during the
three and nine months ended September 30, 2025 and 2024.
Fair Value of Other Financial Instruments
—
The following table presents the carrying amounts, net of debt discount, and the estimated fair values of the Company’s financial instruments that are not recorded at fair value on the condensed consolidated balance sheets (in thousands):
September 30, 2025
December 31, 2024
Carrying
Estimated
Carrying
Estimated
Description
Amount
Fair Value
Amount
Fair Value
Term Loan, including current maturities
$
992,435
$
989,769
$
774,825
$
776,970
The fair value of the Company’s long-term debt, including current maturities, was estimated based on 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.
6. INCOME TAXES
On July 4, 2025, the One Big Beautiful Bill Act (“OBBB”) was signed into law. The OBBB contains several changes to corporate taxation including modifications to capitalization of research and development expenses, limitations on deductions for interest expense, and accelerated fixed asset depreciation. The Company's estimated annual effective tax rate for the nine months ended September 30, 2025 includes the estimated impact of the OBBB. The Company expects favorable cash impacts in 2025 as a result of certain accelerated tax deductions. The Company will continue to evaluate the impact of the OBBB on its income taxes.
The Company recognized an income tax provision of
$
15.4
million and $
8.9
million for the
three months ended September 30, 2025 and 2024, respectively. The income tax provision for the three months ended September 30, 2025 was primarily due to the Company's pre-tax book income, as well as the tax impact related to stock-based compensation expense, partially offset by the tax impact related to estimated research and development credits. The income tax provision for the three months ended September 30, 2024 was primarily due to the Company's pre-tax book income.
The Company recognized an income tax benefit of $
5.1
million and an income tax provision of $
9.0
million for the nine months ended September 30, 2025 and 2024, respectively. The income tax benefit for the nine months ended September 30, 2025 was primarily due to the Company's pre-tax book loss, as well as the tax rate impact of non-deductible stock-based compensation expense. The income tax provision for the nine months ended September 30, 2024 was primarily due to the Company's pre-tax book income.
The Company made income tax payments of
$
0.3
million and $
11.6
million during the
three months ended September 30, 2025 and 2024, respectively. The Company received refunds of
$
0.7
million
from various states during the three months ended September 30, 2025. The Company received negligible refunds from various states during the three months ended September 30, 2024.
The Company made income tax payments of
$
27.6
million and $
42.1
million during the nine months ended September 30, 2025 and 2024, respectively. The Company received refunds of
$
1.4
million
from various states during the nine months ended September 30, 2025. Refunds received from various states were negligible during the nine months ended September 30, 2024.
As of September 30, 2025, unrecognized tax benefits were materially consistent with the amount as of December 31, 2024
. The Company believes its liability for unrecognized tax benefits, excluding interest and penalties, will not materially change over the following twelve months.
7. accounts receivable
Accounts receivable—Net as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Accounts receivable
$
144,803
$
111,270
Allowance for credit losses and sales reserves
(
4,101
)
(
4,692
)
Accounts receivable—Net
$
140,702
$
106,578
16
As of September 30, 2025, one customer accounted for 10% of accounts receivable—Net. As of December 31, 2024, one customer accounted for 11% of accounts receivable—Net.
Changes to the allowance for credit losses and sales reserves during the
three and nine months ended September 30, 2025 and 2024 consist of the following (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Balance at beginning of period
$
4,310
$
4,079
$
4,692
$
5,574
Charges to bad debt and sales reserves
1,474
1,270
4,424
3,029
Write-offs—Net
(
1,683
)
(
957
)
(
5,015
)
(
4,211
)
Balance at end of period
$
4,101
$
4,392
$
4,101
$
4,392
8. OTHER CURRENT ASSETS
Other current assets as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Prepaid SaaS costs
10,918
$
9,112
Prepaid service fees
7,548
7,352
Prepaid insurance
3,329
2,561
Prepaid software and equipment maintenance
758
673
Other
8,869
9,275
Total other current assets
$
31,422
$
28,973
9. SOFTWARE, EQUIPMENT, AND PROPERTY
Software, equipment, and property as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Software, licenses and database
$
301,265
$
275,127
Leasehold improvements
31,328
30,993
Computer equipment
16,076
18,993
Building and land
4,910
4,910
Furniture and other equipment
1,477
1,332
Total software, equipment, and property
355,056
331,355
Less accumulated depreciation and amortization
(
187,096
)
(
159,276
)
Software, equipment, and property—Net
$
167,960
$
172,079
Depreciation and amortization expense related to software, equipment and property was
$
17.0
million and $
10.4
million for the
three months ended September 30, 2025 and 2024, respectively. Depreciation and amortization expense related to software, equipment and property was
$
44.4
million and $
29.5
million for the
nine months ended September 30, 2025 and 2024
, respectively.
17
10. LEASES
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
2
to
17
years and the term for equipment leases is
1
to
3
years.
Some real estate leases include options to renew that can extend the original term by
3
to
5
years.
The components of lease expense for the
three and nine months ended September 30, 2025 and 2024 were as follows (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Operating lease costs
$
1,835
$
1,937
$
5,506
$
4,644
Variable lease costs
1,137
1,228
3,347
3,422
Total lease costs
$
2,972
$
3,165
$
8,853
$
8,066
During the three months ended September 30, 2025 and 2024, the Company made cash payments for operating leases of
$
2.4
million and $
2.4
million, respectively. During the
nine months ended September 30, 2025 and 2024, the Company made cash payments for operating leases of
$
6.9
million and $
6.2
million, respectively.
During the three months ended September 30, 2025, the Company
obtained operating lease assets in exchange for lease liabilities of $
0.3
million
. During the three months ended September 30, 2024
, the Company did
no
t obtain any operating lease assets in exchange for lease liabilities.
During the nine months ended September 30, 2025
, the Company obtained operating lease assets in exchange for lease liabilities of $
9.1
million, which
includes
$
8.8
million of operating lease asset in connection with the acquisition of EvolutionIQ. During the nine months ended September 30, 2024
, the Company obtained operating lease assets in exchange for lease liabilities of $
0.9
million.
11. GOODWILL AND INTANGIBLE ASSETS
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.
No
impairments to goodwill or indefinite life intangible assets were recorded during the
three and nine months ended September 30, 2025.
Changes in the carrying amount of goodwill were as follows during the nine months ended
September 30, 2025 (in thousands):
Net Carrying
Amount
Balance as of December 31, 2024
$
1,417,724
Acquisition of EvolutionIQ, Inc.
538,773
Balance as of September 30, 2025
$
1,956,497
Intangible Assets
—During the nine months ended September 30, 2025, the Company recorded
$
167.9
million of intangible assets as a result of the acquisition of EvolutionIQ (see Note 3).
No
intangible asset impairments were recorded during the
three and nine months ended September 30, 2025.
The intangible assets balance as of
September 30, 2025 is reflected below (in thousands):
Weighted-
Average
Estimated
Remaining
Gross
Net
Useful Life
Useful Life
Carrying
Accumulated
Carrying
(Years)
(Years)
Amount
Amortization
Amount
Customer relationships
16
-
18
9.8
$
1,324,130
$
(
606,162
)
$
717,968
Acquired technologies
7
-
8
7.2
139,100
(
15,105
)
123,995
Trademarks
5
4.3
1,300
(
195
)
1,105
Subtotal
1,464,530
(
621,462
)
843,068
Trademarks—indefinite life
190,470
—
190,470
Total intangible assets
$
1,655,000
$
(
621,462
)
$
1,033,538
18
The intangible assets balance as of December 31, 2024 is reflected below (in thousands):
Weighted-
Average
Estimated
Remaining
Gross
Net
Useful Life
Useful Life
Carrying
Accumulated
Carrying
(Years)
(Years)
Amount
Amortization
Amount
Customer relationships
18
10.3
$
1,291,830
$
(
550,822
)
$
741,008
Acquired technologies
7
4.1
4,800
(
2,000
)
2,800
Subtotal
1,296,630
(
552,822
)
743,808
Trademarks—indefinite life
190,470
—
190,470
Total intangible assets
$
1,487,100
$
(
552,822
)
$
934,278
Amortization expense for intangible assets was
$
22.9
million and
$
18.1
million for the three months ended September 30, 2025 and 2024, respectively. Amortization expense for intangible assets was
$
68.6
million and
$
62.7
million for the nine months ended September 30, 2025 and 2024, respectively.
Future amortization expense for the remainder of the year ended
December 31, 2025 and the following four years ended December 31 and thereafter for intangible assets as of September 30, 2025 is as follows (in thousands):
Years Ending December 31:
2025
22,881
2026
91,520
2027
91,520
2028
91,520
2029
90,891
Thereafter
454,736
Total
$
843,068
12. ACCRUED EXPENSES
Accrued expenses as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Compensation
$
41,309
$
47,505
Sales tax
5,071
3,620
Accrued share repurchase
4,998
—
Royalties and licenses
4,416
5,116
Software license agreement
4,049
4,613
Professional services
3,879
6,260
Option holdback
3,184
—
Employee insurance benefits
2,528
2,235
Other
3,873
3,194
Total accrued expenses
$
73,307
$
72,543
19
13. OTHER LIABILITIES
Other liabilities as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Income taxes payable—non-current
$
8,249
$
6,344
Fair value on interest rate swap
7,466
—
Software license agreement
—
3,544
Deferred revenue—non-current
1,679
1,415
Total other liabilities
$
17,394
$
11,303
14. LONG-TERM DEBT
On September 21, 2021, CCC Intelligent Solutions Inc., an indirect wholly owned subsidiary of the Company, together with certain of the Company’s subsidiaries acting as guarantors entered into a credit agreement (as amended, the “2021 Credit Agreement”).
The 2021 Credit Agreement originally consisted of an $
800.0
million term loan, the proceeds of which, with cash on hand, were used to repay all outstanding borrowings under the Company’s previous credit agreement.
2025 Refinancing
—On January 6, 2025, in conjunction with the acquisition of EvolutionIQ (Note 3), the Company entered into the third amendment to the 2021 Credit Agreement (the “Third Amendment”) that provided the Company with incremental term loans in an aggregate principal amount of $
225.0
million (the "Incremental Term Loans"). Prior to the Fourth Amendment (as defined below) the Incremental Term Loans were repayable in
quarterly
installments in an amount equal to
0.25
% of the original principal amount, with the balance payable at maturity,
September 21, 2028
.
Prior to the Fourth Amendment, the interest rate per annum applicable to the Incremental Term Loans were based on a fluctuating rate of interest, determined by the Company's leverage ratio, as defined in the 2021 Credit Agreement. In connection with the Fourth Amendment, the Incremental Term Loans were refinanced together with other term loans outlined in the following paragraphs.
On January 23, 2025, the Company entered into the fourth amendment (the “Fourth Amendment” and together with the Third Amendment, the “Amendments”) to the 2021 Credit Agreement.
Pursuant to the terms of the Fourth Amendment, the Company incurred incremental term loans in an aggregate principal amount of $
225.0
million, which were used to (i) refinance certain outstanding incremental term loans (including the Incremental Term Loans), (ii) extend the maturity of all term loans to January 23, 2032, (iii) remove the credit spread adjustment applicable to secured overnight financing rate ("SOFR") loans, and (iv) reduce the interest rate margin applicable to all term loans.
All other terms and conditions within the Company’s 2021 Credit Agreement were unchanged as part of the Amendments.
Upon execution of the Fourth Amendment, the Company had outstanding borrowings under a term loan of $
1,001
million (the “Term Loan”) and a revolving credit facility for an aggregate principal amount of $
250.0
million (the “2021 Revolving Credit Facility” and together with the Term Loan, the “2021 Credit Facilities”). The 2021 Revolving Credit Facility has a sublimit of $
75.0
million for letters of credit.
The Company incurred $
3.8
million in costs related to the Amendments, recorded as contra-debt. These costs are being amortized to interest expense over the term of the Term Loan using the effective interest method.
The Term Loan requires quarterly principal payments of approximately $
2.5
million until
December 31, 2031
, with the remaining outstanding principal amount required to be paid on the maturity date. If the Company’s leverage ratio, as defined in the 2021 Credit Agreement is greater than 3.5, the Term Loan requires a prepayment of principal, subject to certain exceptions, in connection with the receipt of proceeds from certain asset sales, casualty events, and debt issuances by the Company, and up to
50
% of annual excess cash flow, as defined in and as further set forth in the 2021 Credit Agreement. When a principal prepayment is required, the prepayment offsets the future quarterly principal payments of the same amount. As of December 31, 2024, the Company’s leverage ratio did not exceed the
3.5
threshold and the Company was not subject to the annual excess cash flow calculation, and as such,
no
t required to make a prepayment of principal.
As of September 30, 2025 and December 31, 2024, the amount outstanding on the Term Loan was
$
993.5
million and $
776.0
million, respectively.
As of September 30, 2025 and December 31, 2024,
$
10.0
million and $
8.0
million, respectively,
was classified as current in the accompanying condensed consolidated balance sheets.
20
Borrowings under the 2021 Credit Facilities bear interest at rates based on the ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries’ consolidated first lien net indebtedness to consolidated EBITDA for applicable periods specified in the 2021 Credit Agreement.
Pursuant to the Fourth Amendment, the interest rate per annum applicable to the Term Loan is based on a fluctuating rate of interest equal to the sum of an applicable rate and, at the Company’s election from time to time, either:
(1)
1.00
% in the case of base rate loans, and
2.00
%, in the case of SOFR (or the Euro Interbank Offer Rate ("EURIBOR") or the Sterling Overnight Indexed Average ("SONIA")) loans, if S&P and Moody’s Debt First Lien Leverage Ratio Ratings (as defined in the Credit Agreement) are below BB- (with a stable outlook) or below Ba3 (with a stable outlook) (or if for any reason this category does not apply, including if the Borrower has only one Debt Rating or the Borrower does not have any Debt Rating), and
(2)
0.75
%, in the case of base rate loans, and
1.75
%, in the case of SOFR (or EURIBOR or SONIA) loans, if S&P and Moody’s Debt First Lien Leverage Ratio Ratings are both BB- (with a stable outlook) or better and Ba3 (with a stable outlook) or better.
Prior to the Amendments, the interest rate per annum applicable to the loans is based on a fluctuating rate of interest equal to the sum of an applicable rate and term SOFR (or EURIBOR or SONIA) with a term, as selected by the Company, of one, three or six months (subject to (x) in the case of term loans, a
0.50
% per annum floor and (y) in the case of revolving loans, a
0.00
% per annum floor).
In September 2024, the Company entered into Amendment No. 2 to the 2021 Credit Agreement (the "Second Amendment") to (i) remove the SOFR credit adjustment applicable to the 2021 Revolving Credit Facility and (ii) reduce the applicable interest rate for the 2021 Revolving Credit Facility by
0.25
%. Additionally, the maturity date for the 2021 Revolving Credit Facility was extended to September 23, 2029.
At the time of entering into the 2021 Credit Agreement, the Company incurred $
3.1
million in financing costs related to the 2021 Revolving Credit Facility. The Company incurred $
0.7
million in financing costs related to the Second Amendment. These costs were recorded to a deferred financing fees asset account and are being amortized to interest expense over the term of the 2021 Revolving Credit Facility. As of
September 30, 2025 and December 31, 2024, the deferred financing fees asset balance was
$
1.5
million and $
1.7
million, respectively.
A quarterly commitment fee of up to
0.50
% is payable on the unused portion of the 2021 Revolving Credit Facility.
During the three months ended September 30, 2025 and 2024
, the weighted-average interest rate on the outstanding borrowings under the Term Loan was
6.4
% and
7.8
%
, respectively.
During the nine months ended September 30, 2025 and 2024, the weighted-average interest rate on the outstanding borrowings under the Term Loan was
6.3
%
and
7.8
%
, respectively.
As of September 30, 2025 and December 31, 2024, the Company has outstanding standby letters of credit for
$
1.1
million and $
0.7
million, respectively, which reduce the amount available to be borrowed under the 2021 Revolving Credit Facility. As of
September 30, 2025 and December 31, 2024,
$
248.9
million and $
249.3
million, respectively, was available to be borrowed.
The terms of the 2021 Credit Agreement include a financial covenant which requires that, at the end of each fiscal quarter, if the aggregate amount of borrowings under the 2021 Revolving Credit Facility exceeds
35
% of the aggregate commitments of the Company, the leverage ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries cannot exceed
6.25
to 1.00. Borrowings under the 2021 Revolving Credit Facility did not exceed 35% of the aggregate commitments and the Company was not subject to the leverage test as of
September 30, 2025 or December 31, 2024.
Long-term debt as of
September 30, 2025 and December 31, 2024 consists of the following (in thousands):
September 30,
December 31,
2025
2024
Term Loan
$
993,493
$
776,000
Term Loan—discount
(
1,058
)
(
1,175
)
Term Loan—deferred financing fees
(
11,217
)
(
5,772
)
Term Loan—Net of discount & fees
981,218
769,053
Less: Current portion
(
10,010
)
(
8,000
)
Total long-term debt—Net of current portion
$
971,208
$
761,053
Interest Rate Swaps
—In February
2025, the C
ompany
entered into three interest rate swap agreements (the "Swaps") to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt.
21
Pursuant
to the terms of the Swaps, beginning on July 31, 2025, the Company will pay an average fixed interest rate of
3.94
% on an aggregate notional amount corresponding to borrowings of $
750.0
million in exchange for receipts on the same notional amount at a floating interest rate based on the applicable SOFR at the time of payment. The Swaps expire on July 31, 2027.
As of September 30, 2025, the aggregate fair value of the Swaps was a liability of
$
7.5
million (see Note 5). Cash received related to the Swaps w
as $
0.3
million
for the three and nine months ended September 30, 2025.
Interest Rate Caps
—In August 2022, the Company entered into two interest rate cap agreements to reduce its exposure to increases in interest rates applicable to its floating rate long-term debt. The interest rate cap agreements had an aggregate notional amount of $
600.0
million and a one-month SOFR cap rate of
4.00
%. The interest rate cap agreements expired in July 2025.
Cash received related to the interest rate cap agreements was
$
0.2
million and $
2.1
million for the
three months ended September 30, 2025 and 2024, respectively. Cash received related to the interest rate cap agreements was
$
1.2
million and $
6.1
million for the
nine months ended September 30, 2025 and 2024, respectively.
As of December 31, 2024
, the aggregate fair value of the interest rate cap agreements was $
1.0
million (see Note 5).
15. REDEEMABLE NON-CONTROLLING INTEREST
On March 12, 2020, the Company entered into a stock purchase agreement and other related documentation (the "Stock Purchase Agreements") with a third-party investor (the "Investor") for purchase by the Investor of Series A Preferred Stock in CCC Cayman Holdings Limited ("CCC Cayman"), a majority-owned subsidiary of the Company and the parent of the Company’s China subsidiaries. At the closing of the transactions under the Stock Purchase Agreements (the "Close Date"), CCC Cayman, a subsidiary of the Company, issued
1,818
shares of Series A Preferred Stock (the "Preferred Shares") at $
7,854
per share to the Investor for net proceeds of $
14.2
million. As of
December 31, 2024,
on an as-converted basis, the Preferred Shares represented an aggregate
10.0
% ownership interest of the issued and outstanding capital stock of CCC Cayman, or
8.6
% on a fully-diluted basis.
The Preferred Shares were redeemable upon an actual or deemed redemption event as defined in the Stock Purchase Agreements or at the option of the Investor beginning on the five-year anniversary of the Close Date, if an actual or deemed redemption event had not yet occurred.
The redemption price, as defined by the Stock Purchase Agreements, was equal to the original issue price of the Preferred Shares, plus
10.0
% compound interest per annum on the Preferred Share issue price, plus any declared but unpaid dividends on the Preferred Shares.
The Preferred Shares did not participate in net income or losses.
On March 17, 2025, the Company received a notice of redemption under the Stock Purchase Agreements. Upon receiving the notice of redemption, the shares became mandatorily redeemable and payable by CCC Cayman (without recourse to the Company) and were no longer presented within mezzanine equity as a redeemable non-controlling interest.
As of December 31, 2024, the Investor’s ownership in CCC Cayman was classified in mezzanine equity as a redeemable non-controlling interest, because it was redeemable on an event that was not solely in the control of the Company.
The activity impacting the redeemable non-controllable interest during the
three and nine months ended September 30, 2025 and 2024 is presented below (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Balance at beginning of period
$
—
$
18,947
$
21,679
$
16,584
Accretion of redeemable non-controlling interest
—
1,320
1,276
3,683
Issuance of promissory note to minority investor of redeemable preferred securities
—
—
(
22,955
)
—
Balance at end of period
$
—
$
20,267
$
—
$
20,267
22
16.
NOTE PAYABLE TO MINORITY INVESTOR
In connection with the Investor’s notice of redemption of their Series A Preferred Stock and in accordance with the provisions of the Stock Purchase Agreements (see Note 15), on May 16, 2025, CCC Cayman issued a promissory note (the "Promissory Note") to the Investor. 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 $
23.4
million, which included accrued interest of $
0.4
million. The Promissory Note accrues interest at a rate of
12.0
% per annum, compounded daily. All accrued interest is payable in kind and added to the outstanding principal amount. During the
three and nine months ended September 30, 2025
, the Company recognized $
0.7
million and $
1.5
million, respectively, of interest expense on the Promissory Note
.
The Promissory Note's maturity date is defined as the date CCC Cayman has available funds and assets, as defined in the Stock Purchase Agreements, that are available and sufficient to pay in full the redemption price for the Investor’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 September 30, 2025
, the total amount outstanding under the Promissory Note was $
24.4
million.
17. Capital stock
Preferred Stock
—The Company is authorized to issue up to
100,000,000
shares of undesignated preferred stock with a par value of $
0.0001
per share with such designations, voting and other rights and preferences as may be determined from time to time by the Company’s board of directors. As of
September 30, 2025
, there were
no
shares of preferred stock issued or outstanding.
Common Stock
—The Company is authorized to issue up to
5,000,000,000
shares of common stock with a par value of $
0.0001
per share. Each holder of common stock is entitled to
one
vote for each share of common stock held of record by such holder on all matters voted upon by the stockholders, subject to the restrictions set out in the Company's certificate of incorporation. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the board of directors. Upon a liquidation event, subject to the rights of the holders of any preferred stock issued and outstanding at such time, any distribution shall be made on a pro rata basis to the common stockholders.
There were
647,182,603
and
629,207,115
shares of common stock issued and outstanding as of September 30, 2025 and December 31, 2024, respectively.
Restricted Common Stock
—As part of the acquisition of EvolutionIQ in January 2025 (see Note 3), the Company issued
10,356,096
restricted shares of common stock, subject to re-vesting conditions. The restricted shares have service-based vesting conditions and vest annually over two years. The fair value of the restricted shares at the acquisition date was $
118.2
million, of which $
71.5
million was included as purchase consideration and the remaining $
46.7
million will be recognized as stock-based compensation expense over the vesting period.
Secondary Offerings and Stock Repurchase
—During the nine months ended September 30, 2025,
certain existing stockholders completed secondary offerings where the selling stockholders sold an aggregate of
72,000,000
shares of the Company's common stock. The Company did not receive proceeds from the sale of the shares by the selling stockholders.
Concurrent with the March 2025 closing of the secondary offering,
7,000,000
shares of common stock were repurchased by the Company for an aggregate price of
$
72.3
million. The shares repurchased by the Company were formally retired. The excess purchase price over par value was charged directly to accumulated deficit.
During the nine months ended September 30, 2024,
certain existing stockholders completed secondary offerings where the selling stockholders sold an aggregate of
171,500,000
shares of the Company's common stock. The Company did not receive proceeds from the sale of the shares by the selling stockholders.
In connection with the secondary offerings, the Company incurred costs of $
0.2
million and
$0.
1
million during the
three months ended September 30, 2025 and 2024, respectively, included within general and administrative expenses on the condensed consolidated statement of operations and comprehensive (loss) income
. In connection with the secondary offerings, the Company incurred costs of $
0.6
million and $
2.0
million during the
nine months ended September 30, 2025 and 2024, respectively, included within general and administrative expenses on the condensed consolidated statement of operations and comprehensive (loss) income.
Share Repurchase Program
—In December 2024, the Company's board of directors authorized the repurchase of up to $
300.0
million
of the Company's outstanding shares of common stock (the "2024 Share Repurchase Program"). Under the 2024 Share Repurchase Program, the Company is authorized to repurchase shares through open market purchases, privately negotiated
23
transactions,
accelerated share repurchases, or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, in accordance with applicable securities laws and other restrictions. The 2024 Repurchase Program does not obligate the Company to repurchase any amount of common stock. The specific timing and amount of repurchases may vary based on available capital resources, market conditions, management's discretion, security laws limitations, and other factors.
During the three months ended September 30, 2025
, the Company repurchased
4,779,310
shares for an aggregate purchase price of $
44.9
million. During the
nine months ended September 30, 2025
, the company repurchased
22,767,637
shares for an aggregate purchase price of $
217.2
million. During the
three and nine months ended September 30, 2025
, the Company incurred $
0.1
million and $
0.3
million, respectively, of fees directly related to the repurchase of shares.
As of September 30, 2025, the Company has
$
82.8
million of its common stock shares outstanding available to purchase under the 2024 Share Repurchase Program.
18. STOCK INCENTIVE PLANS
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
—
The table below summarizes the restricted stock unit ("RSU") and restricted stock award ("RSA") activity for the
nine months ended September 30, 2025:
Weighted-
Average
Shares
Fair Value
Unvested —December 31, 2024
31,042,552
$
10.92
Granted
16,064,203
10.17
Vested
(
17,476,705
)
11.17
Forfeited
(
2,477,192
)
10.52
Unvested —September 30, 2025
27,152,858
10.34
In connection with the acquisition of EvolutionIQ (see Note 3), the Company granted
792,174
RSAs that are subject to service conditions.
During the nine months ended September 30, 2025, the C
ompany granted
16,064,203
RSUs,
including
5,712,249
RSUs as part of the acquisition of EvolutionIQ. Of the RSUs granted during the
nine months ended September 30, 2025
,
14,783,686
have time-based vesting requirements, and
1,280,517
have performan
ce-based vesting requirements.
During the nine months ended September 30, 2025
,
17,476,705
RSUs and RSA vested, of which
4,745,309
were withheld for employee tax obligations.
Stock Options
—
The table below summarizes the stock option activity for the
nine months ended September 30, 2025:
Weighted-
Average
Weighted-
Remaining
Aggregate
Average
Contractual
Intrinsic
Exercise
Life
Value
Shares
Price
(in years)
(in thousands)
Options outstanding—December 31, 2024
23,349,505
$
3.11
3.2
$
201,305
Exercised
(
1,238,883
)
2.93
Forfeited and canceled
(
34,737
)
8.58
Options outstanding—September 30, 2025
22,075,885
$
3.11
2.3
$
132,455
Options exercisable—September 30, 2025
21,850,095
$
3.05
2.3
$
132,335
Options vested and expected to vest—September 30, 2025
22,074,471
$
3.11
2.3
$
132,454
The fair value of the options which vested during the nine months ended September 30, 2025
was $
1.5
million.
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.
24
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
no
stock options under the Cayman Incentive Plans granted during the
nine months ended September 30, 2025. The exercise price of the options granted is equal to the fair value of the underlying shares at the grant date. As of September 30, 2025 and December 31, 2024
, stock options outstanding under the Cayman Incentive Plans are
2,355,400
an
d
2,363,514
, respectively.
No
ne of the outstanding stock options are exercisable.
Employee Stock Purchase Plan
—In July 2021, the Company adopted the CCC 2021 Employee Stock Purchase Plan ("ESPP").
During the nine months ended September 30, 2025,
599,176
share
s were sold under the ESPP.
The fair value of the ESPP purchase rights sold during
the nine months ended September 30, 2025 was estimated using the Black-Scholes option pricing model with the following assumptions:
Expected term (in years)
0.5
Expected volatility
22
-
23
%
Expected dividend yield
0
%
Risk-free interest rate
4.2
-
5.3
%
Stock-Based Compensation
—Stock-based compensation expense has been recorded in the accompanying condensed consolidated statements of operations and comprehensive (loss) income as follows for the three and nine months ended September 30, 2025 and 2024 (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Cost of revenues
$
2,124
$
2,297
$
8,919
$
7,051
Research and development
13,734
12,164
45,870
34,750
Sales and marketing
10,918
6,637
36,568
19,150
General and administrative
12,417
21,027
54,859
66,270
Total stock-based compensation expense
$
39,193
$
42,125
$
146,216
$
127,221
As of September 30, 2025, there was
$
180.6
million of unrecognized stock compensation expense related to unvested time-based awards which is expected to be recognized over a weighted-average period of
2.2
years. As of
September 30, 2025, there was
$
20.0
million of unrecognized stock-based compensation expense related to unvested performance-based awards which is expected to be recognized over a weighted-average period of
1.9
years.
As of September 30, 2025
, there was $
29.6
million of unrecognized stock compensation expense related to the restricted common stock subject to re-vesting conditions issued as part of the acquisition of EvolutionIQ in January 2025 (see Note 3 and Note 17). The unrecognized stock compensation expense is expected to be recognized over a weighted-average period of
1.3
years.
19. WARRA
NTS
Upon consummation of the Business Combination, the Company assumed warrants sold in a private placement ("Private Warrants") issued by Dragoneer.
Private Warrants could only be exercised for a whole number of shares of the Company’s common stock. Each whole Private Warrant entitled the registered holder to purchase one share of the Company’s common stock. All warrants had an exercise price of $
11.50
per share, subject to adjustment, beginning on August 29, 2021, and were to expire on
July 30, 2026
or earlier upon redemption or liquidation. Additionally, the Private Warrants were exercisable on a cashless basis and were non-redeemable, so long as they were held by the initial purchasers or their permitted transferees. If the Private Warrants were held by someone other than the initial purchasers or their permitted transferees, the Private Warrants were redeemable by the Company and exercisable by such holders.
During May 2024, the Company redeemed all of the outstanding Private Warrants for an aggregate
3,809,200
shares of the Company’s common stock.
Following the redemption, the Company had
no
Private Warrants outstanding.
During the nine months ended September 30, 2024
, the Company recognized income of $
14.4
million as a change in fair value of warrant liabilities in the condensed consolidated statements of operations and comprehensive (loss)
income
.
25
20. COMMITMENTS
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
2031
. As of
September 30, 2025, there were no material changes from the amounts disclosed as of December 31, 2024.
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 consolidated financial statements.
Employment Agreements
—The Company is a party to employment agreements with key employees that provide for compensation and certain other benefits. These agreements also provide for severance and bonus payments under certain circumstances.
21. LEGAL PROCEEDINGS AND CONTINGENCIES
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.
In a prior year, the Company made claims against certain parties for violation of its intellectual property and other related actions. These claims were settled during the nine months ended September 30, 2025
.
22. ReLATED PARTIES
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 nine months ended September 30, 2025 and 2024 (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Revenues
Credit card processing
$
513
$
379
$
1,401
$
982
Expenses
Employee health insurance benefits
1,675
691
2,622
2,544
IT security software
156
128
468
383
Board of director fees for services, including related travel and out-of-pocket reimbursements
105
*
436
328
* Not significant.
As of September 30, 2025 and December 31, 2024
, all receivables and payables from related parties were de minimis.
26
23. OTHER Income (EXPENSE)
—
NET
Other (expense) income—Net consists of the following (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Gain/(loss) from change in fair value of interest rate swaps
$
103
$
—
$
(
7,466
)
$
—
Loss from change in fair value of interest rate caps
(
163
)
(
4,641
)
(
975
)
(
4,775
)
Income from derivative instruments
453
2,055
1,442
6,094
Other income (expense)—Net
73
(
1
)
311
287
Total other income (expense)—Net
$
466
$
(
2,587
)
$
(
6,688
)
$
1,606
24. NET (LOSS)
INCOME PER SHARE
The Company calculates basic earnings per share by dividing the net (loss) income 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.
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 Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
Numerator
Net (loss) income
$
(
1,971
)
$
4,132
$
(
6,432
)
$
24,980
Accretion of redeemable non-controlling interest
—
(
1,320
)
(
1,276
)
(
3,683
)
Net (loss) income attributable to common stockholders
$
(
1,971
)
$
2,812
$
(
7,708
)
$
21,297
Denominator
Weighted average shares of common stock—basic and diluted
631,440,015
615,857,231
635,263,670
608,073,087
Dilutive effect of stock-based awards
—
26,547,286
—
30,996,404
Weighted average shares of common stock—diluted
631,440,015
642,404,517
635,263,670
639,069,491
Net (loss) income per share:
Basic
$
(
0.00
)
$
0.00
$
(
0.01
)
$
0.04
Diluted
$
(
0.00
)
$
0.00
$
(
0.01
)
$
0.03
Approximately
26,385,228
and
344,640
common stock equivalent shares were excluded from the computation of diluted per share amounts for the three months ended September 30, 2025 and 2024, respectively, because their effect was anti-dilutive.
Approximately
28,796,872
and
57,487
common stock equivalent shares were excluded from the computation of diluted per share amounts for the
nine months ended September 30, 2025 and 2024, respectively, because their effect was anti-dilutive.
As part of the Business Combination,
8,625,000
shares issued and held by Dragoneer (the "Sponsor Vesting Shares") became non-transferable and subject to forfeiture on the tenth anniversary of the closing of the Business Combination if neither of the defined triggering events has occurred. The Sponsor Vesting Shares are issued and outstanding during the
three and nine months ended September 30, 2025 and 2024
and excluded from the weighted average number of shares of common stock outstanding until the vesting requirement is met and the restriction is removed.
25. SEGMENT INFORMATION and information about geographic areas
The Company organizes its segments around its operations by geographic region and operates in
one
reportable
segment (the “Domestic Segment”). The Domestic Segment provides SAAS platforms for the insurance economy and derives revenues from
27
providing
customers with software subscriptions to the platforms in addition to providing professional services and non-software services. The accounting policies of the Domestic Segment are the same as those described in Note 2.
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 CODM uses net (loss)
income to evaluate (loss)
income generated from operations in deciding whether to reinvest profits into the Domestic Segment or use for acquisitions, to pay dividends or repurchase outstanding shares of common stock.
The CODM reviews financial information, including significant expenses, of the Domestic Segment on an adjusted basis, excluding certain items that may not be indicative of the Company’s recurring core business operations. This financial information reviewed by the CODM is accompanied by information about revenue by type of service and geographic region, for purposes of allocating resources and evaluating financial performance.
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.
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 consolidated ne
t (loss) income (in thousands):
For the Three Months
Ended September 30,
For the Nine Months Ended September 30,
2025
2024
2025
2024
Revenues:
Revenue—Domestic Segment
$
265,402
$
236,761
$
774,028
$
693,322
Revenue—Other
(1)
1,718
1,720
5,108
5,014
Total Revenue
267,120
238,481
779,136
698,336
Segment Expenses:
Data licenses and royalties—adjusted
(2)
11,180
10,866
32,722
32,725
Customer services—adjusted
(3)
29,034
25,455
83,368
73,518
Products and technology—adjusted
(4)
76,546
67,437
221,982
194,325
Revenue enablement—adjusted
(5)
36,171
30,448
103,906
91,831
General corporate and administrative—adjusted
(6)
21,449
19,681
61,315
53,936
Other segment items
(7)
22,379
25,372
117,398
94,497
Amortization expense
22,880
18,113
68,640
62,654
Depreciation expense
16,980
10,366
44,307
29,472
Interest expense
18,103
16,379
52,866
49,434
Interest income
(
1,065
)
(
3,343
)
(
4,233
)
(
8,435
)
Significant non-cash items
(8)
60
4,641
8,441
(
9,603
)
Income tax provision (benefit)
15,373
8,933
(
5,143
)
9,002
Total segment expenses
269,091
234,349
785,568
673,356
Net (loss) income including non-controlling interest
$
(
1,971
)
$
4,132
$
(
6,432
)
$
24,980
1
Represents revenue from our China segment that does not meet the quantitative thresholds for determining reportable segments.
2
Data licenses and royalties
—
adjusted expenses include third party costs for data licensing and royalty fees.
3
Customer services
—
adjusted expenses include the costs to deliver services to customers, including software configuration, integration and implementation services and customer support activities. Customer services
—
adjusted excludes stock-based compensation expense and related employer payroll tax.
4
Products and technology
—
adjusted expenses include costs related to the engineering, product management design and development of the Company’s solutions, and costs related to the Company’s hosting environments, support of production infrastructure, support of internal systems and infrastructure and IT security. Products and technology
—
adjusted excludes stock-based compensation expense and related employer payroll tax.
5
Revenue enablement
—
adjusted expenses include costs for sales and marketing functions, including sales incentives,
28
advertising costs, and event costs. Revenue enablement
—
adjusted excludes stock-based compensation expense and related employer payroll tax.
6
General corporate and administrative
—
adjusted expenses include costs for our executive management and administrative employees, including finance and accounting, human resources, facilities and legal functions. Additional expenses include professional service fees, insurance premiums and other corporate expenses that are not allocated to the other adjusted expense categories. General corporate and administrative
—
adjusted excludes stock-based compensation expense and related employer payroll tax, litigation proceeds and litigation costs in which the Company is the plaintiff and related antitrust matters, costs associated with the acquisition and integration of completed and potential mergers and acquisitions, costs related to equity transactions, including secondary offerings and debt refinancing costs.
7
Other segment items include those items excluded from the significant segment expense categories and identified in the above descriptions, adjustments for capitalized labor costs incurred on internal development projects, and expenses of an insignificant segment that does not meet the quantitative thresholds for determining reporting segments.
8
Significant non-cash items include changes in fair value of derivative instruments and changes in fair value of warrant liabilities.
Revenues by geographic area, presented based upon the location of the customer are as follows (in thousands):
For the Three Months Ended
For the Nine Months Ended
September 30,
September 30,
2025
2024
2025
2024
United States
$
265,402
$
236,761
$
774,028
$
693,322
China
1,718
1,720
5,108
5,014
Total revenues
$
267,120
$
238,481
$
779,136
$
698,336
Software, equipment and property—Net by geographic area are as follows (in thousands):
September 30,
December 31,
2025
2024
United States
$
167,799
$
171,864
China
161
215
Total software, equipment and property—Net
$
167,960
$
172,079
29
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 Note 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 provides leading SaaS platforms 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 artificial intelligence ("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 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 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 connecting them with 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 100 U.S. auto insurers and more than 10,000 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 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.
30
While our position in the insurance economy is grounded in the automotive insurance sector, the largest property and 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 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 6,000 parts suppliers, 13 of the top 15 automotive manufacturers based on new vehicle sales, 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 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, 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.
Beginning with the quarter ended March 31, 2025, our Software NDR calculation includes EvolutionIQ’s software revenue. The new calculation is a result of the acquisition of EvolutionIQ and not the result of a change in the methodology applicable to our pre-acquisition business. The calculation of Software NDR as of and following the quarter ended March 31, 2025 is consistent with the methodology described above, using Software NDR on a combined company basis for the prior year annualized software revenue to determine annualized revenue growth, and, with respect to EvolutionIQ’s software revenue, 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 (with shops not applicable to the EvolutionIQ business).
Quarter Ending
2025
2024
Software NDR
March 31
107%
107%
June 30
107%
107%
September 30
105%
106%
December 31
105%
31
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, 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.
Beginning with the quarter ended March 31, 2025, our Software GDR calculation includes EvolutionIQ’s software revenue. The new calculation is a result of the acquisition of EvolutionIQ and not the result of a change in methodology applicable to our pre-acquisition business. The calculation of Software GDR as of and following the quarter ended March 31, 2025 is consistent with the methodology described above, using Software GDR on a combined company basis for the prior year annualized software revenue to determine annualized revenue growth, and, with respect to EvolutionIQ’s software revenue 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 (with shops not applicable to the EvolutionIQ business).
Quarter Ending
2025
2024
Software GDR
March 31
99%
99%
June 30
99%
99%
September 30
99%
99%
December 31
99%
32
Results of Operations
Comparison of the three months ended September 30, 2025 to the three months ended September 30, 2024
Three Months Ended September 30,
(dollar amounts in thousands, except share and per share data)
2025
2024
$
%
Revenues
$
267,120
$
238,481
$
28,639
12.0
%
Cost of revenues, exclusive of amortization of acquired technologies
69,779
54,890
14,889
27.1
%
Amortization of acquired technologies
4,368
171
4,197
2454.4
%
Cost of revenues
(1)
74,147
55,061
19,086
34.7
%
Gross profit
192,973
183,420
9,553
5.2
%
Operating expenses:
Research and development
(1)
52,947
49,525
3,422
6.9
%
Selling and marketing
(1)
44,208
34,347
9,861
28.7
%
General and administrative
(1)
47,332
52,918
(5,586
)
-10.6
%
Amortization of intangible assets
18,512
17,942
570
3.2
%
Total operating expenses
162,999
154,732
8,267
5.3
%
Operating income
29,974
28,688
1,286
4.5
%
Other (expense) income:
Interest expense
(18,103
)
(16,379
)
(1,724
)
-10.5
%
Interest income
1,065
3,343
(2,278
)
-68.1
%
Other income (expense) —Net
466
(2,587
)
3,053
NM
Total other expense
(16,572
)
(15,623
)
(949
)
-6.1
%
Pretax income
13,402
13,065
337
2.6
%
Income tax provision
(15,373
)
(8,933
)
(6,440
)
-72.1
%
Net (loss) income including non-controlling interest
(1,971
)
4,132
(6,103
)
NM
Less: accretion of redeemable non-controlling interest
—
(1,320
)
1,320
100.0
%
Net (loss) income attributable to CCC Intelligent Solutions Holdings Inc. common stockholders
$
(1,971
)
$
2,812
$
(4,783
)
NM
Net (loss) income per share attributable to common stockholders:
Basic
$
(0.00
)
$
0.00
Diluted
$
(0.00
)
0.00
Weighted-average shares used in computing net (loss) income per share attributable to common stockholders:
Basic
631,440,015
615,857,231
Diluted
631,440,015
642,404,517
NM—Not Meaningful
(1)
Includes stock-based compensation expense as follows (in thousands):
Three Months Ended September 30,
2025
2024
Cost of revenues
$
2,124
$
2,297
Research and development
13,734
12,164
Sales and marketing
10,918
6,637
General and administrative
12,417
21,027
Total stock-based compensation expense
$
39,193
$
42,125
33
Revenues
Revenues increased by $28.6 million to $267.1 million, or 12.0%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The Company's software subscription revenues accounted for $256.7 million and $229.4 million, or 96% of total revenue, during the three months ended September 30, 2025 and 2024.
The increase in revenue was primarily a result of 5% growth from existing customer upgrades and expanding solution offerings to these existing customers, 4% growth from the acquisition of EvolutionIQ, and 3% growth from new customers.
Cost of Revenues
Cost of revenues increased by $19.1 million to $74.1 million, or 34.7%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024.
Cost of Revenues, exclusive of amortization of acquired technologies
Cost of revenues, exclusive of amortization of acquired technologies, increased by $14.9 million to $69.8 million, or 27.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily due to a $6.7 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, and accelerated depreciation due to the discontinuance of an add-on solution. The overall increase was also driven by a $3.8 million increase in information technology ("IT") related costs, a portion of which is related to the EvolutionIQ acquisition, a $2.7 million increase in third party fees and direct costs associated with our revenue growth, and $1.7 million increase in personnel and resource related costs.
Amortization of Acquired Technologies
Amortization of acquired technologies increased $4.2 million to $4.4 million for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was due to the amortization of new acquired technology recognized as part of the acquisition of EvolutionIQ in January 2025.
Gross Profit
Gross profit increased by $9.6 million to $193.0 million, or 5.2%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. Our gross profit margin was 72.2% for the three months ended September 30, 2025, compared to 76.9% for the three months ended September 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements, including the impacts from the acquisition of EvolutionIQ in January 2025, partially offset by higher cost of revenue.
Research and Development
Research and development expense increased by $3.4 million to $52.9 million, or 6.9%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was primarily due to a $11.7 million increase in personnel and resource related costs, including a $1.6 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, partially offset by a $5.6 million decrease in information technology ("IT") related costs, and $2.5 million increase in the amount of capitalized time on platform and customer solution enhancements.
Selling and Marketing
Selling and marketing expense increased by $9.9 million to $44.2 million, or 28.7%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was due to an $7.4 million increase in personnel-related costs, including a $4.3 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, and a $2.1 million increase in professional service costs.
General and Administrative
General and administrative expense decreased by $5.6 million to $47.3 million, or 10.6%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The decrease was primarily due to a $8.6 million decrease in stock-based compensation, and a $1.7 decrease in professional service costs, partially offset by a $1.9 million increase in personnel-related costs and a $1.2 million increase in other business taxes.
Amortization of Intangible Assets
Amortization of intangible assets was $18.5 million and $17.9 million for the three months ended September 30, 2025 and 2024, respectively. The increase in amortization of intangible assets was due to the intangible assets recognized as part of the acquisition of EvolutionIQ in January 2025.
34
Interest Expense
Interest expense increased by $1.7 million to $18.1 million, or 10.5%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the three months ended September 30, 2025.
Interest Income
Interest income decreased by $2.3 million to $1.1 million, or 68.1%, for the three months ended September 30, 2025, compared to the three months ended September 30, 2024, mainly due to lower average balances on interest earning deposits and money market funds during the three months ended September 30, 2025.
Change in Fair Value of Warrant Liabilities
Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the three months ended September 30, 2025 and three months ended September 30, 2024.
Other Income (Expense)
—
Net
We recognized other income (expense)—Net of $0.5 million for the three months ended September 30, 2025 compared to other expense—Net of $2.6 million for the three months ended September 30, 2024. The change during the three months ended September 30, 2025 was primarily due to the change in fair value and decrease in income of derivative instruments, driven by the change in forward curve and secured overnight financing rate ("SOFR").
Income Tax Provision
The Company recognized an income tax provision of $15.4 million and $8.9 million for the three months ended September 30, 2025 and 2024, respectively. The income tax provision during the three months ended September 30, 2025 was primarily due to the Company's year-to-date pre-tax book income, as well as the tax impact related to stock-based compensation expense, partially offset by the tax impact related to estimated research and development credits.
35
Comparison of the nine months ended September 30, 2025 to the nine months ended September 30, 2024
Nine Months Ended September 30,
(dollar amounts in thousands, except share and per share data)
2025
2024
$
%
Revenue
$
779,136
$
698,336
$
80,800
11.6
%
Cost of revenue, exclusive of amortization of acquired technologies
194,050
160,929
33,121
20.6
%
Amortization of acquired technologies
13,105
8,828
4,277
48.4
%
Cost of revenues
(1)
207,155
169,757
37,398
22.0
%
Gross profit
571,981
528,579
43,402
8.2
%
Operating expenses:
Research and development
(1)
174,639
148,255
26,384
17.8
%
Selling and marketing
(1)
135,980
106,254
29,726
28.0
%
General and administrative
(1)
162,080
161,247
833
0.5
%
Amortization of intangible assets
55,536
53,826
1,710
3.2
%
Total operating expenses
528,235
469,582
58,653
12.5
%
Operating income
43,746
58,997
(15,251
)
-25.9
%
Other (expense) income:
Interest expense
(52,866
)
(49,434
)
(3,432
)
-6.9
%
Interest income
4,233
8,435
(4,202
)
-49.8
%
Change in fair value of warrant liabilities
—
14,378
(14,378
)
-100.0
%
Other (expense) income—Net
(6,688
)
1,606
(8,294
)
NM
Total other expense
(55,321
)
(25,015
)
(30,306
)
-121.2
%
Pretax (loss) income
(11,575
)
33,982
(45,557
)
NM
Income tax benefit (provision)
5,143
(9,002
)
14,145
NM
Net (loss) income including non-controlling interest
(6,432
)
24,980
(31,412
)
NM
Less: accretion of redeemable non-controlling interest
(1,276
)
(3,683
)
2,407
65.4
%
Net (loss) income attributable to CCC Intelligent Solutions Holdings Inc. Common Stockholders
$
(7,708
)
$
21,297
$
(29,005
)
NM
Net (loss) income per share attributable to common
stockholders:
Basic
$
(0.01
)
$
0.04
Diluted
$
(0.01
)
$
0.03
Weighted-average shares used in computing net income per share attributable to common stockholders:
Basic
635,263,670
608,073,087
Diluted
635,263,670
639,069,491
(1)
Includes stock-based compensation expense as follows (in thousands):
Nine Months Ended September 30,
2025
2024
Cost of revenues
$
8,919
$
7,051
Research and development
45,870
34,750
Sales and marketing
36,568
19,150
General and administrative
54,859
66,270
Total stock-based compensation expense
$
146,216
$
127,221
Revenues
Revenues increased by $80.8 million to $779.1 million, or 11.6%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The Company's software subscription revenues accounted for $749.8 million and $670.3 million, or 96% of total revenue during the nine months ended September 30, 2025 and 2024.
36
The increase in revenue was primarily a result of 5% growth from existing customer upgrades and expanding solution offerings to these existing customers, 4% growth from the acquisition of EvolutionIQ, and 3% growth from new customers.
Cost of Revenues
Cost of revenues increased by $37.4 million to $207.2 million, or 22.0%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.
Cost of Revenues, exclusive of amortization of acquired technologies
Cost of revenues, exclusive of amortization of acquired technologies, increased by $33.1 million to $194.1 million, or 20.6%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily due to a $14.6 million increase in depreciation expense related to additional investments in new and enhanced customer solutions and platform development, and accelerated depreciation due to the discontinuance of an add-on solution. The overall increase was also driven by a $7.4 million increase in personnel-related costs, including a $1.9 million increase in stock-based compensation partially due to the acquisition of EvolutionIQ in January 2025, a $6.0 million increase in third party fees and direct costs associated with our revenue growth, and a $5.9 million increase in IT related costs.
Amortization of Acquired Technologies
Amortization of acquired technologies was $13.1 million for the nine months ended September 30, 2025 and 2024. The amortization recognized on acquired technologies as part of the acquisition of EvolutionIQ in January 2025 was offset by certain acquired technology intangible assets reaching the end of their useful life in April 2024.
Gross Profit
Gross profit increased by $43.4 million to $572.0 million, or 8.2%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Our gross profit margin was 73.4% for the nine months ended September 30, 2025, compared to 75.7% for the nine months ended September 30, 2024. The increase in gross profit was due to increased software subscription revenues and economies of scale resulting from fixed cost arrangements, including the impacts from the acquisition of EvolutionIQ in January 2025, partially offset by higher cost of revenue.
Research and Development
Research and development expense increased by $26.4 million to $174.6 million, or 17.8%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily due to a $38.4 million increase in personnel and resource related costs, including a $11.1 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, partially offset by a $8.2 million decrease in IT related costs, a $3.0 million increase in the amount of capitalized time on platform and customer solution enhancements, and $0.7 million decrease in professional service costs.
Selling and Marketing
Selling and marketing expense increased by $29.7 million to $136.0 million, or 28.0%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily due to a $25.9 million increase in personnel-related costs, including a $17.4 million increase in stock-based compensation, primarily due to the acquisition of EvolutionIQ in January 2025, and a $2.4 million increase in professional service costs.
General and Administrative
General and administrative expense increased by $0.8 million to $162.1 million, or 0.5%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was primarily due to a $5.7 million increase in professional service costs, mainly due to the acquisition of EvolutionIQ in January 2025, a $1.0 million increase in other business taxes, and a $1.0 million increase in IT related costs, partially offset by a $7.0 million decrease in personal-related costs, including a $11.4 million decrease in stock-based compensation.
Amortization of Intangible Assets
Amortization of intangible assets was $55.5 million and $53.8 million for the nine months ended September 30, 2025 and 2024, respectively.
Interest Expense
Interest expense increased by $3.4 million to $52.9 million, or 6.9%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. The increase was due to the additional interest incurred on the Promissory Note payable by CCC Cayman and its subsidiaries to a minority investor and the interest incurred on an additional $225.0 million term loan as part of the third amendment to the 2021 Credit Agreement, entered into in January 2025, partially offset by lower variable interest rates during the nine months ended September 30, 2025.
37
Interest Income
Interest income decreased by $4.2 million to $4.2 million, or 49.8%, for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to lower average balances on interest earning deposits and money market funds during the nine months ended September 30, 2025.
Change in Fair Value of Warrant Liabilities
Due to the redemption of all outstanding warrants in May 2024, the Company did not recognize any income or expense as a change in fair value of warrant liabilities during the nine months ended September 30, 2025. We recognized income of $14.4 million for the nine months ended September 30, 2024. The change in fair value of warrant liabilities during the nine months ended September 30, 2024 was primarily due to changes in the price of the Company's common stock during the reporting period.
Other (Expense) Income
—
Net
We recognized other expense of $6.7 million for the nine months ended September 30, 2025 compared to other income $1.6 million for the nine months ended September 30, 2024. The change during the nine months ended September 30, 2025 was primarily due to the change in fair value and decrease in income of derivative instruments, driven by the change in forward curve and SOFR.
Income Tax Benefit (Provision)
The Company recognized an income tax benefit of $5.1 million and an income tax provision of $9.0 million for the nine months ended September 30, 2025 and 2024, respectively. The income tax benefit during the nine months ended September 30, 2025 was primarily due to Company's pre-tax book loss, as well as the tax rate impact of non-deductible stock-based compensation expense.
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, 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 nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(amounts in thousands, except percentages)
2025
2024
2025
2024
Gross Profit
$
192,973
$
183,420
$
571,981
$
528,579
Amortization of acquired technologies
4,368
171
13,105
8,828
Stock-based compensation and related employer payroll tax
2,156
2,337
9,395
7,617
Adjusted Gross Profit
$
199,497
$
185,928
$
594,481
$
545,024
Gross Profit Margin
72
%
77
%
73
%
76
%
Adjusted Gross Profit Margin
75
%
78
%
76
%
78
%
38
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 proceeds and litigation costs for matters in which we are the plaintiff and related antitrust matters and debt refinancing costs.
The following table reconciles operating expenses to Adjusted Operating Expenses for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
2025
2024
Operating expenses
$
162,999
$
154,732
$
528,235
$
469,582
Amortization of intangible assets
(18,512
)
(17,942
)
(55,536
)
(53,826
)
Stock-based compensation expense and related employer payroll tax
(37,623
)
(40,306
)
(142,562
)
(125,827
)
M&A and integration costs
(234
)
—
(8,200
)
(477
)
Equity transaction costs, including secondary offerings
(177
)
(137
)
(629
)
(1,876
)
Litigation (costs) proceeds, net
—
(1,614
)
3,665
(3,813
)
Debt refinancing costs
—
—
(3,119
)
—
Adjusted Operating Expenses
$
106,453
$
94,733
$
321,854
$
283,763
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 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 proceeds and litigation costs for matters in which we are the plaintiff and related antitrust matters and debt refinancing costs.
The following table reconciles operating income to Adjusted Operating Income for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
2025
2024
Operating income
$
29,974
$
28,688
$
43,746
$
58,997
Amortization of intangible assets
18,512
17,942
55,536
53,826
Amortization of acquired technologies—Cost of revenue
4,368
171
13,105
8,828
Stock-based compensation expense and related employer payroll tax
39,779
42,643
151,957
133,444
M&A and integration costs
234
—
8,200
477
Equity transaction costs, including secondary offerings
177
137
629
1,876
Litigation costs (proceeds), net
—
1,614
(3,665
)
3,813
Debt refinancing costs
—
—
3,119
—
Adjusted Operating Income
$
93,044
$
91,195
$
272,627
$
261,261
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, costs related to equity transactions, including secondary offerings, litigation proceeds and litigation costs for matters in which we are the plaintiff and related antitrust matters, debt refinancing costs, change in fair value of derivative instruments, income from derivative instruments and change in fair value of warrant liabilities. Adjusted EBITDA Margin is defined as Adjusted EBITDA divided by Revenue.
39
The following table reconciles net (loss) income to Adjusted EBITDA for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
2025
2024
Net (loss) income
$
(1,971
)
$
4,132
$
(6,432
)
$
24,980
Interest expense
18,103
16,379
52,866
49,434
Interest income
(1,065
)
(3,343
)
(4,233
)
(8,435
)
Income tax provision (benefit)
15,373
8,933
(5,143
)
9,002
Amortization of intangible assets
18,512
17,942
55,536
53,826
Amortization of acquired technologies—Cost of revenue
4,368
171
13,105
8,828
Depreciation and amortization of software, equipment and property
2,180
2,291
6,675
6,455
Depreciation and amortization of software, equipment and property—Cost of revenue
14,823
8,069
37,701
23,065
Stock-based compensation expense and related employer payroll tax
39,779
42,643
151,957
133,444
M&A and integration costs
234
—
8,200
477
Equity transaction costs, including secondary offerings
177
137
629
1,876
Litigation costs (proceeds), net
—
1,614
(3,665
)
3,813
Debt refinancing costs
—
—
3,119
—
Change in fair value of derivative instruments
60
4,641
8,441
4,775
Income from derivative instruments
(453
)
(2,055
)
(1,442
)
(6,094
)
Change in fair value of warrant liabilities
—
—
—
(14,378
)
Adjusted EBITDA
$
110,120
$
101,554
$
317,314
$
291,068
Adjusted EBITDA Margin
41
%
43
%
41
%
42
%
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, costs related to equity transactions, including secondary offerings, litigation proceeds and litigation costs for matters in which we are the plaintiff and related antitrust matters, debt refinancing costs, change in fair value of derivative instruments, and change in fair value of warrant liabilities.
40
The following table reconciles net (loss) income to Adjusted Net Income and Adjusted Earnings Per Share for the three and nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
2025
2024
Net (loss) income
$
(1,971
)
$
4,132
$
(6,432
)
$
24,980
Amortization of intangible assets
18,512
17,942
55,536
53,826
Amortization of acquired technologies—Cost of revenue
4,368
171
13,105
8,828
Stock-based compensation expense and related employer payroll tax
39,779
42,643
151,957
133,444
M&A and integration costs
234
—
8,200
477
Equity transaction costs, including secondary offerings
177
137
629
1,876
Litigation costs (proceeds), net
—
1,614
(3,665
)
3,813
Debt refinancing costs
—
—
3,119
—
Change in fair value of derivative instruments
60
4,641
8,441
4,775
Change in fair value of warrant liabilities
—
—
—
(14,378
)
Tax effect of adjustments
(1,730
)
(8,700
)
(58,124
)
(44,084
)
Adjusted Net Income
$
59,429
$
62,580
$
172,766
$
173,557
Adjusted Net Income Per Share attributable to common stockholders:
Basic
$
0.09
$
0.10
$
0.27
$
0.29
Diluted
$
0.09
$
0.10
$
0.26
$
0.27
Weighted average shares outstanding:
Basic
631,440,015
615,857,231
635,263,670
608,073,087
Diluted
657,825,243
642,404,517
664,060,542
639,069,491
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 nine months ended September 30, 2025 and 2024:
Three Months Ended September 30,
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
2025
2024
Net cash provided by operating activities
$
94,767
$
63,232
$
196,315
$
170,241
Purchases of software, equipment, and property
(16,135
)
(13,849
)
(46,684
)
(45,073
)
Free Cash Flow
$
78,632
$
49,383
$
149,631
$
125,168
Liquidity and Capital Resources
We have financed our operations with cash flows from operations. The Company generated $196.3 million of cash flows from operating activities during the nine months ended September 30, 2025. As of September 30, 2025, the Company had cash and cash equivalents of $97.1 million, a working capital surplus of $112.6 million and an accumulated deficit totaling $1,319.1 million. As of September 30, 2025, the Company had $993.5 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.
41
Debt
On September 21, 2021, CCC Intelligent Solutions Inc., an indirect wholly owned subsidiary of the Company, together with certain of the Company’s subsidiaries acting as guarantors entered into a credit agreement (as amended, the “2021 Credit Agreement”).
The 2021 Credit Agreement originally consisted of an $800.0 million term loan, the proceeds of which, with cash on hand, were used to repay all outstanding borrowings under the Company’s previous credit agreement.
On January 6, 2025, in conjunction with the acquisition of EvolutionIQ, the Company entered into the third amendment to the 2021 Credit Agreement (the “Third Amendment”) that provided the Company with incremental term loans in an aggregate principal amount of $225.0 million (the "Incremental Term Loans"). Prior to the Fourth Amendment (as defined below) the Incremental Term Loans were repayable in quarterly installments in an amount equal to 0.25% of the original principal amount, with the balance payable at maturity, September 21, 2028.
Prior to the Fourth Amendment, the interest rate per annum applicable to the Incremental Term Loans were based on a fluctuating rate of interest, determined by the Company's leverage ratio, as defined in the 2021 Credit Agreement. In connection with the Fourth Amendment, the Incremental Term Loans were refinanced together with other term loans outlined in the following paragraphs.
On January 23, 2025, the Company entered into the fourth amendment (the “Fourth Amendment” and together with the Third Amendment, the “Amendments”) to the 2021 Credit Agreement.
Pursuant to the terms of the Fourth Amendment, the Company incurred incremental term loans in an aggregate principal amount of $225.0 million, which were used to (i) refinance certain outstanding incremental term loans (including the Incremental Term Loans), (ii) extend the maturity of all term loans to January 23, 2032, (iii) remove the credit spread adjustment applicable to SOFR loans, and (iv) reduce the interest rate margin applicable to all term loans.
All other terms and conditions within the Company’s 2021 Credit Agreement were unchanged as part of the Amendments.
Upon execution of the Fourth Amendment, the Company had outstanding borrowings under a term loan of $1,001 million (the “Term Loan”) and a revolving credit facility for an aggregate principal amount of $250.0 million (the “2021 Revolving Credit Facility” and together with the Term Loan, the “2021 Credit Facilities”). The 2021 Revolving Credit Facility has a sublimit of $75.0 million for letters of credit.
The Company incurred $3.8 million in costs related to the Amendments, recorded as contra-debt. These costs are being amortized to interest expense over the term of the Term Loan using the effective interest method.
The Term Loan requires quarterly principal payments of approximately $2.5 million until December 31, 2031, with the remaining outstanding principal amount required to be paid on the maturity date. If the Company’s leverage ratio, as defined in the 2021 Credit Agreement is greater than 3.5, the Term Loan requires a prepayment of principal, subject to certain exceptions, in connection with the receipt of proceeds from certain asset sales, casualty events, and debt issuances by the Company, and up to 50% of annual excess cash flow, as defined in and as further set forth in the 2021 Credit Agreement. When a principal prepayment is required, the prepayment offsets the future quarterly principal payments of the same amount. As of December 31, 2024, the Company’s leverage ratio did not exceed the 3.5 threshold and the Company was not subject to the annual excess cash flow calculation, and as such, not required to make a prepayment of principal.
As of September 30, 2025 and December 31, 2024, the amount outstanding on the Term Loan was $993.5 million and $776.0 million, respectively. As of September 30, 2025 and December 31, 2024, $10.0 million and $8.0 million, respectively, was classified as current in the accompanying condensed consolidated balance sheets.
Borrowings under the 2021 Credit Facilities bear interest at rates based on the ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries’ consolidated first lien net indebtedness to consolidated EBITDA for applicable periods specified in the 2021 Credit Agreement.
Pursuant to the Fourth Amendment, the interest rate per annum applicable to the Term Loan is based on a fluctuating rate of interest equal to the sum of an applicable rate and, at the Company’s election from time to time, either:
(1) 1.00% in the case of base rate loans, and 2.00%, in the case of SOFR (or the Euro Interbank Offer Rate ("EURIBOR") or the Sterling Overnight Indexed Average ("SONIA")) loans, if S&P and Moody’s Debt First Lien Leverage Ratio Ratings (as defined in the Credit Agreement) are below BB- (with a stable outlook) or below Ba3 (with a stable outlook) (or if for any reason this category does not apply, including if the Borrower has only one Debt Rating or the Borrower does not have any Debt Rating), and
42
(2) 0.75%, in the case of base rate loans, and 1.75%, in the case of SOFR (or EURIBOR or SONIA) loans, if S&P and Moody’s Debt First Lien Leverage Ratio Ratings are both BB- (with a stable outlook) or better and Ba3 (with a stable outlook) or better.
Prior to the Amendments, the interest rate per annum applicable to the loans is based on a fluctuating rate of interest equal to the sum of an applicable rate and term SOFR (or EURIBOR or SONIA) with a term, as selected by the Company, of one, three or six months (subject to (x) in the case of term loans, a 0.50% per annum floor and (y) in the case of revolving loans, a 0.00% per annum floor).
In September 2024, the Company entered into Amendment No. 2 to the 2021 Credit Agreement (the "Second Amendment") to (i) remove the SOFR credit adjustment applicable to the 2021 Revolving Credit Facility and (ii) reduce the applicable interest rate for the 2021 Revolving Credit Facility by 0.25%. Additionally, the maturity date for the 2021 Revolving Credit Facility was extended to September 23, 2029.
At the time of entering into the 2021 Credit Agreement, the Company incurred $3.1 million in financing costs related to the 2021 Revolving Credit Facility. The Company incurred $0.7 million in financing costs related to the Second Amendment. These costs were recorded to a deferred financing fees asset account and are being amortized to interest expense over the term of the 2021 Revolving Credit Facility. As of September 30, 2025 and December 31, 2024, the deferred financing fees asset balance was $1.5 million and $1.7 million, respectively.
A quarterly commitment fee of up to 0.50% is payable on the unused portion of the 2021 Revolving Credit Facility.
During the three months ended September 30, 2025 and 2024, the weighted-average interest rate on the outstanding borrowings under the Term Loan was 6.4% and 7.8%, respectively.
During the nine months ended September 30, 2025 and 2024, the weighted-average interest rate on the outstanding borrowings under the Term Loan was 6.3% and 7.8%, respectively.
As of September 30, 2025 and December 31, 2024, the Company has outstanding standby letters of credit for $1.1 million and $0.7 million, respectively, which reduce the amount available to be borrowed under the 2021 Revolving Credit Facility. As of September 30, 2025 and December 31, 2024, $248.9 million and $249.3 million, respectively, was available to be borrowed.
The terms of the 2021 Credit Agreement include a financial covenant which requires that, at the end of each fiscal quarter, if the aggregate amount of borrowings under the 2021 Revolving Credit Facility exceeds 35% of the aggregate commitments of the Company, the leverage ratio of CCC Intelligent Solutions Inc. and certain of its subsidiaries cannot exceed 6.25 to 1.00. Borrowings under the 2021 Revolving Credit Facility did not exceed 35% of the aggregate commitments and the Company was not subject to the leverage test as of September 30, 2025 or December 31, 2024.
Interest Rate Swaps
—In February 2025, the Company entered into three interest rate swap agreements (the "Swaps") to reduce its exposure to variability from future cash flows resulting from interest rate risk related to its floating rate long-term debt. Pursuant to the terms of the Swaps, beginning on July 31, 2025, the Company will pay an average fixed interest rate of 3.94% on an aggregate notional amount corresponding to borrowings of $750.0 million in exchange for receipts on the same notional amount at a floating interest rate based on the applicable SOFR at the time of payment. The Swaps expire on July 31, 2027.
Cash Flows
The following table provides a summary of cash flow data for the nine months ended September 30, 2025 and 2024:
Nine Months Ended September 30,
(dollar amounts in thousands)
2025
2024
Net cash provided by operating activities
$
196,315
$
170,241
Net cash used in investing activities
(457,096
)
(45,073
)
Net cash provided by (used in) financing activities
(41,173
)
(34,438
)
Net effect of exchange rate change
112
1
Change in cash and cash equivalents
$
(301,842
)
$
90,731
Net cash provided by operating activities was $196.3 million for the nine months ended September 30, 2025. Net cash provided by operating activities consists of net income of $6.4 million, adjusted for $269.5 million of non-cash items, ($60.6) million for changes in working capital and ($6.1) million for the effect of changes in other operating assets and liabilities. Significant non-cash adjustments include stock-based compensation expense of $146.2 million, depreciation and amortization of $113.0 million and a change in fair value of derivative instruments of $8.4 million, partially offset by deferred income taxes of $1.2 million. The change in working capital was primarily the result of a change in income taxes of $30.7 million due to timing of payments, an increase in
43
accounts receivable of $33.7 million, and a decrease in accrued expenses of $6.7 million due to employee incentive plan payments, partially offset by an increase in deferred revenue of $10.1 million.
Net cash used in investing activities was $457.1 million for the nine months ended September 30, 2025. Net cash used in investing activities was due to $410.4 million used for the acquisition of EvolutionIQ and $46.7 million of capitalized internally developed software projects and purchases of software, equipment, and property.
Net cash used by financing activities was $41.2 million for the nine months ended September 30, 2025. Net cash used by financing activities was primarily due to $212.5 million for a repurchase of common stock, $48.3 million of payments for employee tax liabilities related to the net share settlement of employee equity awards, $6.6 million of payments for fees associated with a debt modification and $7.5 million of principal payments of long-term debt, partially offset by $225.0 million of an incremental term loan used for the acquisition of EvolutionIQ, $5.0 million of proceeds from the issuance of stock under the employee stock purchase plan, and $3.6 million of proceeds from stock option exercises.
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.
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.
Except as described below, 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, 2024 in our Annual Report on Form 10-K.
Business Combinations
The results of a business acquired in a business combination are included in our condensed consolidated financial statements as of the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date, which may be considered preliminary and subject to adjustment during the measurement period, which is up to one year from the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill.
We perform valuations of assets acquired and liabilities assumed and allocate the purchase price to the respective assets and liabilities. Determining the fair value of assets acquired and liabilities assumed requires significant judgment and estimates, including the selection of valuation methodologies, estimates of future revenue, costs and cash flows, discount rates, royalty rates, and selection of comparable companies. We engage third-party valuation specialists to assist in concluding on fair value measurements in connection with determining fair values of assets acquired and liabilities assumed in a business combination. The resulting fair values and useful lives assigned to acquisition-related intangible assets impact the amount and timing of future amortization expense.
These estimates are inherently uncertain and unpredictable, and if different estimates were used the purchase price for the acquisition could be allocated to the acquired assets and liabilities differently from the allocation that we have made. In addition, unanticipated events and circumstances may occur which may affect the accuracy or validity of such estimates, and if such events occur, we may be required to record a charge against the value ascribed to an acquired asset, an increase in the amounts recorded for assumed liabilities, or an impairment of some or all of the goodwill.
Goodwill and intangible assets recognized in connection with our acquisition of EvolutionIQ in January 2025 was $538.8 million and $167.9 million, respectively.
There have been no other 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, 2024, included in our Annual Report on Form 10-K.
44
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, 2024.
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 September 30, 2025, 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
On January 6, 2025, we completed the acquisition of EvolutionIQ, which was accounted for as a business combination. As permitted by SEC guidance, the scope of management's evaluation of internal control over financial reporting can exclude acquisitions during the first year of an acquisition. Management is in the process of integrating, evaluating, and where necessary, implementing changes in controls and procedures of EvolutionIQ.
Other than the integration of EvolutionIQ, there were no changes in our internal control over financial reporting during the three months ended September 30, 2025 identified in management’s evaluation pursuant to in 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.
45
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, 2024. 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
The table set forth below summarizes the Company's purchases of its common stock during the three months ended September 30, 2025.
Issuer Purchases of Equity Securities
Period
Total Number of Shares Purchased
Average Purchase Price per Share
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
(1)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
July 2025
—
—
—
$127.7 million
August 2025
—
—
—
$127.7 million
September 2025
4,779,310
$
9.393
4,779,310
$82.8 million
Total
4,779,310
$
9.393
4,779,310
$82.8 million
1
In December 2024, the Company's board of directors authorized the repurchase of up to $300.0 million of the Company's outstanding shares of common stock. The program has no expiration date.
Item 3. Defaults upon Senior Securities
Not applicable.
Item 4. Mine Safety Disclosures
Not applicable.
Item 5. Other Information
During the three months ended September 30, 2025, each of
Brian Herb
,
Chief Financial and Administrative Officer
of the Company, and
Rodney Christo
,
Chief Accounting Officer
of the Company,
adopted
a Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c). The 10b5-1 trading arrangement was adopted by Mr. Herb
September 18, 2025
and provides for the sale of up to
89,695
shares of common stock of the Company in the period commencing on December 22, 2025 and ending on the earlier of
February 27, 2026
or the execution of all trades contemplated by the plan. The 10b5-1 trading arrangement was adopted by Mr. Christo on
August 18, 2025
and provides for the sale of up to
218,557
shares of common stock of the Company in the period commencing on November 17, 2025 and ending on the earlier of
August 3, 2026
or the execution of all trades contemplated by the plan. The number of shares to be sold under Mr. Herb’s plan includes the sale of shares to be distributed to Mr. Herb upon the vesting of time-based RSUs and that are subject to the Rule 10b5-1 trading arrangement intended to satisfy the affirmative defense of Rule 10b5-1(c) entered into by Mr. Herb on December 20, 2024 and previously disclosed by the Company (the “Prior Herb Plan”); the actual number of shares to be sold under Mr. Herb's plan will depend on the number of shares withheld to satisfy tax obligations upon the vesting of the applicable awards and on the number of shares sold under the Prior Herb Plan. Mr. Christo’s plan includes the sale of shares to be distributed to Mr. Christo upon the vesting of performance-based RSUs and assumes the vesting of the maximum number of shares under such awards; the actual number of shares to be sold under Mr. Christo's plan will depend on the achievement of the applicable performance conditions under the performance-based RSUs and the number of shares withheld to satisfy tax obligations upon the vesting of the applicable awards.
46
Item 6. Exhibits
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report on Form 10-Q.
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
47
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: October 30, 2025
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: October 30, 2025
By:
/s/ Brian Herb
Name:
Brian Herb
Title:
Executive Vice President, Chief Financial and Administrative Officer
Customers and Suppliers of CCC Intelligent Solutions Holdings Inc.
Beta
No Customers Found
No Suppliers Found
Bonds of CCC Intelligent Solutions Holdings Inc.
Price Graph
Price
Yield
Insider Ownership of CCC Intelligent Solutions Holdings Inc.
company Beta
Owner
Position
Direct Shares
Indirect Shares
AI Insights
Summary Financials of CCC Intelligent Solutions Holdings Inc.
Beta
(We are using algorithms to extract and display detailed data. This is a hard problem and we are working continuously to classify data in an accurate and useful manner.)