A maker of cloud software and AI tools for the insurance economy, CCC connects auto insurers, repair shops, and automakers so that when a car is damaged, the claim, estimate, and repair flow through one digital network. Founded in 1980 in Chicago as Certified Collateral Corporation, it began by replacing paper "book values" with a live database of car valuations for total-loss claims. The initials stuck even as the company grew into a platform used by thousands of repair facilities and insurers.
Operating income nearly doubled to $47.6M as a sharp drop in stock-based compensation offset a gross margin decline.
nearly doubled from a year ago, even as slipped. rose 9.8% to $285.9 million, with 7 points of growth from existing customer upgrades, while operating income reached $47.6 million, driven by an 11.6% drop in R&D expense and lower across the company. The core business is showing renewed organic momentum, but the cost of the EvolutionIQ acquisition continues to weigh on gross profitability.
Key takeaways
rose 94.7% to $47.6 million, driven by an 11.6% decline in research and development expense and a drop in across all functions.
rose 9.8% to $285.9 million, with 7 percentage points of growth from existing customer upgrades and 2 points from new customers, a shift from the 4-5 point upgrade contribution that held for the prior four quarters.
contracted 0.8 points to 73.7%, as higher IT and personnel costs in cost of revenues more than offset the benefit of growth.
Section summaries
Management's Discussion and Analysis
Q2 FY2026 revenue grew 9.8% to $285.9M driven by existing customer upgrades; operating income surged 94.7% on lower stock-based compensation.
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Total rose 9.8% to $285.9M, with 7% growth from existing customer upgrades and 2% from new customers; software subscriptions remained 96% of revenue.
rose 14.1% to $20.4 million due to an additional $300 million term loan, partially offset by lower variable rates and a $2.6 million gain on interest rate swaps.
reached $159.0 million for the first six months of the year, and was $124.0 million, while the $250 million remained undrawn.
What changed
The existing-customer upgrade contribution, flagged last quarter after spiking to 9 points, settled at 7 points this quarter — still above the 4-5 point range that held for four quarters before Q1 2026, suggesting the recovery is sustaining at a higher level.
, which improved to 74.3% in Q1 2026, dipped to 73.7% this quarter as higher IT and personnel costs flowed through, indicating the EvolutionIQ cost structure continues to pressure profitability even as integration progresses.
The company did not separately break out the EvolutionIQ acquisition's contribution this quarter, as it had in prior periods, suggesting the acquisition's results may now be absorbed into the existing-customer upgrade figure.
Cash and equivalents stood at $115.9 million, up from $36.9 million at the end of Q1 2026, as generation improved and the company did not report additional share repurchases this quarter after spending $100.2 million on buybacks in Q1.
What to watch
Whether the existing-customer upgrade contribution, now at 7 points for two consecutive quarters, represents a new steady state for or will revert toward the 4-5 point range that held through most of 2025.
Whether stabilizes around 73.7% or continues to contract as EvolutionIQ's personnel and IT costs flow through, given that margin has now declined in two of the last three quarters.
The pace of share repurchases versus cash accumulation, with cash at $115.9 million and $1.26 billion in , to see if the company resumes buybacks or prioritizes debt reduction.
Whether the EvolutionIQ acquisition's contribution, no longer separately disclosed, has been fully integrated into the existing-customer upgrade metric or has plateaued.
increased 8.6% to $210.6M, though dipped to 73.7% from 74.5% due to higher IT and personnel costs in cost of revenues.
nearly doubled to $47.6M, driven by an 11.6% drop in R&D expense and a sharp decline in across all functions.
rose 14.1% to $20.4M due to an additional $300M term loan, partially offset by lower variable rates and a $2.6M gain on interest rate swaps.
reached $159.0M for the six-month period; was $124.0M, and the $250M remained undrawn.
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, 2025.
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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, 2025.
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 Compa…
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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.
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, 2025. Any of these factors could result in a significant or material adverse effect on the results of our operations o…
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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, 2025. 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.