Ccc Intelligent Solutions Holdings Inc ((CCCS)) has held its Q3 earnings call. Read on for the main highlights of the call.
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The recent earnings call for CCC Intelligent Solutions Holdings Inc. painted a picture of robust growth tempered by certain challenges. The company reported strong revenue growth and significant customer adoption, alongside successful expansion of its emerging solutions and EvolutionIQ. However, challenges such as declining claims volumes, lower adjusted gross profit margins, and reduced net dollar retention were also highlighted.
Strong Revenue Growth
CCC Intelligent Solutions reported a total revenue of $267 million for Q3 2025, marking a 12% increase year-over-year and surpassing their guidance. The company achieved an adjusted EBITDA of $110 million with a margin of 41%, showcasing its financial strength and operational efficiency.
Significant Customer Adoption
The earnings call highlighted significant customer adoption, with a top 10 insurer increasing their claims leveraging CCC AI solutions from 15% to 40%. Additionally, Liberty Mutual has signed on with CCC, transitioning a substantial portion of their casualty business to the platform, indicating strong market confidence in CCC’s solutions.
Emerging Solutions Expansion
Emerging solutions contributed over 2 points of growth, driven by AI-based APD solutions, subrogation, diagnostics, and Build Sheets. These innovative solutions now represent about 4% of total revenue in Q3 2025, underscoring CCC’s commitment to technological advancement.
Successful Integration of EvolutionIQ
EvolutionIQ has seen multiple contract renewals and expansions, contributing approximately 4 points of growth in Q3. This successful integration highlights CCC’s ability to enhance its offerings and provide value to its clients.
High Gross Dollar Retention
CCC reported a gross dollar retention rate of 99%, reflecting the strong value provided to its customers and the benefits of participating in the CCC network. This high retention rate is a testament to the company’s customer satisfaction and loyalty.
Claims Volume Decline
The industry faced a decline in claim volumes, which fell by 6% year-over-year in Q3, representing a 1 percentage point headwind to growth. This decline poses a challenge to CCC’s growth trajectory.
Adjusted Gross Profit Margin Decline
The adjusted gross profit margin was reported at 75%, down from 78% last quarter. This decline was attributed to higher depreciation, a write-off of a discontinued solution, and changes in revenue mix.
Lower Net Dollar Retention
Net dollar retention was 105%, down from 107% in Q2 2025. This decrease was primarily due to the timing of deals, which impacted the overall retention figures.
Forward-Looking Guidance
Looking ahead, CCC Intelligent Solutions forecasts revenue between $1.051 billion and $1.056 billion for the full year 2025, with adjusted EBITDA expected to range between $423 million and $428 million. The company ended the quarter with $97 million in cash and cash equivalents and $993 million in debt, achieving a free cash flow of $79 million.
In summary, CCC Intelligent Solutions Holdings Inc.’s earnings call reflected a positive sentiment with strong revenue growth and customer adoption. Despite facing challenges such as declining claims volumes and lower profit margins, the company remains optimistic about its future, supported by robust forward-looking guidance.