CCC: AI represent Q2 revenue growth of 45% compared to Q2 2025

During Q2, CCC Intelligent Solutions AI product usage continued to rise in insurance claims handling, expanding substantially compared to Q2 2025, according to earnings results shared during a recent investor call.

“AI-based solutions continue to represent an important and expanding part of our portfolio, accounting for approximately 11% of total revenue in the second quarter and growing approximately 45% year-over-year,” said Rodney Christo, CCC’s interim CFO and chief accounting officer.

He added that Q2 revenue from AI-based solutions contributed 4 points of growth, “primarily driven by our APD solutions, subrogation, and EvolutionIQ.”

Chairman and CEO Githesh Ramamurthy said increased business from AI solutions is coming from new and existing customers. He said existing customers are expanding and adding new solutions; for example, a large top five insurance carrier renewed all of its core solutions and added a new AI solution.

“We are a scaled player in AI today, generating more than $120 million of annualized revenue from AI-based solutions that are growing at nearly 50% year-over-year,” Ramamurthy said. “But the more meaningful takeaway is what that growth tells us about how our customer behavior is evolving. Customers are increasingly focused on deploying CCC’s AI to generate measurable business outcomes. Just as importantly, these deployments are frequently backed by multiyear commitments, providing further evidence that customers view AI as a strategic priority and CCC as a long-term technology partner.”

During the Q&A portion of the earnings call, an investor asked CCC how quickly customers can deploy and ramp newly adopted AI solutions in relation to internal change management components.

Ramamurthy answered that CCC is 10 years into its “AI journey,” and many customers have been on board since the first commercial rollout five years ago. He added that CCC benefits from “having done this for a very long period of time,” which results in “delivering actual cycle time reduction, customer experience differences, [and] efficiency gains.”

“Our customers have actually tested, deployed, and have gained confidence because we have literally tens of thousands of users who have now gotten more comfortable with our AI and the results it’s producing,” Ramamurthy said. “And as a result, as our customers have gone through the extensive pilots… They’re also starting to look at how do I deploy this? …What changes should I make to my process? And we’ve also made significant investments in our go-to-market teams in terms of how we execute the change management. As a result, you are seeing our AI starting to generate a larger and larger percentage of our growth.”

Ramamurthy also noted that nearly every major OEM now participates in CCC’s parts network.

“We are embedding AI throughout the procurement process to streamline sourcing workflows and reduce administrative effort,” he said.

Overall, Christo reported that Q2 was “a solid quarter with revenue growth and profitability ahead of expectations.”

“We continue to see momentum in the adoption of our AI-based solutions across many of our large clients,” he said. “We help run day-to-day operations for over 900,000 users, powered by AI, trained on tens of millions of claims and refined through years of real-world use.”

Christo reported that CCC’s total Q2 revenue was $285.9 million, up 9.8% from Q2 2025 and above the high end of CCC’s revenue guidance range.

“Of the 10% growth, approximately 7.5 points was driven by cross-sell, upsell, and the adoption of our AI solutions across our client base,” Christo said. “About 2.5 points of growth came from new logos.”

He added that software gross dollar retention (GDR) was 98%, in line with Q1. According to Christo, GDR captures the amount of revenue retained for CCC’s client base compared to the prior year period.

“Our strong GDR is a core tenet of our predictable and resilient revenue model,” he said. “Net dollar retention captures an amount of cross-sell and upsell from our existing clients compared to the prior year period, as well as volume movements in our auto physical damage client base. In Q2 2026, our NDR was 107, in line with Q1 2026 and up from the full-year 2025 level of 106%.”

Christo added that CCC is confident it will progress toward its long-term target of 80% as newer solution revenue scales and offsets recent investments.

Q2 adjusted operating expenses were $116 million, up 7% year over year. Christo said this was due to higher resource-related expenses, professional service fees, and technology investments.

Adjusted EBITDA for the quarter was $115 million, up 7% year over year and above the high end of CCC’s guidance range, he said. Adjusted EBITDA margins were 40% and down about 110 basis points year over year.

“However, when you normalize for a $2 million one-time benefit related to the exit of a tender relationship in Q2 of 2025, margins were roughly flat year-over-year,” Christo said.

“For Q3 2026, we expect revenue of $289.5 million to $291.5 million, which represents 9% growth year over year at the midpoint. We expect adjusted EBITDA of $118 million to $120 million, a 41% adjusted EBITDA margin at the midpoint. For the full year 2026, we expect revenue of $1.158 billion to $1.164 billion, which represents approximately 10% year-over-year growth at the midpoint.”

The guide implies year-over-year Q3 and Q4 revenue growth of about 9%, consistent with guidance provided in April, Christo said.

In a Q2 earnings press release, Ramamurthy said CCC continues to see customers deploy AI operationally and at scale “to solve real business problems.”

“As adoption expands across our platform, it reinforces the value of our data, workflows, ecosystem connectivity, and guidance capabilities,” he said. “As the insurance economy becomes increasingly complex, customers are turning to CCC to help connect participants, make better decisions, and improve outcomes across the claims lifecycle. This dynamic is strengthening customer relationships, expanding the role we play across the ecosystem, and increasing our confidence in the long-term growth opportunity.”

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