CCC Intelligent Solutions reported higher revenue and profitability for the third quarter, alongside continued growth in AI-related business. The software provider for the insurance industry also reiterated that it has agreed to be acquired by a consortium led by GTCR and including Elliott Investment Management.
The proposed all-cash deal would take CCC private. The company said it is suspending its usual practice of providing a business outlook in light of the pending transaction.
Third-quarter results
- Revenue rose 10.1% to $294.1 million from $267.1 million a year earlier.
- GAAP operating income increased to $57.4 million from $30.0 million. GAAP net income was $30.2 million, compared with a $2.0 million net loss in the third quarter of 2025.
- On an adjusted basis, operating income was $115.7 million, up from $93.0 million, and net income was $75.1 million, compared with $59.4 million a year earlier.
- Adjusted EBITDA rose 18.5% to $130.5 million. Its margin was approximately 44% of revenue.
- GAAP gross profit was $218.0 million, with a 74% margin, versus $193.0 million and a 72% margin a year earlier. Adjusted gross profit grew to $224.6 million from $199.5 million, while its margin declined to 76% from 78%.
- CCC generated $100.4 million in cash from operations and $82.5 million in free cash flow, compared with $94.8 million and $78.6 million, respectively, a year earlier.
- At quarter-end, CCC had $202.9 million in cash and cash equivalents and $1.28 billion in debt.
Deal and business developments
- GTCR and Elliott have agreed to buy CCC for $7.75 per share in cash. The proposed transaction values the company at approximately $6.1 billion on an enterprise-value basis.
- The deal requires regulatory and shareholder approvals, along with other customary closing conditions. CCC expects it to close in the first quarter of 2027; after closing, the company would be privately held.
- AI-related revenue reached an annualized run rate of about $130 million in the third quarter, up 40% from a year earlier and from about $120 million in the second quarter. CCC said the growth reflects customers moving from testing AI to deploying it at scale.
- A top-five insurer by 2025 direct premiums written became the largest insurer to adopt CCC’s Medhub for Auto Casualty. The product uses AI to extract information from medical records to help claims professionals make faster, more informed decisions. CCC described this as its largest use of EvolutionIQ technology in the property-and-casualty auto market and a move into workflows beyond its traditional auto physical-damage business.
The quarter’s results show growth in revenue, GAAP operating income and cash generation. The acquisition, if completed, would change CCC’s ownership from a publicly traded company to a privately held one; the release also pointed to AI and expansion into additional insurance workflows as areas the buyer group and CCC expect to invest in.