CCC Intelligent Solutions Holdings Inc. (Nasdaq: CCCS) said its Q2 2025 revenue rose 12% to $260.5 million, compared with $232.6 million in Q2 2024. Gross margin and adjusted gross profit margin were 74% and 76% respectively, similar to Q1 2025. The company has told analysts it aims for 80% adjusted gross profit.
Chicago-based CCC sells software as a service to collision repair and other industries. It reported results July 31.
“CCC delivered strong second quarter results,” said Chairman and CEO Githesh Ramamurthy in an earnings press release.
GAAP and non-GAAP measures for gross profit, operating income, and net income were all in the black, with all but one rising 5% to 10% year-over-year. Net income of $13 million, while still positive, dropped by 39%, compared with net income of $21.4 million YOY.
The $13 million is a return to profitability from Q1 2025, when its net loss was $17.4 million. CCC has been investing heavily and expanding in AI and related areas. According to the release, this is showing results.
The company said several larger insurers, based on 2024 direct premium production, “contracted for multiple CCC AI-enabled auto physical damage solutions that extend their use of CCC’s photo-AI capabilities beyond estimating to include earlier stages of claim handling as well as later stages of audit review,” in the quarter.
In the same period, another insurer signed on to CCC’s “AI-enabled subrogation platform, which currently serves 25 CCC customers.”
Third-party AI-based estimating providers have expanded efforts to sell to body shops and collision centers — and several of these have noted earlier and later use areas, especially with insurers, such as scanning vehicles when a policy is signed or, at the shop level, just before a repair departs, to document the work. The companies often also contract with auctioneers or salvage providers, as well shops and insurers. AI-based assessment is an expanding area of collision repair.
In the quarter, “we had several of our larger customers who had been testing our newer solutions progress past the pilot phase into broader rollouts of our solutions across their businesses,” Ramamurthy said. “Historically, adoption by these leading customers has helped drive further adoption.”
Tech Focus from New Board Appointee; Investor Reduces Stake
CCC in July said it appointed Barak Eilam to its board, replacing Chris Egan. Egan is a managing partner at private equity investor Advent International.
Advent owned most of CCC when it was private, taking it public by merging with special purpose acquisition company Dragoneer Growth Opportunities Corp. four years ago, and has been selling its shares. As of March 31, Advent International held 97 million shares or 15% of the company, down from 139 million shares or 22% at year-end 2024. A May SEC filing by Advent said it sold 30 million more, now giving it about 10% of CCC.
Eilam’s experience is in enterprise software and artificial intelligence. At the end of last year, he left the CEO role at enterprise software provider Nice Ltd., which works in analytics and AI. Media reports said he started the company’s analytics work, helped move it into enterprise cloud and AI work, and led it for 10 years. He’s on the boards of several fintech and data and analytics companies. Eilam received 22,013 restricted stock units upon joining CCC’s board, a regulatory filing said. These vest in one year or at the next annual shareholder meeting, if he’s still a board member.
CCCS shares closed July 31 at $9.67.
Paul Hughes