CCCS Stock Forecast & Price Target

CCC Intelligent Solutions experienced a notable revenue increase of 8% year-over-year in Q4/24, reaching $246.5 million, supported by cross-sell and upsell activities that contributed significantly to growth. The company reported an adjusted EBITDA of $106.3 million for the quarter, reflecting a robust adjusted EBITDA margin of 43%, while total digital revenues represented 33.6% of overall revenues—an increase of 150 basis points year-over-year. For the full year 2024, CCC achieved organic revenue growth of 9%, totaling $944.8 million, alongside a 12% increase in adjusted EBITDA, underscoring a solid financial performance and operational efficiency within its SaaS platform for the property and casualty insurance market.

CCC Intelligent Solutions Holdings Inc. faces a negative outlook primarily due to lower-than-expected adjusted EBITDA guidance for FY25, which missed consensus estimates by $12.3 million, largely due to the adverse effects of the EvolutionIQ acquisition. The company also projects a decline in adjusted EBITDA margin from 42% in 2024 to 40% in 2025, a reduction by 200 basis points attributed to the underperformance of EvolutionIQ, with the adjusted EBITDA margin expected to be approximately 43% without its negative contribution. Additionally, the company reported a year-over-year decline in gross margin driven by increased depreciation expenses and the accelerated growth of lower-margin casualty solutions, further complicating its financial outlook.