CCCS Stock Forecast & Price Target

CCC Intelligent Solutions Holdings Inc. demonstrated a strong financial performance in Q4 2024, with revenue rising 8% to $246.5 million, driven by cross-selling and new customer acquisition efforts. The company achieved an adjusted EBITDA of $106.3 million for the quarter, reflecting a solid adjusted EBITDA margin of 43%, and total EBITDA reached $155.2 million despite the absence of Canadian revenues. For the full year 2024, CCC reported a 9% organic growth in revenue to $944.8 million and a 12% increase in adjusted EBITDA to $397.4 million, further enhancing its adjusted EBITDA margin to 42%.

CCC Intelligent Solutions Holdings Inc. has experienced weaker-than-expected adjusted EBITDA guidance for FY25, with a midpoint that falls short of both the company's own estimates and consensus expectations, largely due to losses associated with the acquisition of EvolutionIQ. The anticipated adjusted EBITDA margin is projected to decline from 42% in 2024 to 40% in 2025, indicating a significant deterioration caused by the integration challenges of EvolutionIQ, which alone may account for a negative impact of $10-12 million on adjusted EBITDA. Furthermore, increasing depreciation expenses and a shift towards lower-margin casualty solutions have contributed to a year-over-year decrease in gross margin, reflecting ongoing financial pressures.