CCCS Stock Forecast & Price Target

CCC Intelligent Solutions Holdings Inc. has demonstrated strong financial performance, with adjusted operating income rising by 9.5% to $94.2 million and adjusted net income increasing by 4.8% to $58.9 million. In the second quarter of 2025, the company reported total revenue of $260.5 million, reflecting a substantial 12% year-over-year growth. Additionally, free cash flow on a trailing 12-month basis reached $226 million, marking a 15% year-over-year increase, underscoring the company's solid financial health and operational efficiency.

CCC Intelligent Solutions has indicated a decline in stock-based compensation as a percentage of revenue, dropping from 24% in Q1/24 to 18% in Q2/25, with expectations to reach high-single digits by 2027, suggesting potential future operational challenges. Despite a stable adjusted gross profit margin of 78%, the increase in adjusted gross profit from $182.1 million to $202.5 million between Q2/24 and Q2/25 may not sufficiently offset concerns regarding revenue growth sustainability in a competitive environment. The company's heavy reliance on the U.S. market for revenue generation may expose it to risks associated with economic fluctuations, regulatory changes, and competitive pressures in the property and casualty insurance sector.