Mobility Global Inc. 2026 Q2 Earnings Call

Good morning, thank you for joining Mobility Global's second quarter 2026 earnings call. Presenting on today's call are Bill Eager, Chief Executive Officer, and Matt Calderone, Chief Financial Officer. The earnings release referenced in this call, as well as our quarterly earnings presentation and the associated quarterly report on Form 10-Q, can be found in the investor relations section of our website, mobilityglobal.com. The earnings release has also been attached to an 8-K that we furnished to the SEC. As set forth in more detail in today's earnings release, I will remind everyone that today's call may include forward-looking statements about Mobility Global's future performance, including those related to our full year 2026 guidance. Actual performance could differ materially from what is suggested by our comments today. Information about the factors that could affect future performance is contained in our recent SEC filings.

A reconciliation of reported and historic non-GAAP financial measures discussed on this call, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow, is provided in our 8-K and in today's earnings presentation hosted in the investor relations section of our website, which again is mobilityglobal.com. We are not able to provide a reconciliation of forward-looking non-GAAP financial measures to the most recently comparable financial measures calculated and reported in accordance with GAAP, as we are unable to estimate significant non-recurring or unusual items without unreasonable effort. The amounts and timings of these items are uncertain and could be material to our results calculated in accordance with GAAP. Let me turn the call over to our CEO, Bill Eager.

Thanks, Tejal, good morning, everyone. It's great to welcome you to Mobility Global's first earnings call. When I spoke with you at Investor Day, we were still part of S&P Global. Today, we are a standalone, publicly traded company. Over the past 12 months, our teams have worked tirelessly to make that possible, while also advancing our journey to bring together five previously separated businesses. I want to thank them for their dedication, their expertise, and extraordinary effort to help us achieve this complex milestone. Having spent the past 22 years with the company, I am proud of the exceptional assets, strong team, and distinctive capabilities we've built. They give me confidence in our opportunity and what we can deliver.

Today, I'll start with our Q2 results and key highlights from the quarter, update you on our early progress on the three strategic priorities I laid out at Investor Day, and share my focus areas for the second half of the year. Matt will then cover our financials in more depth, including our full year 2026 guidance and the key assumptions behind our outlook. Turning to our second quarter results, we delivered approximately 7% organic revenue growth modestly below our expectations. CARFAX subscription revenue growth was 8%. We delivered a 43% adjusted EBITDA margin as we operated our business with discipline and maintained strong profitability. Our second quarter results reflected a combination of factors. For CARFAX, while our vehicle history and listings businesses delivered solid growth, the changes we made to our go-to-market approach late last year did not deliver the full benefits we expected.

We're adjusting this approach and expect to see improvements going forward. Secondly, softer automotive activity outside the U.S. weighed on transactional revenue this quarter. The impact was concentrated in our B2B business and in CARFAX Canada, where volume-linked transactional revenue represents a larger share of the mix than the rest of CARFAX. Given our first half top-line performance, we are lowering our full year revenue guidance to 6.9%-7.7% growth for the year. We do not view these factors as a change in the underlying health of our business, and we expect to build momentum into 2027, supported by the strength of our subscription base that gives us high visibility revenue growth over time. We continue to execute our broader growth strategy, advancing key initiatives in product innovation and international expansion.

Matt will take you through the financial details shortly, but first, let me share with you a few highlights from the quarter, starting with two new CARFAX offerings that will add further value to our customers, Homegrown and Showroom. CARFAX Homegrown is a new solution that enables consumers to easily find pre-owned vehicles on a dealer's lot that were originally sold and then serviced at that dealership throughout its life, something consumers have long valued. Consumers value these vehicles more because that history signals consistent care, strong maintenance records, and greater confidence in the vehicle's condition. Until now, consumers and dealers haven't had a reliable way to identify these vehicles. CARFAX can. Because consumers trust the CARFAX brand and data, we are uniquely positioned to find these Homegrown vehicles, identify them, and surface that information to both the dealer and the consumer.

Consumers get vehicles they value, and dealers sell vehicles faster. Homegrown will be offered within the CARFAX Advantage program, and we expect it to increase the value of the program in a meaningful way. CARFAX Showroom, our first premium listings product, launched in the second quarter. This solution highlights a dealer's inventory in a shopper's search, driving more vehicle detail page views, and higher quality engagement while preserving the trust of the CARFAX consumer experience. Over time, we expect CARFAX Showroom to drive higher revenue per dealer. Turning to B2B. automotiveMastermind launched SMS offers, extending its service to sales functionality in one of the most valuable areas of the dealership, the service lane. Using our proprietary behavior prediction score, the solution identifies customers most likely to trade in their vehicle and sends them a personalized appraisal and upgrade offer while they are still at the dealership.

Instead of staffing the service lane to chase every opportunity, dealer teams can focus on customers who express interest. This makes the sales process more efficient and strengthens the value of the Mastermind platform, delivering additional value to existing customers while helping us win new ones. Turning to international expansion. We launched CARFAX Germany in early July, leveraging our strategic assets to enter Europe's largest automotive market. As our European data set continues to expand and coverage deepens, we are well-positioned to meet the growing consumer demand for trusted automotive information. With that context, let me turn to our three strategic priorities: creating One Mobility Global, deploying AI across our business, and strengthening our market position. Creating One Mobility Global is more than just a structural change.

It is a strategic opportunity to operate as one integrated company, connecting our capabilities, data, and customer relationships to capture the benefits of our scale and deliver greater value to our customers. We're about halfway through this multi-year effort and making good progress. By integrating our assets, we can generate new insights and solutions that weren't possible before, add value to our existing products, launch new ones, and expand into new markets globally. We are already seeing some early benefits. automotiveMastermind and CARFAX are building a joint product roadmap that leverages the combined data assets of both businesses to deliver greater value to our shared dealers. In Germany, we combined data and capabilities from across the company to create a compelling value from the outset in this attractive automotive market. There is more work ahead, but the path is clear.

We are focused on leveraging this integration to accelerate product innovation, expand into new markets, and drive stronger growth. Our second strategic priority is deploying AI across our business. AI is reshaping how companies operate. In our business, our proprietary decision-grade data is a core strategic asset. As AI generates more intelligence from our data, the value of our data only grows. It also unlocks new opportunities for product innovation and efficiency. We're deploying AI across the company and building central capabilities, including AI gateways and agentic platforms. Our centralized AI office provides the governance and consistency to strengthen our data estate and generate deeper insights across the business. This moves us beyond adopting tools to transforming our workflows.

We're already seeing results, from richer signals across our unique data estate to new predictive capabilities, new solutions like those we previewed on Investor Day, and faster, low-cost entry into new markets. Turning to our third priority, strengthening our market position. As the automotive industry grows more complex, dealers, consumers, and industry partners need timely, trusted intelligence at more decision points. That need continues to drive our innovation and expansion. In Q2 and into July, we advanced this priority through CARFAX Homegrown, CARFAX Showroom, innovations at automotiveMastermind, and in our launch of CARFAX Germany. Together, these initiatives demonstrated our ability to move quickly, expand our reach, and bring new solutions to market. We have more to do, our focus is sustaining that momentum with disciplined execution and an effective go-to-market strategy.

Let me close with my two areas of focus in the second half. These are the items our leadership team is prioritizing as we continue to execute against our long-term strategy. The first is accelerating revenue growth. At CARFAX, we are ramping up new products and implementing our revised go-to-market approach. In B2B, we are moving fast PIQ and Data Studio products from launch to broader adoption. My second focus area is continuing to bring Mobility Global's business together. We are focused on winding down transition services with S&P Global, retiring duplicate systems, and moving to a common technology backbone. This is essential not only for efficiency, but also for bringing our data together on a modern AI native foundation that supports the combined business. Together, these efforts are building a more integrated, efficient platform for the long-term growth. To close, I am energized by the opportunity ahead.

Our combination of proprietary data, trusted brands, scaled customer network, and embeddedness give us a powerful, differentiated foundation for growth, which remains solid. We know where we need to improve, have adjusted our approach, and are acting with focus and urgency in making good progress. We have a clear path forward and strong conviction in our future. With that, I'll turn it over to Matt.