v3.26.1
Segment and Geographic Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information 7. Segment and Geographic Information
The Company has two reportable segments: CARFAX and B2B. In addition, the Company has a Corporate category,
which includes costs for corporate functions, that is included in selling and general expenses and not allocated to the
reportable segments.
The Chief Operating Decision Maker (“CODM”) is the Chief Executive Officer, who was previously the President of
S&P Global Mobility prior to the Separation.
Beginning in the second quarter of 2026, the Company changed its segment profitability measure from segment
operating profit to Adjusted EBITDA and recast prior period amounts accordingly, as our CODM evaluates performance of
our segments and allocates resources (including employees, property, and financial or capital resources) based primarily on
Adjusted EBITDA. There were no other changes to the Company’s segment reporting during 2026.
The Company defines Adjusted EBITDA as Net income adjusted to exclude (1) interest expense, net, (2) provisions
for income taxes, (3) depreciation and amortization, (4) stock-based compensation, (5) transaction costs related to the
stand-up of the Spin Business in connection with the Separation, and (6) employee severance charges and other costs that
are not representative of the underlying economics of the periods presented.
The following tables below present summarized financial information for each of the Company's reportable
segments, as well as for the Corporate category and total company.
Three months ended June 30, 2026
Three months ended June 30, 2025
(in millions)
CARFAX
B2B
Corporate
Total
CARFAX
B2B
Corporate
Total
Revenue
$312
$156
$—
$468
$289
$150
$—
$439
Less: segment expenses(1)
159
103
4
266
147
101
3
251
Adjusted EBITDA
$153
$53
$(4)
$202
$142
$49
$(3)
$188
Six months ended June 30, 2026
Six months ended June 30, 2025
(in millions)
CARFAX
B2B
Corporate
Total
CARFAX
B2B
Corporate
Total
Revenue
$610
$313
$—
$923
$564
$295
$—
$859
Less: segment expenses(1)
317
211
9
537
292
202
8
502
Adjusted EBITDA
$293
$102
$(9)
$386
$272
$93
$(8)
$357
(1)The segment expenses excluding any adjustments listed above in the Adjusted EBITDA description primarily include an aggregation of
compensation costs, advertising and promotion costs, technology costs and strategic investments.
The following table below presents a reconciliation of GAAP Net income to Adjusted EBITDA:
Three Months Ended
June 30,
Six Months Ended
June 30,
(in millions)
2026
2025
2026
2025
Net income
$53
$65
$108
$123
Interest expense, net
7
4
10
7
Provision for taxes on income
22
27
45
50
Depreciation and amortization
77
77
155
155
Stock-based compensation
5
4
9
9
Transaction costs
36
2
57
2
Employee severance charges and other
2
9
2
11
Adjusted EBITDA
$202
$188
$386
$357
The Company’s revenue disaggregated by revenue type is as follows:
Three Months Ended June 30, 2026
Three Months Ended June 30, 2025
(in millions)
CARFAX
B2B
Total
CARFAX
B2B
Total
Subscription
$252
$131
$383
$234
$124
$358
Non-subscription
60
25
85
55
26
81
Total revenue
$312
$156
$468
$289
$150
$439
Timing of revenue recognition
Services transferred at a point in time
$60
$25
$85
$55
$26
$81
Services transferred over time
252
131
383
234
124
358
Total revenue
$312
$156
$468
$289
$150
$439
Six Months Ended June 30, 2026
Six Months Ended June 30, 2025
(in millions)
CARFAX
B2B
Total
CARFAX
B2B
Total
Subscription
$494
$261
$755
$459
$242
$701
Non-subscription
116
52
168
105
53
158
Total revenue
$610
$313
$923
$564
$295
$859
Timing of revenue recognition
Services transferred at a point in time
$116
$52
$168
$105
$53
$158
Services transferred over time
494
261
755
459
242
701
Total revenue
$610
$313
$923
$564
$295
$859
The Company’s revenue by geographic region is as follows:
Three Months Ended June 30,
Six Months Ended June 30,
(in millions)
2026
2025
2026
2025
U.S.
$389
$365
$765
$715
International
79
74
158
144
Total
$468
$439
$923
$859
Asset information by segment is not disclosed because this information is not used by the CODM to make resource
allocation decisions or evaluate the performance of the Company’s segments.