v3.26.3
Segment and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information 9. 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 the CODM evaluates performance of
the 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 and other, 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 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 September 30, 2026
Three months ended September 30, 2025
(in millions)
CARFAX
B2B
Corporate
Total(2)
CARFAX
B2B
Corporate
Total(2)
Revenue
$313
$164
$—
$478
$291
$154
$—
$445
Less: segment expenses(1)
160
119
4
283
145
102
7
254
Adjusted EBITDA
$153
$45
$(4)
$195
$146
$52
$(7)
$191
Nine months ended September 30, 2026
Nine months ended September 30, 2025
(in millions)
CARFAX
B2B
Corporate
Total(2)
CARFAX
B2B
Corporate
Total(2)
Revenue
$923
$477
$—
$1,401
$855
$449
$—
$1,304
Less: segment expenses(1)
477
330
13
820
437
304
15
756
Adjusted EBITDA
$446
$147
$(13)
$581
$418
$145
$(15)
$548
(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.
(2)Total column may not foot due to rounding.
The table below presents a reconciliation of GAAP Net income to Adjusted EBITDA:
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in millions)
2026
2025
2026
2025
Net income
$42
$71
$150
$194
Interest expense and other, net
26
4
36
11
Provision for taxes on income
24
29
69
79
Depreciation and amortization
78
77
233
232
Stock-based compensation
9
7
18
16
Transaction costs
16
3
73
5
Employee severance charges and other
—
—
2
11
Adjusted EBITDA
$195
$191
$581
$548
The Company’s revenue disaggregated by revenue type is as follows:
Three Months Ended September 30, 2026
Three Months Ended September 30, 2025
(in millions)
CARFAX
B2B
Total(1)
CARFAX
B2B
Total(1)
Subscription
$252
$137
$389
$235
$127
$362
Non-subscription
61
27
89
56
27
83
Total revenue
$313
$164
$478
$291
$154
$445
Timing of revenue recognition
Services transferred at a point in time
$61
$27
$89
$56
$27
$83
Services transferred over time
252
137
389
235
127
362
Total revenue
$313
$164
$478
$291
$154
$445
Nine Months Ended September 30, 2026
Nine Months Ended September 30, 2025
(in millions)
CARFAX
B2B
Total(1)
CARFAX
B2B
Total(1)
Subscription
$746
$398
$1,144
$694
$369
$1,063
Non-subscription
177
79
257
161
80
241
Total revenue
$923
$477
$1,401
$855
$449
$1,304
Timing of revenue recognition
Services transferred at a point in time
$177
$79
$257
$161
$80
$241
Services transferred over time
746
398
1,144
694
369
1,063
Total revenue
$923
$477
$1,401
$855
$449
$1,304
(1)Total column may not foot due to rounding.
The Company’s revenue by geographic region is as follows:
Three Months Ended September 30,
Nine Months Ended September 30,
(in millions)
2026
2025
2026
2025
U.S.
$397
$368
$1,162
$1,083
International
81
77
239
221
Total
$478
$445
$1,401
$1,304
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.