Mobility Global Q2 Earnings Call Highlights

Second-quarter revenue rose 7% organically to $468 million , while adjusted EBITDA increased about 7% to $202 million. Results fell modestly short of expectations due to a less effective CARFAX bundled-sales strategy and weaker automotive activity outside the U.S. Mobility Global cut its 2026 guidance to revenue of $1.87 billion–$1.885 billion and adjusted EBITDA of $745 million–$760 million. Standalone costs from the S&P Global spin-off are expected to pressure margins and generate about $100 million in additional one-time cash costs. The company approved its first quarterly dividend of $0.06 per share , payable Sept. 10, but does not expect share repurchases until early 2027. Management is also advancing product launches, European expansion and a multiyear effort to integrate its businesses under the “One Mobility Global” platform. Mobility Global NYSE: MBGL reported second-quarter revenue of $468 million, up 7% year over year on an organic basis, in its first earnings call as a standalone public company following its July 1 spin-off from S&P Global. The company said results came in modestly below its expectations, citing a CARFAX go-to-market approach that did not produce the anticipated benefits and softer automotive activity outside the United States. Mobility Global lowered its full-year revenue outlook while maintaining that the underlying health of its subscription-based business remains sound. “We delivered approximately 7% organic revenue growth modestly below our expectations,” CEO Bill Eager said. “We do not view these factors as a change in the underlying health of our business, and we expect to build momentum into 2027.” Revenue growth varied across segments CARFAX revenue rose 8% in the second quarter, including approximately 8% subscription revenue growth and 9% growth in transactional revenue. The company said growth was broad-based across most major product lines, with comparatively stronger U.S. performance in service loyalty and consumer products. However, Eager said CARFAX’s effort to sell its Advantage, Listings and Service Loyalty products together as a “lifetime dealer package” lengthened sales cycles more than expected. The company began changing that approach in June, returning to individual product sales while allowing dealers to add products over time. “We’re recalibrating that sales approach, recalibrating our sales incentive, and shifting back to where we are selling each of those products individually,” Eager said during the question-and-answer session. Within CARFAX, Canada generated strong subscription growth but continued to face weakness in transactional products because of softer auto transactions. Europe posted double-digit growth, though transactional revenue there also trailed the company’s expectations. Mobility Global’s B2B segment grew 4%, down from 8% growth in the first quarter. B2B subscription revenue rose about 6%, while transactional revenue declined 4%. The company cited delayed planning-solutions projects amid macroeconomic uncertainty, difficult comparisons with the prior-year quarter and approximately $1 million in recall revenue that was pushed into the second half pending a final quote. CFO Matt Calderone said the company expects more of its second-half growth improvement to come from CARFAX, while B2B growth is expected to remain relatively stable. Management said its outlook assumes no improvement in macroeconomic conditions during the second half. Profitability and standalone costs Second-quarter adjusted EBITDA was $202 million, up approximately 7% from the prior-year period. Adjusted EBITDA margin was 43.2%, about 40 basis points higher year over year. For the first half, adj...