Mobility Global, Inc. (MBGL) Earnings Call Transcript & Summary

Greetings, and welcome to Mobility Global's Second Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tejal Engman, Managing Director of Investor Relations. Thank you. You may go ahead.

Good morning, and 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 Calderon, Chief Financial Officer. The earnings release referenced 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 a 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 posted in the Investor Relations section of our website, which again is mobilityglobal.com. However, 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 nonrecurring or unusual items without unreasonable efforts. The amount and timing of these items are uncertain and could be material to our results calculated in accordance with GAAP. With that, let me turn the call over to our CEO, Bill Eager.

Thanks, Tejal, and 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 the S&P Global. Today, we are a stand-alone 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 5 previously separated businesses. I want to thank them for their dedication, their expertise, an 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 3 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 maintain 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% to 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 2 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 preowned 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 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 3 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 multiyear 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 road map that leverages the combined data assets of both businesses to deliver greater value to our shared dealers. In Germany, we combine 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. And 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. We see significant runway to use AI to transform how we operate, innovate and grow. 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, and our focus is sustaining that momentum with disciplined execution and an effective go-to-market strategy. Let me close with my 2 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 and making good progress. We have a clear path forward and strong conviction in our future. And with that, I'll turn it over to Matt.

Thank you, Bill, and good morning, everyone. We appreciate you joining us today. I very much enjoyed meeting members of our analysts and investor community over the past few months. It's a privilege to tell the Mobility Global's [indiscernible], and I look forward to working with you in the months and years ahead. I want to cover 2 topics before diving into the details of our second quarter results and discussing our guidance and expectations for the full fiscal year. First, I want to remind you that the historical numbers we discussed today are not fully indicative of what our financial results would have been as a stand-alone public company, and therefore, are not fully indicative of our financial performance on a go-forward basis. In it's 8-K published on July 28, S&P reported Mobility's results as a business segment, consistent with its past practice. In our 8-K this morning, we're reporting carve-out results for prior periods in a manner consistent with our Form 10 filings. However, as we described at our May Investor Day and our 10-Q filed this morning, going forward, we expect our results as a stand-alone public company to differ from the presentation in certain areas. These areas include, but are not limited to, incremental costs associated with spinning as a stand-alone public company, how costs are allocated across our business segments, interest expense from our inaugural bond offering, tax rate and cash taxes and the onetime cost of standing up the infrastructure required to be a fully stand-alone over company. Over the course of my remarks, I'll highlight these differences and attempt to quantify and time phase them were positive. Second, I would like to cover my core takeaways for the quarter. To start, we prepared for the successful July 1 spin-off of Mobility Global from S&P Global. This was an immense effort that is a critical milestone in our path to creating one Mobility Global. In the quarter, we delivered approximately 7% organic revenue group. 8% growth in our CARFAX segment and 4% growth in our B2B segment. As Bill noted, while we're confident in the underlying momentum in our business, our growth rate in the second quarter, though modestly short of our expectations. Our bottom line performance, adjusted EBITDA dollars and adjusted EBITDA margin was strong as we manage cost effectively while continuing to invest in future growth. We launched Mobility Global was $186 million of cash on hand and continue to generate meaningful cash flow. Today, we are announcing our first quarterly dividend. And finally, we are providing guidance for our full fiscal year 2026, which reflects our first half results, our forecast for the second half and the impact of becoming a stand-alone public company. Turning to our second quarter results. Mobility Global revenue in the second quarter was $468 million, a 7% increase over the prior year period. All of this revenue was organic. At the Mobility Global level, subscription revenue grew 7% year-over-year, reflecting the durable strength of our brand and the value of our solutions. Transactional revenue grew 5%, largely due to challenging macro conditions that particularly affected our business outside the U.S. For the first half, revenue grew 7.4%. Excluding the impact of FX, we grew approximately 6.8%. This reflects a roughly $5 million currency benefit in the first half, approximately $4 million of which came in the first quarter. Performance varied across our 2 business segments. Our CARFAX segment grew 8% in the quarter, with subscription-based revenue up approximately 8% year-over-year. This is broadly in line with subscription revenue growth in Q1. CARFAX transactional revenue grew approximately 9% year-over-year, down slightly from 10% growth in the first quarter. CARFAX growth was broad-based across almost all major product lines in the U.S. and abroad. In the U.S., we saw comparatively stronger year-over-year performance in our service loyalty and consumer product line. As Bill noted, A few quarters ago, we shifted our go-to-market approach to emphasize the value of employing all 3 of CARFAX's core products together; advantage, listings and service loyalty. While we still believe in this value, our go-to-market approach did not deliver what we expected. We're making changes and expecting to see improvements in the second half. Internationally, our CARFAX Canada business again produced strong subscription growth. We experienced continued softness in the transactional product lines due to recent softness in auto transaction. In Europe, we saw a strong double-digit growth, but our transactional revenue in the quarter lagged expectations. We continue to adapt our strategy and sales approach as we land in different countries, and we're excited about our launch in January. Overall, we see momentum building out our CARFAX business and are doubling down on execution in the back half of the year. Our B2B segment grew 4% in the second quarter, a decline from 8% year-over-year growth in Q1. Subscription revenue grew approximately 6% year-over-year, while transactional revenue declined by 4%. Within B2B, growth was relatively stronger in our Sales Solutions business, which was anchored by solid performance in automotiveMastermind, but within prefaced by approximately $1 million in recall revenue that was pushed to the second half of the year as it is dependent on the final [indiscernible]. Our B2B business also saw some modest delays in planning solutions projects due to the uncertain back economic environment and faced challenging comps overall in Q2 that we did a relative strength in the prior year quarter. Turning now to profitability. During the second quarter, we delivered $202 million in adjusted EBITDA, an approximately 7% increase from the prior year quarter. This resulted in an adjusted EBITDA margin of 43.2%, approximately 40 basis points higher than the prior year period. For the first half, we delivered $386 million in adjusted EBITDA, an 8% increase over the prior year at a margin of 42%, which is an approximately 20-basis-point improvement over the first half of 2025. I am pleased with how we are gaining operating scale and managing our cost base in a dynamic year. This has allowed us to simultaneously pivot spend to fund investment in future growth while maintaining margins and delivering on the bottom line. Looking forward, we expect adjusted EBITDA margins to decline in the second half of the year for 2 reasons. First, while we manage the business on a full year basis, our margins are typically stronger in the first half. The preponderance of our pricing actions take effect early in the year, while our renewal cycles our advertising and investment spend a weighted toward the back half. Second, as a stand-alone public company, we will bear incremental corporate expenses compared to our historic cost allocations from S&P. We're making real progress in building towards a modern, scalable corporate infrastructure that will ultimately be a platform for growth. We expect that on a run rate basis, the discrete impact of this on incremental corporate expenses will roughly equate to reducing full year margins by approximately 150 basis points relative to our fiscal year 2025 base. This equates to the high end of the $20 million to $25 million range we disclosed at our Investor Day. Given timing, we anticipate the discrete impact to 2026 margins will be approximately half this level, but we are mitigating this somewhat through scale and operating efficiency. Both these factors are reflected in our 2026 guidance, the impact of seasonality and in incremental corporate expense. Moving down the P&L., our reported results this quarter include a significant amount of onetime costs related to the separation from SPGI. GAAP net income for the quarter was $53 million, down 18% year-over-year. However, this included $36 million of onetime transaction-related costs compared to only $2 million of transaction costs in the second quarter last year. Looking forward, as a stand-alone company, we expect our tax rate to decrease as we take action to optimize the legal entity structure that we inherited from S&P Global. Conversely, we expect our interest expense to increase as we begin to service our bond issue. I will cover our expectations for 2026 tax rate and interest rate in the guidance section. Please note that beginning next quarter, we intend to also report adjusted net income and adjusted diluted earnings per share to provide investors additional insights into the underlying performance of our business. I will now move to the balance sheet. We're launching Mobility Global with a strong balance sheet that provides us both strategic flexibility and the capacity to deliver consistent incremental shareholder value. We ended the second quarter with $186 million of cash earnings, net debt of $1.8 billion and a net leverage ratio of 2.4x adjusted EBITDA for the trailing 12 months. Looking forward, I want to highlight 4 items that will impact our cash flow. First, we expect to incur approximately $100 million in onetime cash costs associated with completing the spin-off and standup of Mobility Global, with approximately half of this incurred in 2026. At this point, we expect that roughly 50% of these onetime costs will be capped. Second, we will incur incremental interest expense from our $2 billion in bonds. Third, as previously disclosed, for the next 12 years, cash taxes will be approximately $90 million higher than our tax provision. This is due to the disallowance of a portion of amortization of intangible assets related to the IHS Markit acquisition as reflected in our deferred tax liability. And lastly, our cash taxes will increase as we will now be responsible for Federal Jack payments previously made by SPGI. Turning now to capital deployment. Our immediate priority is to fund onetime transaction-related costs and initiated a quarterly dividend to return cash to shareholders. Today, we're pleased to announce that our Board of Directors has approved a quarterly dividend of $0.06 per share, which will be payable on September 10 to stockholders of record as of the August '27 close. We set this dividend based on an estimate of normalized go-forward net income by adding back onetime separation costs and adjusting for estimated stand-alone interest and tax profile. Looking forward, at this point, we intend to maintain our inherited dividend aristocrat status from SPGI. We also continue to expect that we will not commence share repurchases until early 2027, and we will not pursue any material M&A until fully separated SPGI. Finally, please turn to Slide 9 from ability global outlook. Our full year 2026 guidance reflects the sum of our carve-out results for the first 6 months of the fiscal year and our stand-alone results for the second 6 months. Given the timing and nature of our spin-off, the remainder of 2026, we are providing guidance only for revenue and adjusted EBITDA at the Mobility Global level. To support your financial modeling, however, I will provide estimates for certain additional financial measures. We anticipate guiding to a broader set of financial metrics for our full fiscal year in 2027. We now expect to deliver revenue between $1.87 billion and $1.885 billion for our full fiscal year 2026, a year-over-year growth of 6.9% is 7.7%. As we are assuming no incremental currency impact in the second half, our revenue guidance implies a modest sequential improvement in our constant currency growth rate versus the first half. We now expect adjusted EBITDA to be between $745 million and $760 million. This implies an adjusted EBITDA margin of approximately 40% of the mix. Our adjusted EBITDA guidance incorporates our modest first half margin improvement, typical quarterly spend patterns and the part year impact of incremental standalone corporate infrastructure. Please note that for the next 4 quarters, we anticipate the potential for slightly more quarter-to-quarter margin volatility than we've seen historically, given the dynamic nature of the standup period. From a cash flow perspective, we anticipate spending roughly half of the $100 million onetime costs associated with completing the spin-off in the remainder of 2026. We anticipate interest expense to be approximately $55 million in the second half. On a cash basis, we expect to make our first interest payment of $60 million in Q4, which includes the first half accrual. We anticipate our GAAP tax rate to be in the 28% to 31% for the full fiscal year. And finally, we anticipate our average share count to be between 295 million and 297 million shares. In closing, I want to reiterate my takeaways for the quarter. We accomplished a great deal in the quarter, both operationally and in the market. Our growth continued to compound, particularly in the CARFAX segment, but not to the extent we anticipated. Our bottom line performance was strong. We're focused on execution, building momentum towards 2027, and we provided guidance for the full fiscal year. [indiscernible], we're partway through a multiyear journey to not just create an integrated mobility global to build a business platform that will deliver exceptional compounding value to our customers, employees, partners and shareholders. There's significant work ahead of us, but we're confident in both the destination and in our ability to get there. With that, operator, please open the line for questions.

[Operator Instructions] Our first question comes from Scott Worzel with Wolfe Research.

Bill, just wondering if you can talk a little bit more about the changes that you're making on the go-to-market side on CARFAX and what we could expect to see going forward now versus the strategies you had deployed in the past?

Sure. And thanks, Scott. The -- we mentioned the CARFAX go-to market. Late last year, we shifted our go-to-market approach at CARFAX. And it really -- the shift was to go from selling our core 3 products a la carte to selling them together in a package -- our lifetime dealer package, so containing our advantage, listings and service loyalty products. And as I mentioned at Investor Day, one of the effects we saw early in this process was attended to lengthen the sales cycle a little bit, but early on, the adoption of it was right in the ranges that we expected. Over the last quarter or so, we started to see those lengthening sales cycles affect our sales rate on the product. So the shift that we're making really is we still believe heavily in the package, we're recalibrating that sales approach, recalibrating our sales incentive and shifting back to where we are selling each of those products individually and allowing dealers to get to that lifetime program at their own pace by adding product by product as opposed to adding all of the products at the same time. So we've adjusted the incentive for our sales folks and really gone to an approach where we are selling the products individually and allowing dealers to get to the lifetime program at their own base.

That's helpful. And then just as a quick follow-up, just on the revenue guidance, wondering if you can give us just any color on how we should think about revenue growth rates in CARFAX and B2B in the second half of the year?

Yes. I'll start, and [indiscernible] you want to chime in. This is Matt here, Scott. Look, I think just to echo what Bill said in his remarks, we had a good first half with quite as good as we thought. And in a subscription-based business, it tends to be sticky on both sides a little bit, right? So implicit in the midpoint of our guide is modest improvement, particularly stripping out the impact of FX in the first half. But I think improvement on a sequential basis were more consistent with last year. So I think a slower build than we saw last year in perhaps we plan over the course of the year, but we're building momentum into 2027. Yes, I think you'll see more of that build in the second half in CARFAX than in B2B. B2B's numbers, if you think about Q1 to Q2, that was perhaps more impacted by FX and a strong comp than other parts of the business, and B2B has actually been excluding that relatively flat, and we anticipate more flat first half, second half, Scott. But there's underlying momentum in the business for all the reasons that Bill described. But it's just going to take us a little longer than we thought to get to where we want to be, but I will let Bill chime in.

And Scott, stepping back a little bit. What I would say is this, is that an enormous amount of work went into our spin. And and the conviction we have in the strategic rationale for the spin just continues to grow as we do that work. And we're connecting the data across the 5 businesses, the Mobility Global. We're working on getting off the TSAs with S&P. I'm encouraged by our subscription revenue growth and the strength of that over the first half of the year at 8%. With everything we had going on getting out of S&P and becoming a stand-alone public company, our innovation engine and bringing new products to market and launching new markets continued. And so I look back at Q2, we launched 2 major products at CARFAX U.S. in CARFAX Homegrown and CARFAX Showroom, both being received extremely well by the dealer community, end consumers. And we launched our SMS offers at automotiveMastermind in Q2, which is really allowing our current customer base really to take advantage of that service to sales motion. And then last, but certainly not least, in early July, we were able to launch CARFAX Germany, Europe's largest automotive market, significantly ahead of schedule. So we're really excited about the fact that we're launching new things into the market right now that will be driving that '27, '28 growth. So -- and while that's going on, we've started returning capital to shareholders, Matt talked about that. We'll talk about it a little bit more. And as we think about the midterm targets that we put out, we still have strong confidence in that with the 7.5% to 10% and 50 basis points of margin expansion. So we're feeling very good about what we laid out at Investor Day. So thank you for the question.

Our next question comes from Craig Huber with Huber Research Partners.

Great. When you had your Investor Day a few months ago, I thought one of the most interesting things you guys talked about was that you wanted to integrate the your database together with the B2B side versus the CARFAX side. Frankly, I was surprised that it wasn't done already underneath S&P Global or underneath IHS Markit, but that's water in the bridge now. Can you just go through for us real quick how long that's going to take, what kind of cost that might be? It's in your numbers, I assume. I think you've talked about that. And what the major benefits are, not real long there, but just what's the highlights here about how that's going to benefit you guys going forward here? And I have 2 other questions.

Sure, Craig. And what I would say is, and one of the things I mentioned I was really proud of the team and the way that we've gone through this process. We really started the journey 14 months ago of setting up our business as a stand-alone public company. The teams and the data operations teams and our tech teams have gone through this process, not just building so that we could function on Day 1, but really setting us up for the next 5 to 10 years and are doing the activities that we need to do in order to build that foundation for bringing those 5 businesses together and leveraging it. And so I would say that we've made a ton of progress on that front. We continue to make more, but I can give you just a couple of examples. In the past, the CARFAX business built their product plans, the automotiveMastermind team built their product plans. Those teams have come together and have joint product plans that they've built, where we will be really cross sharing information and really serving, especially our joint dealers between those 2 businesses information on the Mastermind side and information on the CARFAX side to really drive more effective products both at CARFAX and Mastermind for those dealers. Another good example, as I mentioned, we launched Germany. We recently, in the last year, launched Italy as well. And when I think of building our data platform in Europe for ingesting the data as well as creating the insights, that 3 years ago or 4 years ago would have been done at those respective countries through CARFAX Europe. And today, we're leveraging the CARFAX U.S. ingestion and insights platform to; one, move faster, but get a lot more out of the data coming in. So we're already realizing the benefits of it, but it's a multiyear journey. So I look at it as we're seeing really strong benefits today, but we have line of sight into more benefits coming online over the next year or 2.

So do you think roughly about 2 years from now, it will be complete?

Yes. That's about what I would say. Yes, I think that, that's a reasonable assumption.

Okay. My unrelated question is, with all this renewed turmoil over in the Middle East, do you feel that, that is impacting any of your businesses? And if so, which ones? I mean we've obviously seen that with some other companies getting impacted by that, but I'd like to hear your thoughts on that on your businesses.

Yes, I'll start. I think we've seen it on the margins, right? And maybe we talked about this in the prepared remarks, but even you look at the numbers, right? What was affected our transactional business and particularly transactional business internationally, right? So if Canadian auto market has been tough, our planning business felt the impact. You see that in the numbers in sort of B2B, both transactional and international numbers for the quarter. So I wouldn't say it's a significant driver, but on the margin, it certainly had an impact.

And my other question, obviously, you guys spent a heck of a lot of time here helping to put together the whole spin with the separation of the company from S&P and stuff. I mean, it took a lot of executives' time to get that done. Just curious, do you think that impacted at all your operations here versus how you were thinking things were going to go, say, a few months ago?

Yes. Craig, the thing I would say is this -- is that, of course, I mean the -- if you're doing -- taking on something as large as that, we'd be naive to say it didn't have an impact at all. The reality is a bit like your previous question. The CARFAX U.S. business is one of the growth engines of this business. And we tried something towards the end of last year and the beginning of this year. It worked, but not as well as we thought. If it would have worked the way that we thought, I think that in spite of all the things going on, we would have been where we wanted to be. So we have a -- Scott and the team and -- as a leadership team, a focus coming out of Q2 to say, let's get that go-to-market right and let's continue to figure out areas where we can execute better. And I feel like the -- getting our performance to where we want it to be, but in spite of all those things going on, is in our control. And so I think that I'm happy to see the team trying things like that. I'm happy to see them learning from it and pivoting. And I'm confident that we'll make the right adjustments and we'll get it back on track and where it needs to be. And I think that, that has more to do with how we're executing and going to market than anything else.

[Operator Instructions] Our next question is from Jeff Mueller with Baird.

For CARFAX U.S., can you just remind us from a rooftop penetration or runway perspective, where things stand for, I guess, the 3 main products, Advantage, Listings and Service Loyalty. I'd imagine Advantage is pretty high, Listings, you have a lot of revenue. It's less clear to me where service loyalty stands. So it would be helpful to know where things stay relative to opportunity?

Sure. The -- I don't think -- we haven't given exact numbers on each of those products. But I'm happy to talk to you about kind of how we view the 3 products and the opportunity that exists within each. On our Advantage program, which is our base program, we continue to add value to that program. We think we have the opportunity to add more dealers to that program. We're highly penned in the franchise dealer space, but we have a lot of opportunity in the independent dealer space and think that, that product has the ability to be a steady growth product for us for the next 5 years. On our Listings product, we have a lot of greenfields in front of us. We're of the 4 players in that space. We're the newest of the 4. And so we've had nice steady growth since we launched that product 12, 13 years ago and feel like we can continue to do that. We just launched our premium product this quarter. That's our first premium product on our listings sites. And then last, but not least, our CARFAX loyalty program. And I would say that, if I think of the dealers -- franchise dealers we have on Advantage right now, less than half of them are on that product, and the ones that are seeing a great ROI. And so we just see nothing, but good growth coming out of that as we continue to grow that product.

The average dealer has -- between 1.5 and 2 products, and you have to have Advantage. So I think to give you a sense of the order of magnitude behind the relative penetration to this.

Yes. I was just trying to kind of understand the go-to-market changes that are happening and maybe some reason behind them. On B2B subscription, so we have -- I know you gave us more historical data today, but we still have somewhat limited data. The subscription growth in B2B was outsized in Q1. It slowed somewhat in Q2. I think there was a call-out of tough comp. It's -- but just can you walk through what's going on there? And anything from comps anniversarying acquisition contribution and the underlying trends?

Yes. I think if you think about comparing Q2 on a year-over-year basis, there are 2 factors, right? One is FX, right? And then the other is EBITDA, particularly strong Q2 last year in our Sales Solutions business, which makes the numbers look a little lumpy. On a sequential basis, it's much more stable. So there's nothing really on an underlying basis going on Q1 to Q2 in the B2B space. It came out, certainly on the subscription side, roughly in line with what we anticipated. That said, we need to improve it. And I think that is an area of focus for Joe and Aaron, Christian and the team is to continue to drive up the underlying growth rate from whatever it was 6% in the first half to the high single digits. So that's some work to do. But I wouldn't read too much into the Q1 to Q2 numbers this year, as I said those are really more affected by a tough comp last year and the impact of FX.

Our next question comes from Ashish Sabadra with RBC Capital Markets.