Mobility Global Inc. (MBGL)

Price$20.58Cached quoteAs of 2026-09-05 02:00 UTC

AI: Undervalued

Price checkThe shares look undervalued because recurring cash flows trade at a modest multiple despite strong margins.

Mobility Global's equity is worth roughly $5.85 billion. Adding about $1.80 billion of net debt gives a total business value near $7.65 billion, around 10.2 times the midpoint of 2026 adjusted operating-earnings guidance. A simple adjustment to 2025 free cash flow for the roughly $111 million annual interest cost of the new notes suggests an equity valuation near 15 times normalized cash generation. Standalone costs create uncertainty, but these multiples appear modest for a high-margin subscription business.

Big pictureRevenue and cash have grown steadily, although the first half showed weaker cash conversion.

Revenue increased from $1.49 billion in 2023 to $1.75 billion in 2025, while operating cash flow rose from $393 million to $485 million. Capital spending stayed very low, leaving about $461 million of 2025 free cash flow, meaning cash remaining after normal investment. Second-quarter 2026 revenue grew 7% and adjusted operating earnings also grew 7%, but net income fell 18% and first-half free cash flow declined 21%. About 82% of quarterly revenue came from subscriptions.

Business strengthPowerful data brands and recurring subscriptions support resilience, while spin-off debt reduces financial flexibility.

CARFAX generated $312 million of second-quarter revenue, up 8%, and serves more than 40,000 dealer customers. Across Mobility Global, $383 million of $468 million quarterly revenue was subscription-based, providing useful recurring income. The main balance-sheet weakness was created by the separation: Mobility Global issued $2.0 billion of senior notes and used the proceeds to fund a dividend to S&P Global. Net debt is now about $1.8 billion. Management nevertheless initiated a quarterly dividend and targets broader shareholder returns beginning in 2027.

What could change the storyFaster new-product adoption could unlock upside, while weak growth and standalone costs would erase the discount.

Management targets 7.5% to 10% medium-term organic revenue growth and 8% to 11% adjusted operating-earnings growth, supported by new CARFAX products, international expansion, and additional business-to-business tools. Yet 2026 revenue guidance calls for only 6.9% to 7.7% growth, and the second-quarter business-to-business segment grew just 4%. The undervaluation case strengthens if growth returns toward the medium-term range while margins expand. It weakens if separation costs, interest expense, or sluggish product adoption keep cash growth below expectations.

AI: News

Spin-off begins tradingThe S&P Global separation created a standalone data company with new debt and independent capital allocation.

Mobility Global began regular-way NYSE trading on July 1 after S&P Global distributed one share for each S&P Global share held on the record date. Immediately before separation, Mobility Global issued $2.0 billion of senior notes and used the proceeds for a dividend to its former parent. Shares fell about 6.6% during the second regular-way trading session, but early spin-off price discovery makes attributing that move to any single factor unreliable.

Guidance disappoints investorsSolid subscription growth was overshadowed by weaker profit and revenue expectations, prompting a sharp selloff.

On August 7, Mobility Global reported second-quarter revenue of $468 million, up 7%, and adjusted operating earnings of $202 million, also up 7%. Net income fell 18% to $53 million and first-half free cash flow declined 21%. Management guided to $1.87 billion to $1.885 billion of full-year revenue and $745 million to $760 million of adjusted operating earnings. Shares dropped about 5% intraday as investors focused on softer-than-expected revenue expectations.

Loading local price history

Revenue

2023

2024

2025

Net income

2023

2024

2025

Free cash flow

2023

2024

2025

Total cash / debt

CashTotal debt

2023

2024

2025

Financial statements

	2025	2024	2023
Revenue	$1.75B	$1.61B	$1.49B
Operating expenses	$1.42B	$1.31B	$1.25B
Operating income	$327.0M	$298.0M	$239.0M
Operating margin	18.69%	18.47%	16.09%
EBITDA	$637.0M	$608.0M	$548.0M
EBITDA margin	36.40%	37.69%	36.90%
Net income	$140.0M	$208.0M	$163.0M
Net profit margin	8.00%	12.90%	10.98%
Basic EPSper basic share	$0.47	$0.70	$0.55
Diluted EPSper diluted share	$0.47	$0.70	$0.55