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08/07/2025 – 04:01 PM
LOS ANGELES – Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) released its Q2 2025 financial performance today, showcasing a return to revenue growth and strong operational efficiency.
CEO Scott Turicchi highlighted the company’s positive trajectory: “We continued our momentum through Q2, returning to total positive revenue growth ahead of our expectations. Our Corporate revenue growth achieved 6.9% over the prior year quarter, driven primarily by strong usage, improved revenue retention and new customer acquisition. Our SoHo revenue performed as expected. Our operating margins remained robust resulting in strong cash flows from operations and cash balances.” Turicchi also noted the company’s strategic financial moves post-quarter, securing a $225 million credit facility to, in part, retire 6% senior notes due October 2026.
SECOND QUARTER 2025 KEY METRICS (UNAUDITED)
Consensus Cloud Solutions’ Q2 2025 results reveal a company navigating a dynamic market with strategic finesse, here’s a breakdown:
- Revenue: Total revenue edged up 0.3% to $87.7 million, reflecting a Corporate business surge of 6.9%, counteracting a planned 9.4% decrease in the SoHo segment.
- Profitability: Net income dipped to $20.8 million, with a margin of 23.7%, attributed to foreign exchange fluctuations. However, Adjusted EBITDA remained strong at $48.1 million, showcasing a robust 54.8% margin, hitting the upper end of the company’s 50-55% target range.
- Earnings Per Share: Diluted EPS saw a decrease to $1.07, however, adjusted diluted EPS rose 2.1% to $1.46, driven by lower interest expenses from strategic debt repurchases.
- Cash Flow: The company ramped up its operational strength, generating $28.3 million in net cash from operating activities, leading to $20.3 million in free cash flow.
A detailed financial performance comparison is summarized in the table below:
|
(Unaudited, in thousands except per share amounts and percentages) |
Favorable / (Unfavorable) |
||||||
Q2 2025 |
Q2 2024 |
Change |
|||||
|
Revenues |
$ |
87,721 |
|
$ |
87,500 |
0.3% |
|
|
Net income (1) |
$ |
20,781 |
|
$ |
23,874 |
(13.0)% |
|
|
Net income margin (1) |
23.7 |
% |
27.3 |
% |
(3.6) pts |
||
|
Earnings per diluted share (1) |
$ |
1.07 |
|
$ |
1.24 |
(13.7)% |
|
|
Adjusted net income (1)(2) |
$ |
28,444 |
|
$ |
27,555 |
3.2% |
|
|
Adjusted earnings per diluted share (1)(2) |
$ |
1.46 |
|
$ |
1.43 |
2.1% |
|
|
Adjusted EBITDA (3)(4) |
$ |
48,065 |
|
$ |
49,072 |
(2.1)% |
|
|
Adjusted EBITDA margin (3) |
54.8 |
% |
56.1 |
% |
(1.3) pts |
||
|
Net cash provided by operating activities |
$ |
28,299 |
|
$ |
24,365 |
16.1% |
|
|
Free cash flow (5) |
$ |
20,345 |
|
$ |
15,809 |
28.7% |
|
Notes:
|
(1) |
The effective tax rates were approximately 27.2% for Q2 2025 and 26.5% for Q2 2024. The non-GAAP effective tax rates were approximately 21.0% for Q2 2025 and 21.3% for Q2 2024. The calculation for net income margin is net income divided by revenues. |
|
|
(2) |
Adjusted net income and Adjusted earnings per diluted share exclude certain non-GAAP items, as defined in the accompanying Reconciliation of GAAP to non-GAAP Financial Measures. Such exclusions totaled $0.39 and $0.19 per diluted share, respectively, for the three months ended June 30, 2025 and 2024. Adjusted net income and Adjusted earnings per diluted share are not meant as a substitute for measures calculated in accordance with GAAP, but are presented solely for informational purposes. Starting in 2025, the Company excludes any foreign exchange gains or losses from Adjusted net income and Adjusted earning per diluted share. The prior year amounts have been adjusted for consistency with the current year. For the three months ended June 30, 2024, such exclusion reduced Adjusted net income by $0.5 million and $0.02 per diluted share, respectively. |
|
|
(3) |
Adjusted EBITDA is defined as earnings before interest expense; interest income; other (expense) income, net; income tax expense; depreciation and amortization; and other items used to reconcile net income per diluted share to Adjusted earnings per diluted share, as presented in the Reconciliation of GAAP to Adjusted non-GAAP Financial Measures. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by revenues. Adjusted EBITDA amounts and Adjusted EBITDA margin are not meant as a substitute for measures calculated in accordance with GAAP, but are presented solely for informational purposes. The most directly comparable GAAP financial measure to Adjusted EBITDA and Adjusted EBITDA margin is net income and net income margin. |
|
|
(4) |
See Net Income to Adjusted EBITDA Reconciliation for the components of Adjusted EBITDA. |
|
|
(5) |
Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment. Free cash flow amounts are not meant as a substitute for measures calculated in accordance with GAAP, but are solely for informational purposes. |
Consensus Cloud Solutions’ ended Q2 2025 with $57.9 million in cash and cash equivalents.
Strategic capital allocation initiatives are summarized below:
|
Capital Allocation: |
Q2 2025 |
Cumulative Total |
Remaining Under the Plan |
|||||
|
Debt repurchase program (6) |
$ |
6,000 |
$ |
222,614 |
$ |
77,386 |
||
|
Common stock repurchase program (7) |
$ |
12,436 |
$ |
44,581 |
$ |
55,419 |
||
