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    Consensus Cloud Solutions, Inc. Reports Third Quarter 2025 Results Releases Q4 2025 Guidance

    11/5/25 4:01:00 PM ET
    $CCSI
    Computer Software: Prepackaged Software
    Technology
    Get the next $CCSI alert in real time by email

    Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) today reported financial results for the third quarter of 2025.

    "Q3 was another solid quarter led by our corporate channel revenue with growth in excess of 6% compared to Q3 2024. We continued to see strong usage of our services, a record number of eFax Protect net additions and consistent revenue retention of approximately 102%. Our operating margins remained robust resulting in strong cash flows from operations and cash balances. After the close of the quarter, we utilized our new credit facility to retire $200 million of the 6% Notes due October 2026 and expect to retire the remaining $34 million before year end," said Scott Turicchi, CEO of Consensus.

    THIRD QUARTER UNAUDITED 2025 HIGHLIGHTS

    Quarterly revenues remained consistent compared to the prior year at $87.8 million for both Q3 2025 and Q3 2024. There was an increase of $3.2 million or 6.1% in our Corporate business, offset by a decrease of $3.2 million or 9.2% in our Small office home office ("SoHo") business consistent with our strategic initiative.

    Net income(1) increased to $22.1 million in Q3 2025 compared to $21.1 million for Q3 2024. The increase was primarily due to a favorable change in foreign exchange gain and loss. Q3 2025 net income margin(1) was 25.2% compared to 24.1% for Q3 2024.

    Earnings per diluted share(1) increased to $1.15 or by 5.5% in Q3 2025 compared to $1.09 for Q3 2024. The increase was primarily due to the items discussed above.

    Adjusted EBITDA(3)(4) for Q3 2025 of $46.4 million decreased compared to Q3 2024 of $46.9 million primarily driven by an increase in our personnel-related expenses. Q3 2025 Adjusted EBITDA margin(3) was 52.8%, which was within our target Adjusted EBITDA margin(3) range of 50% - 55%, compared to 53.5% in Q3 2024.

    Adjusted net income(1)(2) in Q3 2025 decreased to $26.6 million from $26.8 million in Q3 2024, primarily driven by an increase in our personnel-related expenses, partially offset by a favorable reduction in our interest expense due to a lower average outstanding debt balance as a result of our debt repurchases in connection with our debt repurchase program.

    Adjusted earnings per diluted share(1)(2) for the quarter remained consistent compared to the prior year at $1.38 for both Q3 2025 and Q3 2024.

    Net cash provided by operating activities in Q3 2025 increased to $51.6 million from $41.6 million in Q3 2024. Free cash flow(5) in Q3 2025 increased to $44.4 million from $33.6 million in Q3 2024. The increase in these two items was primarily attributable to an increase in income after excluding noncash items.

    Key financial results from operations for Q3 2025 versus Q3 2024 are set forth in the following table. Reconciliations of GAAP measures to comparable non-GAAP financial measures accompany this press release.

    (Unaudited, in thousands except per share amounts and percentages)

     

    Favorable /

    (Unfavorable)

     

    Q3 2025

    Q3 2024

    Change

    Revenues

    $

    87,767

     

    $

    87,753

     

    —

    %

    Net income (1)

    $

    22,091

     

    $

    21,120

     

    4.6

    %

    Net income margin (1)

     

    25.2

    %

     

    24.1

    %

    1.1 pts

    Earnings per diluted share (1)

    $

    1.15

     

    $

    1.09

     

    5.5

    %

    Adjusted net income (1)(2)

    $

    26,617

     

    $

    26,819

     

    (0.8

    )%

    Adjusted earnings per diluted share (1)(2)

    $

    1.38

     

    $

    1.38

     

    —

    %

    Adjusted EBITDA (3)(4)

    $

    46,360

     

    $

    46,916

     

    (1.2

    )%

    Adjusted EBITDA margin (3)

     

    52.8

    %

     

    53.5

    %

    (0.7) pts

    Net cash provided by operating activities

    $

    51,626

     

    $

    41,567

     

    24.2

    %

    Free cash flow (5)

    $

    44,441

     

    $

    33,586

     

    32.3

    %

    Notes:

    (1)

     

    The effective tax rates were approximately 26.3% for Q3 2025 and 22.5% for Q3 2024. The non-GAAP effective tax rates were approximately 22.3% for Q3 2025 and 19.9% for Q3 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 $0.23 and $0.29 per diluted share, respectively, for the three months ended September 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 intercompany related foreign exchange gains or losses from Adjusted net income and Adjusted earnings per diluted share. The prior year amounts have been adjusted for consistency with the current year. For the three months ended September 30, 2024, such exclusion increased Adjusted net income by $1.3 million and $0.07 per diluted share, respectively.

    (3)

     

    Adjusted EBITDA is defined as earnings before interest expense; interest income; other income (expense), 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.

    CAPITAL ALLOCATION STRATEGIC INITIATIVES

    Consensus ended the quarter with $97.6 million in cash and cash equivalents after the cash outlays detailed below.

    The following table consists of our material capital allocation strategic initiatives (in thousands):

    Capital Allocation:

    Q3 2025

    Cumulative Total

    Remaining

    Under the Plan

    Debt repurchase program (6)

    $

    —

    $

    222,614

    $

    77,386

    Common stock repurchase program (7)

    $

    2,566

    $

    47,147

    $

    52,853

     

     

     

     

     

    Q3 2025

     

    2025

     

    Purchases of property and equipment

    $

    7,185

    $

    22,335

     

    Notes:

    (6)

     

    On November 9, 2023, the Company's Board of Directors approved a debt repurchase program, pursuant to which Consensus may reduce, through redemptions, open market purchases, tender offers, privately negotiated purchases or other retirements, a combination of the outstanding principal balance of the 2026 Senior Notes and 2028 Senior Notes. The authorization permits an aggregate principal amount reduction of up to $300 million and expires on November 9, 2026.

    (7)

     

    On March 1, 2022, the Company's Board of Directors approved a share buyback program. Under this program, the Company was authorized to purchase in the public market or in off-market transactions up to $100.0 million worth of the Company's common stock through February 2025. In February 2025, the Company's Board of Directors authorized and approved a three-year extension of the share repurchase program through February 2028.

    Q4 2025 GUIDANCE (i)

    The following table presents ranges for the Company's Q4 2025 guidance (in millions, except per share amounts). The Revenue, Adjusted EBITDA and Adjusted earnings per diluted share ranges for the full year 2025 have been narrowed within the previously provided guidance based on year to date 2025 performance plus Q4 2025 guidance presented below:

     

    Low

    Midpoint

    High

    Revenue

    $

    84.9

    $

    86.9

    $

    88.9

    Adjusted EBITDA

    $

    43.1

    $

    44.5

    $

    46.0

    Adjusted earnings per diluted share (ii)

    $

    1.27

    $

    1.32

    $

    1.37

    Notes:

    (i)

    Quarterly guidance is provided on a non-GAAP basis, except revenues, only because certain information necessary to calculate the most comparable GAAP measures is unavailable due to the uncertainty and inherent difficulty of predicting the occurrence and the future financial statement impact of certain items. Therefore, as a result of the uncertainty and variability of the nature and amount of future adjustments, which could be significant, we are unable to provide a reconciliation of these measures without unreasonable effort.

    (ii)

    Quarterly guidance for Adjusted earnings per diluted share excludes share-based compensation, amortization of acquired intangibles, intercompany related foreign exchange (gain) loss and certain gains or costs related to non-routine and other matters that are nonrecurring, in each case net of tax. The non-GAAP effective tax rate for Q4 2025 is expected to be between 20.5% and 22.5%.

    About Consensus Cloud Solutions

    Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a global leader in digital cloud fax technology. With over 25 years of success with eFax® at its core, the Company has evolved to be a trusted provider of interoperability solutions, leveraging artificial intelligence and secure data exchange to transform digital information, automate critical workflows, and maximize operational efficiencies. Consensus maintains industry-leading compliance standards, making it a preferred partner for heavily regulated industries including healthcare, the public sector, financial services, insurance, real estate, and manufacturing. For more information about Consensus, visit consensus.com.

    "Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are "forward-looking statements" within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company's ability to grow fax revenues, profitability and cash flows; the Company's ability to identify, close and successfully transition acquisitions; subscriber growth and retention; variability of the Company's revenue based on changing conditions in particular industries and the economy generally; protection of the Company's proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; general economic and political conditions, including political tensions and war (such as the ongoing conflict in Ukraine and the Middle East). the impact of new or additional tariffs or other trade restrictions, and the impacts of a U.S. federal government shutdown; and the numerous other factors set forth in Consensus' filings with the Securities and Exchange Commission ("SEC"). For a more detailed description of the risk factors and uncertainties affecting Consensus, refer to the 2024 Annual Report on Form 10-K filed by Consensus on February 20, 2025, and the other reports filed by Consensus from time-to-time with the SEC, each of which is available at www.sec.gov. The forward-looking statements provided in this press release are subject to change. Although management's expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

    About non-GAAP Financial Measures

    To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation from, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

    We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management's internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

    For more information on these non-GAAP financial measures, please see the appropriate GAAP to non-GAAP reconciliation tables included within the attached Exhibit to this Release.

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED BALANCE SHEETS

    (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

     

     

    September 30, 2025

     

    December 31, 2024

    ASSETS

     

     

     

    Cash and cash equivalents

    $

    97,649

     

     

    $

    33,545

     

    Accounts receivable, net of allowances of $4,143 and $5,774, respectively

     

    24,175

     

     

     

    24,921

     

    Prepaid expenses and other current assets

     

    6,409

     

     

     

    16,059

     

    Total current assets

     

    128,233

     

     

     

    74,525

     

    Property and equipment, net

     

    112,281

     

     

     

    100,076

     

    Operating lease right-of-use assets

     

    5,678

     

     

     

    6,515

     

    Intangibles, net

     

    39,389

     

     

     

    41,213

     

    Goodwill

     

    352,729

     

     

     

    345,036

     

    Deferred income taxes

     

    25,328

     

     

     

    30,521

     

    Other assets

     

    11,336

     

     

     

    4,315

     

    TOTAL ASSETS

    $

    674,974

     

     

    $

    602,201

     

     

     

     

     

    LIABILITIES AND STOCKHOLDERS' DEFICIT

     

     

     

    Accounts payable and accrued expenses

    $

    43,878

     

     

    $

    36,477

     

    Income taxes payable, current

     

    2,577

     

     

     

    1,068

     

    Deferred revenue, current

     

    20,669

     

     

     

    20,714

     

    Operating lease liabilities, current

     

    2,570

     

     

     

    2,150

     

    Current portion of long-term debt

     

    —

     

     

     

    18,902

     

    Total current liabilities

     

    69,694

     

     

     

    79,311

     

    Long-term debt, net of current portion

     

    578,573

     

     

     

    574,080

     

    Deferred revenue, noncurrent

     

    1,652

     

     

     

    1,913

     

    Operating lease liabilities, noncurrent

     

    10,365

     

     

     

    12,018

     

    Liability for uncertain tax positions

     

    14,360

     

     

     

    13,218

     

    Deferred income taxes

     

    2,756

     

     

     

    891

     

    Other long-term liabilities

     

    207

     

     

     

    233

     

    TOTAL LIABILITIES

     

    677,607

     

     

     

    681,664

     

    Commitments and contingencies

     

     

     

    Common stock, $0.01 par value. Authorized 120,000,000; total issued is 20,740,844 and 20,609,725 shares and total outstanding is 18,986,123 and 19,524,000 shares as of September 30, 2025 and December 31, 2024, respectively

     

    207

     

     

     

    206

     

    Treasury stock, at cost (1,754,721 and 1,085,725 shares as of September 30, 2025 and December 31, 2024, respectively)

     

    (47,476

    )

     

     

    (32,313

    )

    Additional paid-in capital

     

    73,359

     

     

     

    59,373

     

    Accumulated deficit

     

    (19,654

    )

     

     

    (83,678

    )

    Accumulated other comprehensive loss

     

    (9,069

    )

     

     

    (23,051

    )

    TOTAL STOCKHOLDERS' DEFICIT

     

    (2,633

    )

     

     

    (79,463

    )

    TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

    $

    674,974

     

     

    $

    602,201

     

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF INCOME

    (UNAUDITED, IN THOUSANDS EXCEPT SHARE AND PER SHARE DATA)

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

    2025

     

    2024

     

    2025

     

    2024

    Revenues

    $

    87,767

     

     

    $

    87,753

     

     

    $

    262,626

     

     

    $

    263,399

     

     

     

     

     

     

     

     

     

    Cost of revenues (1)

     

    17,520

     

     

     

    17,658

     

     

     

    53,214

     

     

     

    51,828

     

    Gross profit

     

    70,247

     

     

     

    70,095

     

     

     

    209,412

     

     

     

    211,571

     

    Operating expenses:

     

     

     

     

     

     

     

    Sales and marketing (1)

     

    13,006

     

     

     

    12,500

     

     

     

    38,246

     

     

     

    36,776

     

    Research, development and engineering (1)

     

    1,950

     

     

     

    2,034

     

     

     

    5,406

     

     

     

    5,582

     

    General and administrative (1)

     

    17,361

     

     

     

    17,136

     

     

     

    51,284

     

     

     

    53,240

     

    Total operating expenses

     

    32,317

     

     

     

    31,670

     

     

     

    94,936

     

     

     

    95,598

     

    Income from operations

     

    37,930

     

     

     

    38,425

     

     

     

    114,476

     

     

     

    115,973

     

    Interest expense

     

    (8,836

    )

     

     

    (9,760

    )

     

     

    (26,485

    )

     

     

    (24,616

    )

    Interest income

     

    759

     

     

     

    659

     

     

     

    1,694

     

     

     

    2,175

     

    Other income (expense), net

     

    128

     

     

     

    (2,069

    )

     

     

    (3,285

    )

     

     

    2,496

     

    Income before income taxes

     

    29,981

     

     

     

    27,255

     

     

     

    86,400

     

     

     

    96,028

     

    Income tax expense

     

    7,890

     

     

     

    6,135

     

     

     

    22,376

     

     

     

    24,664

     

    Net income

    $

    22,091

     

     

    $

    21,120

     

     

    $

    64,024

     

     

    $

    71,364

     

     

     

     

     

     

     

     

     

    Net income per common share:

     

     

     

     

     

     

     

    Basic

    $

    1.16

     

     

    $

    1.09

     

     

    $

    3.31

     

     

    $

    3.71

     

    Diluted

    $

    1.15

     

     

    $

    1.09

     

     

    $

    3.29

     

     

    $

    3.69

     

     

     

     

     

     

     

     

     

    Weighted average shares outstanding:

     

     

     

     

     

     

     

    Basic

     

    18,995,385

     

     

     

    19,300,283

     

     

     

    19,319,133

     

     

     

    19,256,739

     

    Diluted

     

    19,253,566

     

     

     

    19,442,130

     

     

     

    19,478,533

     

     

     

    19,321,274

     

     

     

     

     

     

     

     

     

    (1) Includes share-based compensation expense as follows:

     

     

     

     

     

     

     

    Cost of revenues

    $

    467

     

     

    $

    465

     

     

    $

    1,454

     

     

    $

    1,449

     

    Sales and marketing

     

    700

     

     

     

    592

     

     

     

    2,116

     

     

     

    1,856

     

    Research, development and engineering

     

    108

     

     

     

    95

     

     

     

    320

     

     

     

    260

     

    General and administrative

     

    2,691

     

     

     

    2,270

     

     

     

    8,547

     

     

     

    8,045

     

    Total

    $

    3,966

     

     

    $

    3,422

     

     

    $

    12,437

     

     

    $

    11,610

     

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

    (UNAUDITED, IN THOUSANDS)

     

     

    Nine Months Ended September 30,

     

    2025

     

    2024

    Cash flows from operating activities:

     

     

     

    Net income

    $

    64,024

     

     

    $

    71,364

     

    Adjustments to reconcile net income to net cash provided by operating activities:

     

     

     

    Depreciation and amortization

     

    14,268

     

     

     

    14,968

     

    Amortization of financing costs and discounts

     

    1,292

     

     

     

    1,387

     

    Non-cash operating lease costs

     

    1,198

     

     

     

    1,158

     

    Share-based compensation

     

    12,437

     

     

     

    11,610

     

    Provision for doubtful accounts

     

    3,298

     

     

     

    3,220

     

    Deferred income taxes, net

     

    9,814

     

     

     

    1,255

     

    Loss (gain) on extinguishment of debt

     

    123

     

     

     

    (6,667

    )

    Changes in operating assets and liabilities:

     

     

     

    Decrease (increase) in:

     

     

     

    Accounts receivable

     

    (2,373

    )

     

     

    (2,663

    )

    Prepaid expenses and other current assets

     

    9,833

     

     

     

    759

     

    Other assets

     

    (474

    )

     

     

    947

     

    Increase (decrease) in:

     

     

     

    Accounts payable and accrued expenses

     

    6,988

     

     

     

    11,265

     

    Income taxes payable

     

    1,380

     

     

     

    2,544

     

    Deferred revenue

     

    (463

    )

     

     

    (924

    )

    Operating lease liabilities

     

    (1,593

    )

     

     

    (1,726

    )

    Liability for uncertain tax positions

     

    1,143

     

     

     

    2,147

     

    Other liabilities

     

    (27

    )

     

     

    (23

    )

    Net cash provided by operating activities

     

    120,868

     

     

     

    110,621

     

    Cash flows from investing activities:

     

     

     

    Purchases of property and equipment

     

    (22,335

    )

     

     

    (25,460

    )

    Purchase of investments

     

    (5,000

    )

     

     

    —

     

    Net cash used in investing activities

     

    (27,335

    )

     

     

    (25,460

    )

    Cash flows from financing activities:

     

     

     

    Debt issuance costs

     

    (1,673

    )

     

     

    —

     

    Proceeds from the issuance of common stock under employee stock purchase plan

     

    694

     

     

     

    747

     

    Repurchase of common stock

     

    (15,036

    )

     

     

    (708

    )

    Taxes paid related to net share settlement

     

    (1,280

    )

     

     

    (686

    )

    Repurchase of debt

     

    (15,764

    )

     

     

    (116,162

    )

    Net cash used in financing activities

     

    (33,059

    )

     

     

    (116,809

    )

    Effect of exchange rate changes on cash and cash equivalents

     

    3,630

     

     

     

    (2,469

    )

    Net change in cash and cash equivalents

     

    64,104

     

     

     

    (34,117

    )

    Cash and cash equivalents at beginning of period

     

    33,545

     

     

     

    88,715

     

    Cash and cash equivalents at end of period

    $

    97,649

     

     

    $

    54,598

     

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

    (UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)

     

    The following table sets forth the reconciliation of Net income to Adjusted net income for the three months ended September 30, 2025 and 2024:

     

     

    Three Months Ended September 30,

     

    2025

    Per Diluted Share

     

    2024 *

    Per Diluted Share *

    Net income

    $

    22,091

     

    $

    1.15

     

     

    $

    21,120

     

    $

    1.09

     

    Plus:

     

     

     

     

     

    Share-based compensation (1)

     

    3,966

     

     

    0.20

     

     

     

    3,422

     

     

    0.18

     

    Foreign exchange (gain) loss (2)

     

    (259

    )

     

    (0.01

    )

     

     

    2,073

     

     

    0.11

     

    Amortization of acquired intangibles (3)

     

    631

     

     

    0.03

     

     

     

    834

     

     

    0.04

     

    Intra-entity transfers (4)

     

    920

     

     

    0.05

     

     

     

    937

     

     

    0.05

     

    Debt extinguishment loss (gain) (5)

     

    —

     

     

    —

     

     

     

    (112

    )

     

    (0.01

    )

    Other (6)

     

    (55

    )

     

    —

     

     

     

    31

     

     

    —

     

    Income tax impact of above items

     

    (677

    )

     

    (0.04

    )

     

     

    (1,486

    )

     

    (0.08

    )

    Adjusted net income

    $

    26,617

     

    $

    1.38

     

     

    $

    26,819

     

    $

    1.38

     

    *

     

    Starting in 2025, the Company excludes intercompany related foreign exchange gains or losses from Adjusted net income and Adjusted earnings per diluted share. The prior year amounts have been adjusted for consistency with the current year. For the three months ended September 30, 2024, such exclusion increased Adjusted net income by $1.3 million and $0.07 per diluted share, respectively.

    Adjusted net income as calculated above represents net income and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; (2) intercompany related foreign exchange (gain) loss; (3) amortization of acquired intangibles; (4) intra-entity transfers; (5) debt extinguishment loss (gain); (6) other benefits or costs related to non-routine and other matters; and (7) income tax impact. Adjusted net income and weighted average diluted shares are then used to calculate Adjusted earnings per diluted share. The Company discloses these measures as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of these measures provides useful information to investors.

    Adjusted net income and Adjusted earnings per diluted share are not calculated in accordance with, or presented as an alternative to, net income or earnings per diluted share, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, these measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

    Non-GAAP Financial Measures

    To supplement its unaudited condensed consolidated financial statements, the Company uses the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow (collectively the "non-GAAP financial measures"). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about core operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

    The Company's non-GAAP financial measures are adjusted for the following items:

    (1) 

     

    Share-based compensation. The Company excludes share-based compensation because it is non-cash in nature and because the Company believes that the non-GAAP financial measures excluding this item provides meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

    (2) 

     

    Foreign exchange (gain) loss. The Company excludes intercompany related gains or losses associated with foreign exchange. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

    (3) 

     

    Amortization of acquired intangibles. The Company excludes amortization of patents and acquired intangible assets because it is non-cash in nature and because the Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

    (4)

     

    Intra-entity transfers. The Company excludes certain effects of intra-entity transfers to the extent the related tax asset or liability in the financial statement is not recovered or settled, respectively, during the year. During December 2019, the Company entered into an intra-entity asset transfer that resulted in the recording of a tax benefit and related tax asset representing tax deductible amounts to be realized in future years which is expected to be recovered over a period of up to 20 years. The Company believes that excluding the cumulative future unrealized benefit of the assets transferred in 2019 and amortization of the tax asset in the subsequent years in the non-GAAP financial measures, thereby presenting the tax benefit in the non-GAAP measures in the year of realization, provides meaningful supplemental information regarding operational performance and facilitates comparisons to historical operating results.

    (5) 

     

    Debt extinguishment loss (gain). The Company excludes certain gains or losses associated with the retirement of our debt. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results and comparisons to peers, many of which similarly exclude this item.

    (6)

     

    Other. The Company excludes certain benefits or costs related to non-routine and other matters. The Company believes that the non-GAAP financial measures excluding this item provide meaningful supplemental information regarding the operational performance of the business. In addition, excluding this item from the non-GAAP measures facilitates comparisons to historical operating results.

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    NET INCOME TO ADJUSTED EBITDA RECONCILIATION

    (UNAUDITED, IN THOUSANDS)

     

    The following table sets forth a reconciliation of Net income to Adjusted EBITDA, the most directly comparable GAAP financial measure.

     

     

    Three Months Ended September 30,

     

    2025

     

    2024

    Net income

    $

    22,091

     

     

    $

    21,120

     

    Plus:

     

     

     

    Interest expense

     

    8,836

     

     

     

    9,760

     

    Interest income

     

    (759

    )

     

     

    (659

    )

    Other (income) expense, net

     

    (128

    )

     

     

    2,069

     

    Income tax expense

     

    7,890

     

     

     

    6,135

     

    Depreciation and amortization

     

    4,519

     

     

     

    5,038

     

    EBITDA:

     

     

     

    Plus:

     

     

     

    Share-based compensation

     

    3,966

     

     

     

    3,422

     

    Other

     

    (55

    )

     

     

    31

     

    Adjusted EBITDA

    $

    46,360

     

     

    $

    46,916

     

    Adjusted EBITDA as calculated above represents earnings before interest expense, interest income, other (income) expense, net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; and (2) other benefits or costs related to non-routine and other matters. The Company discloses Adjusted EBITDA as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of Adjusted EBITDA provides useful information to investors.

    Adjusted EBITDA is not calculated in accordance with, or presented as an alternative to, net income, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

    CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES

    NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW RECONCILIATION

    (UNAUDITED, IN THOUSANDS)

     

     

    Three Months Ended September 30,

     

    Nine Months Ended September 30,

     

    2025

     

    2024

     

    2025

     

    2024

    Net cash provided by operating activities

    $

    51,626

     

     

    $

    41,567

     

     

    $

    120,868

     

     

    $

    110,621

     

    Less: Purchases of property and equipment

     

    (7,185

    )

     

     

    (7,981

    )

     

     

    (22,335

    )

     

     

    (25,460

    )

    Free cash flow

    $

    44,441

     

     

    $

    33,586

     

     

    $

    98,533

     

     

    $

    85,161

     

    Net cash provided by operating activities in Q3 2025 increased to $51.6 million from $41.6 million in Q3 2024. Free cash flow in Q3 2025 increased to $44.4 million from $33.6 million in Q3 2024. The increase in these two items was primarily attributable to an increase in income after excluding noncash items.

    The term Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment. The Company discloses Free cash flow as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company's performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

    Free cash flow is not calculated in accordance with, or presented as an alternative to, net cash provided by operating activities, and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, Free cash flow is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company's results of operations determined in accordance with GAAP.

    Key Performance Metrics (Unaudited)

    The following table sets forth certain key performance metrics for Consensus for the three months ended September 30, 2025 and 2024 (in thousands, except for percentages and Average Revenue per Customer Account):

     

    Three Months Ended September 30,

     

    2025

     

    2024

    Corporate revenue

    $

    56,299

     

     

    $

    53,085

     

    Corporate customer accounts (1)

     

    65

     

     

     

    58

     

    Corporate Average Revenue per Customer Account ("ARPA") (2)

    $

    293.12

     

     

    $

    310.13

     

    Corporate paid adds (3)

     

    8

     

     

     

    5

     

    Corporate monthly account churn (4)

     

    3.47

    %

     

     

    2.61

    %

     

     

     

     

    SoHo revenue

    $

    31,461

     

     

    $

    34,664

     

    SoHo customer accounts (1)

     

    661

     

     

     

    741

     

    SoHo ARPA (2)

    $

    15.56

     

     

    $

    15.38

     

    SoHo paid adds (3)

     

    51

     

     

     

    64

     

    SoHo monthly account churn (4)

     

    3.71

    %

     

     

    3.53

    %

    (1) 

     

    Consensus customers are defined as paying Corporate and SoHo customer accounts. In the second quarter of 2025, we eliminated dormant accounts not contributing to revenue from the number of SoHo customer accounts. The prior year period has been revised for consistency with the current year, and all metrics calculated based on the number of customer accounts (including ARPA and monthly account churn %) are calculated based on the revised number. As a result of this change, the prior year period SoHo customer accounts decreased by 26 thousand.

    (2) 

     

    Represents a monthly ARPA for the quarter and is calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter's beginning and ending customer base and dividing that amount by 3 months. Consensus believes ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus' customer base. As ARPA varies based on fixed subscription fee and variable usage components, Consensus believes it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus' customers.

    (3) 

     

    Paid Adds represents paying new Consensus customer accounts added during the periods presented.

    (4) 

     

    Monthly churn represents paid monthly SoHo and Corporate customer accounts that were cancelled during each month of the quarter divided by the average number of customers during each month of the same quarter, including the paid adds. The period measured is the quarter and expressed as a monthly churn rate over the quarter period.

     

    View source version on businesswire.com: https://www.businesswire.com/news/home/20251105971094/en/

    Laura Hinson

    Consensus Cloud Solutions, Inc

    844-211-1711

    [email protected]

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    Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) invites the public, members of the press, the financial community, and other interested parties to listen to a live audio Webcast of its Q1 2025 earnings call at 2:00 PM PT/5:00 PM ET on Wednesday, May 7th, 2025. Consensus Cloud Solutions' Chief Executive Officer, Scott Turicchi, Chief Revenue Officer, Johnny Hecker, and Chief Financial Officer, Jim Malone will host the call to discuss Q1 2025 financial results, provide an update on the business and host a live Q&A. What: Consensus Cloud Solutions, Inc. Investor Call When: Wednesday, May 7, 2025 at 5:00 PM ET/2:00 PM PT Where: https://www.webcaster4.com/Webcast/Page/2779/52248 or dial in at (8

    4/7/25 9:03:00 AM ET
    $CCSI
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