Consensus Cloud Solutions (CCSI) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was $87.1 million, down 1.1% year-over-year, with Corporate revenue up 5.6% to $54.3 million and SoHo revenue down 10.6% to $32.8 million; net income was $21.2 million, down from $26.4 million, and adjusted EBITDA was $47.3 million, with adjusted EPS at $1.37.

• Corporate customer base expanded to 60,000, with a 101% trailing 12-month retention rate; SoHo churn improved to 3.26%, the lowest in 14 quarters.

• Cash and cash equivalents rose to $53.4 million at quarter-end, supporting ongoing debt and share repurchase programs, with $216.6 million in senior notes retired to date.

• The company serves approximately 790,000 customers across 45 countries, focusing on secure SaaS information delivery and healthcare interoperability.

• No current impact from tariffs or macroeconomic volatility; business remains resilient to market conditions.

Financial highlights

• Adjusted EBITDA margin was 54.2%, 100 basis points above guidance; adjusted net income was $27 million, nearly flat year-over-year; adjusted EPS was $1.37, down 2.1% due to higher share count.

• Free cash flow for Q1 2025 was $33.7 million, down from $35.8 million in Q1 2024; net cash from operations was $40.9 million.

• CapEx was $7.1 million, down 19% year-over-year; total capital expenditures and investments were $12.2 million.

• Gross margin was 79.3% and operating margin was 36.2% for Q1 2025.

• Net income margin declined to 24.3% from 29.9% year-over-year.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: revenue $343–$357 million, adjusted EBITDA $179–$190 million, adjusted EPS $5.03–$5.42.

• Q2 2025 guidance: revenue $85–$89 million, adjusted EBITDA $45–$48 million, adjusted EPS $1.31–$1.42.

• Free cash flow for 2025 expected to be similar to 2024; non-GAAP effective tax rate expected between 20.5% and 22.5%.

• Management expects continued organic and inorganic growth, with cash and financing sufficient for at least 12 months.