Consensus Cloud Solutions (CCSI) Q2 2025 earnings summary

Executive summary

• Q2 2025 consolidated revenue grew 0.3% year-over-year to $87.7 million, marking the first increase in eight quarters, driven by a 6.9% rise in Corporate revenue and a planned 9.4% decline in SoHo revenue.

• Adjusted EBITDA was $48.1 million, down 2.1% year-over-year, with a margin of 54.8%, near the top end of guidance.

• Adjusted net income increased 3.2% to $28.4 million; adjusted EPS rose 2.1% to $1.46, benefiting from favorable net interest and lower depreciation/amortization.

• Net income for Q2 2025 was $20.8 million, down from $23.9 million in Q2 2024; net income margin was 23.7%.

• Secured a $225 million credit facility post-quarter to refinance 6% senior notes due October 2026.

Financial highlights

• Q2 2025 revenue: $87.7 million; adjusted EBITDA: $48.1 million (54.8% margin); adjusted net income: $28.4 million; adjusted EPS: $1.46.

• Free cash flow: $20.3 million, up 28.7% year-over-year; capex: $7.9 million, down 7%.

• Gross profit: $70.1 million (80% margin); operating income: $39.0 million.

• Cash and equivalents at quarter-end: $57.9 million.

• Q2 2025 equity repurchases: 546,000 shares for ~$12 million; bond repurchases: ~$6 million face value.

Outlook and guidance

• Full-year 2025 revenue guidance reaffirmed at $343–$357 million; adjusted EBITDA at $179–$190 million; adjusted EPS guidance raised to $5.25–$5.65.

• Q3 2025 guidance: revenue $85.9–$89.9 million, adjusted EBITDA $44.4–$47.4 million, adjusted EPS $1.33–$1.42.

• 2025 free cash flow expected to exceed $85 million.

• Management expects organic and inorganic growth, with capital allocated to reinvestment and acquisitions in interoperability.

• Existing cash, cash flow, and financing expected to cover needs for at least 12 months.