Consensus Cloud Solutions Inc. (NASDAQ:CCSI) is one of the best stocks for beginners with little money in 2026. On February 9, Consensus Cloud Solutions reported earnings for Q4 and full year 2025. The company made $87.07 million in revenue for Q4, which was a modest improvement of 0.10% year-over-year and a modest Street beat of $448,160. However, adjusted EPS grew by 13.7% to $1.41. The company’s corporate revenue grew 7.3% year-over-year in Q4, the highest rate since 2022. This segment now accounts fo ...

Core Viewpoint - The Meridian Small Cap Growth Fund's fourth-quarter 2025 performance reflects a mixed market environment, with small caps achieving a 12.8% annual return despite a 0.90% net return for the fund in Q4 compared to the Russell 2000 Growth Index's 1.22% return [1]. Group 1: Market Overview - U.S. equity markets experienced optimism due to potential monetary easing and caution regarding economic growth and valuations [1]. - Early gains in the quarter were driven by strong AI-related earnings and a rate cut by the US Federal Reserve in October [1]. - Market sentiment cooled later in the quarter, but the overall annual results remained robust [1]. Group 2: Fund Performance - The Meridian Small Cap Growth Fund achieved a 0.90% net return in Q4 2025 [1]. - Small caps delivered a 2.2% gain in Q4 2025, contributing to an annual return of 12.8% [1]. Group 3: Company Focus - Consensus Cloud Solutions, Inc. - Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is highlighted as a leading information delivery services provider with a one-month return of 29.94% and a 10.70% increase over the last 52 weeks [2]. - The stock closed at $28.34 per share on February 18, 2026, with a market capitalization of $538.624 million [2]. - The company has a high percentage of recurring revenues, low churn in the enterprise segment, and high margins, but underperformed in Q4 due to a mixed earnings report [3]. - Currently trading at less than four times earnings with a free cash flow yield of approximately 22%, the company is viewed as attractively valued [3]. - Consensus Cloud Solutions, Inc. recorded revenue of $87.1 million in Q4 2025, a slight increase of 0.1% from Q4 2024 [5].

Revenue Performance - Total revenue for 2025 is projected at $349.7 million, a slight decrease from $350.4 million in 2024 and $362.6 million in 2023[219]. - Corporate revenue increased to $222.7 million in 2025 from $209.1 million in 2024, while SoHo revenue decreased to $127.0 million from $141.3 million[219]. - Revenues for the year ended December 31, 2025, were $349.7 million, a decrease of 0.2% compared to $350.4 million in 2024 and a decline of 3% from $362.6 million in 2023[241]. - The decrease in revenues was primarily due to a $14.3 million decline in SoHo revenues, partially offset by a $13.6 million increase in Corporate revenues due to organic growth and new customer acquisitions[242]. Customer Metrics - Average Revenue per Customer Account (ARPA) for Corporate decreased to $300.03 in 2025 from $310.67 in 2024, while consolidated ARPA increased to $39.32 from $35.57[219]. - The number of Corporate customer accounts grew to 65 in 2025 from 59 in 2024, while SoHo accounts decreased to 638 from 721[219]. - Monthly churn rate for Corporate customers increased to 3.03% in 2025 from 2.36% in 2024, while SoHo churn remained relatively stable at 3.64%[219]. - The top 10 customers contribute approximately $32.7 million, representing 9% of total revenues[216]. - The company services approximately 703,000 customers across 46 countries, adapting its offerings to meet diverse customer needs[216]. Strategic Focus - The company aims to grow both organically and through opportunistic acquisitions to enhance its product offerings in the interoperability space[238]. - The company has shifted focus towards larger commercial and public sector customers, reflecting a trend towards digitization and cloud-based solutions[217]. - The company emphasizes security and compliance in data exchange, particularly in regulated industries such as healthcare and financial services[216]. Financial Performance - Cost of revenues increased to $70.6 million in 2025, representing 20% of revenues, compared to $69.7 million (20%) in 2024 and $68.3 million (19%) in 2023[244]. - Operating expenses decreased to $37 million in 2025, down from $38 million in 2024 and $40 million in 2023, with sales and marketing expenses remaining stable at $51.5 million[248]. - General and administrative expenses decreased to $69.8 million in 2025, down from $72.5 million in 2024, primarily due to reductions in depreciation and non-income related tax expenses[252]. - Net income for 2025 was $25 million, representing 25% of revenues, consistent with 2024, which also had a net income of 25%[240]. Debt and Financing - Interest expense increased to $35.5 million in 2025 from $34 million in 2024, primarily due to a net loss on debt extinguishment[256]. - The Company redeemed the remaining outstanding principal balance of the 2026 Senior Notes in full during 2025[267]. - The Company entered into a 2025 Credit Agreement providing a senior secured revolving credit facility of $75.0 million and a delayed-draw term loan facility of $150.0 million[269]. - As of December 31, 2025, the Company had $562.2 million in total indebtedness, with $7.5 million due within the next 12 months[273]. - Net cash used in financing activities was $63.3 million in 2025, primarily due to the repayment of 2026 Senior Notes[281]. Cash Flow and Liquidity - Cash and cash equivalents increased significantly to $74.7 million in 2025 from $33.5 million in 2024, driven by cash provided by operations[266]. - Net cash provided by operating activities was $136.1 million for the year ended December 31, 2025, an increase from $121.7 million in 2024[279]. - The Company anticipates that existing cash and cash equivalents will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[274]. - As of December 31, 2025, cash and cash equivalents totaled $74.7 million, up from $33.5 million in 2024[284]. Foreign Exchange and Risk Management - Foreign exchange losses amounted to $(3.2) million in 2025, compared to gains of $4.3 million in 2024[290]. - The Company has not engaged in interest rate hedging transactions to date, exposing it to potential fluctuations in interest rates[285].

Financial Data and Key Metrics Changes - Consensus reported a record revenue of $87.1 million for Q4 2025, marking a slight increase of 0.1% year-over-year, and a full year revenue of $349.7 million, which is essentially flat compared to the previous year [27][28] - Adjusted EBITDA for Q4 2025 was $45.2 million, up from $44.4 million in Q4 2024, resulting in a solid EBITDA margin of 51.9% [27] - Free cash flow reached a record $106 million for the year, an increase of 20% from 2024, with a capital expenditure of $30 million, down 10% year-over-year [30] Business Line Data and Key Metrics Changes - Corporate channel revenue for Q4 2025 was $56.8 million, a 7.3% increase year-over-year, and for the full year, it reached $222.7 million, up 6.5% [13][24] - SOHO channel revenue for Q4 2025 was $30.3 million, a decrease of 11.1% year-over-year, with a full year revenue of $127 million, down 10% compared to 2024 [19][26] Market Data and Key Metrics Changes - The corporate revenue retention rate stood at 101.3%, an improvement from 100.5% in the previous year, with the corporate customer base increasing by 11.3% year-over-year to approximately 65,000 [17][24] - The average revenue per account (ARPA) for the corporate channel was approximately $290, a decrease of $13 year-over-year, while the SOHO ARPA was $15.55, remaining flat year-over-year [24][26] Company Strategy and Development Direction - The company is focused on transitioning its business model towards a recurring revenue platform, with a significant shift towards corporate revenue, which is projected to reach 68% of total revenue by 2026 [12] - The strategy includes enhancing healthcare solutions and expanding into the public sector, particularly with the eFax product tailored for government use [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that hospitals are adapting to budget constraints and showing increased engagement with the company's services [40] - The company anticipates continued growth in corporate revenue, projecting a 9% growth rate at the midpoint of guidance for 2026, while SOHO revenue is expected to decline by approximately 10% [9][10] Other Important Information - The CFO, Jim Malone, will retire, with Adam Varon set to succeed him, indicating a smooth transition in leadership [34][35] - The company plans to be more aggressive in its share repurchase program, given the favorable free cash flow yield compared to debt costs [10] Q&A Session Summary Question: Can you talk about the demand environment and the success of the VA? - Management noted that hospitals are adjusting to budget changes and are increasingly interested in operational services, with the VA projected to contribute over $9 million in revenue for 2026, exceeding previous expectations [40][41] Question: What are the underlying demand dynamics for Clarity and competition? - The company highlighted that demand for Clarity is driven by the need to reduce administrative burdens and accelerate processing times, with a focus on specific use cases like referral management [62] Question: Can you discuss expectations for ARPA this year? - Management indicated that ARPA may experience downward pressure due to the growth of eFax Protect, but the non-eFax Protect cohort is expected to see growth [78] Question: Can you provide details on gross margin expectations? - The company expects stable gross margins around 80%, with most cost increases occurring in operating expenses rather than cost of goods sold [85]

Financial Data and Key Metrics Changes - Consensus reported a record revenue of $87.1 million for Q4 2025, marking a slight increase of 0.1% year-over-year, and a full year revenue of $349.7 million, which is essentially flat compared to the previous year [27][28] - Adjusted EBITDA for Q4 2025 was $45.2 million, up from $44.4 million in Q4 2024, resulting in a solid EBITDA margin of 51.9% [27] - Free cash flow reached a record $106 million for the year, an increase of 20% from 2024, with capital expenditures of $30 million, down 10% year-over-year [30] Business Line Data and Key Metrics Changes - Corporate revenue for Q4 2025 was $56.8 million, a 7.3% increase year-over-year, and for the full year, it totaled $222.7 million, reflecting a 6.5% growth [13][24] - The SoHo channel revenue for Q4 2025 was $30.3 million, a decrease of 11.1% year-over-year, with a full year revenue of $127 million, down 10% compared to 2024 [19][26] Market Data and Key Metrics Changes - The corporate channel now represents 64% of total revenue, up from 60% in 2024, and is projected to reach 68% in 2026 [12] - The corporate customer base increased by 11.3% year-over-year to approximately 65,000 customers, with a corporate revenue retention rate of 101.3% [17][24] Company Strategy and Development Direction - The company is focused on transitioning to a recurring revenue model, particularly in the healthcare sector, and is investing in advanced interoperability tools to deepen customer relationships [15][21] - A deliberate strategy is in place to manage the SoHo channel as a strategic cash engine, allowing for funding of corporate growth initiatives [20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand environment, noting that hospitals are adjusting their budgets and showing increased engagement with services [40] - The company anticipates continued growth in corporate revenue, projecting approximately 9% growth at the midpoint of guidance for 2026, while expecting a decline in SoHo revenue [9][10] Other Important Information - The CFO, Jim Malone, will retire, and Adam Varon will succeed him as CFO, indicating a smooth transition in leadership [34][35] - The company plans to be more aggressive in its share repurchase program in 2026, given the favorable free cash flow yield compared to debt costs [10][31] Q&A Session Summary Question: Can you talk about the demand environment and the success of the VA? - Management noted that hospitals are adapting to budget constraints and are increasingly interested in operational services, with the VA projected to contribute over $9 million in revenue for 2026, exceeding previous expectations [40][41] Question: What are the underlying demand dynamics for Clarity and competition? - The company highlighted that demand for Clarity is driven by the need to reduce administrative burdens and accelerate processing times, with a focus on specific use cases like referral management [62] Question: Can you discuss expectations for ARPA this year? - Management indicated that while eFax Protect may exert downward pressure on overall ARPA, the non-eFax Protect cohort is expected to see growth [78] Question: Any color on gross margin expectations? - Management expects gross margins to remain stable around 80%, with most cost increases occurring in operating expenses rather than cost of goods sold [85]

Consensus Cloud Solutions (NasdaqGS:CCSI) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Speaker6Good day, ladies and gentlemen, and welcome to Consensus Q4 2025 earnings call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. On this call from Conse ...

Fourth Quarter and FY2025 Preliminary and Unaudited Results February 10, 2026 Forward-Looking Statements and Risk Factors Certain statements in this presentation are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2025 Financial Guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in those stateme ...

分组1 - Consensus Cloud Solutions, Inc. (CCSI) reported quarterly earnings of $1.41 per share, exceeding the Zacks Consensus Estimate of $1.31 per share, and showing an increase from $1.32 per share a year ago, resulting in an earnings surprise of +7.63% [1] - The company achieved revenues of $87.07 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.06%, and showing a slight increase from $86.98 million year-over-year [2] - Consensus Cloud Solutions has outperformed the S&P 500 with an 8.5% increase in share price since the beginning of the year, compared to the S&P 500's gain of 1.3% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.37 on revenues of $87.8 million, and for the current fiscal year, it is $5.69 on revenues of $353.31 million [7] - The Internet - Software industry, to which Consensus Cloud Solutions belongs, is currently ranked in the top 38% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Revenue Performance - Q4 2025 revenues increased by $0.1 million to $87.1 million, with a 7.3% growth in the Corporate business, while the SoHo business decreased by 11.1%[3] - Full year 2025 revenues decreased by $0.7 million to $349.7 million, primarily due to a 10.1% decline in the SoHo business[7] - Preliminary financial results for the year ended December 31, 2025, indicate revenues of $349.7 million, slightly down from $350.4 million in 2024[21][28] - Corporate revenue for Q4 2025 was $56.8 million, up from $52.9 million in Q4 2024, indicating a 5.4% growth[52] - SoHo revenue in Q4 2025 was $30.3 million, down from $34.1 million in Q4 2024, a decrease of 11.0%[52] Net Income and Earnings - Net income for Q4 2025 rose by $2.4 million or 13% to $20.5 million, resulting in a net income margin of 23.5% compared to 20.8% in Q4 2024[4] - Net income for 2025 decreased to $84.5 million, with a net income margin of 24.2%, down from 25.5% in 2024[8] - Earnings per diluted share increased by 15.2% to $1.06 in Q4 2025, up from $0.92 in Q4 2024[4] - Adjusted net income for 2025 increased to $109.4 million, with adjusted earnings per diluted share rising by 3.1% to $5.62[8] - Net income for the year ended December 31, 2025, was $84,527, a decrease of 5.1% from $89,435 in 2024[30] Cash Flow and Operating Activities - Net cash provided by operating activities in 2025 increased to $136.1 million, while free cash flow rose to $105.9 million[8] - Net cash provided by operating activities in Q4 2025 increased to $15.2 million from $11.1 million in Q4 2024, representing a 36.1% increase[47] - Free cash flow in Q4 2025 rose to $7.3 million, up from $3.1 million in Q4 2024, marking a 133.5% increase[47] - For the full year 2025, net cash provided by operating activities increased to $136.1 million from $121.7 million in 2024, a growth of 11.5%[48] - Free cash flow for 2025 was $105.9 million, compared to $88.3 million in 2024, reflecting a 19.9% increase[48] Adjusted Financial Metrics - Adjusted EBITDA for Q4 2025 was $45.2 million, with an Adjusted EBITDA margin of 51.9%, compared to 51.0% in Q4 2024[4] - The Company reported an adjusted EBITDA margin of 43% for the year ended December 31, 2025[24][25] - Adjusted EBITDA for the year ended December 31, 2025, was $186,884, a slight decrease from $188,406 in 2024[44] Assets and Liabilities - Cash and cash equivalents increased to $74.7 million as of December 31, 2025, up from $33.5 million in 2024[27] - Total assets rose to $663.8 million in 2025, compared to $602.2 million in 2024, marking an increase of approximately 10.2%[27] - Operating expenses for the year ended December 31, 2025, totaled $128.9 million, a decrease from $131.3 million in 2024[28] - The Company has a share buyback program authorized for up to $100 million, extended through February 2028[20] Customer Metrics - The number of corporate customer accounts increased to 65 in Q4 2025 from 59 in Q4 2024, a rise of 10.2%[52] - Corporate Average Revenue per Customer Account (ARPA) decreased to $290.40 in Q4 2025 from $303.58 in Q4 2024, a decline of 4.3%[52] - SoHo customer accounts decreased to 638 in Q4 2025 from 721 in Q4 2024, a decline of 11.5%[52] - Corporate monthly account churn increased to 3.30% in Q4 2025 from 2.63% in Q4 2024, indicating a rise in customer attrition[52] Guidance and Future Plans - Q1 2026 revenue guidance is set between $85.4 million and $89.4 million, with adjusted earnings per diluted share guidance between $1.36 and $1.46[16] - FY 2026 revenue guidance ranges from $350.0 million to $364.0 million, with adjusted earnings per diluted share guidance between $5.55 and $5.95[17] - The Company approved a debt repurchase program allowing for a reduction of up to $300 million in outstanding principal of the 2026 and 2028 Senior Notes, expiring on November 9, 2026[20] - The company plans to continue focusing on operational performance metrics, including non-GAAP measures like Adjusted net income and Adjusted EBITDA, to provide transparency to investors[35] Other Financial Information - The Company emphasizes the importance of non-GAAP financial measures for evaluating performance and liquidity, excluding certain expenses not indicative of core business results[24][25] - The company reported a foreign exchange loss of $3,112 in 2025, compared to a gain of $4,312 in 2024[32] - Interest expense for the year ended December 31, 2025, was $35,528, an increase from $33,979 in 2024[44] - The company incurred a debt extinguishment loss of $919 in 2025, compared to a gain of $6,557 in 2024[32] - Share-based compensation for the year ended December 31, 2025, was $17,693, compared to $16,764 in 2024, reflecting an increase of 5.5%[32]

LOS ANGELES--(BUSINESS WIRE)--Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported preliminary financial results for the fourth quarter and year ended December 31, 2025. "I want to congratulate our employees on a year of many accomplishments. We returned to total revenue growth in the last three quarters of the year, driven by our corporate channel exceeding 7% revenue growth by the end of 2025. We further reduced our debt by $36 million reaching our initial debt objectives and successfully refinan ...