Financial Data and Key Metrics Changes - Corporate revenue for Q1 2025 reached $54.3 million, representing a 5.6% increase compared to $51.4 million in Q1 2024, marking the best growth in eight quarters on a normalized basis [6][24] - Adjusted EBITDA for Q1 2025 was $47.3 million, a decrease of 1.7% year over year, with a margin of 54.2%, exceeding expectations by 100 basis points [27][29] - Free cash flow for the quarter was $33.7 million, slightly down from $35.8 million in Q1 2024 due to increased receivables [9][30] Business Line Data and Key Metrics Changes - The SOHO channel revenue was $32.8 million, down 10.6% from $36.8 million in Q1 2024, reflecting a strategic focus on profitability [20][25] - Corporate customer base grew to approximately 60,000, a 9% increase year over year, with a revenue retention rate of 101% [15][24] - ARPA for corporate customers was $307, down $10 year over year, while SOHO ARPA was $14.83, showing a minor decrease [17][26] Market Data and Key Metrics Changes - The company noted a positive trend in corporate ARPA, increasing by almost $3 sequentially, while SOHO customer count decreased from 747,000 to 730,000 [21][29] - The VA deployment continues to gain momentum, with significant usage increases and new deployments proceeding as planned [18] Company Strategy and Development Direction - The company aims to acquire customers primarily in the healthcare space and drive revenue growth to 6.25% for the year [7] - Focus on managing cost structures while making modest investments in go-to-market operations for future benefits [7] - Continued emphasis on the core fax business, which contributes over 90% to corporate revenue, while also enhancing advanced solutions like Unite and Clarity [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit growth for the corporate channel, despite potential economic slowdowns [14][11] - The company is not currently seeing impacts from tariffs and is closely monitoring the economic environment [10][11] - Guidance for full-year revenue is set between $343 million and $357 million, with adjusted EBITDA between $179 million and $190 million [31] Other Important Information - The company repurchased approximately $10 million of debt in Q1 2025, with a total of $223 million repurchased since the program's launch [9][28] - Cash at the end of Q1 2025 was approximately $53 million, sufficient to fund operations and debt repurchases [29] Q&A Session Summary Question: Can you talk about growth in corporate revenue and VA deployment? - Corporate growth was supported by strong usage across fax brands and good adoption of advanced solutions, with the VA's FedRAMP high certification unlocking new opportunities [36][39] Question: When would you expect the decline in SOHO revenue to moderate? - The decline is influenced by advertising spend and profitability; the company is monitoring these closely to determine future actions [42][45] Question: Are there notable ads for larger enterprise accounts? - The company is adding customers across the board, including large enterprises, and has a robust pipeline for new customers [78][81]

Financial Performance - Q1 2025 consolidated revenue declined by $1 million, a 1.1% decrease year-over-year[29] - Adjusted EBITDA decreased by $0.8 million, a 1.7% decrease year-over-year, with an adjusted EBITDA margin of 54.2%[31] - Adjusted EPS decreased by $0.03, a 2.1% decrease year-over-year[31] - Q1 2025 free cash flow was $33.7 million, compared to $35.8 million in Q1 2024[33] Corporate Business - Corporate revenue for Q1 2025 increased by 5.6% to $54.3 million, compared to $51.4 million in Q1 2024[13] - Corporate revenue retention rate was 101% in Q1 2025, compared to 97.9% in Q1 2024[13] - Total corporate customer count reached 60,000 in Q1 2025, compared to 55,000 in Q1 2024[13] SoHo Business - SoHo revenue for Q1 2025 was $32.8 million, compared to $36.8 million in the previous year, indicating a slowing rate of decline[16] - SoHo account base was 730,000 in Q1 2025, compared to 747,000 in Q4 2024[16] - SoHo churn rate was 3.26% in Q1 2025, compared to 3.38% in Q4 2024, representing the lowest churn rate in 14 quarters[16] Capital Allocation - Bond repurchases in Q1 2025 amounted to approximately $10 million face value, with an additional $6 million repurchased to date in Q2 2025[33] - Total bond repurchases to date reached $223 million for a cash outlay of $209 million[33] - The company's cash balance was approximately $53 million in Q1 2025[33] Financial Guidance - The company reaffirmed its full-year 2025 revenue guidance, projecting between $343 million and $357 million[35] - The company provided Q2 2025 revenue guidance, projecting between $85 million and $89 million[36]

[Consensus Cloud Solutions, Inc. Q1 2025 Earnings Release](index=1&type=section&id=Consensus%20Cloud%20Solutions%2C%20Inc.%20Reports%20First%20Quarter%202025%20Results) The company reports Q1 2025 results, showing stable performance with a slight revenue decline but strong margins and debt reduction [Financial Highlights](index=1&type=section&id=FIRST%20QUARTER%20UNAUDITED%202025%20HIGHLIGHTS) Q1 2025 revenue slightly decreased to $87.1 million, with stable Adjusted EBITDA and a decline in GAAP Net Income - CEO Scott Turicchi expressed satisfaction with the start of fiscal 2025, highlighting **continued improvement in Corporate revenue growth**, **robust operating margins**, and **debt reduction** fueled by strong cash flows[2](index=2&type=chunk) Q1 2025 vs. Q1 2024 Key Financial Results | (Unaudited, in thousands except per share amounts and percentages) | Q1 2025 | Q1 2024 | Favorable / (Unfavorable) Change | | :--- | :--- | :--- | :--- | | Revenues | $ 87,138 | $ 88,146 | (1.1)% | | Net income | $ 21,152 | $ 26,370 | (19.8)% | | Earnings per diluted share | $ 1.07 | $ 1.37 | (21.9)% | | Adjusted net income | $ 26,968 | $ 26,903 | 0.2% | | Adjusted earnings per diluted share | $ 1.37 | $ 1.40 | (2.1)% | | Adjusted EBITDA | $ 47,250 | $ 48,066 | (1.7)% | | Adjusted EBITDA margin | 54.2 % | 54.5 % | (0.3) pts | | Net cash provided by operating activities | $ 40,943 | $ 44,689 | (8.4)% | | Free cash flow | $ 33,747 | $ 35,766 | (5.6)% | - The **1.1% revenue decrease** was primarily due to a planned **$3.9 million (10.6%) decline in the SoHo business**, partially offset by a **$2.9 million (5.6%) increase in the Corporate business**[3](index=3&type=chunk) - The decrease in Net Income to **$21.2 million** was mainly caused by a **debt extinguishment loss** and changes in foreign exchange revaluation[4](index=4&type=chunk) - Free cash flow decreased to **$33.7 million** from $35.8 million, primarily due to lower net cash inflows from working capital and decreased income[4](index=4&type=chunk)[46](index=46&type=chunk) [Capital Allocation](index=3&type=section&id=CAPITAL%20ALLOCATION%20STRATEGIC%20INITIATIVES) The company continued its capital allocation strategy in Q1 2025 by repurchasing debt and common stock Q1 2025 Capital Allocation (in thousands) | Capital Allocation: | Q1 2025 | Cumulative Total | Remaining Under the Plan | | :--- | :--- | :--- | :--- | | Debt repurchase program | $ 9,731 | $ 216,614 | $ 83,386 | | Common stock repurchase program | $ 34 | $ 32,147 | $ 67,853 | - The company has a debt repurchase program authorizing up to **$300 million** in principal reduction, which expires in November 2026[11](index=11&type=chunk) - The Board of Directors approved a three-year extension of the **$100 million share repurchase program**, now running through February 2028[11](index=11&type=chunk) [Business Outlook](index=4&type=section&id=FY%202025%20GUIDANCE) The company reaffirmed its full-year 2025 guidance and provided specific projections for Q2 2025 Full-Year 2025 Guidance (in millions, except per share) | | Low | Midpoint | High | | :--- | :--- | :--- | :--- | | Revenue | $ 343 | $ 350 | $ 357 | | Adjusted EBITDA | $ 179 | $ 185 | $ 190 | | Adjusted earnings per diluted share | $ 5.03 | $ 5.22 | $ 5.42 | Q2 2025 Guidance (in millions, except per share) | | Low | Midpoint | High | | :--- | :--- | :--- | :--- | | Revenue | $ 85.0 | $ 87.0 | | | Adjusted EBITDA | $ 45.0 | $ 46.5 | | | Adjusted earnings per diluted share | $ 1.31 | $ 1.37 | | - Guidance is provided on a non-GAAP basis (except for revenue) due to difficulty in predicting certain items for a GAAP reconciliation[14](index=14&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for the three months ended March 31, 2025 [Condensed Consolidated Balance Sheets](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Total assets increased to $629.6 million while total liabilities decreased, improving the stockholders' deficit Balance Sheet Highlights (in thousands) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 53,399 | $ 33,545 | | Total current assets | $ 91,461 | $ 74,525 | | TOTAL ASSETS | $ 629,647 | $ 602,201 | | Total current liabilities | $ 73,345 | $ 79,311 | | Long-term debt, net of current portion | $ 577,590 | $ 574,080 | | TOTAL LIABILITIES | $ 679,005 | $ 681,664 | | TOTAL STOCKHOLDERS' DEFICIT | $ (49,358) | $ (79,463) | [Condensed Consolidated Statements of Income](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Q1 2025 revenue was $87.1 million, with net income declining to $21.2 million from the prior-year quarter Income Statement Highlights (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Revenues | $ 87,138 | $ 88,146 | | Gross profit | $ 69,068 | $ 71,098 | | Income from operations | $ 37,497 | $ 37,667 | | Net income | $ 21,152 | $ 26,370 | | Diluted EPS | $ 1.07 | $ 1.37 | - A key factor in the net income decline was the 'Other (expense) income, net' line, which shifted from a **$3.9 million income in Q1 2024 to a $1.1 million expense in Q1 2025**[26](index=26&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Net cash from operating activities decreased to $40.9 million, resulting in a net cash increase of $19.9 million Cash Flow Highlights (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $ 40,943 | $ 44,689 | | Net cash used in investing activities | $ (12,196) | $ (8,923) | | Net cash used in financing activities | $ (10,122) | $ (58,829) | | Net change in cash and cash equivalents | $ 19,854 | $ (27,204) | - Major cash uses in Q1 2025 included **$9.7 million for debt repurchase** and **$7.2 million for purchases of property and equipment**[29](index=29&type=chunk) [Reconciliation of GAAP to Non-GAAP Financial Measures](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES_parent) This section reconciles GAAP metrics to non-GAAP measures like Adjusted Net Income, EBITDA, and Free Cash Flow - The company uses non-GAAP measures like Adjusted Net Income, Adjusted EBITDA, and Free Cash Flow for internal decision-making and believes they provide meaningful supplemental information by excluding items not indicative of recurring core business operations[19](index=19&type=chunk)[20](index=20&type=chunk) [Reconciliation of Net Income to Adjusted Net Income](index=9&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) Q1 2025 GAAP Net Income of $21.2 million is reconciled to Adjusted Net Income of $27.0 million Net Income to Adjusted Net Income Reconciliation (in thousands) | | 2025 | 2024 | | :--- | :--- | :--- | | Net income | $ 21,152 | $ 26,370 | | Plus: Share-based compensation | 4,264 | 4,450 | | Plus: Foreign exchange loss (gain) | 1,099 | (3,888) | | Plus: Amortization | 615 | 833 | | Plus: Debt extinguishment loss (gain) | 77 | (4,865) | | Plus: Other adjustments & tax impact | (239) | 3,945 | | **Adjusted net income** | **$ 26,968** | **$ 26,903** | - Beginning in 2025, the company **excludes foreign exchange gains or losses** from Adjusted Net Income, with prior periods adjusted for consistency[30](index=30&type=chunk)[35](index=35&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=11&type=section&id=NET%20INCOME%20TO%20ADJUSTED%20EBITDA%20RECONCILIATION) Q1 2025 GAAP Net Income of $21.2 million is reconciled to Adjusted EBITDA of $47.3 million Net Income to Adjusted EBITDA Reconciliation (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net income | $ 21,152 | $ 26,370 | | Plus: Interest expense, net | 8,525 | 5,276 | | Plus: Other expense (income), net | 1,097 | (3,902) | | Plus: Income tax expense | 6,723 | 9,923 | | Plus: Depreciation and amortization | 5,178 | 4,767 | | Plus: Share-based compensation | 4,264 | 4,450 | | Plus: Other | 311 | 1,182 | | **Adjusted EBITDA** | **$ 47,250** | **$ 48,066** | [Reconciliation to Free Cash Flow](index=12&type=section&id=NET%20CASH%20PROVIDED%20BY%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW%20RECONCILIATION) Q1 2025 Net Cash from Operations of $40.9 million is reconciled to Free Cash Flow of $33.7 million Free Cash Flow Reconciliation (in thousands) | | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $ 40,943 | $ 44,689 | | Less: Purchases of property and equipment | (7,196) | (8,923) | | **Free cash flow** | **$ 33,747** | **$ 35,766** | [Key Performance Metrics](index=13&type=section&id=Key%20Performance%20Metrics%20(Unaudited)) Corporate segment revenue grew while SoHo revenue declined, with mixed trends in customer accounts and churn rates Q1 2025 vs Q1 2024 Key Performance Metrics (in thousands, except percentages/ARPA) | | 2025 | 2024 | | :--- | :--- | :--- | | **Corporate** | | | | Revenue | $ 54,289 | $ 51,390 | | Customer accounts | 60 | 55 | | Monthly account churn | 2.49 % | 1.92 % | | **SoHo** | | | | Revenue | $ 32,849 | $ 36,754 | | Customer accounts | 730 | 808 | | Monthly account churn | 3.26 % | 3.42 % | - **Corporate revenue grew 5.6% YoY**, while **SoHo revenue declined 10.6% YoY**[3](index=3&type=chunk)[50](index=50&type=chunk) - A notable trend is the **increase in Corporate monthly account churn** (from 1.92% to 2.49% YoY) alongside a **decrease in SoHo monthly account churn** (from 3.42% to 3.26% YoY)[50](index=50&type=chunk)

Group 1 - Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) is leveraging artificial intelligence to enhance its digital cloud fax technology, which is contributing to accelerated revenue and EPS GAAP growth [1] - The company has over 25 years of operational experience, indicating a strong foundation in the industry [1] Group 2 - The analyst has a beneficial long position in CCSI shares, indicating confidence in the company's future performance [2] - The article reflects the author's personal opinions and does not involve compensation from any company mentioned [2]

Financial Data and Key Metrics Changes - Q4 2024 consolidated revenue was $87 million, a decrease of $0.8 million or 0.9% compared to Q4 2023, performing better than expectations [46] - Full year 2024 revenue was $350.4 million, a decrease of $12.2 million or 3.4% from the prior year, largely driven by the planned decline in the SoHo business [48] - Adjusted net income for Q4 2024 was $25.8 million, an increase of $4.4 million or 20.8% over the prior year [47] - Full year 2024 free cash flow was $88 million, compared to $77 million in the prior year [53] Business Line Data and Key Metrics Changes - Corporate revenue for Q4 2024 was $52.9 million, an increase of approximately 7.1% year-over-year, contributing to a full year corporate revenue of $209.1 million, representing a 4.8% growth rate [17][41] - SoHo revenue for Q4 2024 was $34.1 million, down 11.1% from $38.3 million in the same period last year, with full year SoHo revenues at $141.3 million, down 13.3% [25][45] - Corporate ARPA for Q4 2024 was stable at $304, while full year ARPA ended at $311, down from $316 in 2023 [22][41] Market Data and Key Metrics Changes - The corporate customer count reached approximately 59,000, with over 3,000 new customers added in Q4 [21] - The VA's ECFax solution revenue exceeded $2.6 million in 2024, with expectations to reach up to $5 million in 2025 [24] Company Strategy and Development Direction - The company plans to prioritize profitability and stability in the SoHo business for 2025, with a revenue target of approximately $128 million, down from $141 million in 2024 [31] - For the corporate channel, the company aims for a revenue target of $222 million in 2025, reflecting a growth rate of 6% to 6.5% compared to 2024 [35] - The company is focusing on customer retention, upselling, and cross-selling strategies to drive growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the corporate channel's growth, noting improvements in decision-making and market normalization [72][74] - The company anticipates a flat revenue year at $350 million for 2025, with expectations for growth in subsequent years [36] Other Important Information - The company repurchased approximately $20 million in debt during Q4 2024, bringing total debt repurchases to $207 million since the program's inception [11][51] - The company expects to file its fiscal '24 10-K by the close of business on the day of the call [38] Q&A Session Summary Question: Can you talk about the uptake of your advanced products, particularly Clarity and jSign? - Management highlighted that Clarity is in full production and is capable of extracting data from unstructured documents, with significant demand and several proof of concepts underway [60][62] Question: What are your expectations for corporate revenue growth going forward? - Management indicated that while Q4 showed a 7.1% growth, a more normalized growth rate is about 5.5%, with a target of 6.25% for 2025 [68][70] Question: Can you provide details on the '25 go-to-market investments? - Investments will focus on expanding sales headcount and reallocating marketing funds to enhance corporate marketing efforts, with most impacts expected in 2026 and beyond [80][81] Question: How much of the corporate growth in 2025 is derived from the VA rollout? - Management expects about $5 million contribution from the VA in 2025, with the rollout anticipated to continue without disruption [110]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40750 Consensus Cloud Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 87-1139414 (State or other jurisdiction o ...

Consensus Cloud Solutions, Inc. (CCSI) came out with quarterly earnings of $1.32 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.92%. A quarter ago, it was expected that this company would post earnings of $1.28 per share when it actually produced earnings of $1.31, delivering a surprise of 2.34%.Over the last four quarter ...

Consensus Cloud Solutions, Inc. Provides Fourth Quarter and Full Year 2024 Results Releases Q1 2025 and Full Year 2025 Guidance LOS ANGELES -- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported preliminary financial results for the fourth quarter and year ended December 31, 2024. "I am pleased that we finished 2024 in a strong position relative to our expectations. We exceeded our revenue target by more than $5 million for the year, maintained strong margins, generated record net cash provided by ...

Consensus Cloud Solutions, Inc. (CCSI) shares rallied 12.1% in the last trading session to close at $30.20. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 13.5% gain over the past four weeks.Consensus Cloud Solutions is benefiting from strong revenue growth in its Corporate business, successful cost optimization strategies, and increased customer retention across both Corporate and SoHo channels.This company ...

Group 1 - Consensus Cloud Solutions (NASDAQ: CCSI) has experienced a significant decline of 45% since its spin-off from Ziff Davis in October 2021 [1]