Summary of CSG's Earnings Call Company Overview - CSG is a leader in the US cable broadband market, serving over 75% of the market share alongside major players like Comcast and Charter [doc id='7'][doc id='8'] - The company has diversified its revenue streams, with non-cable and non-telco revenue growing from 7% in 2017 to 32% in the last quarter [doc id='11'] Key Financial Highlights - CSG reported double-digit growth in operating margin, EBITDA, and EPS year-over-year, with nearly 20% growth in free cash flow for the first half of the year [doc id='3'] - The company expects organic revenue growth to stabilize between 2% to 4% in the coming quarters, down from a historical average of 5.3% [doc id='5'] Business Segments and Growth Strategy - CSG operates in multiple segments, including cable broadband, global telecom, and various industry verticals such as financial services, healthcare, and retail [doc id='11'][doc id='46] - The company aims to simplify business processes and enhance customer experience through its SaaS platforms, which are designed to be agile and cost-effective [doc id='22'] - CSG has made significant inroads in global telecom, winning contracts with major players like MTN and Telstra, and sees substantial growth potential in this sector [doc id='19'] Market Dynamics and Competitive Landscape - The company acknowledges headwinds from competitive pressures in the US broadband market, particularly from Comcast and Charter, which may impact revenue growth [doc id='35'] - CSG is focused on expanding its market share in global telecom and other verticals, leveraging its established relationships and proven solutions [doc id='20'][doc id='37] AI and Technological Advancements - CSG is investing in AI to enhance operational efficiency and drive new revenue opportunities, with expectations of significant impacts on profitability and cash flow in the coming years [doc id='75'] - The company is currently in the early stages of adopting AI technologies, with plans to integrate these advancements across various business functions [doc id='78] Customer Engagement and Use Cases - CSG has developed solutions for various industries, including media, financial services, and healthcare, focusing on improving customer engagement and operational efficiency [doc id='46'][doc id='49'] - The company has successfully implemented data-driven solutions that have led to significant cost savings and improved customer experiences for its clients [doc id='53] Future Outlook - CSG is optimistic about its growth trajectory, particularly in the global telecom sector and its diversified verticals, while remaining disciplined in capital deployment for acquisitions [doc id='40][doc id='39] - The company believes that the ongoing digital transformation in telecom and other industries presents substantial opportunities for growth [doc id='42] Conclusion - CSG is well-positioned to capitalize on growth opportunities across its various business segments, driven by its strong market presence, innovative solutions, and commitment to leveraging technology for operational excellence [doc id='70]

Did you analyze how CSG Systems (CSGS) fared in its international operations for the quarter ending June 2025? Given the widespread global presence of this provider of support services for the communications industry, scrutinizing the trends in international revenues becomes imperative to assess its financial strength and future growth possibilities.The global economy today is deeply interlinked, making a company's engagement with international markets a critical factor in determining its financial success ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 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 0-27512 CSG SYSTEMS INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorp ...

CSG Systems International (CSGS) Q2 2025 Earnings Call August 06, 2025 05:00 PM ET Speaker0Welcome, ladies and gentlemen, and thank you for standing by. My name is Chris, and I will be your conference operator for today. At this time, I would like to welcome everyone to CSG's Second Quarter twenty twenty five Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session.I would now like to turn the conference over ...

CSG Q2 & H1 2025 Earnings Presentation Brian Shepherd CEO & President Hai Tran CFO Safe Harbor Forward-Looking Statements + Disclaimers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements often address expected future business and financial performance and financial condition, and often contain words such as "expect,", "commit", "anticipate," "intend," "plan," "believe," "seek," "see," " ...

PRESS RELEASE CSG SYSTEMS INTERNATIONAL REPORTS SECOND QUARTER 2025 RESULTS DENVER--(August 6, 2025) — CSG (NASDAQ: CSGS) today reported results for the quarter ended June 30, 2025. Raising 2025 Full Year Profitability and Non-GAAP Adjusted Free Cash Flow Guidance Targets Strong Operating Income Growth; 19.5% H1 Non-GAAP Operating Margin, up 250 bps Year-Over-Year Strong Cash Flow from Operations; Highest First Half Non-GAAP Adjusted Free Cash Flow in a Decade Exciting Customer Wins and Extensions including ...

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. Is CSG Systems (CSGS) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.CSG Systems is a member of our Computer and Technology group, which includes 605 different companies and currently sits at #5 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups b ...

Group 1 - Fabrinet (FN) is currently outperforming its peers in the Computer and Technology sector, with a year-to-date gain of approximately 30.4% compared to the sector's average return of 7% [4][5] - The Zacks Rank system, which emphasizes earnings estimates and revisions, has assigned Fabrinet a Zacks Rank of 2 (Buy), indicating a positive earnings outlook [3] - The consensus estimate for Fabrinet's full-year earnings has increased by 1.5% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - Fabrinet belongs to the Electronics - Miscellaneous Components industry, which is ranked 72 in the Zacks Industry Rank, and has outperformed the average gain of 4.5% in this group [5] - Another stock in the Computer and Technology sector, CSG Systems (CSGS), has also shown strong performance with a year-to-date return of 28.4% and a Zacks Rank of 2 (Buy) [4][6] - The Computer - Services industry, to which CSG Systems belongs, is ranked 210 and has seen a gain of 5% this year, indicating a weaker performance compared to Fabrinet [6]

Core Insights - WidePoint Corporation (WYY) and CSG Systems International, Inc. (CSGS) are both benefiting from digital transformation trends impacting enterprise and government IT priorities [1] - WidePoint focuses on federal IT contracts and cybersecurity, while CSG Systems is transitioning to a diversified SaaS platform with a presence in fintech and healthcare [2][8] Group 1: WidePoint Corporation - WidePoint is a government IT solutions provider specializing in mobile telecom lifecycle management and secure identity management, serving critical federal agencies [4] - The company achieved FedRAMP authorization for its Intelligent Technology Management System (ITMS), enhancing visibility among federal agencies [5] - WidePoint has secured three task orders under Spiral 4 and anticipates increased awards as Spiral 3 concludes, while investing in a Device-as-a-Service (DaaS) model and smart city initiatives [6] - Revenue growth for WidePoint is inconsistent due to the nature of government contracts and procurement delays, with recent accounting adjustments raising concerns [7][24] Group 2: CSG Systems International, Inc. - CSG Systems has evolved from a telecom billing provider to a diversified SaaS operator, generating over one-third of its revenue from fast-growing sectors like financial services and healthcare [8] - The company is focused on a capital-light model, reducing working capital needs and pursuing high-margin acquisitions to enhance its SaaS platform [9] - CSG Systems aims for a long-term operating margin of 18-20%, supported by a growing base of recurring, high-margin SaaS revenues [9] - CSG Systems returned $32 million to shareholders in Q1 2025 and plans to return over $100 million in 2025, showcasing strong cash generation and shareholder-friendly practices [11] Group 3: Financial Performance and Valuation - The Zacks Consensus Estimate for WidePoint suggests a 10.5% increase in sales and a 33.3% increase in EPS for 2025, with earnings estimates remaining unchanged [13] - CSG Systems is projected to see a 6% increase in sales and a 1.1% increase in EPS for 2025, with earnings estimates rising by 1.7% in the past 60 days [17] - WidePoint's stock has declined 5.7% over the past year, underperforming the industry and S&P 500, while CSG Systems shares have gained 55.5% [20] - WidePoint trades at a forward P/S ratio of 0.20X, significantly below the industry average of 1.77X, while CSG Systems has a forward P/S ratio of 1.56X [22] Group 4: Investment Outlook - WidePoint's niche in federal IT services and FedRAMP certification provide growth opportunities, but its smaller scale and revenue volatility may deter investors [24] - CSG Systems offers a more diversified SaaS model with disciplined capital allocation and high-margin recurring revenue, positioning it as a stronger investment choice [25][26]

Revenue and Growth - As of March 31, 2025, the total revenue was $299.5 million, a slight increase from $295.1 million in the same quarter of 2024, representing a year-over-year growth of approximately 1.1%[20] - Revenue from SaaS and related solutions was $269.9 million for the quarter ended March 31, 2025, compared to $261.7 million in the prior year, indicating a growth of about 3.4%[20] - The Americas accounted for 87% of total revenue in Q1 2025, slightly up from 86% in Q1 2024[20] - Approximately 89% of the company's revenue was generated in U.S. dollars during the first quarter of 2025, with expectations to maintain a high percentage in the foreseeable future[151] Financial Position - The company has approximately $1.8 billion in remaining performance obligations, with over 70% expected to be recognized by the end of 2027[18] - The company reported total settlement assets of $263.5 million and total liabilities of $271.8 million as of March 31, 2025[26] - As of March 31, 2025, the total carrying amount of goodwill increased to $319.371 million from $316.041 million, reflecting a $3.330 million impact from foreign currency exchange rates[33] - As of March 31, 2025, the total long-term debt was $537.554 million, slightly up from $530.997 million as of December 31, 2024[36] - Long-term debt as of March 31, 2025, included $125.6 million in revolver borrowings and $425.0 million in convertible notes[147] Expenses and Income - Segment net income for the quarter ended March 31, 2025, was $16.1 million, down from $19.5 million in the prior year, reflecting a decrease of approximately 17.9%[32] - Research and development expenses for the quarter were $39.8 million, an increase from $36.1 million in the same quarter of 2024, representing a growth of about 7.5%[32] - The total amortization expense for other intangible assets in Q1 2025 was $6.6 million, compared to $5.4 million in Q1 2024, indicating a year-over-year increase of approximately 22.2%[33] - Stock-based compensation expense for Q1 2025 was $8.4 million, compared to $7.7 million in Q1 2024[76] Cash Management - As of March 31, 2025, cash and cash equivalents were $136.0 million, down from $161.8 million at the end of 2024[146] - The company held $274.2 million in cash collected on behalf of merchants, down from $343.2 million as of December 31, 2024, indicating significant fluctuations in cash reserves[148] - Cash held on behalf of merchants is maintained in accounts equal to at least 100% of the aggregate amount owed to them, reflecting a strong liquidity position[148] - Settlement assets are swept into overnight money market accounts daily, indicating active cash management practices[148] Debt and Financing - The company entered into a $600 million 2025 Credit Agreement in March 2025, which includes a $600 million revolving loan facility due in March 2030[36] - The company withdrew $140.6 million from the 2025 Revolver to repay existing debts and cover fees, leaving $474.1 million available under the 2025 Revolver as of March 31, 2025[42] - The fair value of the 2023 Convertible Notes was estimated at $460.1 million as of March 31, 2025, compared to a carrying value of $425 million[27] - The 2023 Convertible Notes have an initial conversion rate of 14.0753 shares per $1,000 principal amount, equating to a conversion price of $71.05 per share[45] Acquisitions and Restructuring - The company acquired iCheckGateway.com, LLC for $17.6 million in cash on June 3, 2024, with potential future earn-out payments of up to $15 million based on performance[51][52] - The acquisition of DGIT Systems Pty Ltd was completed for approximately $16 million, with a final deferred payment of $0.3 million made in Q1 2025[53] - As of March 31, 2025, the company accrued $1.3 million related to potential future earn-out payments from the DGIT acquisition[54] - Restructuring and reorganization charges for Q1 2025 totaled $7.4 million, compared to $2.0 million in Q1 2024[55] - The company reduced its global workforce by approximately 125 employees, incurring $6.6 million in restructuring charges related to involuntary terminations[57] - The closure of the Crawfordville, Florida design and delivery center is expected to eliminate approximately 100 employees and incur total costs of around $5 million, primarily in 2025[57] Accounting and Reporting - The company is evaluating the impact of new accounting standards issued by FASB, which may affect future disclosures but are not expected to materially impact financial statements[28][29] - The company does not carry convertible debt at fair value but provides fair value estimates for disclosure, highlighting transparency in financial reporting[149] - Fluctuations in interest rates and stock price volatility impact the fair value of the company's convertible debt, indicating market sensitivity[149] Foreign Currency Exposure - The company is exposed to foreign currency exchange risk due to operations in multiple currencies, including the British Pound, Euro, and Australian Dollar[150] - The company attempts to maximize natural hedges by incurring expenses in the same currency as revenue, although mismatches can occur[150] - A hypothetical adverse change of 10% in exchange rates as of March 31, 2025, would not have had a material impact on the company's results of operations[151]