Core Points - Class Action Attorney Juan Monteverde's firm, Monteverde & Associates PC, has successfully recovered millions for shareholders and is recognized as a Top 50 Firm in the 2024 ISS Securities Class Action Services Report [1] - The firm is currently investigating Synchronoss Technologies, Inc. regarding its sale to Lumine Group Inc., with Synchronoss shareholders expected to receive $9.00 per share, subject to adjustments for transaction expenses [1] Company Overview - Monteverde & Associates PC is a national class action securities firm located in the Empire State Building, New York City, with a successful track record in trial and appellate courts, including the U.S. Supreme Court [2] - The firm emphasizes that not all law firms are equal and encourages potential clients to inquire about their litigation history and success rates [2][4] Legal Context - The investigation into Synchronoss Technologies, Inc. is part of the firm's broader efforts to ensure fair treatment for shareholders in significant corporate transactions [1][3] - The firm provides free consultations for shareholders who have concerns regarding their investments in Synchronoss Technologies [3]

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether the sale of Synchronoss Technologies, Inc. (NASDAQ: SNCR) to Lumine Group Inc. for $9.00 per share, subject to adjustment for transaction expenses, is fair to Synchronoss shareholders. Halper Sadeh encourages Synchronoss shareholders to click here to learn more about their legal rights and options or contact Daniel Sadeh or Zachary Halper at (212) 763-0060 or sadeh@halpersadeh.com or zhalper@halpe. ...

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Core Points - Synchronoss Technologies, Inc. is set to be acquired by Lumine Group Inc. in an all-cash transaction valued at approximately $116.4 million in equity and $258.4 million in enterprise value, transitioning the company to a privately held entity [1][4] - Shareholders of Synchronoss will receive $9.00 per share, representing a 70% premium over the closing price prior to the announcement [2][4] - The acquisition aims to enhance growth and innovation opportunities for Synchronoss, allowing it to leverage Lumine Group's diversified portfolio [3][4] Company Overview - Synchronoss is a global leader in personal cloud platforms, providing secure connections for service providers and millions of subscribers [7][8] - The company has over 200 petabytes of data stored and a significant global subscriber base [3] Acquisition Details - The transaction has been unanimously approved by Synchronoss's Board of Directors and is expected to close in the first half of 2026, pending shareholder and regulatory approvals [4][5] - Approximately 21% of Synchronoss's outstanding shares have been committed to vote in favor of the transaction [5] Strategic Implications - The acquisition is expected to provide immediate value to shareholders and position Synchronoss for long-term growth, enhancing its capabilities in mobile cloud storage solutions [3][4] - Lumine Group's first acquisition of a public company reinforces its mission to support customers' brands and solutions through perpetual ownership [4]

Synchronoss (SNCR) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Shares of this mobile services company have returned -9.9% over the past month versus the Zacks S&P 500 composite's -0.2% change. The Zacks Internet - Software industry, to which Synchronoss belongs, has lost 7.2% over this period. Now the key question is: Where could the stock be headed in the near ...

Core Insights - Synchronoss (SNCR) reported quarterly earnings of $0.63 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, compared to a loss of $0.26 per share a year ago, representing an earnings surprise of +80.00% [1] - The company posted revenues of $42 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 2.41%, and down from $42.96 million year-over-year [2] - Synchronoss shares have declined approximately 42% year-to-date, while the S&P 500 has gained 16.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.42 on revenues of $44.43 million, and for the current fiscal year, it is $0.82 on revenues of $172.17 million [7] - The estimate revisions trend for Synchronoss was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Synchronoss belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, Bumble Inc. (BMBL), is expected to report quarterly earnings of $0.38 per share, reflecting a year-over-year change of +8.6%, with revenues anticipated to be $244.56 million, down 10.6% from the previous year [9]

Revenue Performance - Net revenues for the three months ended September 30, 2025, decreased by $0.961 million to $42.003 million compared to $42.964 million in the same period of 2024[148] - The company's top five customers accounted for 99.1% of net revenues for the nine months ended September 30, 2025, with Verizon and AT&T each contributing over 10%[146] - Net revenues decreased by $2.7 million to $126.7 million for the nine months ended September 30, 2025, compared to the same period in 2024, primarily due to a $3.6 million decrease in professional services and a $4.0 million impact from an expired customer contract[160] Expenses and Costs - Research and development expenses increased by $0.5 million to $10.8 million for the three months ended September 30, 2025, primarily due to higher personnel-related costs[150] - Total costs and expenses for the nine months ended September 30, 2025, decreased by $9.255 million to $105.744 million compared to $114.999 million in 2024[158] - Selling, general and administrative expenses decreased by $1.581 million to $12.174 million for the three months ended September 30, 2025, due to lower performance-based compensation[151] - Cost of revenues decreased by $3.3 million to $26.3 million for the nine months ended September 30, 2025, mainly due to lower employee expenses from restructuring measures[161] - Research and development expenses decreased by $1.6 million to $30.9 million for the nine months ended September 30, 2025, attributed to cost-saving initiatives[162] - Selling, general and administrative expenses decreased by $4.4 million to $35.4 million for the nine months ended September 30, 2025, primarily due to cost-saving initiatives and lower performance-based compensation[163] Income and Loss - Net loss for the nine months ended September 30, 2025, was $17.608 million, compared to a loss of $1.734 million in the same period of 2024, representing an increase in loss of $15.874 million[158] - Interest income rose significantly by $5.239 million to $5.404 million for the three months ended September 30, 2025, mainly due to interest from a federal tax refund[153] - Interest income increased by $5.4 million to $5.9 million for the nine months ended September 30, 2025, mainly due to a federal tax refund received[166] - Interest expense increased by $7.2 million to $19.8 million for the nine months ended September 30, 2025, driven by higher interest on the 2025 Term Loan[167] Cash Flow and Liquidity - Cash provided by operating activities was $41.9 million for the nine months ended September 30, 2025, compared to $15.2 million for the same period in 2024, driven by growth in cloud subscribers and a federal tax refund[177] - Cash used in investing activities was $10.2 million for the nine months ended September 30, 2025, compared to $9.1 million in the same period in 2024, primarily funding product development for the Cloud offering[178] - Cash used in financing activities was $30.3 million for the nine months ended September 30, 2025, compared to $5.4 million in the same period in 2024, mainly related to the 2025 Term Loan and repayment of the 2021 Senior Notes[179] - The Company had an aggregate of $34.8 million in cash and cash equivalents at September 30, 2025, with sufficient liquidity to meet obligations for at least the next twelve months[173] Foreign Currency Risk - The company is exposed to foreign currency translation risk due to certain foreign operations using local currencies, affecting comparability of financial results[192] - The company does not hold derivative instruments or engage in hedging activities, making it susceptible to foreign currency transaction risk[193] - Future fluctuations in exchange rates could impact the company's net sales, cost of sales, and expenses, with increased exposure expected if international activities in local currencies rise[194] Interest Rate Sensitivity - A hypothetical 100 basis point increase in interest rates would increase interest income by approximately $0.3 million annually based on cash and cash equivalents as of September 30, 2025[195] - Borrowings under the 2025 Term Loan Agreement bear interest at a rate equal to the secured overnight financing rate plus a margin of 7.00%, with a floor of 2.50%[196] - A hypothetical 100 basis point increase in interest rates would increase interest expense on the 2025 Term Loan by $1.8 million annually[196]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $42 million, slightly down from $43 million in the prior year due to delays in customer contracts and lower subscriber growth [15][16] - Net income was $5.8 million, translating to diluted earnings per share of $0.51, driven by a one-time interest income event from a tax refund [2][18] - Adjusted EBITDA was $12 million, with an adjusted EBITDA margin of 28.5%, consistent with the company's high-margin model [6][18] - Recurring revenue represented 93.8% of total revenue, underscoring the stability of the business model [6][15] Business Line Data and Key Metrics Changes - The cloud-based business model showed sustained growth, with recurring revenue being a significant portion of total revenue [3][6] - Subscriber growth rate was approximately 1% year-over-year, with expectations for improvement in future quarters [5][15] - Operating expenses decreased by 3.5% year-over-year, contributing to improved profitability [17] Market Data and Key Metrics Changes - AT&T showed positive momentum with subscriber growth, with less than 2% penetration in their total subscriber base, indicating significant growth potential [7] - Verizon faced subscriber growth pressure due to a transition in their bundled cloud users, but initiatives are in place to strengthen the value proposition [8] - SoftBank is expected to see increased adoption through the MySoftBank app integration, with significant room for growth in 2026 [9] Company Strategy and Development Direction - The company is focusing on solidifying its balance sheet to enable operational flexibility and exploring new product adjacencies to maximize its total addressable market [4][5] - Strategic initiatives are in place to drive growth through core offerings while exploring additional market opportunities [13][14] - The company is making significant advancements in AI-driven transformation to enhance product features and operational efficiency [11][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that subscriber growth weakness is temporary and expects improved performance in 2026 [13][14] - The company is adjusting its full-year revenue guidance to between $169 million and $172 million, reflecting anticipated challenges in subscriber growth [13][19] - Management remains confident in the company's strategy and market position, emphasizing a disciplined approach to cost management [14][19] Other Important Information - The company completed a strategic $200 million term loan refinancing, strengthening its capital structure and extending debt maturities to 2029 [4][19] - Free cash flow was reported at $36 million, largely driven by the tax refund received during the quarter [19] Q&A Session Summary Question: Is growth mainly driven by higher wallet share rather than subscriber growth? - Management indicated slight growth in subscriber revenue, attributing challenges to a long sales cycle for new customer contracts [22][23] Question: How does the rest of the pipeline look? - The pipeline remains healthy with opportunities for growth in both existing and new customers, including branded clouds and Capsule [24][25] Question: What are the capital allocation priorities with the improved balance sheet? - The focus is on investing in current products and exploring inorganic growth opportunities before considering stock buybacks [26][27] Question: Can you elaborate on interest income and expense related to the IRS payment? - Interest income was derived from the federal tax refund, while interest expense related to the term loan and issuance costs [29][30] Question: What happened to subscriber growth between Q2 and Q3? - Subscriber growth decreased from 3% in Q2 to 1% in Q3, impacted by lower one-time license fees and professional services [35][38]

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Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]