Revenue and Income - Total revenue for Q3 2025 was $42.0 million, a decrease from $43.0 million in the prior year, with 93.8% of revenue being recurring[4] - Net income was $5.8 million, resulting in diluted EPS of $0.51, compared to a net loss of $5.7 million in the prior year[4] - Net revenues for Q3 2025 were $42,003 thousand, a decrease of 2.2% from $42,964 thousand in Q3 2024[25] - Net income for Q3 2025 was $5,813 thousand, compared to a net loss of $5,715 thousand in Q3 2024[25] - Non-GAAP net income attributable to Synchronoss for Q3 2025 was $7,229 thousand, compared to $2,786 thousand in Q3 2024[30] - Basic earnings per share for Q3 2025 were $0.68, up from $0.28 in Q3 2024[30] - Net income attributable to Synchronoss for the three months ended September 30, 2025, was $5,813, compared to a net loss of $19,604 for the previous quarter[31] Cash Flow and Expenses - Free cash flow for Q3 2025 was $35.9 million, significantly improved from $(27) thousand in the prior year[8] - Cash and cash equivalents increased to $34.8 million as of September 30, 2025, up from $24.6 million as of June 30, 2025[8] - The company experienced a net cash provided by operating activities of $41,936 thousand for the nine months ended September 30, 2025, compared to $15,205 thousand in the same period of 2024[28] - Net cash provided by operating activities for the three months ended September 30, 2025, was $39,358, significantly higher than $3,365 for the same period in 2024[32] - Adjusted free cash flow for the nine months ended September 30, 2025, was $1,897, compared to $10,893 for the same period in 2024[32] Costs and Margins - Total costs and expenses for Q3 2025 were $36,134 thousand, down from $37,449 thousand in Q3 2024, resulting in an income from operations of $5,869 thousand[25] - The company reported a gross margin of 69.4% for Q3 2025, slightly down from 69.6% in Q3 2024[29] - Adjusted EBITDA for the quarter was $12.0 million, with an adjusted EBITDA margin of 28.5%[8] - Adjusted gross margin is projected to be between 78% and 80% for the full year 2025[8] - The company anticipates adjusted EBITDA for 2025 to be between $50 million and $53 million, equating to at least a 30% adjusted EBITDA margin[8] Future Outlook - The company expects to add at least one new cloud customer in 2025 and a new Tier 1 customer in the first half of 2026[3] - Recurring revenue is expected to remain at least 90% of total revenue for the full year 2025[8] Assets and Liabilities - The company’s total assets decreased to $278,220 thousand as of September 30, 2025, from $293,825 thousand at the end of 2024[23] - The company received a $33.9 million CARES Act Tax refund, which was used to reduce net debt to approximately 2.7 times anticipated FY25 adjusted EBITDA[4] Research and Development - Research and development expenses for Q3 2025 were $10,837 thousand, an increase from $10,333 thousand in Q3 2024[25] Other Financial Metrics - Stock-based compensation expense for the three months ended September 30, 2025, was $1,140, up from $1,023 in the previous quarter[31] - Interest expense for the three months ended September 30, 2025, was $7,776, an increase from $6,565 in the previous quarter[31] - Depreciation and amortization for the three months ended September 30, 2025, was $4,458, slightly higher than $4,402 in the previous quarter[31] - The company reported a restructuring, transition, and cease-use lease expense of $198 for the three months ended September 30, 2025[31] - The net cash used for capitalized software for the three months ended September 30, 2025, was $(3,140), compared to $(3,250) in the previous year[32]

Core Insights - Synchronoss Technologies reported a net income of $5.8 million and diluted EPS of $0.51 per share for Q3 2025, with total revenue of $42.0 million, of which 93.8% was recurring revenue [1][3][5] - The company anticipates adding a new customer in 2025 and a new Tier 1 customer in the first half of 2026, which is expected to contribute to revenue growth and profitability [3][5][6] Financial Performance - Total revenue decreased to $42.0 million from $43.0 million year-over-year, primarily due to delays in new customer signings and subscriber growth weakness [5][6] - Recurring revenue constituted 93.8% of total revenue, up from 92.2% in the prior year [6] - Gross profit was $29.2 million with a gross margin of 69.4%, compared to $29.9 million and a gross margin of 69.6% in the prior year [6] - Adjusted EBITDA was $12.0 million, with an adjusted EBITDA margin of 28.5%, compared to $12.7 million and a margin of 29.5% in the prior year [6] Cash Flow and Debt Management - Free cash flow for Q3 2025 was $35.9 million, significantly improved from $(27) thousand in the prior year [7] - The company received the full $33.9 million CARES Act Tax refund, which was used to reduce net debt to approximately 2.7 times anticipated FY25 adjusted EBITDA [5][6] Future Outlook - The company has revised its full 2025 outlook, projecting revenue between $169 million and $172 million, with recurring revenue of at least 90% [12] - Adjusted EBITDA is expected to be between $50 million and $53 million, equating to at least a 30% adjusted EBITDA margin [12]

Core Viewpoint - Synchronoss (SNCR) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with a consensus outlook suggesting a significant earnings surprise could impact its stock price in the near term [1][2]. Earnings Expectations - The upcoming earnings report is expected to reveal quarterly earnings of $0.35 per share, reflecting a year-over-year increase of +234.6%, with revenues projected at $43.04 million, a slight increase of 0.2% from the previous year [3]. - The consensus EPS estimate has been revised 11.77% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates a positive Earnings ESP of +10.15% for Synchronoss, suggesting analysts have become more optimistic about the company's earnings prospects [12]. - The stock currently holds a Zacks Rank of 3, indicating a neutral outlook, but the combination of a positive Earnings ESP and this rank suggests a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, Synchronoss was expected to post earnings of $0.25 per share but only achieved $0.10, resulting in a surprise of -60.00% [13]. - Over the past four quarters, the company has only beaten consensus EPS estimates once [14]. Investment Considerations - While an earnings beat may not solely dictate stock movement, betting on stocks expected to exceed earnings expectations can enhance the odds of success [15][16]. - Synchronoss is viewed as a compelling candidate for an earnings beat, but investors are advised to consider other influencing factors before making investment decisions [17].

Group 1: Sharplink Gaming - Sharplink Gaming Inc. is a sports betting and affiliate marketing firm that has recently made significant investments in the cryptocurrency space, particularly Ethereum [4][5] - The company raised over $2.6 billion to invest in 700,000 ETH, positioning itself as one of the largest publicly traded Ethereum treasury firms [5] - Analysts have set a 12-month stock price forecast for Sharplink at $45, indicating a potential upside of 227.89% from the current price of $13.72 [4][7] Group 2: Townsquare Media - Townsquare Media Inc. operates over 300 radio stations and has pivoted towards digital solutions, which now account for 55% of its revenue [9][10] - The company has a 12-month stock price forecast of $17, representing a 165.42% upside from the current price of $6.41, with a high forecast of $21 [9][11] - Townsquare offers a substantial dividend yield of 12.55% and has a low P/E ratio of 3.14, making it an attractive investment opportunity [10][11] Group 3: Synchronoss Technologies - Synchronoss Technologies Inc. is a microcap firm focusing on cloud-based software solutions, with nearly 93% of its revenue coming from recurring SaaS [12][13] - Analysts project a 12-month stock price forecast of $13, indicating a potential upside of 152.18% from the current price of $5.16 [12][14] - The company is expected to continue growing its client base and aims for sustained profitability, making it a high-risk, high-reward investment [13][14]

Core Points - Synchronoss Technologies Inc. will hold a conference call on November 4, 2025, to discuss its financial results for Q3 2025 [1][2] - The call will include a presentation by management followed by a Q&A session [2] - Synchronoss is recognized as a global leader in personal Cloud solutions, providing services that enhance subscriber engagement and revenue streams [3] Financial Results Announcement - The financial results for the third quarter ended September 30, 2025, will be released prior to the conference call [1] - The conference call is scheduled for 4:30 p.m. Eastern time (1:30 p.m. Pacific time) [2] Company Overview - Synchronoss Technologies empowers service providers to create secure connections with subscribers through its SaaS Cloud platform [3] - The platform simplifies onboarding processes and fosters subscriber engagement, leading to reduced expenses and faster time-to-market [3] - Millions of subscribers rely on Synchronoss to protect their digital content and memories [3]

Company Performance - Synchronoss (SNCR) closed at $6.42, reflecting a -1.98% change from the previous day, underperforming the S&P 500's daily gain of 0.49% [1] - Over the past month, Synchronoss shares gained 5.99%, trailing the Computer and Technology sector's gain of 6.81% and outperforming the S&P 500's gain of 2.99% [1] Earnings Projections - The upcoming earnings release is projected to show earnings per share (EPS) of $0.31, indicating a 219.23% increase from the same quarter last year [2] - Quarterly revenue is estimated at $42.96 million, unchanged from the year-ago period [2] Full Year Estimates - For the full year, earnings are projected at $1.02 per share and revenue at $172.32 million, representing changes of -37.42% and -0.73% from the prior year, respectively [3] - Recent changes to analyst estimates suggest a positive outlook for the business [3] Valuation Metrics - Synchronoss is currently trading at a Forward P/E ratio of 6.42, significantly lower than the industry average Forward P/E of 32.6, indicating a discount compared to its peers [6] Industry Ranking - The Internet - Software industry, which includes Synchronoss, has a Zacks Industry Rank of 64, placing it within the top 26% of over 250 industries [6] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1, indicating a favorable environment for companies in higher-ranked industries [7]

Core Insights - Synchronoss (SNCR) reported quarterly earnings of $0.1 per share, missing the Zacks Consensus Estimate of $0.25 per share, and down from $0.48 per share a year ago, indicating a -60.00% earnings surprise [1] - The company posted revenues of $42.49 million for the quarter ended June 2025, slightly missing the Zacks Consensus Estimate by 0.24%, and down from $43.46 million year-over-year [2] - Synchronoss shares have declined approximately 18.5% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $42.96 million, and for the current fiscal year, it is $1.17 on revenues of $172.42 million [7] - The estimate revisions trend for Synchronoss was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Software industry, to which Synchronoss belongs, is currently ranked in the top 37% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8] - Another company in the same industry, KORE Group Holdings, is expected to report a quarterly loss of $0.47 per share, reflecting a year-over-year change of +52.5%, with revenues anticipated at $70.3 million, up 3.6% from the previous year [9][10]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was $42.5 million, a slight increase from $42.2 million in the prior quarter, driven by a 2% year-over-year subscriber growth [5][20] - Adjusted EBITDA increased to $12.8 million with a margin of 30.2%, marking the third consecutive quarter with margins above 30% [6][23] - Recurring revenue constituted 92.6% of total revenue, indicating a stable SaaS business model [6][20] - Total operating expenses decreased by 9% year-over-year, from $39.2 million to $35.6 million, contributing to improved profitability [19][22] Business Line Data and Key Metrics Changes - The company reported a year-over-year reduction in operating expenses while driving high-margin subscriber revenue [8][19] - The Personal Cloud version 25.5 was released, enhancing user experience with new AI features [9][10] Market Data and Key Metrics Changes - Subscriber growth was particularly strong with AT&T, driven by improved digital onboarding processes [12] - Verizon's retail activations are growing, contributing to overall subscriber growth [13] - The U.S. mobile market for value-added services is estimated to grow at least 10% annually, positioning the company to capitalize on this trend [15][16] Company Strategy and Development Direction - The company is focused on enhancing its product offerings and exploring adjacent products and verticals to create greater shareholder value [8] - The strategic transformation to a leading global cloud solutions provider has resulted in a more predictable and stable business model [5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in signing at least one new customer in 2025, with ongoing discussions with various prospects [17][32] - The macroeconomic environment presents uncertainties, but the company remains optimistic about its growth trajectory [14][15] Other Important Information - The company received a total of $33.9 million in CARES Act tax refunds, which allowed for a significant debt reduction and improved financial flexibility [6][18] - The company validated its privacy framework under the EU-US data privacy framework, enhancing trust with telecom operators [11] Q&A Session Summary Question: Will the foreign exchange losses continue? - Management indicated that the foreign exchange losses are tied to the strength of the dollar and are difficult to predict, but they expect some level of performance in the future [29][30] Question: Is the debt restructuring complete? - Management confirmed that the major impact of debt costs is primarily behind them, although some expenses will flow through in the upcoming quarters [31] Question: What type of new customers are expected? - Management is in discussions with a variety of prospects, including those similar in scale to AT&T and smaller customers across different geographies [32][33] Question: Is a stronger second half expected? - Management confirmed that guidance implies a stronger second half of the year [34]

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Condensed Consolidated Financial Statements and Notes](index=3&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements%20and%20Notes) This section presents the unaudited condensed consolidated financial statements and accompanying notes for the company as of June 30, 2025 [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet reflects total assets of $291.4 million, a slight decrease from year-end 2024, with a notable increase in stockholders' equity Condensed Consolidated Balance Sheets (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $24,622 | $33,375 | | Total current assets | $72,827 | $81,382 | | Goodwill | $188,784 | $179,408 | | Total assets | $291,418 | $293,825 | | **Liabilities & Equity** | | | | Total current liabilities | $42,380 | $40,298 | | Long-term debt, net | $181,215 | $184,840 | | Total liabilities | $241,985 | $251,550 | | Redeemable non-controlling interest | $— | $12,500 | | Total stockholders' equity | $49,433 | $29,775 | | Total liabilities and stockholders' equity | $291,418 | $293,825 | [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company reported a significant net loss in Q2 2025, driven by a large foreign exchange loss and debt modification expenses Condensed Consolidated Statements of Operations (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | Six Months 2025 | Six Months 2024 | | :--- | :--- | :--- | :--- | :--- | | Net revenues | $42,486 | $43,458 | $84,699 | $86,423 | | Income from operations | $6,860 | $4,297 | $15,089 | $8,873 | | Debt modification expense | $(4,384) | $— | $(4,384) | $— | | Loss on debt extinguishment | $(1,993) | $— | $(1,993) | $— | | Foreign exchange (loss) gain | $(12,531) | $1,220 | $(18,110) | $5,021 | | Net (loss) income | $(19,604) | $(494) | $(23,421) | $3,981 | | Basic EPS | $(1.87) | $0.01 | $(2.27) | $0.24 | | Diluted EPS | $(1.87) | $0.01 | $(2.27) | $0.24 | [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations decreased significantly, while financing activities were dominated by a major debt refinancing transaction Condensed Consolidated Statements of Cash Flows (in thousands) | Activity | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,578 | $11,840 | | Net cash used in investing activities | $(6,685) | $(7,510) | | Net cash used in financing activities | $(4,884) | $(5,105) | | Net decrease in cash and cash equivalents | $(8,753) | $(924) | | **Ending cash and cash equivalents** | **$24,622** | **$23,648** | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes detail a major debt refinancing, the termination of a joint venture, and a significant post-quarter tax refund used for debt repayment - The company's revenue is primarily generated from North America, which accounted for **$80.5 million** of the $84.7 million total revenue for the first six months of 2025[35](index=35&type=chunk) - As of June 30, 2025, the company has **$133.7 million** in remaining performance obligations, with approximately **99.4%** expected to be recognized as revenue within the next two years[41](index=41&type=chunk) - In April 2025, the company entered into a new **$200 million term loan** (the "2025 Term Loan") to redeem its $121.4 million in 2021 Senior Notes and settle its existing $73.6 million 2024 Term Loan[72](index=72&type=chunk) - In July 2025, subsequent to the quarter end, the company received a **$33.9 million tax refund** and used **$25.4 million** to pay down the principal of the 2025 Term Loan[137](index=137&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the Q2 net loss to non-operating items like foreign exchange impacts and debt refinancing costs, while noting operational cost savings [Results of Operations](index=34&type=section&id=Results%20of%20Operations) Revenues saw a slight decline from an expired contract, but operating income improved due to cost-saving measures, offset by significant non-operating expenses - Net revenues decreased by **$1.0 million** in Q2 2025 compared to Q2 2024, primarily due to a $1.3 million impact from an expired customer contract, partially offset by subscriber growth[154](index=154&type=chunk) - Cost of revenues, R&D, and SG&A expenses all decreased in Q2 2025 compared to the prior year period, driven by **cost-saving initiatives and restructuring measures** implemented in late 2024[155](index=155&type=chunk)[156](index=156&type=chunk)[157](index=157&type=chunk) - A foreign exchange loss of **$12.5 million** was recorded in Q2 2025, compared to a gain of $1.2 million in Q2 2024, due to non-cash impacts on intercompany balances between U.S. and European entities[165](index=165&type=chunk) - The company incurred **$4.4 million** in debt modification expenses and a **$2.0 million** loss on debt extinguishment in Q2 2025 related to the refinancing of its debt facilities[163](index=163&type=chunk)[164](index=164&type=chunk) [Liquidity and Capital Resources](index=37&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity is supported by existing cash and operating cash flows, and was significantly bolstered by a post-quarter tax refund - The company had **$24.6 million** in cash and cash equivalents at June 30, 2025, and generated **$2.6 million** in cash from operations during the first six months of the year[181](index=181&type=chunk) - Cash used in financing activities was **$4.9 million** for the six months ended June 30, 2025, driven by a major debt refinancing where proceeds from a new **$200M term loan** were used to repay $121.4M of senior notes and other debt[188](index=188&type=chunk) Summary of Contractual Obligations as of June 30, 2025 (in thousands) | Obligation | Total | 2025 (6 months) | 2026-2027 | 2028 | Thereafter | | :--- | :--- | :--- | :--- | :--- | :--- | | 2025 Term Loan | $200,000 | $2,500 | $20,000 | $17,500 | $160,000 | | Interest | $79,395 | $11,436 | $43,150 | $19,288 | $5,521 | | Operating lease obligations | $19,879 | $3,837 | $13,013 | $3,029 | $— | | Purchase obligations | $19,983 | $9,334 | $9,571 | $1,078 | $— | | **Total** | **$320,645** | **$27,650** | **$86,579** | **$40,895** | **$165,521** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from foreign currency fluctuations and interest rate changes on its variable-rate debt - The company is exposed to **foreign currency translation risk** as it operates internationally and must translate foreign subsidiary financial results into U.S. dollars[200](index=200&type=chunk) - The company's 2025 Term Loan bears interest at a variable rate (SOFR + 7.00%, with a 2.50% floor); a hypothetical **100 basis point increase** in interest rates would increase annual interest expense by approximately **$1.6 million**[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=41&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective, with no material changes to internal controls during the quarter - Based on an evaluation as of the end of the period, the Chief Executive Officer and Chief Financial Officer concluded that the company's **disclosure controls and procedures were effective**[205](index=205&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[206](index=206&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to have a material adverse effect on its business - The company is **not currently subject to any legal proceedings** expected to have a material adverse effect on its operations[136](index=136&type=chunk)[208](index=208&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor related to the restrictive covenants in the 2025 Term Loan Agreement has been introduced - A new risk factor has been added concerning the 2025 Term Loan Agreement, which contains **restrictive covenants** that limit the company's operational and financial flexibility[210](index=210&type=chunk)[211](index=211&type=chunk) - A breach of the loan's covenants could lead to an **event of default**, allowing the lender to terminate commitments and declare all outstanding obligations immediately due and payable, which could significantly harm the business and its prospects[212](index=212&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) There were no unregistered sales of equity securities during the period - None[213](index=213&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 trading arrangements during the quarter - No director or officer adopted or terminated a **Rule 10b5-1 trading plan** during the covered period[216](index=216&type=chunk)

[Q2 2025 Earnings Release](index=1&type=section&id=Synchronoss%20Technologies%20Reports%20Second%20Quarter%202025%20Results) [Second Quarter 2025 Performance and Highlights](index=1&type=section&id=Second%20Quarter%20and%20Recent%20Operational%20Highlights) Synchronoss reported solid Q2 2025 financial results with **$42.5 million** revenue and **$12.8 million** adjusted EBITDA, despite a net loss, while strengthening its capital structure and reaffirming full-year guidance Q2 2025 Financial Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Total Revenue | $42.5M | $43.5M | -2.3% | | Recurring Revenue % | 92.6% | 90.5% | +2.1 p.p. | | Net (Loss) Income | ($19.6M) | $78k | N/A | | Adjusted EBITDA | $12.8M | $13.0M | -1.4% | | Adjusted EBITDA Margin | 30.2% | 29.9% | +0.3 p.p. | - Received the full CARES Act tax refund of **$33.9 million**, using **$25.4 million** to pay down debt, which is expected to save **$2.9 million** in annual interest expenses[1](index=1&type=chunk)[3](index=3&type=chunk)[5](index=5&type=chunk) - The net loss of **$19.6 million** was primarily driven by a **$12.5 million** non-cash foreign exchange loss and a **$6.4 million** combined debt modification expense and loss on debt extinguishment[5](index=5&type=chunk)[9](index=9&type=chunk) - Strengthened the capital structure by closing a new **$200 million**, four-year term loan, which retired **$73.6 million** of the prior term loan and **$121.4 million** in senior notes[5](index=5&type=chunk) - Signed an agreement with SoftBank to integrate its personal cloud solution into SoftBank's native customer application, which is expected to increase subscriber uptake in 2026[5](index=5&type=chunk) [2025 Financial Outlook](index=3&type=section&id=2025%20Financial%20Outlook) The company reaffirmed its full-year 2025 financial guidance, projecting revenues between **$170 million** and **$180 million** and adjusted EBITDA of **$52 million** to **$56 million**, with specific free cash flow exclusions Full Year 2025 Guidance | Guidance Metric | Full Year 2025 Outlook | | :--- | :--- | | Revenue | $170M - $180M | | Recurring Revenue | At least 90% of total revenue | | Adjusted Gross Margin | 78% - 80% | | Adjusted EBITDA | $52M - $56M (at least 30% margin) | | Free Cash Flow | $11M - $16M | - The Free Cash Flow guidance for 2025 explicitly excludes proceeds from the federal tax refund and approximately **$4.4 million** in transaction fees related to the new term loan[9](index=9&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=7&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of June 30, 2025, the balance sheet reported **$291.4 million** in total assets and **$241.9 million** in total liabilities, with cash decreasing to **$24.6 million** and total debt at **$186.2 million** Condensed Consolidated Balance Sheets (in thousands) | Balance Sheet Item (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $24,622 | $33,375 | | Total assets | $291,418 | $293,825 | | Total Debt (Current + Non-current) | $186,215 | $186,715 | | Total liabilities | $241,985 | $264,050 | | Stockholders' equity | $49,433 | $29,775 | [Condensed Consolidated Statements of Operations](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) In Q2 2025, net revenues were **$42.5 million**, with income from operations improving to **$6.9 million**, but significant foreign exchange and debt expenses led to a **$19.6 million** net loss, or **($1.87)** per share Condensed Consolidated Statements of Operations (in thousands) | Income Statement (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net revenues | $42,486 | $43,458 | | Income from operations | $6,860 | $4,297 | | Foreign exchange (loss) gain | ($12,531) | $1,220 | | Net (loss) income attributable to Synchronoss | ($19,604) | $78 | | Diluted (loss) per share | ($1.87) | $0.01 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended June 30, 2025, net cash from operating activities decreased significantly to **$2.6 million**, resulting in an **$8.8 million** net decrease in cash and cash equivalents, ending at **$24.6 million** Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $2,578 | $11,840 | | Net cash used in investing activities | ($6,685) | ($7,510) | | Net cash used in financing activities | ($4,884) | ($5,105) | | Net decrease in cash and cash equivalents | ($8,753) | ($924) | | Ending cash and cash equivalents | $24,622 | $23,648 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20TO%20NON-GAAP%20FINANCIAL%20MEASURES) [Gross Profit Reconciliation](index=10&type=section&id=Gross%20Profit%20Reconciliation) In Q2 2025, GAAP gross profit was **$29.4 million** (69.3% margin), which, after adjustments, resulted in a non-GAAP adjusted gross profit of **$33.7 million** (79.3% margin), remaining flat year-over-year Gross Profit Reconciliation (in thousands) | Metric (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Gross Profit | $29,443 | $29,334 | | GAAP Gross Margin | 69.3% | 67.5% | | Adjustments | $4,247 | $4,326 | | **Adjusted Gross Profit** | **$33,690** | **$33,660** | | **Adjusted Gross Margin** | **79.3%** | **77.5%** | [Net Income and EPS Reconciliation](index=11&type=section&id=Net%20Income%20and%20EPS%20Reconciliation) In Q2 2025, the company reconciled a GAAP Net Loss of **$19.6 million** to a Non-GAAP Net Income of **$1.1 million**, primarily by adjusting for **$12.5 million** foreign exchange impact and **$6.4 million** in debt-related expenses Net Income and EPS Reconciliation (in thousands) | Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | GAAP Net (loss) income | ($19,604) | $78 | | Foreign exchange impact | $12,531 | ($1,220) | | Debt modification expense | $4,384 | $0 | | Loss on debt extinguishment | $1,993 | $0 | | Other adjustments | $1,828 | $4,948 | | **Non-GAAP Net income** | **$1,132** | **$3,806** | | **Non-GAAP Diluted EPS** | **$0.10** | **$0.37** | [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q2 2025 was **$12.8 million**, nearly flat year-over-year, derived from a GAAP net loss of **$19.6 million** by adding back significant non-cash and non-recurring items like **$12.5 million** foreign exchange impact Adjusted EBITDA Reconciliation (in thousands) | Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net (loss) income | ($19,604) | $78 | | Add back: Taxes, Interest, D&A | $12,230 | $10,222 | | Add back: Foreign exchange impact | $12,531 | ($1,220) | | Add back: Debt related expenses | $6,377 | $0 | | Other adjustments | $1,283 | $3,920 | | **Adjusted EBITDA** | **$12,817** | **$13,000** | [Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow%20Reconciliation) In Q2 2025, free cash flow was negative **$1.1 million**, a significant decrease from **$7.6 million** in Q2 2024, with adjusted free cash flow at **$0.5 million** after specific adjustments Free Cash Flow Reconciliation (in thousands) | Reconciliation (in thousands) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net cash from operating activities | $2,285 | $11,313 | | Less: Capital Expenditures | ($3,375) | ($3,707) | | **Free cashflow** | **($1,090)** | **$7,606** | | Add: Adjustments | $1,624 | $1,319 | | **Adjusted free cashflow** | **$534** | **$8,925** | [Supplementary Information](index=4&type=section&id=Supplementary%20Information) [Non-GAAP Financial Measures Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures) This section defines key non-GAAP metrics like Adjusted EBITDA, Free Cash Flow, and Recurring Revenue, which provide a normalized view of operating performance by excluding specific non-recurring or non-cash items - Adjusted EBITDA is calculated by taking GAAP Net (loss) income and adding back items such as stock-based compensation, restructuring costs, depreciation and amortization, interest expense, foreign exchange impact, and debt-related expenses[14](index=14&type=chunk)[15](index=15&type=chunk) - Free Cash Flow is defined as operating cash flow minus capital expenditures. Adjusted Free Cash Flow further excludes net cash related to litigation, remediation, and restructuring activities[17](index=17&type=chunk) - Recurring Revenue is calculated as the sum of Subscription revenue and Transaction revenue[17](index=17&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section includes standard forward-looking statements regarding future expectations and financial performance, which are subject to risks and uncertainties that could cause actual results to differ materially - The document contains forward-looking statements that are not guarantees of future performance and are subject to risks, assumptions, and uncertainties[18](index=18&type=chunk) - Investors are directed to the "Risk Factors" section of the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q for a detailed description of potential risks[18](index=18&type=chunk)