Synchronoss Technologies(US:SNCR)2025-11-04 21:38Revenue 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]