Consensus(US:CCSI)2025-11-05 21:00Financial Performance - Q3 2025 revenues remained consistent at $87.8 million, with a 6.1% increase in Corporate business offset by a 9.2% decrease in SoHo business[4] - Net income for Q3 2025 increased to $22.1 million, a 4.6% rise from $21.1 million in Q3 2024, resulting in a net income margin of 25.2%[5][7] - Earnings per diluted share rose to $1.15, reflecting a 5.5% increase compared to $1.09 in Q3 2024[5][7] - Adjusted EBITDA for Q3 2025 was $46.4 million, a decrease of 1.2% from $46.9 million in Q3 2024, with an Adjusted EBITDA margin of 52.8%[5][7] - Revenues for the three months ended September 30, 2025, were $87,767,000, slightly up from $87,753,000 in the same period of 2024, indicating a marginal increase of 0.02%[24] - Net income for the three months ended September 30, 2025, was $22,091,000, compared to $21,120,000 in 2024, showing an increase of approximately 4.6%[24] - Adjusted net income for the three months ended September 30, 2025, was $26,617,000, consistent with $26,819,000 in 2024, indicating stability in performance[27] Cash Flow and Liquidity - Net cash provided by operating activities increased to $51.6 million, up 24.2% from $41.6 million in Q3 2024[5][7] - Free cash flow for Q3 2025 rose to $44.4 million, a 32.3% increase from $33.6 million in Q3 2024[5][7] - Cash and cash equivalents at the end of the period increased to $97,649,000 from $54,598,000, marking a significant rise of 78.5%[26] - The company reported a net cash provided by operating activities of $120,868,000 for the nine months ended September 30, 2025, compared to $110,621,000 in 2024, an increase of approximately 9.3%[26] Guidance and Projections - Q4 2025 revenue guidance is set between $84.9 million and $88.9 million, with Adjusted EBITDA guidance between $43.1 million and $46.0 million[12] - Adjusted earnings per diluted share for Q4 2025 is projected to be between $1.27 and $1.37[12] Corporate and SoHo Business Performance - Corporate revenue for Q3 2025 was $56.3 million, compared to $53.1 million in Q3 2024, showing a growth of approximately 4.2%[47] - Corporate customer accounts increased to 65 in Q3 2025 from 58 in Q3 2024, reflecting a growth of about 12.1%[47] - Corporate Average Revenue per Customer Account (ARPA) decreased to $293.12 in Q3 2025 from $310.13 in Q3 2024, a decline of approximately 5.5%[47] - SoHo revenue decreased to $31.5 million in Q3 2025 from $34.7 million in Q3 2024, indicating a decline of about 9.5%[47] - SoHo customer accounts decreased to 661 in Q3 2025 from 741 in Q3 2024, a reduction of approximately 10.8%[47] Operating Expenses and Liabilities - Operating expenses for the three months ended September 30, 2025, totaled $32,317,000, compared to $31,670,000 in 2024, an increase of about 2%[24] - Total liabilities decreased slightly to $677,607,000 as of September 30, 2025, from $681,664,000 at December 31, 2024, a reduction of about 0.6%[22] - The company incurred interest expense of $8,836,000 for the three months ended September 30, 2025, down from $9,760,000 in 2024, reflecting a decrease of approximately 9.5%[24] Debt Management - The company utilized a new credit facility to retire $200 million of 6% Notes due October 2026, with plans to retire the remaining $34 million by year-end[3]