Consensus(US:CCSI)2025-11-05 22:24Revenue Performance - Total revenue for the three months ended September 30, 2025, was $87,767 thousand, consistent with the prior year, while revenue for the nine months was $262,626 thousand, a slight decrease of $0.8 million compared to the previous year[113][114]. - Corporate revenue increased by $3.2 million or 6% for the three months ended September 30, 2025, while SoHo revenue decreased by $3.2 million or 9%[114]. - Total revenues for the three months ended September 30, 2025, were $87.767 million, consistent with $87.753 million in 2024, while revenues for the nine months ended September 30, 2025, decreased slightly to $262.626 million from $263.399 million in 2024[113]. Customer Metrics - Average Revenue per Customer Account (ARPA) for Corporate was $293.12 for the three months ended September 30, 2025, down from $310.13 in 2024, while consolidated ARPA increased to $39.79 from $36.19[109]. - The total number of customer accounts decreased to 726 thousand as of September 30, 2025, down from 799 thousand in the prior year[109]. - Monthly churn rate for Corporate customers increased to 3.47% for the three months ended September 30, 2025, compared to 2.61% in 2024[109]. - The company serves approximately 726 thousand customers across 41 countries, with top 10 customers contributing about 9% of total revenues[105]. Expenses and Costs - Cost of revenues for the three months ended September 30, 2025, was $17,520 thousand, a decrease of 1% from the prior year, while for the nine months, it increased by 3% to $53,214 thousand[115][116]. - Sales and marketing expenses for the three months ended September 30, 2025, were $13,006 thousand, a 4% increase from the prior year, and for the nine months, they rose to $38,246 thousand, also a 4% increase[118][120]. - Research, development, and engineering costs for Q3 2025 were $1,950,000, a decrease of 4% compared to Q3 2024, and for the nine months ended September 30, 2025, costs were $5,406,000, down 3% year-over-year[121][122]. - General and administrative expenses for Q3 2025 were $17,361,000, an increase of 1% from Q3 2024, while for the nine months ended September 30, 2025, expenses decreased by 4% to $51,284,000[123][125]. - Share-based compensation for Q3 2025 totaled $3,966,000, up from $3,422,000 in Q3 2024, and for the nine months ended September 30, 2025, it was $12,437,000 compared to $11,610,000 in the prior year[126]. Financial Position - Cash and cash equivalents as of September 30, 2025, were $97,600,000, significantly up from $33,500,000 as of December 31, 2024[135]. - The company entered into a $75,000,000 revolving credit facility and a $150,000,000 delayed-draw term loan facility as part of the 2025 Credit Agreement[136]. - As of September 30, 2025, the company had $582,400,000 in outstanding debt and total minimum lease payments of $15,200,000[137]. Cash Flow - Net cash provided by operating activities for the nine months ended September 30, 2025, was $120,900,000, an increase from $110,600,000 in the prior year[142]. - Net cash used in investing activities increased to $27.3 million for the nine months ended September 30, 2025, compared to $25.5 million in 2024, primarily due to investments made in the current period[143]. - Net cash used in financing activities decreased significantly to $33.1 million for the nine months ended September 30, 2025, from $116.8 million in 2024, mainly due to reduced cash outflows related to debt repurchases[144]. Taxation - The effective tax rate for Q3 2025 was 26.3%, up from 22.5% in Q3 2024, primarily due to changes in the geographical mix of income and an increase in the officer's compensation limitation[133]. - The provision for income taxes was $7.9 million for the three months ended September 30, 2025, compared to $6.1 million for the same period in 2024[132].