Consensus(US:CCSI)2026-02-10 00:00Revenue Performance - Q4 2025 revenues increased by $0.1 million to $87.1 million, with a 7.3% growth in the Corporate business, while the SoHo business decreased by 11.1%[3] - Full year 2025 revenues decreased by $0.7 million to $349.7 million, primarily due to a 10.1% decline in the SoHo business[7] - Preliminary financial results for the year ended December 31, 2025, indicate revenues of $349.7 million, slightly down from $350.4 million in 2024[21][28] - Corporate revenue for Q4 2025 was $56.8 million, up from $52.9 million in Q4 2024, indicating a 5.4% growth[52] - SoHo revenue in Q4 2025 was $30.3 million, down from $34.1 million in Q4 2024, a decrease of 11.0%[52] Net Income and Earnings - Net income for Q4 2025 rose by $2.4 million or 13% to $20.5 million, resulting in a net income margin of 23.5% compared to 20.8% in Q4 2024[4] - Net income for 2025 decreased to $84.5 million, with a net income margin of 24.2%, down from 25.5% in 2024[8] - Earnings per diluted share increased by 15.2% to $1.06 in Q4 2025, up from $0.92 in Q4 2024[4] - Adjusted net income for 2025 increased to $109.4 million, with adjusted earnings per diluted share rising by 3.1% to $5.62[8] - Net income for the year ended December 31, 2025, was $84,527, a decrease of 5.1% from $89,435 in 2024[30] Cash Flow and Operating Activities - Net cash provided by operating activities in 2025 increased to $136.1 million, while free cash flow rose to $105.9 million[8] - Net cash provided by operating activities in Q4 2025 increased to $15.2 million from $11.1 million in Q4 2024, representing a 36.1% increase[47] - Free cash flow in Q4 2025 rose to $7.3 million, up from $3.1 million in Q4 2024, marking a 133.5% increase[47] - For the full year 2025, net cash provided by operating activities increased to $136.1 million from $121.7 million in 2024, a growth of 11.5%[48] - Free cash flow for 2025 was $105.9 million, compared to $88.3 million in 2024, reflecting a 19.9% increase[48] Adjusted Financial Metrics - Adjusted EBITDA for Q4 2025 was $45.2 million, with an Adjusted EBITDA margin of 51.9%, compared to 51.0% in Q4 2024[4] - The Company reported an adjusted EBITDA margin of 43% for the year ended December 31, 2025[24][25] - Adjusted EBITDA for the year ended December 31, 2025, was $186,884, a slight decrease from $188,406 in 2024[44] Assets and Liabilities - Cash and cash equivalents increased to $74.7 million as of December 31, 2025, up from $33.5 million in 2024[27] - Total assets rose to $663.8 million in 2025, compared to $602.2 million in 2024, marking an increase of approximately 10.2%[27] - Operating expenses for the year ended December 31, 2025, totaled $128.9 million, a decrease from $131.3 million in 2024[28] - The Company has a share buyback program authorized for up to $100 million, extended through February 2028[20] Customer Metrics - The number of corporate customer accounts increased to 65 in Q4 2025 from 59 in Q4 2024, a rise of 10.2%[52] - Corporate Average Revenue per Customer Account (ARPA) decreased to $290.40 in Q4 2025 from $303.58 in Q4 2024, a decline of 4.3%[52] - SoHo customer accounts decreased to 638 in Q4 2025 from 721 in Q4 2024, a decline of 11.5%[52] - Corporate monthly account churn increased to 3.30% in Q4 2025 from 2.63% in Q4 2024, indicating a rise in customer attrition[52] Guidance and Future Plans - Q1 2026 revenue guidance is set between $85.4 million and $89.4 million, with adjusted earnings per diluted share guidance between $1.36 and $1.46[16] - FY 2026 revenue guidance ranges from $350.0 million to $364.0 million, with adjusted earnings per diluted share guidance between $5.55 and $5.95[17] - The Company approved a debt repurchase program allowing for a reduction of up to $300 million in outstanding principal of the 2026 and 2028 Senior Notes, expiring on November 9, 2026[20] - The company plans to continue focusing on operational performance metrics, including non-GAAP measures like Adjusted net income and Adjusted EBITDA, to provide transparency to investors[35] Other Financial Information - The Company emphasizes the importance of non-GAAP financial measures for evaluating performance and liquidity, excluding certain expenses not indicative of core business results[24][25] - The company reported a foreign exchange loss of $3,112 in 2025, compared to a gain of $4,312 in 2024[32] - Interest expense for the year ended December 31, 2025, was $35,528, an increase from $33,979 in 2024[44] - The company incurred a debt extinguishment loss of $919 in 2025, compared to a gain of $6,557 in 2024[32] - Share-based compensation for the year ended December 31, 2025, was $17,693, compared to $16,764 in 2024, reflecting an increase of 5.5%[32]