Consensus(US:CCSI)2026-02-12 22:40Revenue Performance - Total revenue for 2025 is projected at $349.7 million, a slight decrease from $350.4 million in 2024 and $362.6 million in 2023[219]. - Corporate revenue increased to $222.7 million in 2025 from $209.1 million in 2024, while SoHo revenue decreased to $127.0 million from $141.3 million[219]. - Revenues for the year ended December 31, 2025, were $349.7 million, a decrease of 0.2% compared to $350.4 million in 2024 and a decline of 3% from $362.6 million in 2023[241]. - The decrease in revenues was primarily due to a $14.3 million decline in SoHo revenues, partially offset by a $13.6 million increase in Corporate revenues due to organic growth and new customer acquisitions[242]. Customer Metrics - Average Revenue per Customer Account (ARPA) for Corporate decreased to $300.03 in 2025 from $310.67 in 2024, while consolidated ARPA increased to $39.32 from $35.57[219]. - The number of Corporate customer accounts grew to 65 in 2025 from 59 in 2024, while SoHo accounts decreased to 638 from 721[219]. - Monthly churn rate for Corporate customers increased to 3.03% in 2025 from 2.36% in 2024, while SoHo churn remained relatively stable at 3.64%[219]. - The top 10 customers contribute approximately $32.7 million, representing 9% of total revenues[216]. - The company services approximately 703,000 customers across 46 countries, adapting its offerings to meet diverse customer needs[216]. Strategic Focus - The company aims to grow both organically and through opportunistic acquisitions to enhance its product offerings in the interoperability space[238]. - The company has shifted focus towards larger commercial and public sector customers, reflecting a trend towards digitization and cloud-based solutions[217]. - The company emphasizes security and compliance in data exchange, particularly in regulated industries such as healthcare and financial services[216]. Financial Performance - Cost of revenues increased to $70.6 million in 2025, representing 20% of revenues, compared to $69.7 million (20%) in 2024 and $68.3 million (19%) in 2023[244]. - Operating expenses decreased to $37 million in 2025, down from $38 million in 2024 and $40 million in 2023, with sales and marketing expenses remaining stable at $51.5 million[248]. - General and administrative expenses decreased to $69.8 million in 2025, down from $72.5 million in 2024, primarily due to reductions in depreciation and non-income related tax expenses[252]. - Net income for 2025 was $25 million, representing 25% of revenues, consistent with 2024, which also had a net income of 25%[240]. Debt and Financing - Interest expense increased to $35.5 million in 2025 from $34 million in 2024, primarily due to a net loss on debt extinguishment[256]. - The Company redeemed the remaining outstanding principal balance of the 2026 Senior Notes in full during 2025[267]. - The Company entered into a 2025 Credit Agreement providing a senior secured revolving credit facility of $75.0 million and a delayed-draw term loan facility of $150.0 million[269]. - As of December 31, 2025, the Company had $562.2 million in total indebtedness, with $7.5 million due within the next 12 months[273]. - Net cash used in financing activities was $63.3 million in 2025, primarily due to the repayment of 2026 Senior Notes[281]. Cash Flow and Liquidity - Cash and cash equivalents increased significantly to $74.7 million in 2025 from $33.5 million in 2024, driven by cash provided by operations[266]. - Net cash provided by operating activities was $136.1 million for the year ended December 31, 2025, an increase from $121.7 million in 2024[279]. - The Company anticipates that existing cash and cash equivalents will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months[274]. - As of December 31, 2025, cash and cash equivalents totaled $74.7 million, up from $33.5 million in 2024[284]. Foreign Exchange and Risk Management - Foreign exchange losses amounted to $(3.2) million in 2025, compared to gains of $4.3 million in 2024[290]. - The Company has not engaged in interest rate hedging transactions to date, exposing it to potential fluctuations in interest rates[285].