Consensus Cloud Solutions (NasdaqGS:CCSI) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Company ParticipantsAdam Varon - SVP of FinanceJim Malone - CFOJohnny Hecker - Chief Revenue Officer and EVP of OperationsScott Turicchi - CEOConference Call ParticipantsDavid Larsen - Equity Research AnalystGene Mannheimer - Senior Research AnalystIsaac Saulson - AnalystOperatorGood day, ladies and gentlemen, and welcome to Consensus Q4 2025 earnings call. My name is Paul, and I will be the operator assisting you ...

Consensus Cloud Solutions (NasdaqGS:CCSI) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Speaker6Good day, ladies and gentlemen, and welcome to Consensus Q4 2025 earnings call. My name is Paul, and I will be the operator assisting you today. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. On this call from Conse ...

Core Insights - Consensus Cloud Solutions, Inc. reported a solid Q3 2025 with a revenue increase of 6.1% year-over-year, reaching $56.3 million, driven by strong performance in the corporate channel and record usage of the eFax Protect service [8][20][21] - The company achieved an adjusted EBITDA margin of 52.8%, slightly above expectations, and free cash flow increased by 32% to $44.4 million [5][22][23] - The corporate customer base expanded to approximately 65,000, reflecting a 12% increase from the previous year, while the trailing twelve-month revenue retention rate remained stable at 101.9% [10][20] Financial Performance - Total revenue for Q3 2025 was $87.8 million, consistent with the prior year, while adjusted EBITDA was $46.4 million, a decrease of 1.2% from Q3 2024 [22][21] - Adjusted net income for the quarter was $26.6 million, with adjusted EPS remaining unchanged at $1.38 [22] - The company expects Q4 2025 revenues to range between $84.9 million and $88.9 million, with adjusted EBITDA between $43.1 million and $46 million [26] Operational Highlights - The corporate channel's growth was attributed to increased usage within enterprise accounts and strong performance in public sector business, particularly with the VA [9][12] - The eFax Protect service added approximately 6,700 new customers in Q3 2025, contributing to the growth of the SMB cohort [10][11] - The Zoho business recorded a planned revenue decline of 9.2% year-over-year, reflecting a strategic focus on optimizing profitability [13][21] Debt Management - The company reduced total indebtedness from $805 million to $569 million through debt retirement, with a new interest rate of 5.65% on the refinanced debt [7][24] - Free cash flow for the year is expected to exceed $95 million, ahead of original expectations, despite a lower expected free cash flow in Q4 due to seasonal costs [6][5] Strategic Outlook - The company remains confident in its growth strategy, focusing on healthcare and expanding efforts in corporate SMB and upper enterprise markets [18] - The VA's continued high usage rates indicate potential for future revenue growth, with expectations of reaching $10 million to $20 million in revenue over the next few years [30][34] - The company is actively navigating changes in the digital marketing environment to recover from recent impacts on customer acquisition [15][44]