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Consensus Cloud Solutions, Inc. Reports Second Quarter 2025 Results; Reaffirms Full Year 2025 Revenue and Adjusted EBITDA Guidance; Raises Full Year 2025 Adjusted Earnings Per Diluted Share Guidance

LOS ANGELES--(BUSINESS WIRE)-- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported financial results for the second quarter of 2025.

鈥淲e continued our momentum through Q2 returning to total positive revenue growth ahead of our expectations. Our Corporate revenue growth achieved 6.9% over the prior year quarter, driven primarily by strong usage, improved revenue retention and new customer acquisition. Our SoHo revenue performed as expected. Our operating margins remained robust resulting in strong cash flows from operations and cash balances. After the close of the quarter, we successfully executed a $225 million credit facility which we will use, in part, to retire the 6% senior notes due October 2026,鈥� said Scott Turicchi, CEO of Consensus.

SECOND QUARTER UNAUDITED 2025 HIGHLIGHTS

Q2 2025 quarterly revenues increased by $0.2 million or 0.3% to $87.7 million compared to $87.5 million for Q2 2024. This increase was primarily due to an increase of $3.6 million or 6.9% in our Corporate business, partially offset by a planned decrease of $3.4 million or 9.4% in our Small office home office (鈥淪oHo鈥�) business.

Net income⁽¹⁾ decreased to $20.8 million in Q2 2025 compared to $23.9 million for Q2 2024. The decrease was primarily due to the change in foreign exchange gain and loss. Q2 2025 net income margin⁽¹⁾ was 23.7% compared to 27.3% for Q2 2024.

Earnings per diluted share⁽¹⁾ decreased to $1.07 or by 13.7% in Q2 2025 compared to $1.24 for Q2 2024. The decrease was primarily due to the item discussed above.

Adjusted EBITDA⁽³⁾⁽⁴⁾ for Q2 2025 of $48.1 million decreased compared to Q2 2024 of $49.1 million primarily driven by an increase in our personnel-related expenses. Q2 2025 Adjusted EBITDA margin⁽³⁾ was 54.8%, which was above the midpoint of our target Adjusted EBITDA margin⁽³⁾ range of 50% - 55%, compared to 56.1% in Q2 2024.

Adjusted net income⁽¹⁾⁽²⁾ in Q2 2025 increased to $28.4 million from $27.6 million in Q2 2024 primarily driven by a favorable reduction in our interest expense (excluding the impact of the extinguishment of debt) due to a lower average outstanding debt balance as a result of our debt repurchases in connection with our debt repurchase program.

Adjusted earnings per diluted share⁽¹⁾⁽²⁾ for the quarter increased to $1.46 or by 2.1% compared to $1.43 for Q2 2024 primarily due to the item discussed above.

Net cash provided by operating activities in Q2 2025 increased to $28.3 million from $24.4 million in Q2 2024. Free cash flow⁽⁵⁾ in Q2 2025 increased to $20.3 million from $15.8 million in Q2 2024. The increase in these two items was primarily attributable to a decrease in net cash outflows resulting from changes in our working capital accounts, partially offset by decreased income after excluding noncash items.

Key financial results from operations for Q2 2025 versus Q2 2024 are set forth in the following table. Reconciliations of GAAP measures to comparable non-GAAP financial measures accompany this press release.

Notes:

CAPITAL ALLOCATION STRATEGIC INITIATIVES

Consensus ended the quarter with $57.9 million in cash and cash equivalents after the cash outlays detailed below.

The following table consists of our material capital allocation strategic initiatives (in thousands):

Notes:

FY 2025 GUIDANCE ⁽ⁱ⁾

The following table presents ranges for the Company鈥檚 2025 guidance (in millions, except per share amounts). The Adjusted earnings per diluted share range has been increased by approximately $0.22 per share above the previously provided guidance based on year to date 2025 performance:

Q3 2025 GUIDANCE ⁽ⁱ⁾

The following table presents ranges for the Company鈥檚 Q3 2025 guidance (in millions, except per share amounts):

Notes:

About Consensus Cloud Solutions

Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) is a global leader in digital cloud fax technology. With over 25 years of success with eFax庐 at its core, the Company has evolved to be a trusted provider of interoperability solutions, leveraging artificial intelligence and secure data exchange to transform digital information, automate critical workflows, and maximize operational efficiencies. Consensus maintains industry-leading compliance standards, making it a preferred partner for heavily regulated industries including healthcare, the public sector, financial services, insurance, real estate, and manufacturing. For more information about Consensus, visit .

鈥淪afe Harbor鈥� Statement Under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release are 鈥渇orward-looking statements鈥� within the meaning of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management鈥檚 current expectations or beliefs and are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. These factors and uncertainties include, among other items: the Company鈥檚 ability to grow fax revenues, profitability and cash flows; the Company鈥檚 ability to identify, close and successfully transition acquisitions; subscriber growth and retention; variability of the Company鈥檚 revenue based on changing conditions in particular industries and the economy generally; protection of the Company鈥檚 proprietary technology or infringement by the Company of intellectual property of others; the risk of adverse changes in the U.S. or international regulatory environments, including but not limited to the imposition or increase of taxes or regulatory-related fees; general economic and political conditions, including political tensions and war (such as the ongoing conflict in Ukraine and the Middle East) and the impact of new or additional tariffs or other trade restrictions; and the numerous other factors set forth in Consensus鈥� filings with the Securities and Exchange Commission (鈥淪EC鈥�). For a more detailed description of the risk factors and uncertainties affecting Consensus, refer to the 2024 Annual Report on Form 10-K filed by Consensus on February 20, 2025, and the other reports filed by Consensus from time-to-time with the SEC, each of which is available at . The forward-looking statements provided in this press release are subject to change. Although management鈥檚 expectations may change after the date of this press release, the Company undertakes no obligation to revise or update these statements.

About non-GAAP Financial Measures

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow. The presentation of this non-GAAP financial information is not intended to be considered in isolation from, or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP.

We use these non-GAAP financial measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Our management believes that these non-GAAP financial measures provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures that may not be indicative of our recurring core business operating results. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning, forecasting, and analyzing future periods. These non-GAAP financial measures also facilitate management鈥檚 internal comparisons to our historical performance and liquidity. We believe these non-GAAP financial measures are useful to investors both because (1) they allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making and (2) they are used by our institutional investors and the analyst community to help them analyze the health of our business.

For more information on these non-GAAP financial measures, please see the appropriate GAAP to non-GAAP reconciliation tables included within the attached Exhibit to this Release.

Adjusted net income as calculated above represents net income and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; (2) foreign exchange loss (gain); (3) amortization; (4) intra-entity transfers; (5) debt extinguishment loss (gain); (6) other benefits or costs related to non-routine and other matters; and (7) income tax impact. Adjusted net income and weighted average diluted shares are then used to calculate Adjusted earnings per diluted share. The Company discloses these measures as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of these measures provides useful information to investors.

Adjusted net income and Adjusted earnings per diluted share are not calculated in accordance with, or presented as an alternative to, net income or earnings per diluted share, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, these measures are not based on any comprehensive set of accounting rules or principles. These non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company鈥檚 results of operations determined in accordance with GAAP.

Non-GAAP Financial Measures

To supplement its unaudited condensed consolidated financial statements, the Company uses the following non-GAAP financial measures: Adjusted net income, Adjusted earnings per diluted share, Adjusted EBITDA, Adjusted EBITDA margin and Free cash flow (collectively the 鈥渘on-GAAP financial measures鈥�). The presentation of this financial information is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. The Company uses these non-GAAP financial measures for financial and operational decision making and as a means to evaluate period-to-period comparisons. The Company believes that they provide useful information about core operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making.

The Company鈥檚 non-GAAP financial measures are adjusted for the following items:

Adjusted EBITDA as calculated above represents earnings before interest expense, interest income, other expense (income), net, income tax expense, depreciation and amortization and the items used to reconcile GAAP to non-GAAP financial measures, including (1) share-based compensation; and (2) other benefits or costs related to non-routine and other matters. The Company discloses Adjusted EBITDA as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of Adjusted EBITDA provides useful information to investors.

Adjusted EBITDA is not calculated in accordance with, or presented as an alternative to, net income, and may be different from similarly or identically named non-GAAP measures used by other companies. In addition, Adjusted EBITDA is not based on any comprehensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company鈥檚 results of operations determined in accordance with GAAP.

Net cash provided by operating activities in Q2 2025 increased to $28.3 million from $24.4 million in Q2 2024. Free cash flow in Q2 2025 increased to $20.3 million from $15.8 million in Q2 2024. The increase in these two items was primarily attributable to a decrease in net cash outflows resulting from changes in our working capital accounts, partially offset by decreased income after excluding noncash items.

The term Free cash flow is defined as net cash provided by operating activities, less purchases of property and equipment. The Company discloses Free cash flow as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that this non-GAAP measure is broadly used by analysts, rating agencies and investors in assessing the Company鈥檚 performance. Accordingly, the Company believes that the presentation of this non-GAAP financial measure provides useful information to investors.

Free cash flow is not calculated in accordance with, or presented as an alternative to, net cash provided by operating activities, and may be different from non-GAAP measures with similar or even identical names used by other companies. In addition, Free cash flow is not based on any comprehensive set of accounting rules or principles. This non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company鈥檚 results of operations determined in accordance with GAAP.

Key Performance Metrics (Unaudited)

The following table sets forth certain key performance metrics for Consensus for the three months ended June 30, 2025 and 2024 (in thousands, except for percentages and Average Revenue per Customer Account):

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View source version on businesswire.com:

Laura Hinson

Consensus Cloud Solutions, Inc

844-211-1711

[email protected]

Source: Consensus Cloud Solutions, Inc.