Press release
Consensus Cloud Solutions, Inc. Reports First Quarter 2025 Results; Reaffirms Full Year 2025 and Provides Q2 2025 Guidance
LOS ANGELES--(BUSINESS WIRE)-- Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported financial results for the first quarter of 2025. “I am pleased
About this update from Consensus Cloud Solutions, Inc.
[{"type":"text","content":" LOS ANGELES--(BUSINESS WIRE)--\nConsensus Cloud Solutions, Inc. (NASDAQ: CCSI) today reported financial results for the first quarter of 2025.\n\n“I am pleased with our start for fiscal year 2025. Our Corporate revenue growth continued its improvement, driven primarily by strong usage, improved revenue retention and new customer acquisition. Our SoHo revenue performed as expected. Our operating margins remained robust. Our strong cash flows from operations and cash balances enabled us to further reduce our overall debt levels. Collectively, this fuels our confidence for the remainder of the year despite the volatility in the capital markets,” said Scott Turicchi, CEO of Consensus.\n\nFIRST QUARTER UNAUDITED 2025 HIGHLIGHTS\n\nQ1 2025 quarterly revenues decreased by $1.0 million or 1.1% to $87.1 million compared to $88.1 million for Q1 2024. This decline was primarily due to a planned decrease of $3.9 million or 10.6% in our Small office home office (“SoHo”) business, partially offset by an increase of $2.9 million or 5.6% in our Corporate business.\n\nNet income(1) decreased to $21.2 million in Q1 2025 compared to $26.4 million for Q1 2024. The decrease was primarily due to a debt extinguishment loss in Q1 2025 compared to a gain in Q1 2024, as well the change in foreign exchange revaluation. The effect of these two items and the reduction in income tax expense contributed to a net decrease of $6.7 million. Q1 2025 net income margin(1) was 24.3% compared to 29.9% for Q1 2024.\n\nEarnings per diluted share(1) decreased to $1.07 or by 21.9% in Q1 2025 compared to $1.37 for Q1 2024. The decrease was due to the items discussed above.\n\nAdjusted EBITDA(3)(4) for Q1 2025 of $47.3 million decreased compared to Q1 2024 of $48.1 million primarily driven by a $1.0 million decline in revenues, partially offset by the benefit of our cost saving measures. Q1 2025 Adjusted EBITDA margin(3) of 54.2% was consistent with our Adjusted EBITDA margin(3) of 54.5% in Q1 2024.\n\nAdjusted net income(1)(2) in Q1 2025 increased to $27.0 million from $26.9 million in Q1 2024.\n\nAdjusted earnings per diluted share(1)(2) for the quarter decreased to $1.37 or by 2.1% compared to $1.40 for Q1 2024 primarily due to an increase in the weighted average share count of approximately 457,000 shares in Q1 2025 compared to Q1 2024.\n\nNet cash provided by operati...