CSG Systems International Reports First Quarter 2025 Results

About this update from Csg Systems International, Inc.

[{"type":"text","content":" DENVER--(BUSINESS WIRE)--\nCSG (NASDAQ: CSGS) today reported results for the quarter ended March 31, 2025.\n\nRaising 2025 Non-GAAP Profitability and EPS Guidance Targets; Reiterating All Others\n\nStrong Cash Flow from Operations; Highest First Quarter Non-GAAP Adjusted Free Cash Flow Since 2018\n\nRecord High Revenue Diversification with 33% of Revenue Coming from Industry Verticals Outside of CSPs\n\nExciting Customer Wins and Contract Extensions including Mediacom, Liberty Latin America, and PLDT\n\nFinancial Results:\n\nFirst quarter 2025 financial results:\n\n\nTotal revenue was $299.5 million.\n\n\nGAAP operating income was $29.4 million, or an operating margin of 9.8%, and non-GAAP operating income was $51.5 million, or a non-GAAP adjusted operating margin of 19.0%.\n\n\nGAAP earnings per diluted share (EPS) was $0.57 and non-GAAP EPS was $1.14.\n\n\nCash flows from operations were $11.5 million, with non-GAAP adjusted free cash flow of $7.1 million.\n\n\nShareholder Returns:\n\n\nCSG declared its quarterly cash dividend of $0.32 per share of common stock, or a total of approximately $9 million, to shareholders.\n\n\nDuring the first quarter of 2025, CSG repurchased a total of approximately 357,000 shares of its stock for approximately $22 million.\n\n\nBusiness Activities:\n\n\nIn March 2025, CSG entered into a new credit agreement consisting entirely of a $600.0 million revolving credit facility, with a term through March 2030. The new credit agreement replaced CSG’s existing credit agreement.\n\n\n“Team CSG’s strong first quarter results enabled us to raise our 2025 non-GAAP profitability and EPS guidance targets. We grew revenue nicely at customers outside of communication service providers (“CSPs”) with a third of our revenue now coming from big, faster growing industry verticals providing a buffer against today’s macro-economic uncertainty.” said Brian Shepherd, President and Chief Executive Officer of CSG. “Our operating discipline and improving revenue mix resulted in Q1 2025 adjusted non-GAAP profitability expanding by over 240 basis points to 19% when compared to Q1 2024. And this improved profitability is contributing to excellent double-digit free cash flow growth with the midpoint of our 2025 cash flow guidance representing 15% year-over-year growth. With our steady sales wins, strong balance sheet, rich hi...

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