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Dec 30, 2024
Consensus Cloud Q1 2025 Earnings Report
Consensus Cloud Solutions, Inc. reported financial results for the first quarter of 2025, showing a slight decrease in revenue but maintaining robust operating margins and strong cash flows.
Key Takeaways
Consensus Cloud Solutions, Inc. reported a slight revenue decrease of 1.1% to $87.1 million in Q1 2025 compared to Q1 2024, primarily due to a planned decline in the SoHo business, partially offset by growth in the Corporate business. Net income decreased to $21.2 million, mainly due to a debt extinguishment loss and changes in foreign exchange revaluation. Despite these factors, the company maintained strong operating margins and cash flows, reaffirming its full-year 2025 guidance.
Q1 2025 revenues decreased by $1.0 million (1.1%) to $87.1 million, primarily due to a planned decrease in the SoHo business.
Net income for Q1 2025 was $21.2 million, down from $26.4 million in Q1 2024, influenced by a debt extinguishment loss.
Adjusted EBITDA for Q1 2025 was $47.3 million, a slight decrease from $48.1 million in Q1 2024, but Adjusted EBITDA margin remained strong at 54.2%.
Net cash provided by operating activities decreased to $40.9 million from $44.7 million in Q1 2024, and free cash flow decreased to $33.7 million from $35.8 million.
Revenue by Segment
Forward Guidance
Consensus Cloud Solutions, Inc. provided full-year 2025 guidance with revenue ranging from $343 million to $357 million, Adjusted EBITDA from $179 million to $190 million, and Adjusted earnings per diluted share from $5.03 to $5.42. For Q2 2025, revenue is expected to be between $85.0 million and $87.0 million, Adjusted EBITDA between $45.0 million and $46.5 million, and Adjusted earnings per diluted share between $1.31 and $1.37.
Positive Outlook
- Reaffirmed full-year 2025 guidance, indicating confidence in future performance.
- Projected full-year 2025 revenue midpoint of $350 million.
- Anticipated full-year 2025 Adjusted EBITDA midpoint of $185 million.
- Expected full-year 2025 Adjusted earnings per diluted share midpoint of $5.22.
- Q2 2025 guidance for Adjusted EBITDA midpoint of $46.5 million suggests continued profitability.
Challenges Ahead
- Guidance is provided on a non-GAAP basis, making direct comparison to GAAP measures difficult due to inherent uncertainty.
- Certain information necessary to calculate comparable GAAP measures is unavailable, limiting full transparency.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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