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Mar 31

CSG Systems Q1 2025 Earnings Report

Reported results for the quarter ended March 31, 2025, including revenue, operating income, and EPS.

Key Takeaways

CSG Systems International reported strong first quarter 2025 results with a 1.5% increase in total revenue to $299.5 million. Non-GAAP operating income and EPS saw significant increases compared to the prior year, driven by improved operating discipline and revenue mix. The company also reported strong cash flow from operations and the highest first-quarter non-GAAP adjusted free cash flow since 2018.

Total revenue for Q1 2025 was $299.5 million, a 1.5% increase from Q1 2024.

Non-GAAP adjusted operating margin expanded by over 240 basis points to 19.0% in Q1 2025 compared to 16.6% in Q1 2024.

Non-GAAP EPS increased to $1.14 in Q1 2025, up from $1.01 in Q1 2024.

Non-GAAP adjusted free cash flow was $7.1 million in Q1 2025, a significant improvement from a deficit of $34.1 million in Q1 2024.

Total Revenue
$299M
Previous year: $295M
+1.5%
EPS
$1.14
Previous year: $1.01
+12.9%
Operating Margin Percentage
9.8%
Previous year: 10.8%
-9.3%
Adjusted Operating Margin %
19%
Previous year: 16.6%
+14.5%
Adjusted EBITDA
$64.3M
Previous year: $58.1M
+10.7%
Cash and Equivalents
$136M
Previous year: $121M
+12.6%
Free Cash Flow
$7.07M
Previous year: -$34.1M
-120.7%
Total Assets
$1.42B
Previous year: $1.29B
+9.7%

CSG Systems

CSG Systems

CSG Systems Revenue by Segment

CSG Systems Revenue by Geographic Location

Forward Guidance

CSG is revising its financial guidance for the full year 2025, raising non-GAAP profitability and EPS targets while reiterating all other guidance.

Positive Outlook

  • Raised Adjusted Operating Margin Percentage guidance to 18.4% - 18.8%.
  • Raised non-GAAP EPS guidance to $4.65 - $4.90.
  • Raised Adjusted EBITDA guidance to $258 million - $269 million.
  • Reiterated revenue guidance of $1,210 million - $1,250 million.
  • Reiterated Adjusted Free Cash Flow guidance of $110 million - $150 million.