Loading...
•
Jun 30
CSG Systems Q2 2025 Earnings Report
CSG Systems reported strong second quarter 2025 results, with increased revenue and significant growth in GAAP and non-GAAP operating income, leading to raised full-year profitability and non-GAAP adjusted free cash flow guidance.
Key Takeaways
CSG Systems delivered a strong second quarter in 2025, with total revenue reaching $297.1 million, a 2.3% increase year-over-year. The company saw robust growth in both GAAP and non-GAAP operating income, driven by the expansion of SaaS and related solutions and effective cost efficiency measures. Non-GAAP EPS also increased significantly, and the company generated strong cash flow from operations, leading to raised full-year profitability and non-GAAP adjusted free cash flow guidance.
Total revenue for Q2 2025 was $297.1 million, a 2.3% increase compared to Q2 2024, primarily due to growth in SaaS and related solutions and the acquisition of iCG business.
GAAP operating income increased by 17.5% to $29.9 million, with the operating margin rising to 10.0%, attributed to decreased restructuring charges and cost efficiency actions.
Non-GAAP operating income grew by 18.1% to $54.5 million, resulting in a non-GAAP adjusted operating margin of 20.1%, up from 17.3% in the prior year.
Non-GAAP EPS increased by 13.7% to $1.16, and non-GAAP adjusted free cash flow was $39.6 million, demonstrating strong cash generation.
CSG Systems
CSG Systems
CSG Systems Revenue by Segment
CSG Systems Revenue by Geographic Location
Revenue by Segment
Broadband/Cable/Satellite Revenue
CapyFin.comTelecommunications Revenue
CapyFin.comAll other Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comEurope, Middle East and Africa Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.com Forward Guidance
CSG is revising its financial guidance for the full year 2025, raising profitability targets and non-GAAP adjusted free cash flow targets.
Positive Outlook
- Adjusted Operating Margin Percentage guidance raised to 18.6% - 19.0% (from 18.4% - 18.8%).
- Adjusted EBITDA guidance raised to $261 million - $272 million (from $258 million - $269 million).
- Adjusted Free Cash Flow guidance raised to $120 million - $150 million (from $110 million - $150 million).
- Continued commitment to return over $100 million in capital to shareholders in 2025.
- Strong operating income growth and highest first half non-GAAP adjusted free cash flow in a decade.
Challenges Ahead
- Revenue guidance remains unchanged at $1,210 million - $1,250 million, indicating no upward revision despite strong Q2 performance.
- EPS guidance remains unchanged at $4.65 - $4.90, suggesting no anticipated further upside from Q2 results.
- GAAP EPS for Q2 2025 decreased compared to Q2 2024, mainly due to a higher effective income tax rate.
- Cash flows from operations for Q2 2025 decreased compared to Q2 2024.
- The company derives a significant portion of its revenue from a limited number of customers, with approximately forty percent from its two largest customers, posing a concentration risk.