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Sep 30
CSG Systems Q3 2025 Earnings Report
CSG Systems International reported its financial results for the third quarter ended September 30, 2025, showing an increase in total revenue and non-GAAP EPS, driven by growth in SaaS solutions and cost efficiency actions.
Key Takeaways
CSG Systems International delivered a solid third quarter in 2025, with total revenue reaching $303.6 million, a 2.9% increase year-over-year. The company reported GAAP EPS of $0.73 and non-GAAP EPS of $1.31, with non-GAAP operating income at $54.5 million, reflecting strong performance attributed to SaaS growth and cost efficiencies.
Total revenue for Q3 2025 increased by 2.9% year-over-year to $303.6 million, primarily due to the growth of SaaS and related solutions.
GAAP operating income was $30.5 million (10.0% operating margin), while non-GAAP operating income reached $54.5 million (19.5% adjusted operating margin), with the latter showing an increase due to cost efficiency actions.
GAAP diluted EPS was $0.73, up from $0.67 in Q3 2024, and non-GAAP EPS was $1.31, a significant increase from $1.06 in the prior year, both benefiting from higher operating income and foreign currency movements.
Cash flows from operations were $47.9 million, and non-GAAP adjusted free cash flow was $43.9 million, demonstrating strong cash generation capabilities.
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
The report contains forward-looking statements based on assumptions about various factors, including customer concentration, market conditions, and operational risks, which could cause actual results to differ materially.
Positive Outlook
- Continued market acceptance of CSG’s products and services is expected.
- CSG aims to continuously develop and enhance products in a timely, cost-effective, technically advanced, and competitive manner.
- The company's ability to deliver solutions within budget, especially for large and complex software implementations, is a positive factor.
- CSG's focus on building unforgettable customer experiences and empowering companies with SaaS solutions is a strategic positive.
- The company's commitment to being future-ready and a change-maker for global brands indicates a proactive approach to market evolution.
Challenges Ahead
- A significant portion of CSG's revenue is derived from a limited number of customers, with approximately forty percent from its two largest customers, posing a concentration risk.
- Fluctuations in credit market conditions, general global economic and political conditions, and foreign currency exchange rates could adversely impact results.
- Maintaining a reliable and secure computing environment is critical, and any failure could disrupt business.
- Dependency on the global telecommunications industry, particularly the North American sector, exposes CSG to industry-specific risks.
- Increasing competition from larger companies with broader presence in CSG’s market could challenge its growth and market share.