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Mar 31
Synchronoss Q1 2025 Earnings Report
Synchronoss Technologies reported its first quarter 2025 financial results, highlighting a decrease in total revenue but improvements in gross profit and adjusted EBITDA.
Key Takeaways
Synchronoss Technologies reported total revenue of $42.2 million for Q1 2025, a slight decrease from the prior year, primarily due to a customer contract expiration, partially offset by cloud subscriber growth. The company achieved a GAAP net loss of $3.8 million but saw significant improvements in income from operations and adjusted EBITDA, which were within expectations.
Total revenue for Q1 2025 was $42.2 million, a decrease from $43.0 million in the prior year period.
The company reported a net loss of $3.8 million, or $(0.37) per diluted share, primarily due to non-cash foreign exchange losses.
Adjusted EBITDA increased by 17.0% to $12.7 million, with an adjusted EBITDA margin of 30.2%.
Synchronoss completed a $200 million term loan refinancing, extending debt maturity until 2029 and strengthening its capital structure.
Synchronoss
Synchronoss
Forward Guidance
Synchronoss Technologies is reiterating its full 2025 financial outlook, expecting revenue between $170 million and $180 million, and adjusted EBITDA between $52 million and $56 million.
Positive Outlook
- Revenue range is projected to be between $170 million and $180 million.
- Recurring revenue is expected to be at least 90% of total revenue.
- Adjusted gross margin is anticipated to be between 78%-80%.
- Adjusted EBITDA is forecasted to be between $52 million and $56 million, equaling at least 30% adjusted EBITDA margin.
- Free Cash Flow is projected to be between $11 million and $16 million, excluding the federal tax refund.
Challenges Ahead
- The free cash flow guidance excludes the effect of the federal tax refund, which is expected to be received in 2025.
- The company's ability to sustain or increase revenue from larger customers and generate revenue from new customers is a risk factor.
- The timing and amount of tax refunds are subject to uncertainty.
- The sufficiency of the Company's cash resources is a risk factor.
- The impact of legal proceedings involving the Company is a potential negative factor.