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Jun 30
Synchronoss Q2 2025 Earnings Report
Synchronoss' financial results for the second quarter ended June 30, 2025, were reported, showing a decrease in total revenue but improvements in income from operations and adjusted gross margin.
Key Takeaways
Synchronoss Technologies reported second-quarter 2025 revenue of $42.5 million, a slight decrease from the prior year, primarily due to a customer contract expiration, partially offset by cloud subscriber growth. The company achieved a net loss of $19.6 million, largely due to non-cash foreign exchange losses and debt-related expenses. Despite the net loss, income from operations significantly improved, and adjusted EBITDA remained strong at $12.8 million. The company also successfully refinanced its debt, strengthening its capital structure, and received a significant tax refund post-quarter.
Total revenue for Q2 2025 was $42.5 million, a decrease from $43.5 million in the prior year, mainly due to a customer contract expiration.
Net loss for the quarter was $19.6 million, primarily impacted by $12.5 million in non-cash foreign exchange losses and $6.4 million in combined debt modification and extinguishment expenses.
Income from operations significantly improved to $6.9 million in Q2 2025, up from $4.3 million in the prior year period.
The company successfully closed a $200 million term loan, allowing it to retire $195 million in previous debt and strengthening its capital structure.
Synchronoss
Synchronoss
Forward Guidance
Synchronoss reaffirms its full-year 2025 guidance, expecting revenue between $170 million and $180 million, recurring revenue of at least 90%, adjusted gross margin between 78% and 80%, adjusted EBITDA between $52 million and $56 million, and free cash flow between $11 million and $16 million.
Positive Outlook
- Reaffirms full-year revenue guidance of $170 million to $180 million.
- Expects recurring revenue to be at least 90% of total revenue for the full year.
- Anticipates adjusted gross margin between 78% and 80% for the full year.
- Projects adjusted EBITDA between $52 million and $56 million for the full year, representing at least a 30% margin.
- Forecasts free cash flow between $11 million and $16 million for the full year, excluding tax refund proceeds and transaction fees.
Challenges Ahead
- Free cash flow guidance excludes proceeds from the federal tax refund.
- Free cash flow guidance excludes approximately $4.4 million of transaction fees from the 2025 term loan.
- The company is unable to provide a quantitative reconciliation of forecasted non-GAAP measures to GAAP due to unreasonable efforts.
- Actual results may differ materially from forward-looking statements due to various risks and uncertainties.
- The guidance does not account for potential impacts of future events or new information not currently available.