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Sep 30, 2025
Synchronoss Q3 2025 Earnings Report
Synchronoss Technologies reported its third quarter 2025 financial results, highlighting strong recurring revenue and net income, despite a slight decrease in total revenue compared to the prior year.
Key Takeaways
Synchronoss Technologies delivered a solid third quarter in 2025, with total revenue of $42.0 million, largely driven by 93.8% recurring revenue. The company reported a net income of $5.8 million and diluted EPS of $0.51 per share, a significant improvement from a net loss in the prior year. Adjusted EBITDA reached $12.0 million, and the company successfully reduced its net debt by utilizing a CARES Act Tax refund.
Total revenue for Q3 2025 was $42.0 million, a slight decrease from $43.0 million in the prior year period.
Net income attributable to Synchronoss was $5.8 million, or $0.51 per diluted share, a substantial improvement from a net loss of $(5.7) million in Q3 2024.
Recurring revenue constituted 93.8% of total revenue, up from 92.2% in the prior year period, demonstrating the strength of its SaaS-powered cloud model.
Adjusted EBITDA for the quarter was $12.0 million, with an adjusted EBITDA margin of 28.5%.
Forward Guidance
Synchronoss Technologies has revised its full-year 2025 outlook, expecting revenue between $169 million and $172 million, with recurring revenue of at least 90%. The company anticipates adjusted gross margin between 78%-80% and adjusted EBITDA between $50 million and $53 million, equating to at least 30% adjusted EBITDA margin. Free cash flow is projected to be between $6 million and $10 million, excluding the federal tax refund and transaction fees.
Positive Outlook
- Reiterated expectation of adding a new customer in 2025, contributing to future revenue growth.
- Anticipates adding a new tier 1 customer in the first half of 2026, further enhancing profitability.
- Expects recurring revenue to remain strong at at least 90% of total revenue for FY25.
- Projects adjusted EBITDA between $50 million and $53 million for FY25, with at least a 30% margin.
- Forecasts positive free cash flow between $6 million and $10 million for FY25, excluding specific one-time items.
Challenges Ahead
- Total revenue decreased to $42.0 million from $43.0 million in the prior year period, attributed to delays in new customer signings.
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