Consensus Cloud Solutions reported third‑quarter 2025 revenue of $87.8 million, unchanged from the same period last year. The flat top line was largely offset by a 6.1 % increase in corporate‑channel revenue, which rose to $56.3 million, while the small‑office/home‑office (SoHo) segment fell 9.2 % to $31.5 million. Management attributed the SoHo decline to a near‑term headwind in organic sign‑ups caused by changes in the search environment, a trend that aligns with the company’s strategic shift toward higher‑margin corporate customers.
Net income climbed 4.6 % year‑over‑year to $22.1 million, and adjusted earnings per share reached $1.38, beating the consensus estimate of $1.36 by $0.02 (1.5 %). The earnings beat was driven by disciplined cost management, a favorable mix shift toward the corporate segment, and the absence of material one‑time charges. CEO Scott Turicchi noted that “Q3 was another solid quarter led by our corporate channel revenue with growth in excess of 6 % compared to Q3 2024,” underscoring the strength of the high‑margin business.
Adjusted EBITDA for the quarter was $46.4 million, a 1.2 % decline from Q3 2024. The slight drop reflects planned headcount additions, but the margin remained robust at 52.8 %. CFO Jim Malone explained that “Adjusted EBITDA of $46.4 million represents a decrease of $600,000 or 1.2 % versus Q3 2024, primarily driven by planned headcount additions.” The company’s ability to maintain a high margin despite the increase in personnel costs signals strong operational leverage.
For Q4 2025, CCSI guided revenue to $84.9–$88.9 million and adjusted EBITDA to $43.1–$46.0 million. Management cautioned that the margin in the fourth quarter would be lower due to headcount additions and seasonal audit‑related costs. The company also announced a new credit facility with a 5.65 % interest rate, which it used to retire $200 million of its 6 % senior notes due in October 2026, thereby reducing leverage and supporting its debt‑reduction strategy.
Investors responded positively to the earnings beat, the continued growth of the corporate segment, and the company’s proactive debt‑reduction plan. Management’s emphasis on cost discipline, strategic focus on high‑margin customers, and the successful use of the credit facility reinforce confidence in CCSI’s near‑term execution and long‑term financial health.
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