Consensus Cloud Solutions Q2 Earnings: Record Corporate Revenue Growth, Improved Adjusted EBITDA Margin, and Strong Free Cash Flow

Consensus Cloud Solutions reported Q2 earnings with record corporate revenue growth of 6.9% YoY, a 54.8% adjusted EBITDA margin, and record free cash flow of $20.3 million, up 29% YoY. The healthcare sector showed sustained growth, while SoHo revenue declined by 9.4% YoY. The company anticipates full-year revenue between $343 million and $357 million and adjusted EBITDA between $179 million and $191 million.

Consensus Cloud Solutions, Inc. (NASDAQ: CCSI) released its second quarter (Q2) 2025 earnings report, showcasing robust financial performance and a strategic shift in its business mix. The company reported a 6.9% year-over-year (YoY) growth in corporate revenue, reaching $55.3 million, and a record free cash flow of $20.3 million, up 28.7% YoY [1]. The quarter marked a return to positive GAAP revenue growth, with total revenue increasing to $87.7 million from $87.5 million a year earlier [2].

The company's adjusted EBITDA margin stood at 54.8%, surpassing its target range of 50% to 55%, reflecting strong operational efficiency [1]. Net income decreased by 13.0% to $20.8 million due to changes in foreign exchange gains and losses, but adjusted net income increased by 3.2% to $28.4 million, driven by lower interest expenses [2].

The healthcare sector continued to demonstrate sustained growth, with increased adoption of advanced solutions like Unite and Conductor [1]. In contrast, the SoHo segment experienced a planned revenue decline of 9.4% YoY, reflecting a strategic shift towards more profitable corporate customers [2]. The number of SoHo customers fell to 682,000 from 760,000 a year earlier, with churn increasing to 3.84% [1].

Consensus Cloud Solutions also executed a $225 million credit facility to retire the 6% senior notes due in October 2026, further bolstering its balance sheet [1]. The company's long-term debt stood at $578 million as of June 30, 2025, and it repurchased $6.0 million in debt and $12.4 million in stock [2].

Looking ahead, the company anticipates full-year 2025 revenue between $343 million and $357 million and adjusted EBITDA between $179 million and $191 million [1]. Management raised its full-year 2025 adjusted earnings per diluted share guidance to $5.25 to $5.65, citing improved execution in the first half of 2025 and positive momentum in the Corporate segment [2].

Investors should monitor the pace of account churn and ARPA trends, as well as further progress in healthcare interoperability and shifts in personnel cost or marketing spend [1]. While the company reported no current headwinds from tariffs or supply chain disruptions, competition and regulatory shifts in healthcare IT remain broader issues for the business [2].

References:
[1] https://www.nasdaq.com/articles/consensus-cloud-ccsi-q2-revenue-rises
[2] https://www.businesswire.com/news/home/20250807311048/en/Consensus-Cloud-Solutions-Inc.-Reports-Second-Quarter-2025-Results-Reaffirms-Full-Year-2025-Revenue-and-Adjusted-EBITDA-Guidance-Raises-Full-Year-2025-Adjusted-Earnings-Per-Diluted-Share-Guidance