Consensus Cloud 2025 Q2 Earnings Mixed Results with Net Income Down 13%

Consensus Cloud reported Q2 2025 earnings that missed expectations in key profitability metrics, despite returning to slight revenue growth. The company reaffirmed its full-year revenue and EBITDA guidance and raised Adjusted EPS forecasts, signaling confidence in future performance.

Revenue
Consensus Cloud posted a modest 0.3% year-over-year increase in total revenue, reaching $87.72 million in Q2 2025. This slight growth was driven by the Corporate segment, which contributed $55.30 million, reflecting improved customer retention and new business. The SoHo segment delivered $32.41 million, in line with expectations, while the Other segment accounted for a minimal $5,000. Although the overall increase was modest, the Corporate segment's 6.9% growth highlighted stronger operational momentum.

Earnings/Net Income
The company’s earnings declined in Q2 2025, with EPS dropping 13.7% to $1.07 from $1.24 in the prior year, and net income falling 13.0% to $20.78 million from $23.87 million. Despite the dip, Consensus Cloud has maintained profitability for five consecutive years in the same quarter, underscoring its ongoing operational resilience.

Price Action
The stock edged up 2.59% during the latest trading day and gained 3.91% over the past week, though it fell 11.37% month-to-date.

Post-Earnings Price Action Review
Despite a modest revenue increase, a strategy of purchasing Consensus Cloud shares following the earnings report and holding for 30 days underperformed significantly, with a return of -66.20%, trailing the benchmark by 113.30%. The negative Sharpe ratio of -0.55 and absence of drawdowns suggest that the backtest avoided losses but failed to generate positive returns.

CEO Commentary
CEO Scott Turicchi emphasized the company’s return to positive revenue growth and highlighted the 6.9% rise in the Corporate segment. He noted that operating margins remain strong, supporting robust cash flow and cash balances. Turicchi also shared that the company successfully executed a $225 million credit facility post-quarter to partially retire the 6% senior notes due in 2026. His comments reflected optimism about the company’s momentum and financial stability.

Guidance
Consensus Cloud reaffirmed its full-year 2025 revenue and Adjusted EBITDA guidance and raised its Adjusted Earnings Per Diluted Share forecast. The company achieved Q2 revenue of $87.7 million, with net income of $20.8 million and Adjusted EBITDA of $48.1 million, representing a margin of 54.8%. Free cash flow also improved to $20.3 million from $15.8 million in the prior-year quarter.

Additional News
Recent international developments included growing tensions over the Gaza plan as global leaders prepare for key meetings. India responded to new tariffs by pushing back, while the U.S. and Europe grappled with economic and political shifts. Trump’s administration continued to reshape policies, including census directives and Federal Reserve nominations, while Europe faced wildfires and migration challenges. In Asia, a ceasefire agreement was signed between Cambodia and Thailand, and China’s role in regional diplomacy remained a focal point.