CSGS Posts 20-Year Profit Streak Amid 79% Earnings Drop

CSG Systems International (CSGS) reported fiscal 2025 Q4 earnings on Feb 19, 2026, with total revenue rising 2.0% to $323.09 million, reflecting resilience in core operations. The company’s earnings per share (EPS) plummeted 79.3% to $0.25, while net income contracted 79.7% to $7 million. Despite the sharp decline, CSGS has maintained profitability for over two decades in the same quarter, underscoring long-term operational stability.

Revenue

The total revenue of CSG Systems International increased by 2.0% to $323.09 million in 2025 Q4, up from $316.65 million in 2024 Q4.

Earnings/Net Income

CSG Systems International's EPS declined 79.3% to $0.25 in 2025 Q4 from $1.19 in 2024 Q4. Meanwhile, the company's net income declined to $7 million in 2025 Q4, down 79.7% from $34.47 million reported in 2024 Q4. Remarkably, the company has sustained profitability for more than 20 years over the corresponding fiscal quarter, underscoring strong operational resilience. The sharp EPS and net income declines contrast with the company’s over two-decade streak of quarterly profitability, highlighting operational resilience amid current challenges.

Price Action

The stock price of CSG Systems International has edged down 0.05% during the latest trading day, has edged up 0.08% during the most recent full trading week, and has edged up 0.06% month-to-date.

Post-Earnings Price Action Review

The strategy of buying CSGS when earnings beat expectations and selling after 30 days resulted in a -20.66% return, significantly underperforming the benchmark, which returned 61.95%. The strategy had a maximum drawdown of 39.60%, a Sharpe ratio of -0.30, and a volatility of 15.89%, indicating it was riskier than the benchmark with a high likelihood of significant losses.

Additional News

CSG Systems International has outlined a strategic focus on expanding its AI-driven and SaaS platforms, aiming to reduce reliance on top customers and transition toward a more asset-light SaaS model. The company plans to return over $100 million to shareholders in 2025 through dividends and buybacks, maintaining its 13-year streak of consecutive dividend payments. Additionally, CSGS reaffirmed its 2025 revenue guidance of $1.230 billion, projecting 2-3% growth, alongside a target of 18-20% non-GAAP operating margins and double-digit free cash flow expansion.