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- **Corporate Channel Strength**: 6.1% YoY revenue growth in corporate, driven by enterprise clients and VA expansion.
- **VA Expansion Potential**: Usage records set, with $10-20 million revenue growth possible over 2-3 years.
- **SoHo Profitability Focus**: 9.2% YoY revenue decline, but ARPA improvement and reduced cancel rate to 3.71%.
- **Financial Health**: Free cash flow up 32% YoY to $44.4 million, with full-year guidance over $95 million.
- **Debt Management**: $200 million debt retired, targeting 3x debt/EBITDA, with opportunistic share buybacks.

**【CEO Opening Remarks】**
- **Revenue Growth**: Q3 2025 revenue showed slight YoY increase, driven by 6.1% growth in the corporate channel, reaching $56.3 million.
- **Adjusted EBITDA**: $46.4 million, with a 52.8% margin, up from prior quarters, reflecting operational efficiency.
- **Free Cash Flow**: $44.4 million, a 32% YoY increase, due to strong collections and DSO of 25 days.
- **Debt Management**: Retired $200 million of 6% notes, reducing total debt to $569 million, targeting 3x debt/EBITDA ratio.
- **VA Expansion**: Despite government shutdown, VA usage set records, with plans for further rollout and potential $10-20 million revenue growth.

**【CFO Financial Commentary】**
- **Corporate Performance**: 6.1% YoY revenue growth, retention rate of 101.9%, and ARPA of $293, driven by enterprise clients.
- **SoHo Strategy**: Revenue decline of 9.2% YoY to $31.5 million, with ARPA at $15.56 and cancel rate 3.71%, focusing on profitability.
- **Q4 Guidance**: Revenue $84.9-88.9 million, EBITDA $43.1-46 million, EPS $1.27-1.37, reflecting cautious outlook.
- **Free Cash Flow**: Full-year guidance exceeds $95 million, up from prior expectations.

**【Q&A Highlights】**
- **VA Growth**: Usage growth continues, with potential for $10-20 million revenue in future years, dependent on traffic capture.
- **SoHo Focus**: ARPA improvement and reduced cancel rate, but slow decline expected; targeting mid-50s net adds.
- **AI Adoption**: Clarity AI product and integration engine driving advanced product revenue growth.
- **Capital Allocation**: Opportunistic debt retirement and share buybacks, with attention to jurisdictional cash flows.

Consensus Cloud Solutions, Inc. (CCSI) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

CCSI

CCSI fundamentals

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