Q2 2025 Consensus Cloud Solutions Inc Earnings Call Transcript

Aug 07, 2025 / 09:00PM GMT

Release Date Price: $20.97 (+4.22%)

Transcript 10-Q8-K

Key Points

Positve

Consensus Cloud Solutions Inc (CCSI) achieved a 6.9% year-over-year revenue growth in Q2 2025, marking the highest growth in 10 quarters.
The company exceeded its adjusted EBITDA expectations, delivering a robust 54.8% margin, near the top end of its 50% to 55% range.
Free cash flow increased by 29% from Q2 2024, reaching $20.3 million, due to excellent management of receivables and lower interest expenses.
The corporate channel showed strong performance with a record revenue of $55.3 million, driven by growth in the healthcare vertical and strategic partnerships.
The trailing 12-month revenue retention rate improved to 102%, indicating strong customer retention and satisfaction.

Negative

The SoHo channel experienced a planned revenue decline of 9.4% year-over-year, reflecting a strategic focus on optimizing profitability.
Corporate ARPA decreased to $301 from $307 in the previous quarter, indicating pressure from the growing SMB cohort.
The SoHo cancellation rate increased to 3.84% from 3.52% in the previous quarter, attributed to changes in customer acquisition strategy.
The company anticipates a lower adjusted EBITDA margin in Q3 due to seasonal cost increases related to year-end audits and hiring.
Potential risks from the One Big Beautiful Bill Act, particularly cuts to Medicaid and Medicare, could impact smaller healthcare providers.

Operator

Good day, ladies and gentlemen, and welcome to the Consensus Q2 2025 earnings call. My name is Tom and I will be the operator assisting you today. (Operator Instructions)

On this call from Consensus will be Scott Turicchi, CEO; Jim Malone, CFO; Johnny Hecker, CRO and Executive Vice President of Operations; and Adam Varon, Senior Vice President of Finance.

I will now turn the call over to Adam Varon, Senior Vice President of Finance at Consensus. Thank you, you may begin.

Adam Varon

Consensus Cloud Solutions Inc - Senior Vice President - Finance

Good afternoon and welcome to the Consensus Investor Call to discuss our Q2 2025 financial results, other key information, and our 2025 full year and Q3 2025 quarterly guidance.

Joining me today are Scott Turicchi, CEO; Johnny Hecker, CRO and EVP of Operations; and Jim Malone, CFO. The earnings call will begin with Scott providing opening remarks. Johnny will give an update on operational progress since our Q1 2025 investor call. Then Jim will provide Q2 2025 financial results and our full

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