Consensus Cloud Solutions, Inc. Q3 FY2025 earnings call

• Scott noted a solid Q3 with corporate channel growth, VA record revenue, SoHo improvement, adjusted EBITDA margin of 52.8%, and free cash flow of $44.4 million. He also discussed debt retirement and hiring plans.
• Johnny highlighted corporate channel strong execution, VA usage record despite government shutdown, and SoHo revenue decline with a focus on brand refresh for eFax.
• Jim provided financial details including consolidated revenue, adjusted EBITDA, free cash flow, and Q4 2025 guidance.

Corporate: Q3 2025 revenue reached a record $56.3 million, a 6.1% increase over Q3 2024, with a trailing 12-month revenue retention rate of 101.9% and a customer base expanding to approximately 65,000. SoHo: Q3 2025 revenue was $31.5 million, a strategic planned year-over-year decrease of 9.2% from Q3 2024, with SoHo ARPA of $15.56 and a cancellation rate of 3.71%.

Q4 2025 guidance: revenues between $84.9 million and $88.9 million with $86.9 million at the midpoint; adjusted EBITDA between $43.1 million and $46 million with $44.5 million at the midpoint; adjusted EPS of $1.27 to $1.37 with $1.32 at the midpoint.

• Risks include regulatory filings, search environment changes affecting SoHo organic sign-ups, and incumbent contracts affecting VA traffic capture in existing sites.

Q: Regarding capital allocation and future debt/repurchases?

A: Scott said capital allocation is opportunistic, with consideration of debt maturity in 2028 and potential prepayment of revolver depending on cash balances and stock price.

Q: Impact of marketing disruption on SoHo decline?

A: Scott said there could be some noise in Q4 and possibly Q1 as they work to get back to normalized paid adds.