Consensus Cloud Solutions (NASDAQ:CCSI) reported fourth-quarter and full-year 2025 results that management said marked the completion of the company’s “first phase” since its spin roughly four years ago, highlighting progress on deleveraging, shifting the business mix toward corporate customers, and generating record free cash flow.
Management highlights transformation since the spin
CEO Scott Turicchi said that at the time of the spin the company carried more than $800 million of debt and was more heavily weighted to its small office/home office (SoHo) revenue stream, with significant “tech debt” and a narrower cloud fax-only product offering. Since that time, he said Consensus has generated more than $800 million of adjusted EBITDA, producing approximately $375 million of free cash flow after investing about $150 million into the business.
Corporate channel growth offsets deliberate SoHo decline
Chief Revenue Officer and EVP of Operations Johnny Hecker framed the quarter around a continuing shift toward the corporate channel. He said the company’s revenue mix moved from roughly 51% SoHo and 49% corporate in Q4 2021 to 64% corporate in 2025, and management projects 68% corporate in 2026.
Consensus posted record corporate revenue of $56.8 million in Q4, up 7.3% year-over-year from $52.9 million, and up sequentially from $56.3 million in Q3 despite approximately 1.6 fewer business days. Hecker said the result broke a historical seasonal pattern of sequential declines in Q4 and represented the best corporate growth rate since Q4 2022.
For the full year, corporate revenue was $222.7 million, up 6.5% year-over-year. Hecker said growth was driven primarily by healthcare and public sector demand, including increased interest in secure FedRAMP solutions.
In the SoHo channel, management reiterated that the revenue decline is a deliberate strategy as the business is managed for efficiency and cash generation. SoHo revenue totaled $30.3 million in Q4, down 11.1% year-over-year, and $127.0 million for the full year, down about 10% versus 2024. Hecker said the company navigated search-environment changes that affected customer acquisition, with sign-up metrics improving late in Q4 and continuing into Q1 2026.
Operational metrics: retention, customer growth, and AI products
Hecker said corporate revenue retention was 101.3% in Q4, above the company’s 100% target and up from 100.5% in the prior-year quarter. He also said the corporate customer base was about 65,000, up 11.3% year-over-year. The company added approximately 7,000 new paid accounts in the quarter on a gross basis, driven significantly by its eFax Protect e-commerce engine.
Consensus also discussed its AI-based product initiatives. Hecker said eFax Clarity is being used to index, classify, and extract data from inbound documents to reduce administrative workload and accelerate workflows, particularly in referral and order management. In response to analyst questions, management described use cases including prior authorization workflows, where faxed documents are unstructured and require data extraction to meet turnaround requirements. Hecker also described Harmony as the platform component that helps deliver structured data in required formats such as FHIR or HL7 for integration into customer systems.
While the company said it does not disclose product-level revenue, Hecker said management has “a clear line of sight to multimillion-dollar revenue contribution from eFax Clarity in 2026,” citing a growing install base, increased proof-of-concepts, and a more focused go-to-market approach.
Financial results: steady revenue, strong margins, record free cash flow
CFO Jim Malone reported consolidated Q4 revenue of $87.1 million, up 0.1% year-over-year and representing the third consecutive quarter of consolidated year-over-year growth. Adjusted EBITDA was $45.2 million compared with $44.4 million in the prior-year quarter, and the adjusted EBITDA margin was 51.9%.
Adjusted net income in Q4 was $27.3 million, up 12.7% year-over-year, and adjusted EPS was $1.41, up $0.17 from the prior-year quarter. Malone said the Q4 non-GAAP tax rate was about 19.5% on an average share count of approximately 19.4 million shares.
For full-year 2025, Consensus reported:
- Revenue: $349.7 million (essentially flat year-over-year)
- Adjusted EBITDA: $186.9 million (52.4% margin)
- Adjusted net income: $109.4 million (up 3.6% year-over-year)
- Adjusted EPS: $5.62 (up $0.17 year-over-year)
- Free cash flow: $106 million (up about 20% versus 2024)
Capital expenditures were $30 million, down about 10% year-over-year, according to Malone.
Balance sheet actions, 2026 outlook, and CFO transition
Consensus said it fully retired its 6% bonds due October 2026 at par in Q4. Malone said year-end 2025 debt totaled $562 million, consisting of $348 million of 6.5% notes, a $150 million delayed draw term loan, and $64 million on the revolver. The company ended the year with $75 million of cash and reported total debt to EBITDA of 3.0x and net debt to EBITDA of 2.6x.
Malone also outlined guidance for 2026, calling for revenue of $350 million to $364 million (midpoint $357 million), adjusted EBITDA of $182 million to $193 million (midpoint $187.5 million), and adjusted EPS of $5.55 to $5.95 (midpoint $5.75). For Q1 2026, the company guided to revenue of $85.4 million to $89.4 million (midpoint $87.4 million), adjusted EBITDA of $43.8 million to $46.8 million (midpoint $45.3 million), and adjusted EPS of $1.36 to $1.46 (midpoint $1.41).
On the call, management discussed the construction of its guidance ranges, describing the midpoint as the internal budget and using a revenue “extrapolation” of about 2% on either side to account for uncertainty. Turicchi also said the company expects free cash flow in 2026 to approximate the record level of 2025 and indicated an intent to be more aggressive with share repurchases, citing a free cash flow yield that he said is more than three times the company’s debt costs.
Separately, Turicchi noted the company filed an 8-K stating that CFO Jim Malone will retire later this year. Malone will remain CFO through the end of Q1 and then transition to special advisor to the CEO for the balance of the year. Turicchi said the board approved Adam Varon, SVP of Finance, to succeed Malone as CFO effective April 1, and Karel Krulich, SVP of Accounting, to become Chief Accounting Officer.
About Consensus Cloud Solutions (NASDAQ:CCSI)
Consensus Cloud Solutions (NASDAQ: CCSI) is a provider of cloud consulting and managed services focused on helping organizations accelerate digital transformation. The company specializes in designing, deploying and supporting cloud architectures that leverage leading public and private cloud platforms, including infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) environments. Its end-to-end approach encompasses strategy, implementation and ongoing optimization to align technology investments with business objectives.
The firm’s core offerings include cloud migration and deployment, application modernization, data analytics and cybersecurity solutions.
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