Key Highlights

  • Revenue increased USD 3.2 million, or 3.7%, to USD 91.0 million, led by a USD 5.1 million increase in Corporate.
  • Adjusted Earnings per diluted share rose to USD 1.50 from USD 1.38, while diluted EPS held at USD 1.15.
  • Adjusted EBITDA was USD 47.6 million with a Margin of 52.3%, compared with USD 46.4 million and 52.8%.
  • Free Cash Flow was USD 38.6 million versus USD 44.4 million, and the company repurchased approximately 550,000 shares.

Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) reported third quarter 2026 revenues of USD 91.0 million compared with USD 87.8 million, an increase of USD 3.2 million, or 3.7%. Adjusted EPS was USD 1.50.

CEO Scott Turicchi said the quarter continued the momentum of recent quarters, with the corporate channel exceeding 9% Revenue growth for the second straight quarter and sustained improvement in the SoHo channel within the range of expectations.

Revenue and Earnings

The revenue increase was primarily due to an increase of USD 5.1 million, or 9.1%, in the Corporate business, partially offset by a decrease of USD 1.9 million, or 6.0%, in the small office/home office Business relating to a strategic initiative.

Net income decreased by USD 0.1 million, or 0.5%, to USD 22.0 million from USD 22.1 million, primarily due to higher personnel-related and Depreciation and amortization expense, partially offset by higher revenues and lower income tax expense. Net Income margin was 24.2% versus 25.2%. Effective tax rates were approximately 22.2% versus 26.3%.

Adjusted net income increased to USD 28.7 million from USD 26.6 million, driven by higher revenue and an increase in excluded expenses, primarily share-based compensation and a loss on Debt extinguishment.

Adjusted net income rose 7.7% and adjusted earnings per diluted share rose 8.7%, while Adjusted EBITDA rose 2.7%, net income margin declined 1.0 points and Adjusted EBITDA margin declined 0.5 points. The non-GAAP effective tax rates were approximately 18.8% versus 22.3%. Revenues of USD 91,003 thousand compare with USD 87,767 thousand, and net income of USD 21,980 thousand compares with USD 22,091 thousand.

Cash Flow and Capital

Net cash provided by Operating Activities decreased to USD 45.6 million from USD 51.6 million, and free cash flow decreased to USD 38.6 million from USD 44.4 million, both primarily attributable to changes in working Capital accounts. Adjusted EBITDA increased primarily due to higher revenues, partially offset by higher operating expenses.

The company repurchased approximately 550,000 shares of its common stock during the quarter and amended its Credit Facility in anticipation of retiring the 6.5% Notes in 2027, according to Mr. Turicchi, who said the repurchases were made at prices the company believes are attractive. Operating Cash Flow was down 11.7% and free cash flow was down 13.2%.

Guidance

The company released fourth quarter 2026 guidance, narrowed full-year 2026 revenue and adjusted EBITDA guidance, and raised full-year 2026 adjusted earnings per diluted share guidance. Reconciliations of GAAP measures to non-GAAP measures accompany the release.

The press release states that reconciliations of GAAP measures to comparable non-GAAP financial measures accompany the results, and that the key financial results table is presented in thousands except per share amounts and percentages. Disclosed items include the channel revenue split, the margin changes, the cash flow comparisons and the credit facility amendment.