Consensus Cloud Solutions (CCSI) AI Stock Analysis

• Market Cap: $567.58M
• Dividend Yield: N/A
• Average Volume (3M): 262.35K
• Price to Earnings (P/E): 6.9
• Beta (1Y): 1.18
• Revenue Growth: -0.44%
• EPS Growth: -7.23%
• Country: US
• Employees: 518
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 1.41
• Shares Outstanding: 18,868,935
• 10 Day Avg. Volume: 272,315
• 30 Day Avg. Volume: 262,354
• PEG Ratio: -0.92
• Price to Book (P/B): 30.50
• Price to Sales (P/S): 1.20
• P/FCF Ratio: 3.97
• Enterprise Value/Market Cap: 1.90
• Enterprise Value/Revenue: 3.08
• Enterprise Value/Gross Profit: 3.86
• Enterprise Value/Ebitda: 6.44
• 1Y Price Target: $37.50
• Price Target Upside: 58.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.68
• Revenue Forecast (FY): $355.04M

• Rating: 65 Neutral
• Price Target: $33.00 ▲(39.42% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

CCSI scores as moderately attractive: strong margins and free-cash-flow generation plus a very low P/E support the rating, and the latest guidance reinforces cash flow durability and continued corporate-channel momentum. The main constraints are balance-sheet leverage/thin equity and limited top-line growth (with an intentional SoHo decline), which keep the overall score from ranking higher; technicals are broadly neutral.

Positive Factors

High gross and EBITDA margins

Sustained ~80% gross margins and mid‑40%+ EBITDA margins indicate a scalable, low incremental-cost business model. This margin profile supports durable operating leverage, funds reinvestment and shareholder returns, and makes the business resilient to modest revenue variability over the next several quarters.

Robust free cash flow generation

Consistent, growing free cash flow provides lasting strategic optionality: funds debt reduction, buybacks, and targeted investment without dilutive financing. Strong cash conversion also validates earnings quality and underpins balance-sheet repair even if revenue growth remains modest over the next 2-6 months.

Corporate channel and product momentum

Expanding corporate customer base, above-100% retention and rising corporate revenue imply structural secular gains in higher-value segments. Coupled with early traction for AI eFax Clarity and FedRAMP demand, this diversifies revenue mix toward stickier, enterprise and public-sector contracts that can sustain medium-term growth.

Negative Factors

High leverage and thin equity base

Very elevated debt coupled with a very small equity cushion leaves the capital structure sensitive to downturns or refinancing stress. While cash flow helps, limited balance-sheet flexibility increases execution risk and constrains large strategic moves or M&A absent continued deleveraging over the medium term.

Flat consolidated revenue

Stagnant top-line despite strong margins signals limited organic growth momentum. Reliance on margin and cash-flow improvements to drive returns raises vulnerability: if corporate expansion slows or SoHo erosion accelerates, overall growth and scalability could be constrained for multiple quarters.

SoHo decline and ARPA dilution risks

An intentional ~10% SoHo decline reduces scale and compresses organic growth near term; simultaneously, rapid growth of lower‑ARPA eFax Protect volumes has diluted aggregate corporate ARPA. This mix shift can slow revenue per customer expansion and obscure unit economics, creating medium-term headwinds to top-line and margin growth.

Consensus Cloud Solutions Business Overview & Revenue Model

Company Description

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide. Its products and solutions include eFax, an online faxing solution, as well as MyFax, MetroFax, Sfax, SRfax, and other brands; eFax Corporate, a digital cloud-fax technology; jsign, which provides electronic and digital signature solutions; Unite, a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (EHR) system or stand-alone if no EHR is present; Signal, a solution that integrates with a hospital's EHR system and uses rules-based triggering logic to automatically send admit, discharge, and transfer notifications using cloud fax and direct secure messaging technology; and Clarity that transforms unstructured documents into structured actionable data. It serves healthcare, education, law, and financial services industries. Consensus Cloud Solutions, Inc. was incorporated in 2021 and is headquartered in Los Angeles, California.

How the Company Makes Money

CCSI generates revenue primarily through subscription-based services, where customers pay recurring fees for access to its cloud document solutions. Key revenue streams include licensing fees for its software products, implementation services, and ongoing support and maintenance contracts. Additionally, the company may earn revenue through transactional fees for specific services, such as secure document transmission and electronic signatures. Strategic partnerships with technology providers and integrations with major enterprise systems also contribute to CCSI's earnings by enhancing the value of its offerings and expanding its customer base.

Consensus Cloud Solutions Financial Statement Overview

Summary

Operations are strong (high ~80%+ gross margins, healthy net/EBITDA margins, and robust free cash flow of $78M–$106M with good earnings quality), but the balance sheet is a material risk due to high debt and a very thin equity base (negative equity through 2024; only slightly positive in 2025). Revenue has also been largely flat, limiting fundamental momentum.

Income Statement

Profitability is strong for a software business, with consistently high gross margins (~80%+) and solid net margins (~20–31% in most years; ~24% in 2025). EBITDA margins remain healthy (mid‑40% to ~50% recently), supporting durable earnings power. The main weakness is growth: revenue has been essentially flat over the last several years, including a decline in 2024 and only modest growth in 2025, indicating limited top-line momentum.

Balance Sheet

Leverage is the key concern. Total debt remains very high (roughly $580M–$810M across recent years) while equity was negative from 2021–2024 and only slightly positive in 2025 (~$13.8M), leaving the company with limited balance-sheet cushion. This results in very elevated debt-to-equity (extremely high in 2025 due to the small equity base) and makes the capital structure more sensitive to downturns or refinancing conditions, despite stable assets.

Cash Flow

Cash generation is a clear strength. Operating cash flow is consistently strong ($114M–$136M in 2023–2025) with solid free cash flow ($78M–$106M), and cash flow has generally covered net income well, indicating good earnings quality. Free cash flow improved notably versus 2024, though the track record shows some volatility (e.g., weaker free cash flow in 2022 and large swings in growth rates), so consistency is the main area to watch.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	349.70M	350.38M	362.56M	362.42M	352.66M
Gross Profit	279.10M	280.69M	294.24M	300.47M	294.66M
EBITDA	168.97M	176.74M	165.95M	165.64M	227.17M
Net Income	84.53M	89.44M	77.24M	72.71M	109.00M
Balance Sheet
Total Assets	663.82M	602.20M	647.25M	633.90M	562.81M
Cash, Cash Equivalents and Short-Term Investments	74.69M	33.55M	88.72M	94.16M	66.78M
Total Debt	580.45M	607.15M	749.23M	810.53M	808.57M
Total Liabilities	650.04M	681.66M	823.38M	889.16M	895.48M
Stockholders Equity	13.77M	-79.46M	-176.12M	-255.26M	-332.67M
Cash Flow
Free Cash Flow	105.85M	88.31M	77.65M	52.10M	199.17M
Operating Cash Flow	136.09M	121.75M	114.11M	83.15M	233.68M
Investing Cash Flow	-35.23M	-33.44M	-40.46M	-43.27M	-42.47M
Financing Cash Flow	-63.30M	-138.62M	-81.66M	-10.62M	-247.77M

Consensus Cloud Solutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CCSI, the sentiment is Positive. The current price of 23.67 is below the 20-day moving average (MA) of 26.57, below the 50-day MA of 23.97, and below the 200-day MA of 24.27, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 67.57 is Neutral, neither overbought nor oversold. The STOCH value of 81.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CCSI.

Consensus Cloud Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSPN	76 Outperform	$413.64M	7.48	26.86%	3.75%	-1.43%	101.80%
CCSI	65 Neutral	$567.58M	6.92	―	―	-0.44%	-7.23%
CGNT	63 Neutral	$517.84M	-91.37	―	―	―	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BAND	60 Neutral	$465.15M	-34.27	-3.62%	―	7.42%	34.42%
PRTH	59 Neutral	$454.39M	10.44	―	―	9.51%	―
DAVA	50 Neutral	$263.06M	-38.87	-0.61%	―	4.02%	34.45%

Consensus Cloud Solutions Corporate Events

Consensus Cloud Announces Planned Finance Leadership Transition

Consensus Cloud Solutions announced that Chief Financial Officer James Malone will step down effective April 1, 2026, transitioning to a strategic advisor role, while Senior Vice President of Finance Adam Varon will become CFO and Karel Krulich will be promoted to Chief Accounting Officer on the same date, signaling a planned leadership handoff in its finance organization. On February 9, 2026, the company also reported preliminary fourth-quarter and full-year 2025 results showing modest top-line pressure but strengthening profitability and cash generation, with corporate-channel growth offsetting planned weakness in its small office/home office segment, improved net income and free cash flow, and continued balance-sheet de-risking through debt reduction and note retirement.

For the fourth quarter of 2025, revenue was roughly flat year on year at $87.1 million, as a 7.3% increase in corporate revenue offset an 11.1% decline in the SoHo business tied to a strategic shift, while net income rose 13% to $20.5 million and adjusted EBITDA margin stayed within the 50%–55% target range. For full-year 2025, revenue dipped 0.2% to $349.7 million and net income fell to $84.5 million amid foreign exchange and debt-extinguishment impacts, but adjusted net income and adjusted earnings per share grew, and operating cash flow and free cash flow rose double digits, reflecting tighter spending, lower interest costs from debt repurchases and retirement of 2026 notes, and a business mix increasingly driven by the corporate channel.

The most recent analyst rating on (CCSI) stock is a Buy with a $37.00 price target. To see the full list of analyst forecasts on Consensus Cloud Solutions stock, see the CCSI Stock Forecast page.