Consensus Cloud Solutions (CCSI) AI Stock Analysis

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Consensus Cloud Solutions

(NASDAQ:CCSI)

Rating:65Neutral

Price Target:

$27.00

▲(5.26% Upside)

The overall stock score of 65 reflects a mix of strong technical indicators and valuation, offset by financial performance concerns. The company's strategic focus on the corporate and healthcare sectors is promising, but high financial leverage and revenue contraction remain significant risks.

Positive Factors

Product Adoption

Adoption of CCSI's advanced products like Clarity and Unite are in early stages but are seen as promising up-sell opportunities for the company.

Profitability

The company's EBITDA margin is impressive and fits within the higher end of the guidance range.

Revenue Growth

Corporate revenue increased and exceeded estimates, with new wins including a significant health system deal.

Negative Factors

Guidance

CCSI provided 2025 EBITDA guidance below previous estimates, reflecting a potentially challenging outlook for profitability.

SoHo Segment

SoHo revenue of ~$32.8M declined by -11% year over year, and the number of SoHo customers declined by approximately -10% year over year.

Consensus Cloud Solutions (CCSI) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$486.76M

Dividend YieldN/A

Average Volume (3M)146.88K

Price to Earnings (P/E)6.2

Beta (1Y)1.21

Revenue Growth-1.23%

EPS Growth-11.22%

CountryUS

Employees518

SectorTechnology

Sector Strength97

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)1.46

Shares Outstanding18,977,018

10 Day Avg. Volume176,711

30 Day Avg. Volume146,880

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap2.02

Enterprise Value/Revenue2.81

Enterprise Value/Gross Profit3.53

Enterprise Value/Ebitda5.86

Forecast

1Y Price Target

$32.00

Price Target Upside24.76% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Consensus Cloud Solutions Business Overview & Revenue Model

Company DescriptionConsensus Cloud Solutions (CCSI) is a leading provider of secure digital document delivery solutions, primarily catering to the healthcare, legal, and enterprise sectors. The company specializes in cloud-based faxing technologies, offering products and services that ensure secure, efficient, and reliable transmission of sensitive documents. Consensus Cloud Solutions leverages its innovative platforms to enhance communication workflows and streamline document management for its clients.

How the Company Makes MoneyConsensus Cloud Solutions makes money through a subscription-based revenue model, wherein customers pay recurring fees for access to its secure cloud faxing and document delivery services. The company offers various pricing tiers based on usage volume and specific features required, allowing clients to choose plans that best suit their needs. Additionally, CCSI generates revenue through value-added services and solutions that enhance document management capabilities. Key revenue streams include subscriptions from healthcare providers, legal firms, and enterprises that rely on secure document transmission. Partnerships with technology integrators and service providers also contribute to its earnings by expanding its market reach and facilitating customer acquisition.

Consensus Cloud Solutions Key Performance Indicators (KPIs)

Any

Corporate Customer Accounts

Corporate Customer Accounts
Tracks the number of corporate clients, reflecting the company's penetration in the business sector and its potential for stable, recurring revenue.

Chart InsightsConsensus Cloud Solutions has seen a steady increase in corporate customer accounts, reaching 60,000 by Q1 2025, a 9% year-over-year growth. This momentum is driven by new customer acquisitions and strong adoption of advanced solutions, particularly in the health care sector and government contracts. Despite challenges in the SoHo segment, the company remains focused on the corporate channel, which is reflected in record corporate revenue growth and improved retention rates, signaling a strategic shift towards more profitable segments.

Data provided by:

Main Street Data

Consensus Cloud Solutions Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q2-2025)

% Change Since: 22.32%|

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call reflected strong corporate revenue growth and improved financial metrics, offset by planned declines in the SoHo channel and potential regulatory impacts. Overall, the company's strategic initiatives appear to be yielding positive results, particularly in the corporate and healthcare sectors.

Q2-2025 Updates

Positive Updates

Record Corporate Revenue Growth

Corporate revenue reached $55.3 million, a 6.9% increase over Q2 2024, marking the highest growth year-over-year in 10 quarters on a normalized basis.

Strong Adjusted EBITDA Margin

The company achieved a robust 54.8% adjusted EBITDA margin, exceeding expectations.

Record Free Cash Flow

Free cash flow was $20.3 million, up 29% from Q2 2024, driven by excellent management of receivables and lower interest expenses.

Successful Bank Loan for Debt Retirement

Concluded a $225 million bank facility to retire the 6% notes due October 2026, expected to have similar borrowing costs.

Improved Revenue Retention Rate

The trailing 12-month revenue retention rate reached 102%, up from 101% in the previous quarter and 99% in Q2 of 2024.

Continued Expansion in Healthcare Sector

The healthcare vertical is showing sustained growth, contributing significantly to corporate channel revenues.

Negative Updates

Decline in SoHo Revenue

SoHo revenue declined 9.4% year-over-year to $32.4 million, part of a planned focus on optimizing profitability.

Slight Increase in SoHo Cancellation Rate

The SoHo cancellation rate was 3.84%, up from 3.52% in the previous quarter.

Potential Impact of Regulatory Changes

The One Big Beautiful Bill Act may lead to cost-cutting decisions by healthcare providers, posing potential risks.

Company Guidance

During the Q2 2025 earnings call, Consensus provided guidance for the full year 2025 and Q3 2025. The company anticipates full-year revenue between $343 million and $357 million, with a midpoint of $350 million, and adjusted EBITDA ranging from $179 million to $190 million, with a midpoint of $185 million. For Q3, expected revenue is between $85.9 million and $89.9 million, with a midpoint of $87.9 million, and adjusted EBITDA between $44.4 million and $47.4 million, with a midpoint of $45.9 million. The adjusted EPS for the full year is projected to be between $5.25 and $5.65, with a midpoint of $5.45, representing an increase of approximately $0.23. The guidance reflects robust performance in the corporate channel, with a 6.9% revenue increase year-over-year and a 54.8% adjusted EBITDA margin in Q2. The company has also reaffirmed its commitment to strategic goals, including customer acquisition in the healthcare space, managing cost structures, and optimizing cash flow.

Consensus Cloud Solutions Financial Statement Overview

Summary

Consensus Cloud Solutions shows strong operational efficiency with stable margins, yet faces significant challenges with revenue contraction and high financial leverage. While cash flows are robust, the negative equity and high liabilities pose substantial risks, affecting the company's financial stability and growth prospects.

Income Statement

Neutral

The company experienced a decline in revenue over the recent periods, with total revenue dropping from $362.56M in 2023 to $349.37M TTM. The gross profit margin remains healthy at approximately 79.7% TTM, although net profit margins have slightly decreased to about 24.1%. EBIT and EBITDA margins are stable, indicating effective cost management, but the revenue contraction is concerning.

Balance Sheet

Negative

The balance sheet shows a negative stockholders' equity of -$49.36M TTM, suggesting high leverage. The debt-to-equity ratio is not calculable due to negative equity, and the equity ratio is negative, indicating significant financial risk. The company's total liabilities exceed total assets, highlighting potential solvency issues.

Cash Flow

Neutral

The company maintains healthy cash flows with an operating cash flow of $118M TTM and a free cash flow of $86.29M. The free cash flow growth rate is positive, and the operating cash flow to net income ratio remains strong, suggesting good cash conversion efficiency. However, the overall cash flow is impacted by high financing outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	349.37M	350.38M	362.56M	362.42M	352.66M	331.17M
Gross Profit	278.66M	280.69M	294.24M	300.47M	294.66M	524.21M
EBITDA	167.81M	176.74M	165.95M	166.97M	188.94M	241.28M
Net Income	84.22M	89.43M	77.24M	72.71M	109.00M	152.91M
Balance Sheet
Total Assets	629.65M	602.20M	647.25M	636.74M	559.59M	1.49B
Cash, Cash Equivalents and Short-Term Investments	53.40M	33.55M	88.72M	94.16M	66.78M	66.21M
Total Debt	11.47M	607.15M	749.23M	810.53M	808.57M	28.13M
Total Liabilities	679.00M	681.66M	823.38M	891.52M	893.39M	368.88M
Stockholders Equity	-49.36M	-79.46M	-176.12M	-254.78M	-333.80M	1.12B
Cash Flow
Free Cash Flow	86.29M	88.31M	77.65M	52.28M	215.64M	203.22M
Operating Cash Flow	118.00M	121.75M	114.11M	83.32M	250.22M	238.79M
Investing Cash Flow	-36.71M	-33.44M	-40.46M	-43.27M	-42.54M	-60.92M
Financing Cash Flow	-89.91M	-138.62M	-81.66M	-10.62M	-247.77M	-179.09M

Consensus Cloud Solutions Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.65

Price Trends

50DMA

22.20

Positive

100DMA

21.82

Positive

200DMA

23.48

Positive

Market Momentum

MACD

0.72

Negative

RSI

75.13

Negative

STOCH

92.76

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 25.65 is above the 20-day moving average (MA) of 21.67, above the 50-day MA of 22.20, and above the 200-day MA of 23.48, indicating a bullish trend. The MACD of 0.72 indicates Negative momentum. The RSI at 75.13 is Negative, neither overbought nor oversold. The STOCH value of 92.76 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

Overall Rating

UnderperformOutperform

Sector (50)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCSI	65 Neutral	$486.76M	6.18	-94.58%	―	-1.23%	-11.22%
BAND	62 Neutral	$415.04M	―	-2.90%	―	14.51%	58.41%
JG	56 Neutral	$54.33M	―	-10.44%	―	16.93%	85.85%
KLTR	56 Neutral	$248.73M	―	-94.40%	―	2.56%	59.00%
Sector *	50 Neutral	C$3.52B	0.80	-5.03%	7.64%	16.88%	-2.22%
GRRR	47 Neutral	$392.85M	―	24.92%	―	―	―
RXT	40 Neutral	$275.26M	―	81.52%	―	-4.76%	56.32%

* Technology Sector Average

Performance Comparison

CCSI

Consensus Cloud Solutions

26.59

6.91

35.11%

BAND

Bandwidth

14.44

-1.03

-6.66%

Aurora Mobile

9.13

5.56

155.74%

RXT

Rackspace Technology

1.27

-0.91

-41.74%

KLTR

Kaltura

1.63

0.40

32.52%

GRRR

Gorilla Technology Group Inc.

17.60

15.09

601.20%

Consensus Cloud Solutions Corporate Events

Private Placements and Financing

Consensus Cloud Secures $225 Million Credit Facility

Neutral

Jul 14, 2025

On July 9, 2025, Consensus Cloud Solutions, Inc. entered into a Credit Agreement with certain lenders and U.S. Bank National Association, securing a $75 million revolving credit facility and a $150 million delayed-draw term loan facility, both maturing on July 10, 2028. This financial arrangement allows the company flexibility in borrowing and repayment, with plans to draw funds in the last fiscal quarter of 2025. The agreement includes covenants restricting certain financial activities, ensuring a structured financial management approach.

The most recent analyst rating on (CCSI) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Consensus Cloud Solutions stock, see the CCSI Stock Forecast page.

Executive/Board ChangesShareholder Meetings

Consensus Cloud Solutions’ Annual Stockholder Meeting Results

Positive

Jun 11, 2025

On June 11, 2025, Consensus Cloud Solutions held its annual meeting of stockholders where three key proposals were voted on. The election of Class I directors, appointment of Deloitte & Touche, LLP as the independent auditor for fiscal 2025, and the approval of executive compensation were all passed, indicating strong shareholder support for the company’s current leadership and strategic direction.

The most recent analyst rating on (CCSI) stock is a Buy with a $23.00 price target. To see the full list of analyst forecasts on Consensus Cloud Solutions stock, see the CCSI Stock Forecast page.

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 12, 2025