Csg Systems International (CSGS)
NASDAQ:CSGS
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CSG Systems International
(NASDAQ:CSGS)
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Rating:70Outperform
Price Target:
$87.00
▲(8.70% Upside)
Action:ReiteratedDate:02/05/26
Overall score reflects strong financial momentum and steady cash generation as the main positives, supported by constructive technicals. The key constraints are elevated leverage and a relatively high P/E with only a modest dividend yield, while the NEC acquisition progress adds a meaningful positive corporate catalyst.
Positive Factors
Recurring subscription revenue & strong top-line growth
CSG’s subscription-heavy software and services model combined with TTM revenue growth near 52.9% indicates durable, contract-driven revenue expansion. Recurring licenses, maintenance and managed services support predictable cash flows and scalable margins as telecom/media customers digitize over the coming months.
Negative Factors
Elevated leverage
A debt-to-equity ratio near 2.0 constrains financial flexibility and raises refinancing and interest-rate sensitivity. Elevated leverage limits room for opportunistic investment or sustained dividend increases and requires sustained cash generation or deleveraging to materially reduce balance-sheet risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue & strong top-line growth
CSG’s subscription-heavy software and services model combined with TTM revenue growth near 52.9% indicates durable, contract-driven revenue expansion. Recurring licenses, maintenance and managed services support predictable cash flows and scalable margins as telecom/media customers digitize over the coming months.
Read all positive factors
CSG Systems International (CSGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.29B
Dividend Yield1.66%
Average Volume (3M)522.26K
Price to Earnings (P/E)38.0
Beta (1Y)0.52
Revenue Growth3.30%
EPS Growth31.18%
CountryUS
Employees5,800
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)1.53
Shares Outstanding28,501,936
10 Day Avg. Volume455,821
30 Day Avg. Volume522,262
Financial Highlights & Ratios
PEG Ratio-1.12
Price to Book (P/B)7.49
Price to Sales (P/S)1.74
P/FCF Ratio15.02
Enterprise Value/Market Cap1.18
Enterprise Value/Revenue2.20
Enterprise Value/Gross Profit4.55
Enterprise Value/Ebitda14.21
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)5.18
Revenue Forecast (FY)$1.20B
CSG Systems International Business Overview & Revenue Model
Company Description
CSG Systems International, Inc. provides revenue management and digital monetization, customer engagement, and payment solutions primarily to the communications industry in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It of...
How the Company Makes Money
CSG Systems International generates revenue primarily through a subscription-based model for its software solutions, which includes billing and revenue management systems. Key revenue streams include software licenses, maintenance, and support ser...
CSG Systems International Key Performance Indicators (KPIs)
Any
Revenue by Type
Highlights the different sources of revenue, such as software, services, or support, providing insight into the company's business model and areas of growth or dependency.
Highlights the different sources of revenue, such as software, services, or support, providing insight into the company's business model and areas of growth or dependency.
Data provided by:
The Fly
The FlyCSG Systems International Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The earnings call highlights strong financial performance, including record revenue, improved profitability, and substantial free cash flow. However, revenue growth is expected to be at the lower end of the guidance range, and a contract termination adds a minor downside note. Overall, the call reflects a positive sentiment with significant achievements and manageable challenges.Positive Updates
Record High Revenue
CSG reported a record high $597 million in revenue in the first half of 2025, representing the highest revenue in the first half of the year in CSG's history, up from $585 million in 2024.
Negative Updates
Lower Revenue Growth Guidance
CSG expects revenue growth to come in at the lower end of its guidance range, between 2% and 3%, due to headwinds in the North American broadband market and elongated sales cycles.
Read all updates
Q2-2025 Updates
Positive
Negative
Record High Revenue
CSG reported a record high $597 million in revenue in the first half of 2025, representing the highest revenue in the first half of the year in CSG's history, up from $585 million in 2024.
Read all positive updates
Company Guidance
During CSG's second quarter 2025 earnings call, the company revealed a 19.5% non-GAAP operating margin in the first half of 2025, marking a 250-basis-point improvement from the previous year. The company reported $597 million in revenue for the first half of 2025, up from $585 million in 2024, and highlighted a significant boost in non-GAAP adjusted free cash flow, generating $47 million, a substantial increase from $5 million in the same period last year. CSG's revenue diversification efforts have led to 32% of total revenue coming from industries outside of cable and telecom, with a target to exceed 35% by the end of 2026. The company also reported a reduction in revenue concentration, with Charter and Comcast now representing 36% of total CSG revenue, down from 49% in 2017. Additionally, CSG raised its full-year profitability targets for 2025 and increased the midpoint of its non-GAAP adjusted free cash flow expectations. The company remains committed to 2% to 6% organic revenue growth and aims for 18% to 20% non-GAAP adjusted operating margin in the long term.CSG Systems International Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
62
Positive
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.22B | 1.20B | 1.17B | 1.09B | 1.05B |
| Gross Profit | 581.61M | 582.78M | 554.22M | 524.58M | 503.28M |
| EBITDA | 191.24M | 215.25M | 194.78M | 154.16M | 191.34M |
| Net Income | 55.88M | 86.85M | 66.25M | 44.06M | 72.33M |
Balance Sheet | |||||
| Total Assets | 1.54B | 1.50B | 1.44B | 1.35B | 1.39B |
| Cash, Cash Equivalents and Short-Term Investments | 180.01M | 161.79M | 186.26M | 150.44M | 233.67M |
| Total Debt | 586.59M | 574.58M | 592.80M | 487.19M | 468.06M |
| Total Liabilities | 1.26B | 1.22B | 1.17B | 993.30M | 946.90M |
| Stockholders Equity | 283.70M | 282.57M | 273.33M | 355.25M | 436.61M |
Cash Flow | |||||
| Free Cash Flow | 141.39M | 113.30M | 103.92M | 26.61M | 113.66M |
| Operating Cash Flow | 155.94M | 135.72M | 131.90M | 63.60M | 140.22M |
| Investing Cash Flow | -14.14M | -5.13M | -27.91M | -9.04M | -66.71M |
| Financing Cash Flow | -121.44M | -79.92M | -31.30M | -51.69M | -33.39M |
CSG Systems International Technical Analysis
Positive
80.04
Price Trends
79.66
Positive
78.62
Positive
71.92
Positive
Market Momentum
0.15
Positive
58.95
Neutral
50.79
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CSGS, the sentiment is Positive. The current price of 80.04 is above the 20-day moving average (MA) of 79.99, above the 50-day MA of 79.66, and above the 200-day MA of 71.92, indicating a bullish trend. The MACD of 0.15 indicates Positive momentum. The RSI at 58.95 is Neutral, neither overbought nor oversold. The STOCH value of 50.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CSGS.
CSG Systems International Risk Analysis
CSG Systems International disclosed 33 risk factors in its most recent earnings report. CSG Systems International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
CSG Systems International Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $1.68B | 11.84 | 7.23% | ― | 10.13% | 1280.04% | |
71 Outperform | $2.36B | 8.80 | 6.07% | ― | 9.60% | ― | |
70 Outperform | $2.29B | 38.01 | 19.49% | 1.66% | 3.30% | 31.18% | |
70 Outperform | $1.79B | 30.33 | 20.61% | 1.33% | 10.27% | 3.52% | |
69 Neutral | $1.05B | 50.99 | 5.95% | ― | 10.40% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
CSGS
CSG Systems International
80.15
21.51
36.68%
RAMP
LiveRamp Holdings
26.20
0.94
3.72%
NTCT
Netscout Systems
32.45
12.29
60.96%
RDWR
Radware
24.00
2.90
13.74%
ATEN
A10 Networks
25.05
9.28
58.86%
CSG Systems International Corporate Events
Business Operations and StrategyM&A TransactionsShareholder Meetings
CSG Shareholders Approve Merger to Become NEC Subsidiary
Positive
Jan 30, 2026
On January 30, 2026, CSG Systems International, Inc. held a special meeting of stockholders at which a quorum of 23,588,332 shares of common stock was present or represented by proxy, out of 28,520,509 shares outstanding as of the December 10, 202...
M&A TransactionsRegulatory Filings and Compliance
CSG Systems Advances Toward Acquisition by NEC Corporation
Positive
Jan 6, 2026
On October 29, 2025, CSG Systems International, Inc. entered into a merger agreement with Japan’s NEC Corporation under which a wholly owned NEC subsidiary, Canvas Transaction Company, Inc., will merge with CSG, leaving CSG as the surviving ...
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.