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Synchronoss Technologies (SNCR)
NASDAQ:SNCR
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Synchronoss Technologies (SNCR) AI Stock Analysis

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SNCR

Synchronoss Technologies

(NASDAQ:SNCR)

Rating:50Neutral
Price Target:
$7.00
▲(6.22% Upside)
Synchronoss Technologies' overall stock score reflects significant challenges in financial performance, particularly in profitability and revenue growth. While technical analysis and valuation metrics indicate bearish conditions, the company's strategic refinancing and tax refund provide some positive momentum. The earnings call highlights a mix of strengths and weaknesses, with strategic achievements slightly outweighing the challenges.

Synchronoss Technologies (SNCR) vs. SPDR S&P 500 ETF (SPY)

Synchronoss Technologies Business Overview & Revenue Model

Company DescriptionSynchronoss Technologies (SNCR) is a leading provider of cloud-based platforms and solutions that enable service providers and enterprises to manage digital transformation and enhance customer experiences. Operating primarily in the telecommunications and technology sectors, Synchronoss offers a range of products including cloud storage, messaging solutions, and mobile data management services. The company focuses on helping organizations streamline their operations, improve customer engagement, and drive revenue growth through its innovative software solutions.
How the Company Makes MoneySynchronoss Technologies generates revenue through a combination of subscription-based services, software licensing, and professional services. Its key revenue streams include fees from its cloud-based platforms, which provide essential functionalities such as data synchronization, messaging, and cloud storage. Additionally, the company partners with telecommunications providers and enterprises to offer customized solutions that meet specific business needs, thus creating long-term contracts that contribute to stable revenue streams. Strategic partnerships and collaborations with industry leaders also enhance its market reach and can lead to new business opportunities, further solidifying its earnings potential.

Synchronoss Technologies Earnings Call Summary

Earnings Call Date:Aug 11, 2025
(Q1-2025)
|
% Change Since: -13.18%|
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call reflects a mix of positive trends in subscriber growth, financial improvements, and strategic refinancing, contrasted by revenue challenges, a net loss, and macroeconomic uncertainties. The substantial highlights and strategic achievements slightly outweigh the lowlights.
Q1-2025 Updates
Positive Updates
Strong Subscriber and Revenue Growth
Subscriber growth increased by 3.3% across the global customer base, and over 90% of revenue is recurring, with long-term contracts secured for 2025.
Improved Financial Metrics
Adjusted EBITDA increased by 17% year-over-year to $12.7 million, representing an adjusted EBITDA margin of 30.2%.
Successful Debt Refinancing
Refinanced debt with a $200 million, four-year term loan, retiring $121 million in senior notes and $73 million in prior term loans, extending debt maturity to 2029.
Cost Control Achievements
Operational expenses reduced by 11.5% year-over-year through process streamlining and resource optimization.
Strong Partnerships Driving Growth
Continued subscriber growth at AT&T, SoftBank, and Verizon, with new integrations and offerings enhancing cloud service adoption.
Negative Updates
Slight Revenue Decline
Total revenue for the quarter was $42.2 million, slightly down from $43 million in the prior year due to the expiration of a customer contract.
Net Loss for the Quarter
Reported a net loss of $3.8 million or a negative $0.37 per share, primarily due to $5.6 million non-cash foreign exchange losses.
Negative Free Cash Flow
Free cash flow was negative $3 million, and adjusted free cash flow was negative $3.3 million, attributed to historical cash spend trends in the first quarter.
Macroeconomic Challenges and Tariffs
Potential impact of tariffs and global trade uncertainties on partner carriers and device costs, which may affect subscriber growth.
Company Guidance
During the Synchronoss Technologies' First Quarter 2025 earnings call, the company reiterated its annual guidance metrics, highlighting several key financial performance indicators. For the quarter, Synchronoss reported revenue of $42.4 million with a 3.3% growth in subscriber numbers. Adjusted EBITDA rose by 17% year-over-year to $12.7 million, achieving an EBITDA margin of 30.2%. The company maintained over 90% of its revenue as recurring, backed by long-term contracts with major carriers like AT&T, Verizon, and SoftBank. Synchronoss also completed a refinancing transaction with a $200 million, four-year term loan to strengthen its capital structure, reduce senior notes, and support its growth initiatives. Operational expenses were reduced by 11.5% year-over-year, contributing to improved income from operations, which increased by 79.8% to $8.2 million. The company reaffirmed its 2025 guidance, expecting revenue between $170 million and $180 million, adjusted gross margin of 78% to 80%, and adjusted EBITDA in the range of $52 million to $56 million. Despite the challenging macroeconomic environment, Synchronoss remains optimistic about its potential for subscriber growth and cash flow, projecting free cash flow of $11 million to $16 million, excluding the impact of a pending federal tax refund.

Synchronoss Technologies Financial Statement Overview

Summary
Synchronoss Technologies faces challenges in profitability and revenue growth, as evidenced by negative net profit margins and declining revenues. While the reduction in debt is a positive sign, the company struggles with generating returns on equity. Cash flow management shows some strengths, but the decline in free cash flow growth is concerning. Overall, the company needs to address its profitability and revenue growth issues to improve its financial health.
Income Statement
45
Neutral
The income statement shows a mixed performance. The company has a high gross profit margin of 79% in TTM, indicating strong cost management. However, the net profit margin is negative at -12.35%, reflecting ongoing profitability challenges. Revenue has declined significantly by 56.2% in TTM, which is concerning. EBIT and EBITDA margins have also decreased compared to the previous year, indicating operational inefficiencies.
Balance Sheet
40
Negative
The balance sheet reveals a significant reduction in debt, with a debt-to-equity ratio of 0.10 in TTM, which is a positive development. However, the return on equity is negative at -56.64%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is relatively stable, suggesting a moderate level of financial stability.
Cash Flow
50
Neutral
Cash flow analysis shows a decline in free cash flow growth by 23.58% in TTM, which is a concern. However, the operating cash flow to net income ratio is 0.45, indicating some level of cash generation capability. The free cash flow to net income ratio is 0.85, suggesting that the company is managing to convert a portion of its earnings into free cash flow.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue171.87M173.59M164.20M173.76M280.62M291.67M
Gross Profit135.82M134.55M121.98M112.50M171.56M169.85M
EBITDA25.21M48.86M10.46M21.62M10.91M6.64M
Net Income-21.23M6.17M-54.53M-7.92M-22.94M-10.70M
Balance Sheet
Total Assets291.42M293.82M310.34M398.07M450.73M482.25M
Cash, Cash Equivalents and Short-Term Investments24.62M33.38M24.57M21.92M31.50M33.67M
Total Debt205.32M210.22M166.21M169.72M176.69M64.35M
Total Liabilities241.99M251.55M212.40M249.13M274.91M426.47M
Stockholders Equity49.43M29.77M85.43M136.44M163.33M280.92M
Cash Flow
Free Cash Flow16.19M26.38M-1.04M-3.81M-19.55M-18.51M
Operating Cash Flow19.02M28.28M18.83M17.36M4.95M-564.00K
Investing Cash Flow-5.62M-13.13M3.80M-13.17M-23.94M-14.34M
Financing Cash Flow-748.00K-5.85M-19.98M-13.28M16.19M9.99M

Synchronoss Technologies Technical Analysis

Technical Analysis Sentiment
Negative
Last Price6.59
Price Trends
50DMA
7.21
Negative
100DMA
8.26
Negative
200DMA
9.04
Negative
Market Momentum
MACD
-0.10
Positive
RSI
39.78
Neutral
STOCH
24.75
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNCR, the sentiment is Negative. The current price of 6.59 is below the 20-day moving average (MA) of 7.52, below the 50-day MA of 7.21, and below the 200-day MA of 9.04, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 39.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SNCR.

Synchronoss Technologies Risk Analysis

Synchronoss Technologies disclosed 64 risk factors in its most recent earnings report. Synchronoss Technologies 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

Synchronoss Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$19.41B32.8927.54%1.59%10.34%0.68%
62
Neutral
$429.21M-2.90%14.51%58.41%
61
Neutral
$36.28B7.09-7.27%1.97%7.76%-8.56%
60
Neutral
$3.52B-12.60%11.41%33.76%
50
Neutral
$75.80M26.79-53.05%-6.32%6.80%
45
Neutral
$380.84M24.92%
45
Neutral
$206.89M-70.04%111.83%73.52%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNCR
Synchronoss Technologies
6.59
-5.20
-44.11%
GEN
Gen Digital
31.51
6.69
26.95%
BAND
Bandwidth
14.09
-2.21
-13.56%
TENB
Tenable Holdings
29.10
-13.01
-30.90%
BKKT
Bakkt Holdings, Inc. Class A
9.60
-4.19
-30.38%
GRRR
Gorilla Technology Group Inc.
16.80
14.35
585.71%

Synchronoss Technologies Corporate Events

Business Operations and StrategyFinancial Disclosures
Synchronoss Technologies Receives $33.9M Tax Refund
Positive
Jul 24, 2025

On July 24, 2025, Synchronoss Technologies announced the receipt of an expected tax refund from the 2020 CARES Act, totaling $33.9 million, including $5.9 million in interest. The company has already received $30.2 million and used 75% of it to pay down its term loan, with the final payment of $3.7 million expected before Labor Day 2025. This financial maneuver will save the company approximately $2.9 million annually in interest and reduce its total debt to $173.4 million. The remaining refund proceeds will enhance the company’s operational flexibility and support investment in its Personal Cloud solution, potentially leading to a one-time interest rate reduction based on improved debt leverage.

The most recent analyst rating on (SNCR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Synchronoss Technologies stock, see the SNCR Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Synchronoss Technologies Holds Annual Stockholder Meeting
Neutral
Jun 11, 2025

At the Annual Meeting, Synchronoss Technologies‘ stockholders voted on several key proposals. The election of three directors to serve as Class I directors until the 2028 annual meeting was approved, with Laurie L. Harris and Jeffrey G. Miller being elected. Additionally, the appointment of Ernst & Young LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. Furthermore, the compensation of the company’s named executive officers was approved on a non-binding, advisory basis.

The most recent analyst rating on (SNCR) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on Synchronoss Technologies stock, see the SNCR 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 14, 2025