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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)

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Neutral 45 (OpenAI - 4o)
Rating:45Neutral
Price Target:
$6.00
▼(-6.25% Downside)
Synchronoss Technologies' overall stock score is primarily influenced by its financial performance challenges, including negative profitability and declining revenues. Technical analysis indicates bearish momentum, and valuation metrics are weak due to ongoing losses. The earnings call provided some positive insights, such as debt reduction and stable subscriber growth, but these are overshadowed by the broader financial and market 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
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of achievements and challenges. The company showed stability in revenue and subscriber growth, strong recurring revenue, and significant debt reduction. However, there were some setbacks with a year-over-year revenue decline and a notable net loss influenced by noncash foreign exchange losses. Despite macroeconomic challenges, the company remains confident in its strategic partnerships and future growth opportunities.
Q2-2025 Updates
Positive Updates
Stable Revenue and Subscriber Growth
Revenue for the quarter was $42.5 million, up slightly from $42.2 million in the prior quarter, driven by year-over-year subscriber growth of 2% across the global customer base.
High Recurring Revenue
Recurring revenue was 92.6% of the quarterly total, demonstrating the consistency and predictability of the company's SaaS business model.
CARES Act Tax Refund
The company received a final federal CARES Act tax refund payment of $3.7 million, bringing the total refund to $33.9 million. This allowed for a $25.4 million mandatory prepayment on a term loan, reducing interest payments and strengthening the financial position.
Operating Expense Reduction
Operating expenses were reduced by 9% year-over-year, contributing to improved profitability.
Commitment to AI-driven Innovation
Released Personal Cloud version 25.5 with enhanced AI functionality, including AI-curated personalized memories and innovative timeline comparisons for users.
EU-U.S. Data Privacy Framework Certification
Achieved certification, demonstrating commitment to international privacy standards and enhancing trust with Tier 1 telecom operators.
Strong Partnerships and New Developments
Reported sustained momentum with AT&T, expanded retail presence with Verizon, and strategic expansion with SoftBank.
Negative Updates
Revenue Decline from Prior Year
Total revenue was $42.5 million, down from $43.5 million in the prior year period due to the expiration of a customer contract in December 2024.
Net Loss and Foreign Exchange Impact
Net loss was $19.6 million, primarily driven by $12.5 million of noncash foreign exchange losses and $6.4 million in debt refinancing costs.
Macroeconomic Challenges
Uncertainties such as tariffs, global trade tensions, and economic fluctuations continue to affect the market environment.
Company Guidance
During the Synchronoss Technologies Second Quarter 2025 Earnings Call, the company provided a comprehensive financial overview, highlighting several key metrics. Revenue for the quarter was $42.5 million, slightly up from the previous quarter, with a year-over-year subscriber growth of 2%. The company achieved an adjusted EBITDA of $12.8 million, with a margin of 30.2%, marking the third consecutive quarter of 30% or more adjusted EBITDA margin. Recurring revenue constituted 92.6% of the total, showcasing the predictability of their SaaS model. The receipt of a $33.9 million CARES Act federal tax refund enabled a $25.4 million prepayment on their term loan, reducing debt and interest payments while leaving $8.5 million in proceeds for operational flexibility. The company also reported a 9% reduction in operating expenses year-over-year. For the fiscal year 2025, Synchronoss reaffirmed its guidance, projecting revenue between $170 million and $180 million, with an adjusted gross margin of 78% to 80%, and adjusted EBITDA between $52 million and $56 million. Free cash flow is expected to range from $11 million to $16 million, excluding certain transaction fees and tax refund proceeds.

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
Neutral
Last Price6.40
Price Trends
50DMA
6.67
Negative
100DMA
6.90
Negative
200DMA
8.43
Negative
Market Momentum
MACD
0.02
Negative
RSI
52.05
Neutral
STOCH
65.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SNCR, the sentiment is Neutral. The current price of 6.4 is above the 20-day moving average (MA) of 6.03, below the 50-day MA of 6.67, and below the 200-day MA of 8.43, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.05 is Neutral, neither overbought nor oversold. The STOCH value of 65.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
64
Neutral
17.74B29.7425.24%1.74%10.34%0.68%
63
Neutral
3.59B-79.14-12.83%11.41%33.76%
62
Neutral
528.07M-51.12-2.60%14.51%58.41%
60
Neutral
451.11M-88.63%
45
Neutral
$73.61M26.79-53.05%-6.32%6.80%
43
Neutral
414.85M-4.10-137.66%111.83%73.52%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SNCR
Synchronoss Technologies
6.40
-8.48
-56.99%
GEN
Gen Digital
28.80
1.83
6.79%
BAND
Bandwidth
17.52
<0.01
0.06%
TENB
Tenable Holdings
29.66
-10.86
-26.80%
BKKT
Bakkt Holdings, Inc. Class A
17.95
8.38
87.57%
GRRR
Gorilla Technology Group Inc.
19.90
15.62
364.95%

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.

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.

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 19, 2025