Consensus Cloud Solutions (CCSI) AI Stock Analysis

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Consensus Cloud Solutions

(NASDAQ:CCSI)

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Neutral 65 (OpenAI - 4o)

Rating:65Neutral

Price Target:

$29.00

▲(14.81% Upside)

Consensus Cloud Solutions' overall stock score is driven by strong earnings call performance and undervaluation, offset by financial leverage concerns and technical indicators suggesting short-term weakness. The company's strategic focus on the corporate and healthcare sectors is promising, but financial stability risks remain due to high debt levels.

Positive Factors

Revenue Growth

The return to revenue growth indicates a successful strategy in expanding market presence, particularly in the corporate sector, which is crucial for long-term business sustainability.

Cash Flow Generation

Strong free cash flow growth reflects effective financial management and operational efficiency, providing the company with resources to invest in growth opportunities and manage debt.

Corporate Channel Expansion

The growth in the corporate customer base underscores the company's competitive edge and ability to capture market share, enhancing its long-term revenue potential.

Negative Factors

Financial Leverage

High financial leverage and negative equity can limit financial flexibility and pose risks to long-term stability, especially if revenue growth does not offset debt obligations.

SoHo Revenue Decline

The decline in SoHo revenue suggests challenges in this segment, potentially impacting overall revenue diversification and growth if not addressed.

Increased SoHo Cancellation Rate

Rising cancellation rates in the SoHo channel indicate customer retention challenges, which could hinder revenue stability and growth if the trend continues.

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

Market Cap

$531.74M

Dividend YieldN/A

Average Volume (3M)108.65K

Price to Earnings (P/E)6.8

Beta (1Y)1.15

Revenue Growth-1.23%

EPS Growth-11.22%

CountryUS

Employees518

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)1.46

Shares Outstanding18,977,018

10 Day Avg. Volume105,165

30 Day Avg. Volume108,646

Financial Highlights & Ratios

PEG Ratio0.29

Price to Book (P/B)-5.79

Price to Sales (P/S)1.31

P/FCF Ratio5.21

Enterprise Value/Market Cap1.85

Enterprise Value/Revenue2.81

Enterprise Value/Gross Profit3.53

Enterprise Value/Ebitda5.89

Forecast

1Y Price Target

$37.00

Price Target Upside46.48% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering1

Consensus Cloud Solutions Business Overview & Revenue Model

Company DescriptionConsensus Cloud Solutions (CCSI) is a leading provider of cloud-based document solutions and services, specializing in streamlining the management and processing of business documents. The company operates in various sectors, including healthcare, finance, and legal, offering core products such as document management systems, secure file sharing, and advanced data analytics. With a focus on enhancing operational efficiency and compliance, CCSI empowers organizations to optimize their document workflows and improve collaboration.

How the Company Makes MoneyCCSI 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 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: |

Next Earnings Date:Nov 06, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong performance in the corporate segment and successful financial management, with the company returning to total revenue growth earlier than expected. However, challenges remain in the SoHo segment with ongoing revenue declines and increased cancellation rates. Overall, the positive achievements in the corporate channel and financial metrics outweigh the setbacks in the SoHo channel.

Q2-2025 Updates

Positive Updates

Return to Revenue Growth

Consensus returned to total revenue growth earlier than anticipated with a 6.9% increase in corporate revenue over Q2 2024, marking the best year-over-year growth in 10 quarters.

Strong Adjusted EBITDA Margin

The company exceeded its adjusted EBITDA expectations with a robust margin of 54.8%, near the top end of their 50% to 55% range.

Free Cash Flow Increase

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

Corporate Channel Success

The corporate customer base grew to a record approximately 63,000, up 11% year-over-year, driven by strong usage and new customer acquisition.

Successful Debt Refinancing

The company concluded a $225 million bank facility to retire 6% notes due October 2026, with expected borrowing costs similar to the current cost of the notes.

Improved Revenue Retention Rate

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

Negative Updates

SoHo Revenue Decline

SoHo revenue declined by 9.4% year-over-year, from $35.8 million in Q2 2024 to $32.4 million in Q2 2025, as part of a planned reduction focusing on profitability.

Increased SoHo Cancellation Rate

The cancellation rate for the SoHo channel increased to 3.84% from 3.52% in the previous quarter, attributed to changes in customer acquisition strategy.

Anticipated Lower Margins in Q3

A lower margin is expected in Q3 due to seasonal cost increases associated with the upcoming year-end audit and hiring of additional employees.

Company Guidance

During the Consensus Q2 2025 earnings call, the company provided guidance for both the full year and Q3 2025. For the full year, Consensus anticipates revenues between $343 million and $357 million, with adjusted EBITDA ranging from $179 million to $190 million. The adjusted EPS is expected to be between $5.25 and $5.65. For Q3 2025, revenue is projected to fall between $85.9 million and $89.9 million, while adjusted EBITDA is expected to be between $44.4 million and $47.4 million. The adjusted EPS for the third quarter is anticipated to be between $1.33 and $1.42. The company emphasized its commitment to revenue growth, targeting over 6.25% for the year, and managing its cost structure efficiently, which was demonstrated by an impressive 54.8% adjusted EBITDA margin for Q2. Additionally, Consensus highlighted its strategic focus on customer acquisition in the healthcare sector and its plans to manage the SoHo channel for cash flow efficiency.

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

Positive

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

Positive

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	349.60M	350.38M	362.56M	362.42M	352.66M	331.17M
Gross Profit	278.38M	280.69M	294.24M	300.47M	294.66M	524.21M
EBITDA	166.93M	176.74M	165.95M	166.97M	188.94M	241.28M
Net Income	81.12M	89.43M	77.24M	72.71M	109.00M	152.91M
Balance Sheet
Total Assets	641.52M	602.20M	647.25M	636.74M	559.59M	1.49B
Cash, Cash Equivalents and Short-Term Investments	57.89M	33.55M	88.72M	94.16M	66.78M	66.21M
Total Debt	10.91M	607.15M	749.23M	810.53M	808.57M	28.13M
Total Liabilities	668.00M	681.66M	823.38M	891.52M	893.39M	368.88M
Stockholders Equity	-26.48M	-79.46M	-176.12M	-254.78M	-333.80M	1.12B
Cash Flow
Free Cash Flow	90.82M	88.31M	77.65M	52.28M	215.64M	203.22M
Operating Cash Flow	121.94M	121.75M	114.11M	83.32M	250.22M	238.79M
Investing Cash Flow	-36.11M	-33.44M	-40.46M	-43.27M	-42.54M	-60.92M
Financing Cash Flow	-81.11M	-138.62M	-81.66M	-10.62M	-247.77M	-179.09M

Consensus Cloud Solutions Technical Analysis

Technical Analysis Sentiment

Positive

Last Price25.26

Price Trends

50DMA

27.46

Positive

100DMA

25.03

Positive

200DMA

24.35

Positive

Market Momentum

MACD

0.16

Negative

RSI

63.38

Neutral

STOCH

71.65

Neutral

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 25.26 is below the 20-day moving average (MA) of 26.86, below the 50-day MA of 27.46, and above the 200-day MA of 24.35, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.38 is Neutral, neither overbought nor oversold. The STOCH value of 71.65 is Neutral, 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSPN	―	$433.51M	7.52	28.45%	2.32%	-2.79%	259.00%
CCSI	―	$531.74M	6.75	―	―	-1.23%	-11.22%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BAND	―	$492.92M	―	-3.20%	―	14.51%	58.41%
PRTH	―	$556.23M	26.75	―	―	12.86%	―
DAVA	―	$501.99M	20.18	3.37%	―	7.13%	23.63%
CGNT	―	$600.83M	―	-2.26%	―	―	―

* Technology Sector Average

Performance Comparison

CCSI

Consensus Cloud Solutions

29.32

5.75

24.40%

OSPN

OneSpan

11.40

-4.91

-30.10%

BAND

Bandwidth

16.15

-2.44

-13.13%

DAVA

Endava

9.27

-14.70

-61.33%

PRTH

Priority Technology Holdings

6.96

1.91

37.82%

CGNT

Cognyte Software

8.35

1.87

28.86%

Consensus Cloud Solutions Corporate Events

Private Placements and Financing

Consensus Cloud Solutions Completes Senior Notes Redemption

Neutral

Oct 15, 2025

On October 3, 2025, Consensus Cloud Solutions, Inc. announced the redemption of $200,000,000 in principal amount of its 6.00% Senior Notes due in 2026. The redemption was completed on October 15, 2025, at a price equal to the principal amount plus any accrued interest. Following this redemption, $34,139,000 of the Notes remain outstanding.

The most recent analyst rating on (CCSI) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on Consensus Cloud Solutions stock, see the CCSI Stock Forecast page.

Consensus Cloud Solutions Reports Strong Q2 Growth

Aug 13, 2025

The latest earnings call from Consensus Cloud Solutions, Inc. painted a picture of strong corporate revenue growth and improved financial metrics. Despite some planned declines in the SoHo channel and potential regulatory impacts, the overall sentiment was positive, with strategic initiatives showing promising results, particularly in the corporate and healthcare sectors.

Consensus Cloud Solutions Reports Q2 2025 Results

Aug 8, 2025

Consensus Cloud Solutions, Inc. is a global leader in digital cloud fax technology, providing interoperability solutions that leverage artificial intelligence and secure data exchange to transform digital information and automate critical workflows, primarily serving heavily regulated industries such as healthcare and financial services.

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: Oct 22, 2025