Consensus Cloud Solutions (NASDAQ:CCSI) Releases Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• Consensus Cloud Solutions beat quarterly expectations, reporting $1.49 EPS versus the $1.48 consensus and revenue of $91.36 million versus $89.63 million expected.
• Corporate revenue rose 9.3% year over year to a record $60.5 million, while management reaffirmed 2026 guidance and said adjusted EBITDA and EPS should track slightly above their respective midpoints.
• SOHO revenue declined 4.7% to $30.9 million, with management expecting further 5%-7% declines over the next two quarters; meanwhile, the board expanded its share-repurchase authorization to $200 million.

Consensus Cloud Solutions (NASDAQ:CCSI - Get Free Report) announced its quarterly earnings results on Thursday. The company reported $1.49 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.48 by $0.01, FiscalAI reports. Consensus Cloud Solutions had a net margin of 26.69% and a return on equity of 849.75%. The firm had revenue of $91.36 million for the quarter, compared to the consensus estimate of $89.63 million. Consensus Cloud Solutions updated its Q3 2026 guidance to 1.340-1.440 EPS and its FY 2026 guidance to 5.550-5.950 EPS.

Here are the key takeaways from Consensus Cloud Solutions' conference call:

• Corporate revenue reached a record $60.5 million, up 9.3% year over year, supported by strong usage, customer acquisition, retention, advanced products, and a 103.1% net revenue retention rate.
• Management reaffirmed full-year 2026 guidance but expects revenue to land between the midpoint and high end of the range, with adjusted EBITDA and EPS tracking slightly above midpoint; free cash flow is still expected to approximate $106 million.
• The VA rollout is approximately 65%-80% complete, with management expecting more than $9 million of 2026 revenue and seeing additional opportunities among government contractors and other public-sector organizations.
• The board increased the share-repurchase authorization to $200 million; Consensus repurchased approximately $9.6 million of stock in Q2 and indicated that further buybacks remain attractive given an estimated 16%-17% free-cash-flow yield.
• SOHO revenue declined 4.7% year over year to $30.9 million, and management expects declines of roughly 5%-7% in each of the next two quarters; hospital customers are also becoming more cautious and focused on ROI, which could slow sales cycles.

Consensus Cloud Solutions Price Performance

Shares of CCSI traded down $2.19 during trading hours on Friday, reaching $35.14. 186,393 shares of the company's stock traded hands, compared to its average volume of 119,654. Consensus Cloud Solutions has a 12 month low of $20.20 and a 12 month high of $41.40. The company has a current ratio of 1.80, a quick ratio of 1.80 and a debt-to-equity ratio of 24.99. The stock has a market cap of $646.58 million, a PE ratio of 7.11 and a beta of 1.57. The firm's 50 day simple moving average is $36.02 and its 200-day simple moving average is $30.06.

Insider Buying and Selling at Consensus Cloud Solutions

In related news, Director Elaine Healy sold 4,000 shares of the firm's stock in a transaction that occurred on Tuesday, June 2nd. The shares were sold at an average price of $34.27, for a total value of $137,080.00. Following the sale, the director directly owned 27,658 shares of the company's stock, valued at $947,839.66. This trade represents a 12.64% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 3.65% of the company's stock.

Institutional Trading of Consensus Cloud Solutions

Several institutional investors and hedge funds have recently made changes to their positions in CCSI. Russell Investments Group Ltd. lifted its position in Consensus Cloud Solutions by 239.3% in the 3rd quarter. Russell Investments Group Ltd. now owns 170,445 shares of the company's stock worth $5,006,000 after buying an additional 120,205 shares during the last quarter. Kent Lake PR LLC grew its position in Consensus Cloud Solutions by 92.6% during the second quarter. Kent Lake PR LLC now owns 250,000 shares of the company's stock valued at $5,765,000 after acquiring an additional 120,200 shares during the last quarter. Heron Bay Capital Management grew its position in Consensus Cloud Solutions by 4.1% during the fourth quarter. Heron Bay Capital Management now owns 1,253,487 shares of the company's stock valued at $27,351,000 after acquiring an additional 49,761 shares during the last quarter. Two Sigma Investments LP purchased a new position in shares of Consensus Cloud Solutions during the third quarter worth approximately $1,442,000. Finally, Lazard Asset Management LLC raised its stake in shares of Consensus Cloud Solutions by 367.8% during the third quarter. Lazard Asset Management LLC now owns 57,959 shares of the company's stock worth $1,702,000 after acquiring an additional 45,569 shares in the last quarter. Hedge funds and other institutional investors own 93.93% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on CCSI shares. Wall Street Zen raised shares of Consensus Cloud Solutions from a "hold" rating to a "buy" rating in a report on Sunday, May 17th. BTIG Research raised their price target on shares of Consensus Cloud Solutions from $40.00 to $45.00 and gave the company a "buy" rating in a report on Friday, July 24th. Weiss Ratings restated a "hold (c+)" rating on shares of Consensus Cloud Solutions in a research report on Tuesday. Finally, Oppenheimer upped their price target on shares of Consensus Cloud Solutions from $32.00 to $35.00 and gave the stock an "outperform" rating in a report on Tuesday, May 12th. Three equities research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $38.33.

About Consensus Cloud Solutions

Consensus Cloud Solutions NASDAQ: CCSI is a provider of cloud consulting and managed services focused on helping organizations accelerate digital transformation. The company specializes in designing, deploying and supporting cloud architectures that leverage leading public and private cloud platforms, including infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) environments. Its end-to-end approach encompasses strategy, implementation and ongoing optimization to align technology investments with business objectives.

The firm’s core offerings include cloud migration and deployment, application modernization, data analytics and cybersecurity solutions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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