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1. Company Snapshot

1.a. Company Description

Consensus Cloud Solutions, Inc., together with its subsidiaries, provides information delivery services with a software-as-a-service platform worldwide.Its products and solutions include eFax, an online faxing solution, as well as MyFax, MetroFax, Sfax, SRfax, and other brands; eFax Corporate, a digital cloud-fax technology; jsign, which provides electronic and digital signature solutions; Unite, a single platform that allows the user to choose between several protocols to send and receive healthcare information in an environment that can integrate into an existing electronic health record (EHR) system or stand-alone if no EHR is present; Signal, a solution that integrates with a hospital's EHR system and uses rules-based triggering logic to automatically send admit, discharge, and transfer notifications using cloud fax and direct secure messaging technology; and Clarity that transforms unstructured documents into structured actionable data.It serves healthcare, education, law, and financial services industries.


Consensus Cloud Solutions, Inc.was incorporated in 2021 and is headquartered in Los Angeles, California.

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1.b. Last Insights on CCSI

The recent 3 months performance of Consensus Cloud Solutions, Inc. (CCSI) has been negatively impacted by the upcoming Q1 2025 earnings call on May 7, 2025, which may lead to increased scrutiny and potentially lower earnings expectations. The company's recent investor call and HIMSS25 exhibition, while showcasing its AI-powered solutions, may not be enough to offset the looming uncertainty surrounding its Q1 2025 financial results. Additionally, the lack of recent earnings releases and the focus on future guidance may indicate a period of consolidation for the company.

1.c. Company Highlights

2. Consensus Delivers Strong Q4 2025 Earnings, Driven by Corporate Channel Growth

Consensus reported a robust Q4 2025, with corporate revenue reaching a record $56.8 million, representing a 7.3% year-over-year increase. The company's adjusted EBITDA margin for the full year 2025 stood at 52.4%, above the original guidance range. Adjusted EPS grew to $5.62, up 3.1% or $0.17 from the prior year. The company's free cash flow ended 2025 at $106 million, an increase of $18 million or approximately 20% versus 2024. Actual EPS for Q4 2025 came in at $1.41, beating estimates of $1.31.

Publication Date: Mar -02

📋 Highlights
  • Debt Reduction:: Consensus reduced total debt from $805M to $562M, achieving a 3x leverage ratio (debt-to-adjusted EBITDA).
  • Stock Repurchases:: Repurchased $57M in shares (10% of outstanding shares at spin) in 2025, with $23M spent in Q4 alone.
  • Free Cash Flow:: Generated $106M in free cash flow for 2025, a 20% increase YoY, despite Q4 being the most challenging quarter.
  • Corporate Channel Growth:: Corporate revenue reached $56.8M in Q4 (7.3% YoY growth) and $222.7M for the year (6.5% YoY growth), now 64% of total revenue.
  • Adjusted EBITDA Margin:: Full-year 2025 margin of 52.4% exceeded original guidance, with gross margin stable at ~80% due to OpEx-driven cost structure.

Operational Highlights

The company's corporate channel revenue has grown significantly, reaching 64% of total revenue, up from 51% in Q4 2021. The VA has exceeded projected revenue in 2025, with a growth expectation of around $9 million in 2026. Clarity is also seeing growth, driven by the use of AI in document classification, indexing, and the acceleration of processing referrals.

Guidance and Outlook

For 2026, Consensus expects revenue to be between $350 million and $364 million, with adjusted EBITDA between $182 million and $193 million. Adjusted EPS guidance is between $5.55 to $5.95. The company plans to be more aggressive in its share repurchase program this year, with a goal to bring the total debt down to around $500 million over the next 2.5 years. Analysts estimate revenue growth at 3.0% for the next year.

Valuation Metrics

With a P/E Ratio of 6.78, P/S Ratio of 1.63, and EV/EBITDA of 6.44, Consensus appears to be reasonably valued. The company's ROE is negative due to a significant negative minority interest, but ROIC stands at 18.32%, indicating efficient capital allocation. The Net Debt / EBITDA ratio is 3.02, slightly above the company's target leverage.

Management Insights

According to Scott Turicchi, "We're focusing more on revenue retention rate, which I think is a stronger indicator." This shift in focus suggests that the company is prioritizing long-term sustainability over short-term gains. The management's guidance and outlook indicate a positive trajectory for the company, driven by its corporate channel growth and Clarity's expansion.

3. NewsRoom

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Consensus Cloud Solutions Aims For Transition, But Revenue Remains Flat

Feb -27

Source: seekingalpha.com

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Consensus Cloud Solutions (NASDAQ:CCSI) Sets New 52-Week High After Analyst Upgrade

Feb -18

Source: defenseworld.net

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Consensus Cloud Solutions Q4 Earnings Call Highlights

Feb -12

Source: defenseworld.net

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Consensus Cloud Solutions, Inc. (CCSI) Q4 2025 Earnings Call Transcript

Feb -10

Source: seekingalpha.com

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Consensus Cloud Solutions, Inc. (CCSI) Q4 Earnings and Revenues Surpass Estimates

Feb -10

Source: zacks.com

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Consensus Cloud Solutions, Inc. Provides Fourth Quarter and Full Year 2025 Results; Releases Q1 2026 and Full Year 2026 Guidance

Feb -10

Source: businesswire.com

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Consensus Cloud Solutions Recognized Among Top Healthcare Technology Companies by The Healthcare Technology Report

Dec -02

Source: businesswire.com

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Jet.AI and Consensus Core Complete Second Milestone of Canadian Hyperscale Data Center Project

Nov -07

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.29%)

6. Segments

Corporate Solutions

Expected Growth: 12.47%

Consensus Cloud Solutions' Corporate Solutions segment growth of 12.47% is driven by increasing demand for digital transformation, cloud-based workflow automation, and electronic signature solutions. The company's strategic acquisitions, expanding partner network, and growing adoption in industries such as financial services, healthcare, and government also contribute to its growth momentum.

Small Office Home Office (SoHo)

Expected Growth: 12.07%

Consensus Cloud Solutions' SoHo segment growth of 12.07% is driven by increasing adoption of cloud-based solutions, rising demand for digital transformation, and growing need for remote work enablement. Additionally, the shift towards paperless offices, cost savings, and scalability also contribute to this growth.

Other

Expected Growth: 10.27%

Consensus Cloud Solutions' 10.27% growth is driven by increasing demand for cloud-based integration and API management solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on digital transformation, artificial intelligence, and machine learning capabilities also contribute to its growth momentum.

7. Detailed Products

FaxCore

A cloud-based faxing solution that enables users to send and receive faxes electronically, eliminating the need for physical fax machines and phone lines.

Consensus

A cloud-based interoperability platform that enables the secure exchange of patient data between healthcare providers, payers, and patients.

ODI (Open Delivery Interface)

A cloud-based platform that enables the secure and compliant exchange of sensitive documents and data between organizations.

AP Connect

A cloud-based platform that enables accounts payable automation, allowing businesses to electronically send and receive invoices and payments.

B2B Integration

A cloud-based platform that enables the secure and compliant exchange of business documents and data between organizations.

8. Consensus Cloud Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Consensus Cloud Solutions, Inc. operates in a niche market with limited substitutes, reducing the threat of substitutes.

Bargaining Power Of Customers

Customers have some bargaining power due to the availability of alternative cloud-based solutions, but Consensus Cloud Solutions, Inc.'s specialized services mitigate this power.

Bargaining Power Of Suppliers

Consensus Cloud Solutions, Inc. has a diversified supplier base, reducing the bargaining power of individual suppliers.

Threat Of New Entrants

While there are barriers to entry in the cloud-based solutions market, new entrants can still disrupt the market, posing a moderate threat to Consensus Cloud Solutions, Inc.

Intensity Of Rivalry

The cloud-based solutions market is highly competitive, with many established players, leading to a high intensity of rivalry for Consensus Cloud Solutions, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 131.46%
Debt Cost 8.08%
Equity Weight -31.46%
Equity Cost 12.04%
WACC 6.84%
Leverage -417.90%

11. Quality Control: Consensus Cloud Solutions, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NetScout Systems

A-Score: 5.1/10

Value: 6.2

Growth: 1.7

Quality: 7.8

Yield: 0.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
Consensus Cloud Solutions

A-Score: 4.5/10

Value: 9.1

Growth: 2.3

Quality: 7.6

Yield: 0.0

Momentum: 4.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
i3 Verticals

A-Score: 4.1/10

Value: 2.9

Growth: 3.9

Quality: 6.4

Yield: 0.0

Momentum: 6.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
SecureWorks

A-Score: 4.1/10

Value: 7.7

Growth: 1.1

Quality: 4.8

Yield: 0.0

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Rekor Systems

A-Score: 3.9/10

Value: 6.6

Growth: 3.1

Quality: 4.0

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Priority Technology Holdings

A-Score: 3.9/10

Value: 8.5

Growth: 6.9

Quality: 4.7

Yield: 0.0

Momentum: 1.5

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

31.48$

Current Price

31.48$

Potential

-0.00%

Expected Cash-Flows