Shares of Consensus Cloud Solutions Inc (CCSI) plummeted 5.42% in Thursday's trading session, despite the company reporting its Q3 2025 earnings and receiving a price target increase from Wedbush analysts. The sharp decline comes as investors digest the mixed results and future outlook presented in the earnings report.
While Consensus Cloud Solutions reported flat consolidated revenue of $87.8 million compared to the same quarter last year, the company's corporate segment showed strong growth, increasing 6.1% year-over-year to $56.3 million. However, this growth was offset by a 9.2% decline in the SOHO (Small Office/Home Office) segment, which brought in $31.5 million for the quarter.
The earnings report highlighted several potential concerns for investors. Management indicated that the adjusted EBITDA margin for Q4 2025 is expected to be lower due to planned headcount additions and seasonal audit-related costs. Additionally, the company faces near-term headwinds in its SOHO business due to changes in the search environment, which could impact future growth. These factors, combined with the expectation of negligible free cash flow in Q4 2025 due to semiannual bond interest payments, may have contributed to the stock's decline despite Wedbush raising its price target from $26 to $35.
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