CSG SYSTEMS INTERNATIONAL INC SEC 10-Q Report

CSG Systems International Inc., a leading provider of software and services for the communications industry, has released its Form 10-Q report for the second quarter of 2025. The report highlights the company's financial performance and operational achievements, showcasing growth in key areas despite facing macroeconomic challenges.

Financial Highlights

Total Revenue: $297.1 million, a 2.3% increase compared to the second quarter of 2024, primarily attributed to the continued growth of our SaaS and related solutions revenue.

Operating Income: $29.9 million, or a 10.0% operating margin percentage, compared to $25.4 million, or an 8.8% operating margin percentage for the second quarter of 2024, mainly due to decreased restructuring and reorganization charges and cost efficiency actions.

Net Income: $12.3 million, compared to $13.8 million for the second quarter of 2024, with the decrease mainly attributed to a higher effective income tax rate.

Diluted EPS: $0.44, compared to $0.48 for the second quarter of 2024, reflecting the impact of a higher effective income tax rate due to increased earn-out compensation related to the DGIT acquisition.

Business Highlights

Revenue Segments: The company reported growth in its SaaS and related solutions, which contributed significantly to the revenue increase. This segment includes revenue from the iCG business acquired in June 2024.

Geographical Performance: Revenue from the Americas, primarily the U.S., remained stable, while there was notable growth in the Europe, Middle East, and Africa region, attributed to increased business activities. The Asia Pacific region saw a slight decline in revenue.

Customer Concentration: Charter and Comcast remain significant customers, contributing 19% and 17% of total revenue, respectively, highlighting the company's reliance on a few large clients in the global communications industry.

Operational Efficiency: The company has undertaken cost efficiency actions, including workforce reductions and the closure of a design and delivery center in Florida, to optimize capacity and align resources with higher growth areas.

Future Outlook: The company anticipates continued growth in its SaaS and related solutions, with a focus on expanding its offerings and customer base in various industry verticals. The macroeconomic environment, including inflation and supply chain disruptions, remains a concern, but the company is positioned to mitigate these impacts.

SEC Filing: CSG SYSTEMS INTERNATIONAL INC [ CSGS ] - 10-Q - Aug. 07, 2025