Consensus Cloud Solutions (NASDAQ:CCSI) reported preliminary fourth-quarter results on Tuesday.
The Los Angeles-based leader in digital cloud fax and interoperability solutions posted adjusted earnings of $1.41 per share.
Quarterly revenues rose slightly to $87.1 million, reflecting a "tale of two segments."
The company’s core corporate business—a key engine for high-value contracts in healthcare and the public sector—grew 7.3% year-over-year to $57.5 million.
This momentum was counterbalanced by a purposeful 11.1% revenue decline in the Small Office Home Office (SoHo) segment, as the company continued to slash marketing spend on lower-margin retail accounts to prioritize overall profitability.
The strategic shift toward higher-value enterprise clients is yielding significant bottom-line results.
Net income jumped 13% to $20.5 million, while the company’s adjusted EBITDA margin reached 51.9%, landing squarely within management's long-term target of 50% to 55%.
Consensus also made significant strides in deleveraging its balance sheet during the quarter.
Following the retirement of $200 million in senior notes in late 2025, the company ended the year with a significantly leaner debt profile and $105.9 million in full-year free cash flow.