Consensus Cloud Solutions Inc. reported its first quarter 2025 financial results, revealing a decline in quarterly revenues by $1.0 million or 1.1% to $87.1 million, compared to $88.1 million in Q1 2024. This decrease was attributed primarily to a planned reduction of $3.9 million or 10.6% in the Small office home office ("SoHo") business. This decline was partially offset by a $2.9 million or 5.6% increase in the Corporate business segment. Net income for Q1 2025 decreased to $21.2 million from $26.4 million in the same quarter last year. The reduction was largely due to a debt extinguishment loss in the current quarter compared to a gain in Q1 2024, as well as changes in foreign exchange revaluation. These factors, combined with a reduction in income tax expense, contributed to a net income margin decrease to 24.3% from 29.9% in the previous year. Earnings per diluted share fell by 21.9% to $1.07 in Q1 2025, down from $1.37 in Q1 2024, influenced by the factors mentioned above. The company also highlighted its strong cash flows from operations and cash balances, which have enabled further reductions in overall debt levels. The CEO, Scott Turicchi, expressed confidence in the company's performance for the remainder of the year, citing robust operating margins and continued growth in Corporate revenue, driven by strong usage, improved revenue retention, and new customer acquisitions.
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