Consensus Cloud Solutions Raises 2026 EPS Outlook as Corporate Revenue Grows 9%

Consensus Cloud Solutions Inc. (NASDAQ: CCSI) reported preliminary, unaudited third-quarter 2026 revenue growth of 3.7%, as continued expansion in its Corporate business more than offset a managed decline in its SoHo operation. The company increased its full-year adjusted EPS guidance and narrowed its revenue and adjusted EBITDA outlook to a range spanning above the midpoint through the high end of its initial guidance.

Consolidated revenue reached $91.0 million in the quarter. Adjusted EBITDA increased by $1.3 million, or 2.7%, from a year earlier, while adjusted EPS rose $0.12, or 8.7%. Consensus attributed the earnings-per-share increase primarily to lower net interest expense and a reduced tax rate.

Free cash flow fell 13.2% to $38.6 million, down $5.8 million year over year. The company said the decrease primarily reflected the timing of interest and tax payments in the current year that were not present in the third quarter of 2025. Consensus remains on track to generate approximately $106 million of free cash flow for 2026.

Corporate Growth Offsets SoHo Decline

Corporate revenue rose 9.1% to a record $61.4 million, marking a second consecutive quarter of growth above 9%. The Corporate customer base expanded 7.9% to 69,000 accounts, while paid additions increased 13.7% to 9,000. Monthly average revenue per account edged up 0.4% to $301.

Net revenue retention increased to 104.5% from 101.9% a year earlier. The company said stable churn in its core business and higher up-market average revenue per account supported the metric.

Consensus identified healthcare, healthcare IT and the public sector as areas of baseline expansion. Its Healthcare Strategy and Solutions Group is supporting the development of eFax Harmony, while the Department of Veterans Affairs ECFax rollout is nearing completion and remains on track to contribute more than $9 million of revenue in 2026. Secure cloud fax continues to serve as the foundation for the company’s expansion into healthcare solutions.

SoHo revenue declined 6% to $29.6 million, in line with the company’s expectations. Consensus said it continues to manage the business for cash contribution, describing it as a source of funding for the higher-growth Corporate operation. The company also pointed to its eFax platform and targeted digital marketing as supporting e-commerce customer acquisition.

Guidance and Capital Allocation

For full-year 2026, Consensus expects revenue of $360 million to $364 million, adjusted EBITDA of $188 million to $192 million and adjusted EPS of $6.00 to $6.10. The company said it increased the adjusted EPS range and narrowed its revenue and adjusted EBITDA forecasts to above the midpoint through the high end of its initial guidance.

Fourth-quarter guidance calls for revenue of $88.9 million to $92.9 million, adjusted EBITDA of $44.7 million to $47.7 million and adjusted EPS of $1.48 to $1.58. The EPS outlook assumes approximately 19.1 million shares and an effective tax rate of 11% to 13%.

Consensus ended the quarter with $106.5 million in cash and cash equivalents, up $7.6 million from the second quarter, and approximately $552 million of debt. Its total debt-to-EBITDA and net debt-to-EBITDA ratios were 2.92 times and 2.35 times, respectively.

The company repurchased about 551,000 shares for approximately $21 million during the quarter. Its board expanded the authorized repurchase program to $200 million from $100 million, leaving $98 million available. Capital expenditures totaled $7.0 million.

Management’s outlook remains subject to risks including economic uncertainty, customer acquisition and retention, usage levels, payment declines, debt-service requirements, cybersecurity and system failures, regulation, international operations, competition, technological change and the company’s ability to recruit and retain key personnel.