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what it is
Consensus Cloud helps businesses send secure documents, sign forms, and move sensitive data without relying on paper, mail, or someone yelling about a fax machine.
how it gets paid
Last year Consensus Cloud made $350M in revenue. cloud fax was the main engine at $193M, or 55% of sales.
why growth slowed
Revenue fell 0.2% last year. Latest annual revenue was $350 million, down 0.2% vs. prior year, while gross margin held at 79.7%.
what just happened
Consensus Cloud just posted about $1.41 in adjusted EPS in the latest quarter on a business that still squeezes a lot of cash from nearly flat revenue.
At a glance
C+ balance sheet — struggling to keep the lights on
5.5x trailing p/e — the market's not buying it — or you found a deal
21.5% return on capital — every dollar works hard here
$4.62 fy2024 eps est
$350M fy2024 rev est
xvary composite: 37/100 — weak
What they do
Consensus Cloud helps businesses send secure documents, sign forms, and move sensitive data without relying on paper, mail, or someone yelling about a fax machine.
Consensus wins because boring infrastructure tends to stick. It serves about 726 thousand customers across 41 countries, and the top 10 customers are only 9% of revenue, so you are not betting on one whale. Switching costs (hard-to-remove software embedded in daily work) are real here, because ripping out secure document flows in healthcare, government, and law is a good way to break your own operations.
How they make money
$350M
annual revenue · their business grew -0.2% last year
cloud fax
$193M
3.0%
digital signature
$56M
+6.0%
interoperability and workflow
$42M
+4.0%
data extraction and automation
$35M
+8.0%
connectivity and integration
$24M
+2.0%
The products that matter
secure cloud fax & related
Cloud fax
$193M · 55% of revenue
this is the largest annual bucket on the revenue bridge above. corporate demand has shown pockets of growth in recent quarters, but legacy fax attrition still sets the ceiling.
core
signatures & workflow
Digital signature + interoperability
$98M combined · ~28% of revenue
digital signature (~$56M) plus interoperability/workflow (~$42M) are the main “not just fax” lines. they need to grow fast enough to offset SoHo and other legacy shrink.
diversifiers
automation & connectivity
Data + integration
$59M combined · ~17% of revenue
data extraction (~$35M) and connectivity (~$24M) round out the mix. together they matter for upsell, but they are not yet large enough to redefine the company solo.
add-ons
Key numbers
48.5%
operating margin
Operating margin → profit after running the business → so what: Consensus keeps nearly 49 cents from each sales dollar before interest and taxes.
$589M
long-term debt
Long-term debt → money owed over many years → so what: the debt stack is larger than the company's roughly $567 million market value.
5.5x
trailing p/e
P/E → price compared with annual profit → so what: you are paying a bargain multiple for a business with 21.5% return on capital.
726K
customers
Customer count → number of paying accounts → so what: the revenue base is spread widely, which lowers single-customer blowup risk.
Financial health
C+
strength
- balance sheet grade C+ — weak — may struggle to fund operations
- risk rank 3 — safer than 50% of stocks
- price stability 15 / 100
- long-term debt $589M (51% of capital)
C+ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for CCSI right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Consensus Cloud posted $87.1M in quarterly revenue and $1.41 in adjusted diluted EPS in the latest quarter.
Q4 2025 revenue was about $87.1M, essentially flat vs. prior year, while adjusted diluted EPS grew roughly 14% vs. prior year to about $1.41. Full-year revenue has stayed near the ~$350M level (slightly down vs. prior year in the latest year) — high margins, low growth, heavy debt.
$87.1M
quarterly revenue
$1.41
adj. diluted eps
~flat
revenue vs. prior year
the number that mattered
48.5% operating margin matters most because it tells you this company can be flat and still throw off real earnings.
source: company earnings report, 2026
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What could go wrong
The top risk here is legacy fax attrition outrunning the parts of the business that are still holding up. This is not generic software risk. It is a math problem inside a very specific revenue mix.
med
SoHo keeps shrinking faster than corporate can grow
SoHo revenue declined roughly 11% vs. prior year as the company exits lower-margin accounts, while corporate revenue grew about 7% in the latest quarter and is most of the mix. The tension is the same: legacy shrink versus enterprise stability.
If that spread holds or widens, CCSI can stay profitable while the revenue base keeps slipping. The stock rarely gets a higher multiple when both are true.
med
Debt turns a slow-growth story into a tighter one
Long-term debt is $589M, or 51% of total capital, against a business guiding to $357M of 2026 revenue at the midpoint. That is a big fixed burden for a company still proving that revenue has stopped shrinking.
If revenue drifts below the midpoint, debt stops being background context and becomes the main part of the equity story.
med
Margin improvement was real, but it came from discipline more than demand
Q4 net income margin improved to 23.5% from 20.8%. That is good news. It is also the kind of progress that gets harder to repeat if revenue does not start helping.
Once cost control does the easy work, the next step has to come from demand. The current segment mix does not prove that yet.
med
Executive turnover raises the execution bar
The CFO departure effective February 9, 2026 adds another moving part while investors are already focused on debt, guidance, and the revenue mix. One management change is manageable. One management change during a fragile stabilization attempt matters more.
If the next few quarters get messy, investors will not separate operating noise from leadership noise. They will discount both at once.
These risks all converge on the same point: a $350M revenue base carrying $589M in long-term debt. If revenue stays flat, the story survives. If revenue starts slipping again, the stock stops looking cheap and starts looking correctly priced.
source: institutional data · regulatory filings · risk analysis
Pay attention to
segment mix
Corporate growth has to keep outrunning SoHo's decline
Corporate revenue grew ~7% in the latest quarter while SoHo fell ~11% vs. prior year. That spread is the whole near-term story. If corporate slows, the bear case gets simple very fast.
calendar
Q1 2026 earnings report
Expected between May 6–11, 2026. You want to see whether the $357M full-year midpoint still looks realistic after the first quarter read.
guidance
2026 revenue midpoint: $357M
That's roughly 2% above the current $350M base. In plain English: management is guiding for stabilization, not a dramatic rebound.
balance sheet
$589M of debt leaves little room for drift
If revenue stays flat while debt stays heavy, investors will keep valuing this like a mature cash-harvest story instead of a software rerating setup.
Analyst rankings
valuation read
5.5x
Trailing p/e. You're paying $5.50 for every $1 of trailing earnings. In human-speak, the stock looks cheap because the market does not trust the revenue base yet.
street target
$37.50
Average price target. That's about 62% above the current $23.20 share price, which tells you analysts see upside if revenue can simply stop slipping.
coverage quality
thin
The ranking data here is lighter than we want. That matters because small-cap targets look more dramatic when only a few people are publishing them.
source: institutional data
Institutional activity
institutional ownership data for CCSI is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$23
current price
n/a
target midpoint · n/a from current
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