CSG Systems International, Inc. (CSGS) Q2 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 07 2025
0mins
Should l Buy CSGS?
Source: SeekingAlpha
Non-GAAP Operating Margin 19.5% in the first half of 2025, a 250-basis-point improvement compared to 17% in the same prior year period. The improvement is attributed to a highly recurring revenue model, success in selling higher gross margin SaaS deals, and greater operating efficiencies.
Revenue Diversification 32% of total CSG revenue in the first half of 2025 came from industries outside of cable and telecom, up from 31% in the prior year period. This diversification is driven by data-driven CX, monetization, and payment solutions.
Revenue Concentration Revenue from top 2 customers (Charter and Comcast) now represents 36% of total CSG revenue, reduced from 49% in 2017. This reduction is due to diversification efforts, although revenue from these customers has grown since 2017.
Non-GAAP Adjusted Free Cash Flow $47 million in the first half of 2025, a significant improvement from $5 million in the same period last year. This improvement is attributed to increased operating margins and improvements in working capital.
Shareholder Returns $19 million in dividends and $40 million in share repurchases in the first half of 2025, contributing to a total of $59 million returned to shareholders.
Revenue $597 million in the first half of 2025, up from $585 million in 2024. This represents the highest revenue in the first half of the year in CSG's history. The increase includes a $6 million nonrecurring high-margin license revenue arrangement recognized in Q2.
Non-GAAP Adjusted Operating Income $106 million in the first half of 2025, compared to $91 million in the prior year period. This represents a non-GAAP adjusted operating margin of 19.5%, up from 17.0%.
Non-GAAP Adjusted EBITDA $132 million in the first half of 2025, or 24.4% of revenue, compared to $118 million, or 22.0% in the prior year period. The increase is driven by improved operating efficiencies and success in selling SaaS revenue solutions.
Non-GAAP EPS $2.29 in the first half of 2025, a 13% increase compared to $2.02 in the prior year period. The increase is due to higher non-GAAP adjusted operating income, a lower non-GAAP effective tax rate, and lower diluted shares outstanding, partially offset by adverse foreign currency movements.
Cash Flow from Operations $49 million in the first half of 2025, compared to $14 million in the first half of the prior year. This increase is driven by higher operating margins and improvements in working capital.
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Analyst Views on CSGS
Wall Street analysts forecast CSGS stock price to rise
2 Analyst Rating
0 Buy
2 Hold
0 Sell
Hold
Current: 79.610
Low
80.70
Averages
80.70
High
80.70
Current: 79.610
Low
80.70
Averages
80.70
High
80.70
About CSGS
CSG Systems International, Inc. is a software-as-a-service (SaaS) platform company. The Company provides revenue management, digital monetization, customer experience, and payments solutions. It offers integrated real-time revenue management platforms leveraging public cloud, private cloud, or on-premises deployments to optimize and monetize transactions at every stage of the customer lifecycle. Its products are used in the areas of 5G/internet of things (IOT) monetization, financial services, technology, telecom, field service management, operations support systems/business support systems (OSS/BSS), journey orchestration, journey analytics, customer experience, and integrated payments. It offers operational services encompassing infrastructure management, including hardware, application, and environmental management, and application configuration management, including configuration development, release, and deployment. It also offers solutions in ACH and credit card processing.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CSG Systems International Reports FY 2025 Financial Results
- Strong Financial Performance: CSG Systems International reported total revenue of $1.22 billion for FY 2025, indicating significant growth compared to the previous year, showcasing the company's robust market performance and ongoing growth potential.
- Improved Profitability: The company achieved GAAP operating income of $118.7 million with an operating margin of 9.7%, while non-GAAP operating income reached $226.2 million, resulting in a non-GAAP adjusted operating margin of 20.3%, reflecting successful cost control and operational efficiency.
- Robust Earnings Per Share: In Q4, the non-GAAP EPS was $1.53, and for the full year, it was $5.14, indicating a sustained enhancement in profitability that may attract more investor interest.
- Healthy Cash Flow: CSG Systems International generated operating cash flows of $155.9 million, with non-GAAP adjusted free cash flow of $146.4 million, demonstrating strong financial management and operational efficiency, providing ample funding for future investments.
See More
CSG Systems International Announces 6% Dividend Increase
- Dividend Increase: CSG Systems International has declared a quarterly dividend of $0.34 per share, marking a 6% increase from the previous dividend of $0.32, indicating the company's robust performance in profitability and cash flow, which enhances investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 1.71%, providing investors with a relatively stable return, reflecting the company's attractiveness in the current market environment and potentially drawing more long-term investors.
- Payment Schedule: The dividend is payable on April 1, with a record date of March 18 and an ex-dividend date also on March 18, ensuring that shareholders receive their earnings promptly, further solidifying the relationship between the company and its shareholders.
- Financial Health: The dividend increase aligns with CSG Systems International's historical earnings data, demonstrating the company's ability to maintain profitability and manage cash flow effectively, thereby strengthening its competitive position in the industry.
See More
CSG Announces 6% Increase in Quarterly Cash Dividend
- Dividend Increase: CSG's Board of Directors has approved a 6% increase in the quarterly cash dividend, raising the payment to $0.34 per share, which will be paid on April 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Shareholder Impact: The dividend adjustment will benefit shareholders of record as of the close of business on March 18, 2026, enhancing investor confidence in the company's future growth prospects.
- Company Vision: CSG empowers businesses through its customer experience, billing, and payment solutions, helping companies of all sizes to increase profitability and make a positive impact, showcasing its leadership in the industry.
- Future Readiness: CSG encourages businesses to leverage its SaaS solutions to seize future growth opportunities, further solidifying its competitive advantage in the global market.
See More
CSG Board Approves 6% Increase in Quarterly Dividend
- Dividend Increase: CSG's Board of Directors has approved a 6% increase in the quarterly cash dividend, raising it to $0.34 per share, which reflects the company's confidence in its financial stability moving forward.
- Payment Schedule: The new dividend will be paid on April 1, 2026, to shareholders of record as of March 18, 2026, ensuring timely returns for investors and enhancing shareholder confidence.
- Company Mission: CSG empowers businesses to create unforgettable customer experiences through its SaaS solutions, supporting companies of all sizes in increasing revenue and making a difference, showcasing its leadership in the industry.
- Future Outlook: By consistently increasing dividends, CSG not only attracts more investor interest but also strengthens its competitive position in the market, indicating the company's potential for sustainable growth in the future.
See More
CSG Launches AI-Powered Payment Protection Solution
- Real-Time Monitoring: CSG Payments Protection.ai leverages advanced AI technology to enable near-real-time monitoring of cross-channel transactions, allowing businesses to reduce payment fraud losses by 50-70% while minimizing false positives, thereby enhancing customer experience.
- Intelligent Decision Support: The platform delivers enterprise-grade performance by analyzing thousands of transactions per second, ensuring rapid responsiveness even during peak periods, which helps businesses maintain customer trust without sacrificing speed.
- Highly Configurable Protection: Tailored rules for complex sectors such as healthcare, telecom, and property management allow businesses to adjust their defenses according to evolving fraud patterns, thereby maintaining a competitive edge.
- Rapid Deployment Advantage: The low-friction integration process enables businesses to transition to live fraud monitoring within weeks, reducing operational burdens while safeguarding customers and revenue, ensuring business continuity.
See More
CSG Extends Multi-Year Contract with DISH Network
- Customer Experience Enhancement: CSG's multi-year contract extension with DISH Network ensures the delivery of exceptional customer service through 2030, further enhancing customer satisfaction and brand loyalty.
- Increased Operational Agility: With CSG's leading SaaS platform, DISH can optimize billing and payment services, improving operational efficiency and maintaining a competitive edge in a challenging market.
- Continuation of Historical Partnership: CSG has been a trusted business enabler for DISH since its first satellite launch in 1995, and will continue to support DISH in achieving higher customer service standards in the future.
- Innovative Service Delivery: This contract renewal signifies a crucial step for DISH in meeting customer expectations for innovative and seamless experiences, further solidifying its leadership position in the diverse connectivity sector.
See More
CSG Systems International Reports FY 2025 Financial Results
- Strong Financial Performance: CSG Systems International reported total revenue of $1.22 billion for FY 2025, indicating significant growth compared to the previous year, showcasing the company's robust market performance and ongoing growth potential.
- Improved Profitability: The company achieved GAAP operating income of $118.7 million with an operating margin of 9.7%, while non-GAAP operating income reached $226.2 million, resulting in a non-GAAP adjusted operating margin of 20.3%, reflecting successful cost control and operational efficiency.
- Robust Earnings Per Share: In Q4, the non-GAAP EPS was $1.53, and for the full year, it was $5.14, indicating a sustained enhancement in profitability that may attract more investor interest.
- Healthy Cash Flow: CSG Systems International generated operating cash flows of $155.9 million, with non-GAAP adjusted free cash flow of $146.4 million, demonstrating strong financial management and operational efficiency, providing ample funding for future investments.
See More
CSG Systems International Announces 6% Dividend Increase
- Dividend Increase: CSG Systems International has declared a quarterly dividend of $0.34 per share, marking a 6% increase from the previous dividend of $0.32, indicating the company's robust performance in profitability and cash flow, which enhances investor confidence.
- Yield Metrics: The forward yield of this dividend stands at 1.71%, providing investors with a relatively stable return, reflecting the company's attractiveness in the current market environment and potentially drawing more long-term investors.
- Payment Schedule: The dividend is payable on April 1, with a record date of March 18 and an ex-dividend date also on March 18, ensuring that shareholders receive their earnings promptly, further solidifying the relationship between the company and its shareholders.
- Financial Health: The dividend increase aligns with CSG Systems International's historical earnings data, demonstrating the company's ability to maintain profitability and manage cash flow effectively, thereby strengthening its competitive position in the industry.
See More
CSG Announces 6% Increase in Quarterly Cash Dividend
- Dividend Increase: CSG's Board of Directors has approved a 6% increase in the quarterly cash dividend, raising the payment to $0.34 per share, which will be paid on April 1, 2026, reflecting the company's ongoing commitment to shareholder returns.
- Shareholder Impact: The dividend adjustment will benefit shareholders of record as of the close of business on March 18, 2026, enhancing investor confidence in the company's future growth prospects.
- Company Vision: CSG empowers businesses through its customer experience, billing, and payment solutions, helping companies of all sizes to increase profitability and make a positive impact, showcasing its leadership in the industry.
- Future Readiness: CSG encourages businesses to leverage its SaaS solutions to seize future growth opportunities, further solidifying its competitive advantage in the global market.
See More
CSG Board Approves 6% Increase in Quarterly Dividend
- Dividend Increase: CSG's Board of Directors has approved a 6% increase in the quarterly cash dividend, raising it to $0.34 per share, which reflects the company's confidence in its financial stability moving forward.
- Payment Schedule: The new dividend will be paid on April 1, 2026, to shareholders of record as of March 18, 2026, ensuring timely returns for investors and enhancing shareholder confidence.
- Company Mission: CSG empowers businesses to create unforgettable customer experiences through its SaaS solutions, supporting companies of all sizes in increasing revenue and making a difference, showcasing its leadership in the industry.
- Future Outlook: By consistently increasing dividends, CSG not only attracts more investor interest but also strengthens its competitive position in the market, indicating the company's potential for sustainable growth in the future.
See More
CSG Launches AI-Powered Payment Protection Solution
- Real-Time Monitoring: CSG Payments Protection.ai leverages advanced AI technology to enable near-real-time monitoring of cross-channel transactions, allowing businesses to reduce payment fraud losses by 50-70% while minimizing false positives, thereby enhancing customer experience.
- Intelligent Decision Support: The platform delivers enterprise-grade performance by analyzing thousands of transactions per second, ensuring rapid responsiveness even during peak periods, which helps businesses maintain customer trust without sacrificing speed.
- Highly Configurable Protection: Tailored rules for complex sectors such as healthcare, telecom, and property management allow businesses to adjust their defenses according to evolving fraud patterns, thereby maintaining a competitive edge.
- Rapid Deployment Advantage: The low-friction integration process enables businesses to transition to live fraud monitoring within weeks, reducing operational burdens while safeguarding customers and revenue, ensuring business continuity.
See More
CSG Extends Multi-Year Contract with DISH Network
- Customer Experience Enhancement: CSG's multi-year contract extension with DISH Network ensures the delivery of exceptional customer service through 2030, further enhancing customer satisfaction and brand loyalty.
- Increased Operational Agility: With CSG's leading SaaS platform, DISH can optimize billing and payment services, improving operational efficiency and maintaining a competitive edge in a challenging market.
- Continuation of Historical Partnership: CSG has been a trusted business enabler for DISH since its first satellite launch in 1995, and will continue to support DISH in achieving higher customer service standards in the future.
- Innovative Service Delivery: This contract renewal signifies a crucial step for DISH in meeting customer expectations for innovative and seamless experiences, further solidifying its leadership position in the diverse connectivity sector.
See More
