Overview

* CSG Q2 revenue rises 2.3% to $297.1 mln, beating analyst expectations

* Non-GAAP EPS for Q2 increases to $1.16, exceeding estimates

* Co raises 2025 full-year profitability and cash flow guidance targets

Outlook

* CSG raises 2025 adjusted free cash flow guidance to $120-$150 mln

* CSG increases 2025 adjusted EBITDA guidance to $261-$272 mln

* CSG maintains 2025 revenue guidance at $1.21-$1.25 bln

* CSG keeps 2025 EPS guidance at $4.65-$4.90

Result Drivers

* SAAS GROWTH - Revenue growth driven by increased demand for SaaS and related solutions, including contributions from acquired iCG business

* COST EFFICIENCY - Improved non-GAAP operating margin attributed to cost efficiency actions, per CEO Brian Shepherd

* CUSTOMER WINS - New and expanded relationships with Orange Business and Liberty Puerto Rico contributed to results

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $297.13 $289.50

Revenue mln mln (8

Analysts

)

Q2 Beat $1.16 $1.05 (8

Adjusted Analysts

EPS )

Q2 EPS $0.44

Q2 $54.50

Adjusted mln

operatin

g income

Q2 20.1%

Adjusted

operatin

g margin

Q2 $29.86

Operatin mln

g income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the it services & consulting peer group is "buy"

* Wall Street's median 12-month price target for Csg Systems International Inc ( CSGS ) is $75.50, about 18% above its August 5 closing price of $61.88

* The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)