Overview

* Synchronoss ( SNCR ) Q2 revenue falls to $42.5 mln, missing analyst expectations

* Adjusted EBITDA of $12.8 mln misses estimates, per LSEG data

* Company received $33.9 mln CARES Act tax refund, aiding debt reduction

Outlook

* Synchronoss ( SNCR ) expects full-year revenue guidance of $170-$180 mln

* Company expects recurring revenue to be at least 90% of total

* Synchronoss ( SNCR ) projects adjusted EBITDA of $52-$56 mln for 2025

* Company anticipates free cash flow between $11 mln and $16 mln

Result Drivers

* REVENUE DECLINE - Revenue fell due to expiration of a customer contract in December 2024, partially offset by 2.0% cloud subscriber growth

* FOREIGN EXCHANGE LOSSES - Net loss impacted by $12.5 mln non-cash foreign exchange losses from intercompany revaluations

* DEBT REDUCTION - CARES Act tax refund of $33.9 mln used to pay down debt, saving $2.9 mln in annual interest

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Miss $42.50 $42.80

Revenue mln mln (2

Analysts

)

Q2 Miss $0.1 $0.49 (2

Adjusted Analysts

EPS )

Q2 EPS -$1.87

Q2 Net -$19.60

Income mln

Q2 Miss $12.80 $12.90

Adjusted mln mln (2

EBITDA Analysts

)

Q2 $500,000

Adjusted

Free

Cash

Flow

Q2 Free $12.80

Cash mln

Flow

Q2 Gross $29.40

Profit mln

Analyst Coverage

* The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "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 Synchronoss Technologies Inc ( SNCR ) is $26.50, about 70.5% above its August 8 closing price of $7.82

* The stock recently traded at 3 times the next 12-month earnings vs. a P/E of 5 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.)