CSG | 10-K: FY2025 Revenue: USD 1.223 B

Revenue: As of FY2025, the actual value is USD 1.223 B.EPS: As of FY2025, the actual value is USD 1.98, missing the estimate of USD 2.56.EBIT: As of FY2025, the actual value is USD 142.5 M.Segment RevenueRevenue by Type 2025: SaaS and related solutions: $1,101,700 thousand Software and services: $74,305 thousand Maintenance: $47,284 thousand Total Revenue: $1,223,289 thousand 2024: SaaS and related solutions: $1,069,325 thousand Software and services: $80,935 thousand Maintenance: $46,988 thousand Total Revenue: $1,197,248 thousand Revenue by Geographic Region (as a percentage of total revenue) 2025: Americas (principally the U.S.): 85% Europe, Middle East, and Africa: 10% Asia Pacific: 5% 2024: Americas (principally the U.S.): 87% Europe, Middle East, and Africa: 9% Asia Pacific: 4% Revenue by Customer Vertical (as a percentage of total revenue) 2025: Broadband/Cable/Satellite: 51% Telecommunications: 18% Other: 31% 2024: Broadband/Cable/Satellite: 52% Telecommunications: 18% Other: 30% Revenue from Significant Customers 2025: Charter: $236 million, representing 19% of total revenue Comcast: $210 million, representing 17% of total revenue 2024: Charter: $240 million, representing 20% of total revenue Comcast: $225 million, representing 19% of total revenue Operational MetricsConsolidated Results Total Revenue: 2025: $1,223,289 thousand 2024: $1,197,248 thousand Increased by 2.2% in 2025 compared to 2024, mainly due to growth in SaaS and related solutions. Operating Income: 2025: $118,749 thousand 2024: $131,333 thousand Operating Margin Percentage: 2025: 9.7% 2024: 11.0% Decreased mainly due to higher acquisition-related costs and stock-based compensation. Net Income: 2025: $55,881 thousand 2024: $86,852 thousand Operating Expenses Total Operating Expenses: 2025: $1,104,540 thousand 2024: $1,065,915 thousand Increased by 3.6% in 2025, primarily due to $11.7 million higher stock-based compensation, $13.7 million in transaction-related costs for the Merger, approximately $10 million in DGIT earn-out compensation, and a $6.5 million increase in restructuring and reorganization charges, partially offset by cost efficiency actions. Cost of Revenue (exclusive of Depreciation): 2025: $623,569 thousand (51.0% of revenue) 2024: $614,463 thousand (51.3% of revenue) Increased reflecting higher SaaS and related solutions revenue. R&D Expense (exclusive of Depreciation): 2025: $161,570 thousand (13.2% of total revenue) 2024: $158,194 thousand (13.2% of total revenue) Increased due to R&D investments in faster-growing SaaS solutions. SG&A Expense (exclusive of Depreciation): 2025: $281,476 thousand (23.0% of total revenue) 2024: $258,313 thousand (21.6% of total revenue) Increased primarily due to $10.2 million higher stock-based compensation, $12.9 million in transaction-related costs for the Merger, and approximately $10 million in DGIT earn-out compensation, offset by decreased employee-related costs. Depreciation: 2025: $18,107 thousand 2024: $21,622 thousand Decreased primarily due to decreased capital expenditures over several years and the closure of the Crawfordville, Florida design and delivery center. Restructuring and Reorganization Charges: 2025: $19,818 thousand 2024: $13,323 thousand 2025 charges mainly relate to cost efficiency actions, workforce reduction (approximately 280 employees for $13.6 million), and the closure of the Crawfordville, Florida design and delivery center ($5.0 million). 2024 charges mainly relate to global workforce reduction (approximately 300 employees for $10.1 million) and real estate lease modifications. Interest Income: 2025: $5,204 thousand 2024: $8,685 thousand Decreased primarily due to lower cash balances swept into overnight money market accounts. Loss on Extinguishment of Debt: 2025: $453 thousand 2024: $0 thousand Incurred in March 2025 due to write-off of debt issuance costs related to the 2025 Credit Agreement replacing the 2021 Credit Agreement. Other, net: 2025: -$3,849 thousand (other expense) 2024: $2,723 thousand (other income) Change primarily due to foreign currency transaction losses from a weakening U.S. dollar. Income Tax Provision: 2025: -$34,816 thousand 2024: -$25,420 thousand Effective Income Tax Rate: 2025: 38% 2024: 23% 2025 increase primarily driven by tax impact of accelerated vesting of stock awards, disallowance of Merger transaction-related costs, and impact of DGIT earn-out compensation (for which a valuation allowance was established). Stock-Based Compensation: 2025: $45,264 thousand 2024: $33,564 thousand Increased in 2025 due to accelerated vesting of certain awards per the Merger Agreement terms. Acquisition-Related Costs: Amortization of acquired intangible assets: 2025: $13,805 thousand 2024: $14,014 thousand Earn-out compensation: 2025: $14,019 thousand 2024: $5,644 thousand Transaction-related costs: 2025: $13,717 thousand 2024: $381 thousand Cash FlowCash and Cash Equivalents As of December 31, 2025: $180,011 thousand As of December 31, 2024: $161,789 thousand Approximately 64% of cash and cash equivalents were in U.S. dollars and held in the U.S. as of December 31, 2025. Restricted cash (collateral for guarantees) was $1,785 thousand as of December 31, 2025. Settlement and merchant reserve assets (restricted) were $350,390 thousand as of December 31, 2025. Net Cash Provided by Operating Activities 2025: $155,939 thousand 2024: $135,717 thousand Quarterly Breakdown (Net Cash Provided by (Used in) Operating Activities): 2025: March 31: $11,469 thousand June 30: $37,326 thousand September 30: $47,943 thousand December 31: $59,201 thousand 2024: March 31: -$29,351 thousand June 30: $43,105 thousand September 30: $39,459 thousand December 31: $82,504 thousand Net Cash Used in Investing Activities 2025: -$14,136 thousand 2024: -$5,128 thousand Purchases of software, property, and equipment (Capital Expenditures): 2025: -$14,548 thousand 2024: -$22,421 thousand Net Cash Used in Financing Activities 2025: -$121,444 thousand 2024: -$79,923 thousand Payments of cash dividends: 2025: -$37,396 thousand 2024: -$26,608 thousand Repurchases of common stock: 2025: -$83,177 thousand (788,000 shares for $49.7 million under Stock Repurchase Program; 470,000 shares for $33.1 million for tax withholding) 2024: -$67,745 thousand (1,185,000 shares for $57.8 million under Stock Repurchase Program; 177,000 shares for $9.4 million for tax withholding) Payments on long-term debt: 2025: -$151,250 thousand (includes repayment of 2021 Term Loan and 2021 Revolver) 2024: -$22,500 thousand Net cash paid for income taxes: 2025: $52,212 thousand 2024: $39,944 thousand Unique MetricsDays Billings Outstanding (DBO) 2025: March 31: 66 days June 30: 66 days September 30: 64 days December 31: 63 days 2024: March 31: 67 days June 30: 66 days September 30: 64 days December 31: 64 days Unbilled Trade Accounts Receivable As of December 31, 2025: $76,738 thousand (current: $67,888 thousand; long-term: $8,900 thousand) As of December 31, 2024: $80,173 thousand (current: $80,173 thousand; long-term: $0 thousand) As of December 31, 2025, $16.8 million of the unbilled trade accounts receivable balance relates to a terminated implementation project in Latin America. Deferred Revenue As of December 31, 2025: $80,218 thousand (current: $50,738 thousand; non-current: $29,480 thousand) As of December 31, 2024: $80,893 thousand (current: $54,424 thousand; non-current: $26,469 thousand) Remaining Performance Obligations As of December 31, 2025, the aggregate amount of transaction price allocated to remaining performance obligations was approximately $2.2 billion. Over 65% of this amount is expected to be recognized by the end of 2028, with the remainder by the end of 2036. Goodwill and Long-Lived Assets Goodwill: As of December 31, 2025: $324,706 thousand As of December 31, 2024: $316,041 thousand Long-lived assets (excluding goodwill): As of December 31, 2025: Approximately $179 million As of December 31, 2024: Approximately $200.8 million Acquired Customer Contracts (net): As of December 31, 2025: $28,589 thousand As of December 31, 2024: $39,377 thousand Amortization for 2025: $11,082 thousand Amortization for 2024: $11,346 thousand Remaining weighted-average amortization period (as of December 31, 2025): Approximately 66 months. Software (net): As of December 31, 2025: $19,716 thousand As of December 31, 2024: $19,927 thousand Amortization for 2025: $15,795 thousand Amortization for 2024: $14,339 thousand Remaining weighted-average amortization period (as of December 31, 2025): Approximately 18 months. Customer Contract Costs (net): As of December 31, 2025: $71,613 thousand As of December 31, 2024: $60,809 thousand Amortization for 2025: $21,283 thousand Amortization for 2024: $21,262 thousand Debt 2025 Credit Agreement (Revolver): Outstanding balance as of December 31, 2025: $125,000 thousand Available balance as of December 31, 2025: $474,800 thousand 2023 Convertible Notes: Principal aggregate amount: $425,000 thousand Fair value as of December 31, 2025: $504,422 thousand Leases Operating Lease Liabilities (Total): As of December 31, 2025: $25,989 thousand (current: $4,837 thousand; non-current: $21,152 thousand) Remaining weighted-average lease term (operating leases): 67 months as of December 31, 2025. Settlement and Merchant Reserve Activity Settlement and merchant reserve assets: As of December 31, 2025: $350,390 thousand As of December 31, 2024: $343,235 thousand Settlement and merchant reserve liabilities: As of December 31, 2025: $348,257 thousand As of December 31, 2024: $341,924 thousand Outlook / GuidanceCSG 系统国际 anticipates its merger to close by the end of 2026, leading to the company becoming privately held and its stock delisted, with associated costs for advisory, legal, and retention bonuses expected. The company may incur a termination fee of $82.0 million under specific circumstances, while NEC Corporation might owe $135.0 million under other conditions. CSG 系统国际 believes its current cash, cash equivalents, the 2025 Revolver, and future operating cash flows will suffice for capital requirements for at least the next twelve months.