CSG Systems International (CSGS) Q4 2025 earnings summary

Executive summary

• Revenue grew 2.0% year-over-year in Q4 2025 and 2.2% for the full year, driven by SaaS and related solutions.

• GAAP operating income and EPS declined due to merger-related costs and higher stock-based compensation, while non-GAAP metrics improved.

• A merger with NEC Corporation was approved by shareholders and is expected to close by end of 2026.

Financial highlights

• Q4 2025 revenue: $323.1M (+2.0% YoY); full year 2025 revenue: $1.22B (+2.2% YoY).

• Q4 2025 GAAP operating income: $29.1M (9.0% margin); non-GAAP: $65.8M (22.3% margin).

• Full year 2025 GAAP operating income: $118.7M (9.7% margin); non-GAAP: $226.2M (20.3% margin).

• Q4 2025 GAAP EPS: $0.25 (-79.3% YoY); non-GAAP EPS: $1.53 (-7.3% YoY).

• Full year 2025 GAAP EPS: $1.98 (-34.7% YoY); non-GAAP EPS: $5.14 (+8.9% YoY).

• Q4 2025 cash flow from operations: $59.2M; full year: $155.9M.

• Q4 2025 non-GAAP adjusted free cash flow: $55.8M; full year: $146.4M.

Outlook and guidance

• Merger with NEC expected to close by end of 2026, pending regulatory approvals.