CSG Systems International, Inc. (CSGS) Q2 2025 Earnings Call Transcript
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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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.

Halper Sadeh Investigates CSG and Others for Shareholder Rights Violations
- CSG Transaction Investigation: Halper Sadeh LLC is investigating CSG Systems International, Inc.'s sale to NEC Corporation for $80.70 per share in cash, potentially indicating breaches of fiduciary duties that could affect shareholder rights.
- Janus Transaction Scrutiny: The firm is also examining Janus Henderson Group plc's sale to Trian Fund Management and General Catalyst for $49.00 per share in cash, which may impact shareholder interests and rights.
- Clearwater Transaction Focus: Halper Sadeh is looking into Clearwater Analytics Holdings, Inc.'s sale to Permira and Warburg Pincus for $24.55 per share in cash, raising concerns about potential violations of shareholder rights.
- Astria Transaction Analysis: The firm is reviewing Astria Therapeutics, Inc.'s sale to BioCryst Pharmaceuticals, Inc. for $8.55 in cash and 0.59 shares of BioCryst common stock per share, which could affect the rights of Astria shareholders.








