Overview of Consensus’ Financial Performance

Consensus, a leading provider of cloud-based communication and digital signature solutions, has reported its financial results for the years ended December 31, 2025, 2024, and 2023. The company’s primary focus is enabling customers to securely access, exchange, and use information across organizational, regional, and national boundaries.

Consensus’ revenues decreased slightly by 0.7% in 2025 compared to 2024, from $350.4 million to $349.7 million. This was driven by a $14.3 million decline in revenues from the company’s SoHo (small office/home office) segment, partially offset by a $13.6 million increase in revenues from the Corporate segment due to organic growth in customer usage and new customer acquisitions. In 2024, revenues decreased by 3.3% compared to 2023, from $362.6 million to $350.4 million, again due to a decline in SoHo revenues that was only partially offset by growth in the Corporate segment.

Cost of revenues increased by 1.3% in 2025 and 2.0% in 2024, primarily due to higher data transmission costs and depreciation associated with platform development. Gross profit margins remained stable at 80% in both 2025 and 2024.

Trends in Revenue and Profit

Consensus’ revenues are generated from a mix of fixed customer subscription fees and variable usage-based fees. The company has seen a shift in its revenue mix, with the Corporate segment becoming a larger contributor. In 2025, Corporate revenues accounted for 63.7% of total revenues, up from 59.7% in 2023.

The decline in overall revenues in 2024 and 2025 was driven by a decrease in the SoHo segment, which saw revenues fall by 10.1% and 13.3% in those respective years. This was partially offset by growth in the Corporate segment, where revenues increased by 6.5% in 2024 and 6.5% in 2025.

Consensus’ profitability, as measured by operating income, has remained relatively stable, ranging from 41% to 43% of revenues over the three-year period. Net income as a percentage of revenues was 25% in both 2025 and 2024, up from 21% in 2023. The improvement in net income margin was driven by lower interest expense and a slightly lower effective tax rate.

Analysis of Strengths and Weaknesses

One of Consensus’ key strengths is its diversified revenue base, with both fixed subscription and variable usage-based components. This helps provide stability and predictability to the company’s financial performance. The growth in the Corporate segment, which tends to have higher average revenue per customer, is also a positive indicator.

However, the company’s reliance on the SoHo market represents a potential weakness, as this segment has seen declining revenues in recent years. Consensus will need to continue investing in product development and sales and marketing to maintain its competitiveness in this space.

Another strength is Consensus’ strong cash flow generation, with operating cash flow increasing from $114.1 million in 2023 to $136.1 million in 2025. This provides the company with ample liquidity to fund capital expenditures, debt repayments, and share repurchases.

On the other hand, Consensus’ debt load, with $562.2 million in outstanding principal as of the end of 2025, represents a potential vulnerability. While the company has been actively repurchasing debt, it will need to carefully manage its capital structure and interest expense going forward.

Outlook and Future Prospects

Consensus’ management expects the business to grow primarily through organic means, as well as opportunistic acquisitions that can enhance the company’s product offerings and interoperability capabilities.

The company’s recent entry into a new $225 million credit facility, consisting of a $75 million revolving credit facility and a $150 million delayed-draw term loan, provides additional financial flexibility to support its growth initiatives. However, the variable-rate nature of a portion of this debt exposes Consensus to interest rate risk, which will need to be monitored closely.

One potential area of concern is the company’s exposure to foreign currency fluctuations, particularly with respect to its European and Japanese operations. While Consensus has not historically hedged these exposures, it may need to consider implementing currency risk management strategies in the future as its international presence continues to grow.

Overall, Consensus appears to be in a solid financial position, with a diversified revenue base, strong cash flow generation, and a manageable debt load. However, the company will need to navigate the challenges posed by the declining SoHo segment and manage its exposure to interest rate and foreign currency risks to maintain its competitive edge and drive long-term shareholder value.