CSG Systems International Reports $299.5 Million Revenue in Q1 2025, Driven by SaaS Growth

CSG Systems International, Inc. reported a revenue of $299.5 million for the first quarter of 2025, reflecting a 1.5% increase from $295.1 million in the same period of 2024. The growth was primarily driven by the performance of the company's Software as a Service (SaaS) and related solutions, which generated $269.9 million, up from $261.7 million year-over-year. However, the company experienced a decline in operating income, which fell to $29.4 million, or 9.8% of total revenue, compared to $31.8 million and a 10.8% margin in the prior year. This decrease was attributed to increased restructuring and reorganization charges, which rose significantly to $7.4 million from $2.0 million in the previous year.

In terms of financial position, CSG's total assets decreased to $1.42 billion as of March 31, 2025, down from $1.50 billion at the end of 2024. The decline in assets was accompanied by a reduction in cash and cash equivalents, which fell to $136.0 million from $161.8 million. The company also reported a decrease in current liabilities, which dropped to $520.8 million from $615.2 million, largely due to a reduction in settlement and merchant reserve liabilities. CSG's long-term debt remained relatively stable, totaling $537.6 million, with a new $600 million revolving credit facility established in March 2025 to replace an earlier agreement.

Operationally, CSG's customer base remains concentrated, with its three largest clients—Charter, Comcast, and DISH Network—accounting for a significant portion of revenue. The company reported that Charter contributed $57.6 million, or 19% of total revenue, while Comcast accounted for $52.8 million, or 18%. The company continues to focus on expanding its market share and enhancing its service offerings, particularly in the SaaS sector, which is expected to drive future growth.

Strategically, CSG has made notable acquisitions, including iCheckGateway.com, LLC, which was acquired in June 2024 for $17.6 million, aimed at enhancing its payment processing capabilities. The company has also implemented restructuring measures, including workforce reductions and the planned closure of a design and delivery center in Florida, which is expected to incur additional costs. Looking ahead, CSG anticipates continued investment in research and development to support its SaaS solutions and plans to return over $100 million to shareholders through stock repurchases and dividends in 2025. The company remains optimistic about its growth trajectory despite macroeconomic uncertainties, including inflation and supply chain challenges.