CSG Systems International, Inc. reported a revenue increase of 2.9% for the third quarter of 2025, reaching $303.6 million compared to $295.1 million in the same period last year. For the nine months ending September 30, 2025, total revenue was $900.2 million, up 2.2% from $880.6 million in 2024. The growth was primarily driven by the expansion of the company's Software as a Service (SaaS) and related solutions, which accounted for $274.9 million in the third quarter, a rise from $263.7 million in the prior year. However, operating income for the quarter decreased to $30.5 million, or 10.0% of revenue, down from $31.8 million and 10.8% in the previous year, attributed to higher acquisition-related costs and restructuring charges.
In terms of profitability, net income for the third quarter was $20.5 million, compared to $19.1 million in the same quarter of 2024, resulting in diluted earnings per share of $0.73, up from $0.67. The company’s total operating expenses increased by 3.7% to $273.2 million, influenced by acquisition-related costs and restructuring efforts. CSG's cash and cash equivalents stood at $158.4 million as of September 30, 2025, a slight decrease from $161.8 million at the end of 2024.
Strategically, CSG has been active in acquisitions, including the purchase of iCheckGateway.com, LLC in June 2024, aimed at enhancing its payment processing capabilities. The company has also been undergoing restructuring, reducing its workforce by approximately 270 employees to optimize operations. This restructuring has incurred charges of $17.5 million for the nine months ended September 30, 2025, compared to $12.0 million in the same period of 2024.
Operationally, CSG's customer base remains concentrated, with its two largest clients, Charter Communications and Comcast, contributing significantly to revenue. As of September 30, 2025, these customers accounted for 19% and 18% of total revenue, respectively. The company has also seen an increase in unbilled trade accounts receivable, which rose to $92.1 million, reflecting ongoing implementation projects. Looking ahead, CSG has entered into a merger agreement with NEC Corporation, which is expected to close in 2026, subject to regulatory approvals. This merger is anticipated to enhance CSG's market position and operational capabilities.
About CSG SYSTEMS INTERNATIONAL INC
CSG Systems International, Inc. is a global SaaS platform provider specializing in customer engagement, revenue management, digital monetization, and payments solutions across industries like telecom, media, retail, healthcare, and financial services. Its cloud-based systems enable companies to deliver personalized, secure experiences, optimize transactions, and monetize services efficiently. With a focus on innovation, operational excellence, and strategic growth, CSG supports major brands worldwide in simplifying complex customer interactions and driving digital transformation.
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