Consensus Cloud Solutions, Inc. 10-Q

Financial Statements (unaudited)

Item 1. Financial Statements. CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited, in thousands except share and per share data) June 30, 2026 December 31, 2025 ASSETS Cash and cash equivalents $ 98,901 $ 74,685 Accounts receivable, net of allowances of $ 2,924 and $ 3,105 , respectively 25,621 23,686 Prepaid expenses and other current assets 9,599 18,788 Total current assets 134,121 117,159 Property and equipment, net 123,844 116,869 Operating lease right-of-use assets 3,960 5,098 Intangibles, net 40,213 38,761 Goodwill 352,924 352,939 Deferred income taxes 20,758 21,666 Other assets 21,070 11,323 TOTAL ASSETS $ 696,890 $ 663,815 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses $ 37,558 $ 36,045 Income taxes payable, current 3,027 97 Deferred revenue, current 20,501 19,773 Operating lease liabilities, current 2,441 2,576 Current portion of long-term debt 7,046 7,047 Total current liabilities 70,573 65,538 Long-term debt, net of current portion 548,248 551,322 Deferred revenue, noncurrent 1,402 1,567 Operating lease liabilities, noncurrent 8,201 9,754 Liability for uncertain tax positions 15,279 14,484 Deferred income taxes 8,892 7,176 Other long-term liabilities 2,729 201 TOTAL LIABILITIES 655,324 650,042 Commitments and contingencies (Note 9) Common stock, $ 0.01 par value. Authorized 120,000,000 ; total issued is 21,345,097 and 21,057,258 shares and total outstanding is 18,344,922 and 18,958,448 shares as of June 30, 2026 and December 31, 2025, respectively 213 211 Treasury stock, at cost ( 3,000,175 and 2,098,810 shares as of June 30, 2026 and December 31, 2025, respectively) ( 82,308 ) ( 55,476 ) Additional paid-in capital 84,323 76,984 Retained earnings 52,908 849 Accumulated other comprehensive loss ( 13,570 ) ( 8,795 ) TOTAL STOCKHOLDERS’ EQUITY 41,566 13,773 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 696,890 $ 663,815 See Notes to Condensed Consolidated Financial Statements -3- CONSENSUS CLOUD SOLUTIONS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited, in thousands except share and per share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenues $ 91,361 $ 87,721 $ 179,828 $ 174,859 Cost of revenues (1) 18,291 17,624 35,191 35,694 Gross profit 73,070 70,097 144,637 139,165 Operating expenses: Sales and marketing (1