Slides
Page 1
>> consensus Second Quarter 2026 Preliminary and Unaudited Results August 6 , 2026
Page 2
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Forward-Looking Statements and Risk Factors 2 Industry, Market and Other Data Certain information contained in this presentation concerning our industry and the markets in which we operate, including our general expectations and market position, market opportunity and market size, is based on reports from various sources. Because this information involves a number of assumptions and limitations, you are cautioned not to give undue weight to such information. We have not independently verified market data and industry forecasts provided by any of these or any other third-party sources referred to in this presentation. In addition, projections, assumptions and estimates of our future performance and the future performance of the industry in which we operate are necessarily subject to a high degree of uncertainty and risk due to a variety of factors. These and other factors could cause results to differ materially from those expressed in the estimates made by third parties and by us. Non-GAAP Financial information Included in this presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles ("GAAP") designed to supplement, and not substitute, Consensus’s financial information presented in accordance with GAAP. The non-GAAP measures as defined by Consensus may not be comparable to similar non-GAAP measures presented by other companies. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that Consensus’ future results or leverage will be unaffected by other unusual or non-recurring items. Please see the Current Report on Form 8-K filed by Consensus on August 6, 2026 for how we define these non-GAAP measures, a discussion of why we believe they are useful to investors, and certain limitations and reconciliations thereof to the most directly comparable GAAP measures. Third Party Information All third-party trademarks, including names, logos and brands, referenced by the Company in this presentation are property of their respective owners. All references to third-party trademarks are for identification purposes only and shall be considered nominative fair use under trademark law. Risk Factors In addition to the information set forth above, you should carefully consider the factors discussed in Part 1, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 as well as subsequent filings. Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, particularly those regarding our 2026 full year financial guidance. Such forward-looking statements are subject to numerous assumptions, risks and uncertainties that could cause actual results to differ materially from those described in those statements. These forward-looking statements are based on management’s expectations or beliefs as of August 6, 2026 as well as those set forth in our Annual Report on Form 10-K filed by us on February 13, 2026 with the Securities and Exchange Commission (“SEC”) and the other reports we file from time to time with the SEC. We undertake no obligation to revise or publicly release any updates to such statements based on future information or actual results. Such forward-looking statements address the following subjects, among others, relating to our ability to: • Sustain growth or profitability, particularly in light of an uncertain U.S. or worldwide economy and the related impact on customer acquisition and retention rates, customer usage levels and credit and debit card payment declines; • Maintain and increase our customer base and average revenue per account; • Generate sufficient cash flow to make interest and debt payments and reinvest in our business, and pursue desired activities and businesses plans while satisfying restrictive covenants relating to debt obligations; • Acquire businesses on acceptable terms and successfully integrate and realize anticipated synergies from such acquisitions; • Continue to expand our business and operations internationally in the wake of numerous risks, including adverse currency fluctuations, difficulty in staffing and managing international operations, higher operating costs as a percentage of revenues, the implementation of adverse regulations, and general economic and political conditions, including political tensions and war; • Maintain our financial position, operating results and cash flows in the event that we incur new or unanticipated costs or tax liabilities, including those relating to federal and state income tax and indirect taxes, such as sales, value-added and telecommunication taxes; • Accurately estimate the assumptions underlying our effective worldwide tax rate; • Manage certain risks inherent to our business, such as costs associated with fraudulent activity, system failure or network security breach; effectively maintain and manage our billing systems; allocate time and resources required to manage our legal proceedings; or adhere to our internal controls and procedures; • Compete with other similar providers with regard to price, service and functionality; • Cost-effectively procure, retain and deploy large quantities of fax numbers in desired locations in the United States and abroad; • Achieve business and financial objectives in light of burdensome domestic and international telecommunications, Internet or other regulations including data privacy, security and retention; • Successfully manage our growth, including but not limited to our operational and personnel-related resources, and integration of newly acquired businesses; • Successfully adapt to technological changes and diversify services and related revenues at acceptable levels of financial return; • Successfully develop and protect our intellectual property, both domestically and internationally, including our brands, patents, trademarks and domain names, and avoid infringing upon the proprietary rights of others; and • Recruit and retain key personnel.
Page 3
Business Overview
Page 4
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Operations and GTM Update ● Year-over-year Corporate growth accelerated to 9.3% (up from 8.2% in Q1) delivering record $60.5M in quarterly revenue ● Net Revenue Retention (NRR) climbs >1% to 103.1% ● eCommerce momentum is driving customer base growth to ~67,000 Corporate customers (+9.4% YoY) 4 ● Executed strategic asset acquisition that brought technology and talent to CCSI accelerating product roadmap ● Launched dedicated group of SMEs to build focused healthcare solutions ● VA’s ECFax mandate acts as catalyst; confident in >$9M 2026 contribution Healthcare & Public Sector ● Consolidated revenue grew 4.1% YoY to $91.4M ● New eFax platform was launched to general availability ● Demand for secure cloud fax remains robust and strong Focused Execution ● Maintained strict discipline as a “Strategic Cash Engine” ● Generated $30.9M in quarterly revenue ● Year-over-year revenue decline narrowed to 4.7%, slowest since planned decline of SOHO in late 2023 SOHO Corporate Growth
Page 5
Second Quarter 2026 Results
Page 6
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Corporate Revenue Growth Accelerates Corporate Revenue ($ in M) *See metrics in appendix (1) Represents a monthly ARPA for the quarter or year-to-date period, calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter’s beginning and endi ng customer base and dividing that amount by 3 months. Monthly ARPA on a year-to-date basis is calculated by dividing revenue for the year-to-date period by the average customer base for the applicable period and dividing that amount by the respective period. We believe ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus’ customer base. As ARPA varies based on fixed subscription fee and variable usage components, we believe it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus’ customers. 6 Quarter Ended Q2’25 Q2’26 YoY Customers 61 67 9.4% ARPA(1) $303 $305 0.7% Paid Adds (000’s) 8 9 22.4% Net Revenue Retention 102.0% 103.1% +110 bps ~60% Corporate Revenue on Track to Double-Digit Growth Amid Solid Revenue Retention Rate 9.3% YoY Growth
Page 7
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com SoHo Update 7 SoHo Channel continues to be managed as a "Strategic Cash Engine" funding our high growth corporate business Strategic Cash Engine Q2 2026 SoHo Revenues $30.9M, -4.7% YoY, improved vs Q1 2026 -9.5% Resilient Revenue Performance *See metrics in appendix
Page 8
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Q2’26 Results (in $M, except Adjusted EPS) (1) Q2’26: ~19.2M shares and 20.3% tax rate Grew All Four Key Metrics Year Over Year 8 ● Consolidated YoY revenue growth of 4.1% on accelerating Corporate revenue growth and slower decline of SoHo ● Adjusted EBITDA YoY +$0.2M with a 52.9% Adjusted EBITDA margin firmly in 50-55% range ● Adjusted EPS +$0.03 primarily driven by favorable YoY net interest expense ● Free cash flow Q2’26 $25.5M, +$5.1M or 25.1% vs Q2’25 54.2% Margin 54.1% Margin Revenues Adjusted EBITDA Free Cash Flow Adjusted EPS (1) 4.1% 0.5% 2.1% 25.1%
Page 9
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Capital Management ● FY 2026 on target to maintain 2025 FCF level ● Capex: $7.8M ● Q2 2026 Balance: $98.9M, +$6.6M vs Q1 2026 ● Must maintain ~$77M cash to fully lien bank debt ● Cash sufficient to fund operations and capital allocation priorities Cash and Cash Equivalents Debt and Equity Repurchases ● Q2 2026 Debt Balance: ~$558M ○ 6.5% Notes: $348M ■ callable at 101.625 / Par in Oct'26 / Oct'27) ○ DDTL + Revolver: ~$210M (5.4%) ● Total and Net Debt to EBITDA Ratios: 2.97x and 2.45x Capital Structure Free Cash Flow ● Q2 2026: ~300K shares repurchased for ~$10M ● Q2 2026 ROI: ~17% (LTM FCF) ● Program to date repurchases: 3.0M shares / $82M ● Board approved stock buyback plan to purchase up to $200M (from $100M) of common stock ($118M remains)
Page 10
2026 Financial Guidance
Page 11
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com .. FY2026 Guidance Reaffirmed / Q3 2026 Financial Guidance Provided (1)FY2026 and Q3 Assumes ~19.2M shares and 19.7% to 21.7% ETR 11 (in millions, except EPS) 2026 Full Year Guidance Guidance Low Midpoint High Revenue $350.0 $357.0 $364.0 Adjusted EBITDA $182.0 $187.5 $193.0 Adjusted EPS(1) $5.55 $5.75 $5.95 (in millions, except EPS) Q3 2026 Guidance Guidance Low Midpoint High Revenue $89.2 $91.2 $93.2 Adjusted EBITDA $45.0 $46.5 $48.0 Adjusted EPS(1) $1.34 $1.39 $1.44
Page 12
Appendix
Page 13
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Consolidated Metrics (1) Consensus customers are defined as paying Corporate and SoHo customer accounts. The prior periods have been revised for consistency with the current period, and all metrics calculated based on the number of customer accounts (including ARPA and Monthly Churn %) are calculated based on the revised customer numbers. (2) Represents a monthly ARPA for the quarter or year-to-date period, calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter’s beginning and endi ng customer base and dividing that amount by 3 months. Monthly ARPA on a year-to-date basis is calculated by dividing revenue for the year-to-date period by the average customer base for the applicable period and dividing that amount by the respective period. We believe ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus’ customer base. As ARPA varies based on fixed subscription fee and variable usage components, we believe it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus’ customers. (3) Paid Adds represents paying new Consensus customer accounts added during the periods presented. (4) Monthly churn represents paid monthly SoHo and Corporate customer accounts that were cancelled during each month of the quarter or year-to-date period divided by the average number of customers during each month of the same quarter or year-to-date period (including the paid adds). The period measured is the quarter or year-to-date and expressed as a monthly churn rate over the respective period. 13 Consensus Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type Fixed Revenues 59,094 58,620 58,193 57,661 57,487 59,053 Variable Revenues 28,044 29,101 29,573 29,409 30,980 32,308 Total Revenues 87,138 87,721 87,766 87,071 88,467 91,362 Consensus Cloud Services Customers 762 743 724 701 710 704 Paid Customer Adds (2) 63 70 58 53 94 96 Average Monthly Revenue/Customer (3) $37.68 $38.84 $39.87 $40.72 $41.80 $42.96 Cancel Rate (4) 3.44% 3.78% 3.70% 3.49% 3.85% 4.55% Revenue % by Type Fixed Revenues 67.8% 66.8% 66.3% 66.2% 65.0% 64.6% Variable Revenues 32.2% 33.2% 33.7% 33.8% 35.0% 35.4% |------(in '000s)----- 2025 2026
Page 14
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Corporate Metrics (1) Consensus customers are defined as paying Corporate and SoHo customer accounts. In the first quarter of 2026, we removed a nominal number of duplicate Corporate customer accounts from the base. The prior periods have been revised for consistency with the current period, and all metrics calculated based on the number of customer accounts (including ARPA and Monthly Churn %) are calculated based on the revised customer numbers. (2) Represents a monthly ARPA for the quarter or year-to-date period, calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter’s beginning and endi ng customer base and dividing that amount by 3 months. Monthly ARPA on a year-to-date basis is calculated by dividing revenue for the year-to-date period by the average customer base for the applicable period and dividing that amount by the respective period. We believe ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus’ customer base. As ARPA varies based on fixed subscription fee and variable usage components, we believe it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus’ customers. (3) Paid Adds represents paying new Consensus customer accounts added during the periods presented. (4) Monthly churn represents paid monthly SoHo and Corporate customer accounts that were cancelled during each month of the quarter or year-to-date period divided by the average number of customers during each month of the same quarter or year-to-date period (including the paid adds). The period measured is the quarter or year-to-date and expressed as a monthly churn rate over the respective period. 14 Corporate Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type Fixed Revenues 29,029 29,197 29,383 29,882 30,146 30,625 Variable Revenues 25,262 26,103 26,916 26,910 28,576 29,831 Total Corporate Revenues 54,290 55,301 56,299 56,792 58,721 60,457 Consensus Cloud Services Customers 60 61 64 64 65 67 Paid Customer Adds (2) 5 8 8 7 7 9 Average Monthly Revenue/Customer (3) $304.50 $302.84 $300.16 $297.60 $305.59 $304.86 Cancel Rate (4) 2.32% 2.91% 2.73% 3.33% 3.00% 3.16% Revenue % by Type Fixed Revenues 53.5% 52.8% 52.2% 52.6% 51.3% 50.7% Variable Revenues 46.5% 47.2% 47.8% 47.4% 48.7% 49.3% |-----(in '000s)-----| 2025 2026
Page 15
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com SoHo Metrics (1) Consensus customers are defined as paying Corporate and SoHo customer accounts. The prior periods have been revised for consistency with the current period, and all metrics calculated based on the number of customer accounts (including ARPA and Monthly Churn %) are calculated based on the revised customer numbers. (2) Represents a monthly ARPA for the quarter or year-to-date period, calculated as follows: Monthly ARPA on a quarterly basis is calculated using our standard convention of dividing revenue for the quarter by the average of the quarter’s beginning and endi ng customer base and dividing that amount by 3 months. Monthly ARPA on a year-to-date basis is calculated by dividing revenue for the year-to-date period by the average customer base for the applicable period and dividing that amount by the respective period. We believe ARPA provides investors an understanding of the average monthly revenues we recognize per account associated within Consensus’ customer base. As ARPA varies based on fixed subscription fee and variable usage components, we believe it can serve as a measure by which investors can evaluate trends in the types of services, levels of services and the usage levels of those services across Consensus’ customers. (3) Paid Adds represents paying new Consensus customer accounts added during the periods presented. (4) Monthly churn represents paid monthly SoHo and Corporate customer accounts that were cancelled during each month of the quarter or year-to-date period divided by the average number of customers during each month of the same quarter or year-to-date period (including the paid adds). The period measured is the quarter or year-to-date and expressed as a monthly churn rate over the respective period. 15 SOHO Metrics Q1 Q2 Q3 Q4 Q1 Q2 Revenue by Type Fixed Revenues 30,066 29,422 28,810 27,779 27,341 28,428 Variable Revenues 2,783 2,998 2,657 2,499 2,404 2,477 Total SoHo Revenues 32,848 32,420 31,467 30,279 29,745 30,905 Consensus Cloud Services Customers 702 682 661 638 645 637 Paid Customer Adds (2) 58 62 50 47 86 87 Average Monthly Revenue/Customer (3) $15.39 $15.62 $15.56 $15.55 $15.46 $16.06 Cancel Rate (4) 3.52% 3.84% 3.71% 3.50% 3.92% 4.69% Revenue % by Type Fixed Revenues 91.5% 90.8% 91.6% 91.7% 91.9% 92.0% Variable Revenues 8.5% 9.2% 8.4% 8.3% 8.1% 8.0% 2025 2026 |-----(in '000s)-----|
Page 16
©2026 Consensus Cloud Solutions Inc. All rights reserved. www.consensus.com Net Income to Adjusted EBITDA Reconciliation *The prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications ha d no effect on Adjusted EBITDA. Adjusted EBITDA as calculated above represents earnings before interest expense, interest income, other income (expense), net , income tax expense, depreciation and amortization and the items used to reconcile GAAP to Adjusted non-GAAP financial measures, including (1) share-based compensation; and (2) other benefits or costs related to non-routine and other matters. The Company discloses Adjusted EBITDA as a supplemental non-GAAP financial performance measure, as it believes it is a useful metric by which to compare the performance of its business from period to period. The Company also understands that measures similar to Adjusted EBITDA are broadly used by analysts, rating agencies and investors in assessing our performance. Accordingly, the Company believes that the presentation of Adjusted EBITDA provides useful information to inve stors. Adjusted EBITDA is not calculated in accordance with, or presented as an alternative to, net income, and may be different from s imilarly or identically named non-GAAP measures used by other companies. In addition, Adjusted EBITDA is not based on any compre hensive set of accounting rules or principles. This Adjusted non-GAAP measure has limitations in that it does not reflect all of the amounts associated with the Company’s results of operations determined in accordance with GAAP. 16