Consensus Cloud Solutions (NASDAQ:CCSI) reported second-quarter 2026 results marked by accelerating corporate revenue growth, higher free cash flow and continued investment in healthcare-focused products and sales capabilities.
Consolidated revenue increased 4.1% year over year to $91.4 million, while adjusted EBITDA rose 0.5% to $48.3 million. The company said this was its third consecutive quarter of year-over-year growth in consolidated revenue, adjusted EBITDA, adjusted non-GAAP earnings per share and free cash flow.
Corporate Channel Reaches $60 Million Milestone
The corporate channel generated a record $60.5 million in quarterly revenue, up 9.3% from the prior-year period and 3% sequentially. CEO Scott Turicchi said growth was supported by strong usage, revenue retention, new customer additions and advanced-product contributions.
Chief Revenue Officer and Executive Vice President of Operations Johnny Hecker said secure cloud fax remains the company’s principal source of dollar growth, particularly as regulated industries such as healthcare and the public sector migrate away from legacy on-premise fax servers.
Corporate customers totaled about 67,000 at quarter-end, an increase of 9.4% year over year. Corporate average revenue per account rose about 1% to $305, while trailing-12-month net revenue retention increased to 103.1%, up from 102% in the first quarter.
“We’re winning new customers, our existing customers’ traffic is growing, and we’re capturing larger shares of wallet within those established accounts,” Hecker said.
The company’s SoHo channel, which it manages primarily for cash generation and contribution margin, produced $30.9 million of revenue, down 4.7% year over year. The decline improved from a 9.5% decrease in the first quarter. However, management said it expects SoHo revenue to decline between 5% and 7% year over year in each of the next two quarters and does not intend to pursue lower-margin volume simply to support subscriber metrics.
Healthcare Strategy Adds New Business Unit and Acquisition
Consensus formed a Healthcare Strategy and Solutions Group, led by newly appointed Chief Healthcare Solutions Officer Steve Tolle. The group will oversee the company’s healthcare product portfolio, go-to-market efforts and strategy for primarily non-fax solutions.
Turicchi said the unit will focus on converting unstructured healthcare documents, such as faxed referrals, authorizations, orders and record requests, into structured data that can be routed through clinical workflows. The initiative is intended to help existing eFax customers expand into higher-value services while drawing new clients seeking workflow intelligence rather than document transport alone.
The company also completed a tuck-in acquisition of doc.health, a workflow platform used for clinically adjacent functions including referral management, care coordination, patient follow-up and administrative tasks between visits. Consensus added 14 doc.health employees, along with its customer base, pipeline and technology.
Management said it expects to continue hiring in the healthcare unit and related functions through the remainder of 2026 and into 2027, with the group expected to make meaningful contributions to non-fax revenue beginning in 2028 and beyond.
During the question-and-answer session, Hecker said hospitals have become more deliberate in vendor selection and are placing greater emphasis on electronic health record integrations and return on investment. He said Consensus is emphasizing ROI in customer discussions and benefits from integrations with multiple EHR providers and partnerships in the sector.
VA Deployment and Public-Sector Opportunity
Consensus said the Department of Veterans Affairs remains a major public-sector customer. The VA issued a policy in late first quarter requiring ECFax, powered by eFax, as its secure fax solution. Hecker said the rollout was approximately 65% to 80% complete, though he noted that site count does not directly correlate with volume because usage varies by location.
The company expects VA revenue to exceed $9 million in 2026. Management said the policy is also generating opportunities with government contractors, suppliers and other agencies, though larger public-sector implementations may take time to develop and scale.
Turicchi said continuing usage growth among existing customers, public-sector expansion and recently secured customer wins could support corporate revenue growth moving into double digits, assuming no major change in economic conditions.
Cash Flow, Repurchases and Outlook
Free cash flow increased approximately 25% year over year to $25.5 million, helped by receivables management and lower interest expense. Consensus ended the quarter with about $99 million in cash, up $6.6 million from the first quarter, and maintained its expectation for roughly $106 million in full-year free cash flow.
The company repurchased about 300,000 shares for approximately $9.6 million during the quarter. Its board expanded the overall share-repurchase authorization to $200 million. Through the program, Consensus has spent about $82 million to buy 3 million shares, leaving approximately $118 million available.
Total debt was approximately $558 million at quarter-end, including $348 million of 6.5% high-yield notes, $146 million in term-loan borrowings and $64 million on its revolver. Net debt to EBITDA was 2.45 times.
- Full-year 2026 revenue guidance was reaffirmed at $350 million to $364 million.
- Full-year adjusted EBITDA guidance remained $182 million to $193 million.
- Full-year adjusted EPS guidance remained $5.55 to $5.95.
- Third-quarter revenue guidance is $89.2 million to $93.2 million.
- Third-quarter adjusted EBITDA guidance is $45 million to $48 million, with adjusted EPS expected between $1.34 and $1.44.
Management said it expects full-year revenue to fall between the midpoint and high end of its outlook, while adjusted EBITDA and adjusted EPS should track slightly above their respective midpoints. The doc.health acquisition is expected to contribute about $1 million of full-year revenue, reduce EBITDA by about $0.6 million and lower EPS by approximately $0.02.
About Consensus Cloud Solutions (NASDAQ:CCSI)
Consensus Cloud Solutions (NASDAQ: CCSI) is a provider of cloud consulting and managed services focused on helping organizations accelerate digital transformation. The company specializes in designing, deploying and supporting cloud architectures that leverage leading public and private cloud platforms, including infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS) environments. Its end-to-end approach encompasses strategy, implementation and ongoing optimization to align technology investments with business objectives.
The firm’s core offerings include cloud migration and deployment, application modernization, data analytics and cybersecurity solutions.
