Revenue growth remains modestly stable at 4.8% year-over-year in 2026Q1, though gross margins are structurally capped near 48.4% due to the labor-intensive nature of the managed services model.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 1.24B | 1.22B | 1.2B | 1.17B | 1.09B | 1.05B | 990.53M | 996.81M | 875.06M | 789.58M | 760.96M | 752.52M | 751.29M | 747.47M | 756.87M | 734.73M | 549.38M | 500.72M | 472.06M | 419.26M | 383.11M | 377.32M | 529.75M | 439.66M | 610.93M | 476.91M | 398.89M | 322.2M | 236.6M | 171.8M | 132.3M |
| Revenue Growth % | 3% | 2.18% | 2.39% | 7.3% | 4.13% | 5.65% | -0.63% | 13.91% | 10.83% | 3.76% | 1.12% | 0.16% | 0.51% | -1.24% | 3.01% | 33.74% | 9.72% | 6.07% | 12.59% | 9.44% | 1.53% | -28.77% | 20.49% | -28.03% | 28.1% | 19.56% | 23.8% | 36.18% | 37.72% | 29.86% | - |
| Cost of Goods Sold | 639.38M | 641.68M | 614.46M | 615.04M | 565.17M | 543.21M | 535.6M | 525.12M | 449.82M | 394.81M | 375.15M | 379.74M | 389.34M | 377.17M | 383.82M | 365.65M | 289.8M | 275.68M | 245.35M | 217.81M | 194.51M | 190.06M | 277.18M | 277.86M | 262.99M | 176.01M | 144.87M | 122M | 99.9M | 73.9M | 58.5M |
| COGS % of Revenue | - | 52.45% | 51.32% | 52.6% | 51.86% | 51.91% | 54.07% | 52.68% | 51.4% | 50% | 49.3% | 50.46% | 51.82% | 50.46% | 50.71% | 49.77% | 52.75% | 55.06% | 51.97% | 51.95% | 50.77% | 50.37% | 52.32% | 63.2% | 43.05% | 36.91% | 36.32% | 37.86% | 42.22% | 43.02% | 44.22% |
| Gross Profit | 598.18M | 581.61M | 582.78M | 554.22M | 524.58M | 503.28M | 454.94M | 471.69M | 425.24M | 394.77M | 385.81M | 372.78M | 361.94M | 370.3M | 373.05M | 369.08M | 259.57M | 225.04M | 226.71M | 201.45M | 188.59M | 187.25M | 252.57M | 161.81M | 347.94M | 300.89M | 254.03M | 200.2M | 136.7M | 97.9M | 73.8M |
| Gross Margin % | 48.34% | 47.55% | 48.68% | 47.4% | 48.14% | 48.09% | 45.93% | 47.32% | 48.6% | 50% | 50.7% | 49.54% | 48.18% | 49.54% | 49.29% | 50.23% | 47.25% | 44.94% | 48.03% | 48.05% | 49.23% | 49.63% | 47.68% | 36.8% | 56.95% | 63.09% | 63.68% | 62.14% | 57.78% | 56.98% | 55.78% |
| Gross Profit Growth % | - | -0.2% | 5.15% | 5.65% | 4.23% | 10.63% | -3.55% | 10.92% | 7.72% | 2.32% | 3.5% | 2.99% | -2.26% | -0.74% | 1.08% | 42.19% | 15.35% | -0.74% | 12.54% | 6.82% | 0.72% | -25.86% | 56.1% | -53.5% | 15.64% | 18.45% | 26.89% | 46.45% | 39.63% | 32.66% | - |
| Operating Expenses | 425.93M | 281.48M | 451.45M | 430.34M | 445.84M | 379.09M | 349.38M | 345.58M | 311.65M | 280.29M | 252.77M | 256.56M | 272.28M | 281.19M | 274.01M | 264.92M | 183.06M | 149.69M | 137.33M | 116.98M | 99.76M | 96.29M | 164.53M | 189.52M | 204.1M | 118.92M | 108.7M | 99.9M | 83.4M | 204.4M | 73M |
| OpEx % of Revenue | - | 23.01% | 37.71% | 36.8% | 40.91% | 36.23% | 35.27% | 34.67% | 35.61% | 35.5% | 33.22% | 34.09% | 36.24% | 37.62% | 36.2% | 36.06% | 33.32% | 29.9% | 29.09% | 27.9% | 26.04% | 25.52% | 31.06% | 43.11% | 33.41% | 24.94% | 27.25% | 31.01% | 35.25% | 118.98% | 55.18% |
| Selling, General & Admin | 286.94M | 281.48M | 258.31M | 247.61M | 238.02M | 214.69M | 198.28M | 191.33M | 169.31M | 153.69M | 140.47M | 139.84M | 153.49M | 152.55M | 138.78M | 128.35M | 82.59M | 59.51M | 53.86M | 45.74M | 43.13M | 52.49M | 90.42M | 109.21M | 111.59M | 51.53M | 46.97M | 40.4M | 35M | 151.9M | 25.5M |
| SG&A % of Revenue | - | 23.01% | 21.58% | 21.18% | 21.84% | 20.52% | 20.02% | 19.19% | 19.35% | 19.47% | 18.46% | 18.58% | 20.43% | 20.41% | 18.34% | 17.47% | 15.03% | 11.88% | 11.41% | 10.91% | 11.26% | 13.91% | 17.07% | 24.84% | 18.27% | 10.8% | 11.77% | 12.54% | 14.79% | 88.42% | 19.27% |
| Research & Development | 163.67M | 0 | 158.19M | 143.2M | 137.91M | 134.69M | 122.85M | 127.99M | 124.03M | 113.22M | 98.68M | 101.95M | 104.71M | 110.01M | 112.94M | 111.14M | 78.05M | 70.11M | 67.28M | 58.34M | 46.19M | 33.93M | 59.02M | 62.92M | 73.67M | 52.22M | 42.34M | 34.3M | 27.5M | 22.6M | 20.2M |
| R&D % of Revenue | - | - | 13.21% | 12.25% | 12.66% | 12.87% | 12.4% | 12.84% | 14.17% | 14.34% | 12.97% | 13.55% | 13.94% | 14.72% | 14.92% | 15.13% | 14.21% | 14% | 14.25% | 13.92% | 12.06% | 8.99% | 11.14% | 14.31% | 12.06% | 10.95% | 10.61% | 10.65% | 11.62% | 13.15% | 15.27% |
| Other Operating Expenses | 1000K | 0 | 34.95M | 39.52M | 69.91M | 29.7M | 28.25M | 26.26M | 550K | -1.64M | -5.31M | -624K | 1.27M | 1.1M | 732K | 25.43M | 22.43M | 20.07M | 16.19M | 12.9M | 10.44M | 9.86M | 15.09M | 17.38M | 18.84M | 15.17M | 19.39M | 25.2M | 20.9M | 29.9M | 27.3M |
| Operating Income | 172.25M | 300.14M | 131.33M | 123.88M | 78.75M | 124.19M | 105.56M | 126.11M | 104.93M | 105.69M | 132.63M | 113.14M | 75.69M | 76.7M | 96.57M | 96.28M | 74.34M | 74.75M | 89.3M | 83.84M | 86.47M | 76.43M | 85.35M | -39.56M | 101.16M | 181.97M | 145.33M | 100.3M | 53.3M | -106.5M | 800K |
| Operating Margin % | 13.92% | 24.54% | 10.97% | 10.59% | 7.23% | 11.87% | 10.66% | 12.65% | 11.99% | 13.38% | 17.43% | 15.03% | 10.07% | 10.26% | 12.76% | 13.1% | 13.53% | 14.93% | 18.92% | 20% | 22.57% | 20.26% | 16.11% | -9% | 16.56% | 38.16% | 36.43% | 31.13% | 22.53% | -61.99% | 0.6% |
| Operating Income Growth % | - | 128.53% | 6.02% | 57.31% | -36.59% | 17.65% | -16.3% | 20.18% | -0.71% | -20.32% | 17.23% | 49.48% | -1.32% | -20.57% | 0.3% | 29.52% | -0.54% | -16.3% | 6.51% | -3.05% | 13.13% | -10.44% | 315.74% | -139.11% | -44.41% | 25.21% | 44.9% | 88.18% | 150.05% | -13412.5% | - |
| EBITDA | 224.84M | 371.72M | 203.84M | 195.13M | 155.7M | 196.99M | 172.43M | 193.23M | 165.83M | 148.57M | 173.87M | 157.2M | 123.33M | 133.16M | 163.04M | 163.89M | 116.21M | 109.14M | 122.33M | 115.71M | 114.02M | 115.25M | 127.75M | 2.12M | 140.19M | 206.52M | 164.72M | 125.5M | 74.2M | -76.6M | 28.1M |
| EBITDA Margin % | 18.17% | 30.39% | 17.03% | 16.69% | 14.29% | 18.82% | 17.41% | 19.38% | 18.95% | 18.82% | 22.85% | 20.89% | 16.42% | 17.81% | 21.54% | 22.31% | 21.15% | 21.8% | 25.91% | 27.6% | 29.76% | 30.55% | 24.12% | 0.48% | 22.95% | 43.3% | 41.29% | 38.95% | 31.36% | -44.59% | 21.24% |
| EBITDA Growth % | 10.52% | 82.36% | 4.46% | 25.33% | -20.96% | 14.24% | -10.77% | 16.52% | 11.62% | -14.55% | 10.61% | 27.46% | -7.38% | -18.33% | -0.52% | 41.03% | 6.48% | -10.78% | 5.72% | 1.48% | -1.07% | -9.78% | 5925.85% | -98.49% | -32.12% | 25.38% | 31.25% | 69.14% | 196.87% | -372.6% | - |
| D&A (Non-Cash Add-back) | 52.59M | 71.59M | 72.51M | 71.25M | 76.95M | 72.8M | 66.87M | 67.12M | 60.9M | 42.88M | 41.24M | 44.06M | 47.64M | 56.45M | 66.46M | 67.61M | 41.87M | 34.39M | 33.03M | 31.87M | 27.55M | 38.82M | 42.4M | 41.68M | 39.03M | 24.55M | 19.39M | 25.2M | 20.9M | 29.9M | 27.3M |
| EBIT | 90.96M | 119.65M | 142.74M | 123.53M | 77.21M | 118.54M | 103.84M | 126.29M | 107.32M | 107.29M | 121.13M | 113.55M | 77.76M | 78.49M | 98.16M | 98.2M | 47.54M | 69.03M | 87.9M | 84.47M | 88.84M | 90.97M | 97.77M | -2.26M | 143.84M | 181.97M | 145.28M | 100.26M | 53.34M | -106.5M | 800K |
| Net Interest Income | -18.46M | -23.75M | -21.78M | -26.84M | -15.55M | -17.23M | -17.24M | -18.78M | -17.68M | -16.34M | -18.67M | -16.18M | -15.44M | -16.28M | -20.08M | -21.47M | -13.12M | -4.47M | -2.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 4.52M | 5.2M | 8.69M | 4.34M | 877K | 365K | 1.24M | 1.78M | 2.65M | 3.25M | 2.46M | 1.04M | 798K | 689K | 855K | 764K | 754K | 1.19M | 5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 14.9M | 28.95M | 30.47M | 31.18M | 16.43M | 17.59M | 18.48M | 20.57M | 20.33M | 19.58M | 21.13M | 17.21M | 16.23M | 16.97M | 20.94M | 17.03M | 6.98M | 5.66M | 7.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -70.78M | -209.44M | -19.06M | -31.53M | -17.97M | -23.24M | -20.2M | -20.39M | -17.95M | -17.98M | -32.63M | -16.8M | -14.17M | -15.19M | -19.35M | -20.31M | -40.67M | -11.38M | -8.54M | 9.62M | 14.5M | -3.47M | -5.03M | 21.69M | -13.61M | 1.47M | -79K | -4.26M | -7.34M | 1.6M | -800K |
| Pretax Income | 101.47M | 90.7M | 112.27M | 92.35M | 60.78M | 100.95M | 85.36M | 105.72M | 86.99M | 87.71M | 100M | 96.34M | 61.52M | 61.52M | 77.22M | 75.97M | 33.67M | 63.37M | 93.89M | 93.46M | 100.97M | 72.96M | 69.21M | -48.46M | 87.54M | 183.44M | 145.2M | 96M | 46M | -102.9M | -3.8M |
| Pretax Margin % | 8.2% | 7.41% | 9.38% | 7.9% | 5.58% | 9.65% | 8.62% | 10.61% | 9.94% | 11.11% | 13.14% | 12.8% | 8.19% | 8.23% | 10.2% | 10.34% | 6.13% | 12.66% | 19.89% | 22.29% | 26.36% | 19.34% | 13.06% | -11.02% | 14.33% | 38.46% | 36.4% | 29.8% | 19.44% | -59.9% | -2.87% |
| Income Tax | 21.09M | 34.82M | 25.42M | 26.11M | 16.72M | 28.61M | 26.64M | 22.95M | 20.86M | 26.35M | 37.12M | 33.77M | 24.56M | 10.17M | 28.34M | 33.69M | 11.24M | 21.51M | 32.44M | 33.3M | 38.41M | 26.22M | 22.02M | -22.18M | 42.93M | 69.52M | 54.73M | 36.1M | -39.6M | 102.9M | 3.8M |
| Effective Tax Rate % | 20.78% | 38.39% | 22.64% | 28.27% | 27.51% | 28.35% | 31.22% | 21.71% | 23.98% | 30.04% | 37.12% | 35.06% | 39.93% | 16.53% | 36.7% | 44.35% | 33.39% | 33.94% | 34.55% | 35.63% | 38.04% | 35.94% | 31.82% | 45.78% | 49.03% | 37.9% | 37.69% | 37.6% | -86.09% | -100% | -100% |
| Net Income | 63.64M | 55.88M | 86.85M | 66.25M | 44.06M | 72.33M | 58.71M | 82.77M | 66.13M | 61.36M | 62.88M | 62.57M | 36.96M | 51.35M | 48.88M | 42.28M | 22.43M | 43.33M | 61.77M | 60.77M | 59.77M | 53.23M | 47.18M | -26.28M | 44.62M | 113.92M | 90.47M | 59.9M | 85.6M | -102.9M | -3.8M |
| Net Margin % | 5.14% | 4.57% | 7.25% | 5.67% | 4.04% | 6.91% | 5.93% | 8.3% | 7.56% | 7.77% | 8.26% | 8.31% | 4.92% | 6.87% | 6.46% | 5.75% | 4.08% | 8.65% | 13.09% | 14.49% | 15.6% | 14.11% | 8.91% | -5.98% | 7.3% | 23.89% | 22.68% | 18.59% | 36.18% | -59.9% | -2.87% |
| Net Income Growth % | -23.79% | -35.66% | 31.11% | 50.35% | -39.09% | 23.2% | -29.07% | 25.16% | 7.77% | -2.41% | 0.5% | 69.29% | -28.03% | 5.06% | 15.6% | 88.51% | -48.24% | -29.85% | 1.65% | 1.67% | 12.29% | 12.81% | 279.56% | -158.89% | -60.83% | 25.92% | 51.03% | -30.02% | 183.19% | -2607.89% | - |
| Net Income (Continuing) | 63.64M | 55.88M | 86.85M | 66.25M | 44.06M | 72.33M | 58.71M | 82.77M | 66.13M | 61.36M | 62.88M | 62.57M | 35.71M | 51.35M | 48.88M | 42.28M | 22.43M | 41.86M | 53.25M | 60.16M | 62.56M | 46.74M | 51M | -5.17M | 44.62M | 113.92M | 90.47M | 59.9M | 85.6M | -110.2M | -2.5M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1.47M | 323K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 3.63M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.20 | 1.98 | 3.03 | 2.20 | 1.41 | 2.26 | 1.82 | 2.55 | 2.01 | 1.87 | 1.90 | 1.87 | 1.10 | 1.56 | 1.51 | 1.28 | 0.67 | 1.26 | 1.54 | 1.52 | 1.27 | 1.09 | 0.92 | -0.51 | 0.85 | 2.08 | 1.60 | 1.10 | 1.62 | -2.02 | -0.10 |
| EPS Growth % | -23.21% | -34.65% | 37.73% | 56.03% | -37.61% | 24.18% | -28.63% | 26.87% | 7.49% | -1.58% | 1.6% | 70% | -29.49% | 3.31% | 17.97% | 91.04% | -46.83% | -18.18% | 1.32% | 19.68% | 16.51% | 18.48% | 280.39% | -160% | -59.13% | 30% | 45.45% | -32.1% | 180.2% | -2026.32% | - |
| EPS (Basic) | - | 2.02 | 3.06 | 2.21 | 1.42 | 2.28 | 1.83 | 2.58 | 2.04 | 1.89 | 2.03 | 2.01 | 1.14 | 1.60 | 1.52 | 1.29 | 0.68 | 1.26 | 1.54 | 1.53 | 1.29 | 1.11 | 0.93 | -0.51 | 0.86 | 2.15 | 1.73 | 1.16 | 1.66 | -2.02 | -0.10 |
| Diluted Shares Outstanding | 28.89M | 28.22M | 28.66M | 30.11M | 31.3M | 32.01M | 32.28M | 32.47M | 32.85M | 32.87M | 33.01M | 33.44M | 33.74M | 32.87M | 32.48M | 33.02M | 33.37M | 34.45M | 34.84M | 40.02M | 47.1M | 48.57M | 51.22M | 51.43M | 52.52M | 54.64M | 56.68M | 54.66M | 52.76M | 50.96M | 40M |
| Basic Shares Outstanding | 27.8M | 27.69M | 28.34M | 29.94M | 31.03M | 31.78M | 32.01M | 32.05M | 32.49M | 32.41M | 30.97M | 31.05M | 32.45M | 32.12M | 32.16M | 32.81M | 33.08M | 34.33M | 34.81M | 39.67M | 46.46M | 47.85M | 50.48M | 51.37M | 52.12M | 52.89M | 52.2M | 51.67M | 51.43M | 50.96M | 40M |
| Dividend Payout Ratio | - | 66.92% | 30.64% | 51.22% | 75.98% | 45.05% | 52.9% | 35.19% | 42.31% | 43.76% | 38.34% | 35.54% | 55.55% | 28.15% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Customer concentration and churn
According to reported financial data, CSGS has maintained a consistent revenue growth trajectory, with the most recent quarter showing a 4.8% year-over-year increase to $313.7M, reflecting the recurring nature of its core billing and managed services contracts within the North American cable and broadband market.
The company's top-line performance appears anchored by long-term service agreements that provide insulation against broader economic volatility. While growth remains in the low single digits, the stability suggests that the firm's mission-critical role in billing infrastructure continues to offset the secular headwinds of traditional cable subscriber attrition.
As indicated by the income statement, CSGS maintains gross margins hovering near 48%, a figure that reflects the labor-intensive nature of its managed services model rather than the high-margin scalability typically associated with pure-play software firms, as evidenced by the 48.4% margin reported in 2026Q1.
The persistence of these margins suggests that the company's cost structure is heavily weighted toward specialized personnel required for complex client integrations. Investors should monitor whether the ongoing transition to cloud-native architectures can eventually drive operating leverage or if third-party cloud fees will permanently constrain margin expansion.
Based on the provided financial statements, there is a notable discrepancy between operating income and net income, with net margins frequently falling below 7% despite operating margins reaching as high as 22.1% in 2025Q4, suggesting significant non-operating expenses or tax-related impacts on bottom-line profitability.
The wide variance between operating and net income implies that the company's reported EPS may be subject to significant fluctuations from non-operating items or tax adjustments. This lack of alignment between operational performance and net earnings suggests that investors should prioritize cash flow metrics over GAAP net income when evaluating the firm's true economic productivity.
Analysis of the income statement reveals that SG&A expenses have remained relatively contained, with the company managing to keep operating income positive across all ten reported quarters, demonstrating a disciplined approach to overhead despite the inherent complexities of maintaining legacy infrastructure alongside new cloud-based service deployments.
The company's ability to maintain consistent operating profitability suggests that management is effectively balancing the costs of supporting legacy systems with the necessary investments in R&D. However, the reliance on capitalized development costs warrants further investigation to ensure that current-period earnings are not being artificially inflated by deferring essential maintenance expenses.
While the company's revenue appears stable, the extreme concentration of its business within a few major North American cable providers, as noted in industry filings, creates a binary risk profile where any shift in client insourcing or consolidation could disproportionately impact the firm's future cash flows.
Short-term stability may mask the long-term risk that the company's primary customers could eventually seek to internalize their billing and payment functions. The market's current valuation of the firm as a mature 'cash cow' may be ignoring the potential for a structural decline if these key relationships face significant disruption.
Quick answers to the most common questions about buying CSGS stock.
For fiscal year 2025, CSG Systems International, Inc. (CSGS) reported total revenue of $1.22B. This represents a 824.6% increase compared to $132.3M in 1996.
CSG Systems International, Inc. (CSGS) is profitable, generating $55.9M in net income for the fiscal year ending 2025 with a net profit margin of 4.6%.
CSG Systems International, Inc. (CSGS) reported an operating income of $300.1M, resulting in an operating profit margin of 24.5%. This margin reflects the operational efficiency of the business before interest and taxes.
CSG Systems International, Inc. (CSGS) generated $581.6M in gross profit for the year, representing a gross profit margin of 47.5%. This demonstrates the company's core pricing power and production efficiency.