10-K · April 30, 2026
CSG Systems International, Inc. maintains a leading position in customer engagement and revenue management through a cloud-first strategy while preparing for its merger with NEC Corporation at $80.70 per share. The…
Earnings analysis · 10-Q
CSGS earnings analysis
Filed May 7, 2026 · Our reading of the company's report
The latest report
CSG Systems International reported a strong performance for Q1 2026 with revenue of $313.7 million, a significant 4.8% year-over-year increase, and diluted EPS of $0.83, up 45.6% from the prior year. The solid revenue…
Read full summary
CSG Systems International reported a strong performance for Q1 2026 with revenue of $313.7 million, a significant 4.8% year-over-year increase, and diluted EPS of $0.83, up 45.6% from the prior year. The solid revenue growth was mainly driven by an uptick in SaaS and related solutions, and the company reported improved operating margins, although cash flow from operations was negative due to working capital changes. Management highlighted the potential impacts of the pending merger and broader economic uncertainties in their outlook.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.83
- Operating margin
- 11.2%
What stood out
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Q1 Revenue Surges 4.8% YoY
Total revenue reached $313.7 million compared to $299.5 million in Q1 2025, indicating a strong performance.
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Significant EPS Increase
Diluted EPS for Q1 2026 was $0.83, up 45.6% from $0.57 in Q1 2025.
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Operating Margin Improvement
Operating income increased to $35.1 million, reflecting an operating margin of 11.2%, up from 9.8% in the prior year.
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Acquisition-Related Costs Managed
Acquisition-related expenses accrued were approximately $19 million, indicating ongoing management of merger costs.
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Strong SaaS Revenue Growth
Revenue from SaaS and related solutions grew to $286.9 million from $269.9 million year-over-year.
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Cash and Equivalents Update
Cash and cash equivalents as of March 31, 2026 totaled $147.3 million, down from $180.0 million at year-end.
What to watch
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Negative Operating Cash Flow
Q1 2026 operating cash flow was ($1.2 million) compared to $11.5 million in Q1 2025, reflecting working capital pressures.
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High Customer Concentration Risk
Approximately 40% of revenue comes from two largest customers, exposing the company to potential revenue volatility.
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Macroeconomic Uncertainties
Current geopolitical and economic uncertainties could adversely impact CSG’s business operations and financial results.
Management's outlook
Management did not provide explicit numeric guidance for future periods.
Earlier filings 4
10-K · February 19, 2026
CSG presents a stable, cloud-first SaaS business with strong gross margins and recurring revenue characteristics while pursuing an agreed cash merger with NEC at $80.70 per share. 2025 showed modest top-line growth…
10-Q · August 7, 2025
CSG reported Q2 revenue of $297,128,000, up $6,810,000 (+2.3%) versus Q2 2024 and slightly down $2,325,000 (-0.8%) versus Q1 2025. Operating income improved to $29,857,000 (operating margin ~10.0%), but diluted EPS…
10-Q · May 8, 2025
CSG reported Q1 revenue of $299,453,000, up modestly from $295,135,000 in Q1 2024, while diluted EPS fell to $0.57 from $0.68 a year earlier. Gross margin expanded to ~48.4% but operating margin compressed to ~9.8% as…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.