CSG SYSTEMS INTERNATIONAL INC

CIK:0001005757|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Income Statement [Abstract]
Revenue	$ 313,732	$ 299,453
Cost of revenue (exclusive of depreciation, shown separately below)	161,805	154,498
Other operating expenses:
Research and development	42,999	40,902
Selling, general and administrative	67,748	62,289
Depreciation	3,999	5,013
Restructuring and reorganization charges	2,109	7,368
Total operating expenses	278,660	270,070
Operating income	35,072	29,383
Other income (expense):
Interest expense	(6,852)	(7,198)
Interest income	1,232	1,912
Loss on debt extinguishment	0	(453)
Other, net	2,809	(2,153)
Total other	(2,811)	(7,892)
Income before income taxes	32,261	21,491
Income tax provision	(8,368)	(5,361)
Net income	$ 23,893	$ 16,130
Weighted-average shares outstanding:
Basic	27,798	27,815
Diluted	28,886	28,267
Earnings per common share:
Basic	$ 0.86	$ 0.58
Diluted	$ 0.83	$ 0.57

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2026	Mar. 31, 2025
Cash flows from operating activities:
Net income	$ 23,893	$ 16,130
Adjustments to reconcile net income to net cash provided by (used in) operating activities-
Depreciation	3,999	5,013
Amortization	13,204	12,164
Loss on debt extinguishment	0	453
(Gain) loss on unrealized foreign currency transactions and other, net	(426)	522
Deferred income taxes	4,234	(2,067)
Stock-based compensation	6,822	8,404
Changes in operating assets and liabilities, net of acquired amounts:
Trade accounts receivable, net	(1,975)	(4,838)
Other current and non-current assets and liabilities	(9,526)	(2,400)
Income taxes payable/receivable	1,816	4,529
Trade accounts payable and accrued liabilities	(45,738)	(33,074)
Deferred revenue	2,534	6,633
Net cash provided by (used in) operating activities	(1,163)	11,469
Cash flows from investing activities:
Purchases of software, property and equipment	(1,742)	(4,401)
Proceeds from sale of software, property, and equipment	0	152
Net cash used in investing activities	(1,742)	(4,249)
Cash flows from financing activities:
Proceeds from issuance of common stock	0	769
Payments of cash dividends	(18,537)	(9,460)
Repurchases of common stock	(3,967)	(22,396)
Deferred acquisition payments	0	(314)
Proceeds from long-term debt	0	150,625
Payments on long-term debt	0	(150,625)
Payments of debt financing costs	0	(2,258)
Payments on financing obligations	(2,206)	(590)
Settlement and merchant reserve activity	(21,386)	(70,211)
Net cash used in financing activities	(46,096)	(104,460)
Effect of exchange rate fluctuations on cash, cash equivalents and restricted cash	(4,178)	2,488
Net decrease in cash, cash equivalents, and restricted cash	(53,179)	(94,752)
Cash, cash equivalents and restricted cash, beginning of period	532,186	506,763
Cash, cash equivalents and restricted cash, end of period	479,007	412,011
Cash paid during the period for-
Interest	9,919	10,181
Income taxes	2,282	2,964
Non-cash investing and financing activities-
Software, property, and equipment included in current and non-current liabilities	9,040	11,526
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	147,324	136,024
Settlement and merchant reserve assets	329,913	274,228
Restricted cash included in non-current assets	1,770	1,759
Total cash, cash equivalents and restricted cash	$ 479,007	$ 412,011

CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED - USD ($) $ in Thousands	Mar. 31, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 147,324	$ 180,011
Settlement and merchant reserve assets	329,913	350,390
Trade accounts receivable:
Billed, net of allowance of $2,468 and $3,277	291,947	299,724
Unbilled	78,508	67,888
Income taxes receivable	2,648	3,443
Other current assets	40,158	36,227
Total current assets	890,498	937,683
Non-current assets:
Property and equipment, net of depreciation of $126,877 and $122,947	38,898	42,505
Operating lease right-of-use assets	15,953	16,278
Intangible Assets	43,036	48,305
Goodwill	322,770	324,706
Customer contract costs, net of amortization of $51,922 and $50,245	72,361	71,613
Deferred income taxes	79,146	83,630
Other assets	18,733	19,887
Total non-current assets	590,897	606,924
Total assets	1,481,395	1,544,607
Current liabilities:
Current portion of long-term debt	0	0
Operating lease liabilities	5,256	4,837
Customer deposits	41,468	47,633
Trade accounts payable	46,156	45,281
Accrued employee compensation	58,944	81,001
Settlement and merchant reserve liabilities	326,724	348,257
Deferred revenue	56,470	50,738
Income taxes payable	2,174	1,116
Other current liabilities	45,766	71,941
Total current liabilities	582,958	650,804
Non-current liabilities:
Long-term debt, net of unamortized discounts of $9,693 and $10,548	540,307	539,452
Operating lease liabilities	20,033	21,152
Deferred revenue	25,925	29,480
Income taxes payable	2,338	2,371
Other non-current liabilities	15,893	17,649
Total non-current liabilities	604,496	610,104
Total liabilities	1,187,454	1,260,908
Stockholders' equity:
Preferred stock, par value $.01 per share; 10,000 shares authorized; zero shares issued and outstanding	0	0
Common stock, par value $.01 per share; 100,000 shares authorized; 28,511 and 28,370 shares outstanding	722	721
Additional paid-in capital	535,739	532,885
Treasury stock, at cost; 42,371 shares	(1,243,972)	(1,243,972)
Accumulated other comprehensive income (loss):
Cumulative foreign currency translation adjustments	(51,876)	(45,042)
Accumulated earnings	1,053,328	1,039,107
Total stockholders' equity	293,941	283,699
Total liabilities and stockholders' equity	1,481,395	1,544,607
Software
Non-current assets:
Intangible Assets	16,894	19,716
Acquired customer contracts
Non-current assets:
Intangible Assets	$ 26,142	$ 28,589