CONSENSUS CLOUD SOLUTIONS, INC., 10-Q filed on 5/8/2025
Quarterly Report
v3.25.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2025
May 02, 2025
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2025  
Document Transition Report false  
Entity File Number 001-40750  
Entity Registrant Name Consensus Cloud Solutions, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 87-1139414  
Entity Address, Address Line One 700 S. Flower Street  
Entity Address, Address Line Two 15th Floor  
Entity Address, City or Town Los Angeles  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 90017  
City Area Code 323  
Local Phone Number 860-9200  
Title of 12(b) Security Common Stock, $0.01 par value  
Trading Symbol CCSI  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   19,540,937
Entity Central Index Key 0001866633  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2025  
Document Fiscal Period Focus Q1  
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
ASSETS    
Cash and cash equivalents $ 53,399 $ 33,545
Accounts receivable, net of allowances of $5,564 and $5,774, respectively 26,712 24,921
Prepaid expenses and other current assets 11,350 16,059
Total current assets 91,461 74,525
Property and equipment, net 103,508 100,076
Operating lease right-of-use assets 6,126 6,515
Intangibles, net 40,560 41,213
Goodwill 347,411 345,036
Deferred income taxes 31,372 30,521
Other assets 9,209 4,315
TOTAL ASSETS 629,647 602,201
LIABILITIES AND STOCKHOLDERS’ DEFICIT    
Accounts payable and accrued expenses 39,863 36,477
Income taxes payable, current 3,328 1,068
Deferred revenue, current 21,719 20,714
Operating lease liabilities, current 2,309 2,150
Current portion of long-term debt 6,126 18,902
Total current liabilities 73,345 79,311
Long-term debt, net of current portion 577,590 574,080
Deferred revenue, noncurrent 1,825 1,913
Operating lease liabilities, noncurrent 11,471 12,018
Liability for uncertain tax positions 13,635 13,218
Deferred income taxes 908 891
Other long-term liabilities 231 233
TOTAL LIABILITIES 679,005 681,664
Commitments and contingencies (Note 8)
Common stock, $0.01 par value. Authorized 120,000,000; total issued is 20,628,133 and 20,609,725 shares and total outstanding is 19,540,937 and 19,524,000 shares as of March 31, 2025 and December 31, 2024, respectively 206 206
Treasury stock, at cost (1,087,196 and 1,085,725 shares as of March 31, 2025 and December 31, 2024, respectively) (32,347) (32,313)
Additional paid-in capital 63,992 59,373
Accumulated deficit (62,526) (83,678)
Accumulated other comprehensive loss (18,683) (23,051)
TOTAL STOCKHOLDERS’ DEFICIT (49,358) (79,463)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT $ 629,647 $ 602,201
v3.25.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Statement of Financial Position [Abstract]    
Allowance for doubtful accounts $ 5,564 $ 5,774
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 120,000,000 120,000,000
Common stock, shares issued (in shares) 20,628,133 20,609,725
Common stock outstanding (in shares) 19,540,937 19,524,000
Treasury stock (in shares) 1,087,196 1,085,725
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Income Statement [Abstract]    
Revenues $ 87,138 $ 88,146
Cost of revenues [1] 18,070 17,048
Gross profit 69,068 71,098
Operating expenses:    
Sales and marketing [1] 12,788 12,558
Research, development and engineering [1] 1,712 1,905
General and administrative [1] 17,071 18,968
Total operating expenses 31,571 33,431
Income from operations 37,497 37,667
Interest expense (8,976) (6,199)
Interest income 451 923
Other (expense) income, net (1,097) 3,902
Income before income taxes 27,875 36,293
Income tax expense 6,723 9,923
Net income $ 21,152 $ 26,370
Net income per common share:    
Basic (in dollars per share) $ 1.08 $ 1.37
Diluted (in dollars per share) $ 1.07 $ 1.37
Weighted average shares outstanding:    
Basic (in shares) 19,530,579 19,220,340
Diluted (in shares) 19,690,822 19,233,736
[1]
(1) Includes share-based compensation expense as follows:
Cost of revenues$476 $503 
Sales and marketing714 679 
Research, development and engineering105 95 
General and administrative2,969 3,173 
Total$4,264 $4,450 
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Share-based compensation expense $ 4,264 $ 4,450
Cost of revenues    
Share-based compensation expense 476 503
Sales and marketing    
Share-based compensation expense 714 679
Research, development and engineering    
Share-based compensation expense 105 95
General and administrative    
Share-based compensation expense $ 2,969 $ 3,173
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Statement of Comprehensive Income [Abstract]    
Net income $ 21,152 $ 26,370
Other comprehensive gain (loss):    
Foreign currency translation adjustment 4,368 (6,314)
Other comprehensive gain (loss) 4,368 (6,314)
Comprehensive income $ 25,520 $ 20,056
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Cash flows from operating activities:    
Net income $ 21,152 $ 26,370
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 5,178 4,767
Amortization of financing costs and discounts 420 479
Non-cash operating lease costs 394 370
Share-based compensation 4,264 4,450
Provision for doubtful accounts 1,417 875
Deferred income taxes, net 33 1,361
Loss (gain) on extinguishment of debt 77 (4,865)
Decrease (increase) in:    
Accounts receivable (3,148) (2,008)
Prepaid expenses and other current assets 4,710 378
Other assets 105 411
Increase (decrease) in:    
Accounts payable and accrued expenses 3,276 9,111
Income taxes payable 2,215 2,373
Deferred revenue 829 430
Operating lease liabilities (393) (531)
Liability for uncertain tax positions 418 724
Other liabilities (4) (6)
Net cash provided by operating activities 40,943 44,689
Cash flows from investing activities:    
Purchases of property and equipment (7,196) (8,923)
Purchase of investments (5,000) 0
Net cash used in investing activities (12,196) (8,923)
Cash flows from financing activities:    
Repurchase of common stock (34) (712)
Taxes paid related to net share settlement (339) (233)
Repurchase of debt (9,749) (57,884)
Net cash used in financing activities (10,122) (58,829)
Effect of exchange rate changes on cash and cash equivalents 1,229 (4,141)
Net change in cash and cash equivalents 19,854 (27,204)
Cash and cash equivalents at beginning of period 33,545 88,715
Cash and cash equivalents at end of period $ 53,399 $ 61,511
v3.25.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT - USD ($)
$ in Thousands
Total
Common stock
Additional paid-in capital
Treasury stock
Accumulated deficit
Accumulated other comprehensive loss
Common stock, beginning balance (in shares) at Dec. 31, 2023   20,273,686        
Beginning balance at Dec. 31, 2023 $ (176,122) $ 203 $ 41,247 $ (31,282) $ (173,113) $ (13,177)
Treasury stock, beginning balance (in shares) at Dec. 31, 2023       (1,028,662)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income 26,370          
Foreign currency translation adjustment (6,314)         (6,314)
Vested restricted stock (in shares)   33,447        
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares)   (15,340)        
Shares withheld related to net share settlement $ (233)   (233)      
Repurchase of common stock (in shares) (42,962)     (42,962)    
Repurchase of common stock $ (712)     $ (712)    
Share-based compensation 5,187   5,187      
Common stock, ending balance (in shares) at Mar. 31, 2024   20,291,793        
Ending balance at Mar. 31, 2024 $ (151,824) $ 203 46,201 $ (31,994) (146,743) (19,491)
Treasury stock, ending balance (in shares) at Mar. 31, 2024       (1,071,624)    
Common stock, beginning balance (in shares) at Dec. 31, 2024 19,524,000 20,609,725        
Beginning balance at Dec. 31, 2024 $ (79,463) $ 206 59,373 $ (32,313) (83,678) (23,051)
Treasury stock, beginning balance (in shares) at Dec. 31, 2024 (1,085,725)     (1,085,725)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Net income $ 21,152       21,152  
Foreign currency translation adjustment 4,368         4,368
Vested restricted stock (in shares)   31,885        
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares)   (13,477)        
Shares withheld related to net share settlement $ (339)   (339)      
Repurchase of common stock (in shares) (1,471)     (1,471)    
Repurchase of common stock $ (34)     $ (34)    
Share-based compensation $ 4,958   4,958      
Common stock, ending balance (in shares) at Mar. 31, 2025 19,540,937 20,628,133        
Ending balance at Mar. 31, 2025 $ (49,358) $ 206 $ 63,992 $ (32,347) $ (62,526) $ (18,683)
Treasury stock, ending balance (in shares) at Mar. 31, 2025 (1,087,196)     (1,087,196)    
v3.25.1
Basis of Presentation
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The Company
Consensus Cloud Solutions, Inc., together with its subsidiaries (“Consensus Cloud Solutions”, “Consensus”, the “Company”, “our”, “us” or “we”), is a provider of secure information delivery services with a scalable Software-as-a-Service (“SaaS”) platform. Consensus serves customers of all sizes, from enterprises to individuals, across the globe and multiple industry verticals including healthcare, government, financial services, law and education. Beginning as an online fax company over two decades ago, Consensus has evolved into a global provider of enterprise secure communication solutions. Our communication, extraction and digital signature solutions enable our customers to securely and cooperatively access, exchange and use information across organizational, regional and national boundaries.

Principles of Consolidation
The accompanying interim condensed consolidated financial statements include the accounts of Consensus and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation
The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The Company believes that the disclosures made are adequate to make that information not misleading. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of these interim financial statements have been reflected. It is suggested that these financial statements be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2024, included in our Annual Report (Form 10-K) filed with the SEC on February 20, 2025. Accordingly, significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed therein.
The results of operations for this interim period are not necessarily indicative of the operating results for the full year or for any future period.
Use of Estimates
The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about the reported amounts of revenue and expenses during the reporting period. The Company believes that its most significant estimates are those related to revenue recognition, internal-use software development costs, share-based compensation expense and income taxes. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to factors such as inflationary pressures and elevated interest rates.
Significant Accounting Policies
There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Segment Reporting
FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about reportable segments in their annual consolidated financial statements and requires that those entities report selected information about reportable segments in interim financial reports. ASC 280 also establishes
standards for related disclosures about products and services, geographic areas and major customers. The Company’s business segment is based on the organization’s structure used by the chief operating decision maker (“CODM”), who is our chief executive officer (“CEO”), for making operating and investment decisions and for assessing performance. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The CEO uses consolidated profit or loss from operations before interest and income taxes to allocate resources predominantly in the annual budget and forecasting process. The CEO considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CEO also uses consolidated profit or loss from operations before interest and income taxes and consolidated net income to assess performance. Accordingly, the Company has determined that it operates one reportable segment known as Cloud Fax (see Note 14 - Segment Information). The condensed consolidated financial statements and related disclosures reflect the segment operations of Cloud Fax.
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
v3.25.1
Recent Accounting Pronouncements
 3 Months Ended
Mar. 31, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Recent Accounting Pronouncements Recent Accounting Pronouncements
In October 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which amends the disclosure or presentation requirements of a variety of topics in the accounting standards codification in order to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification. The effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. The Company is evaluating the potential impact of this guidance on its consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments are intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments in this ASU should be applied on either a prospective or retrospective basis. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement: Expense Disaggregation Disclosures. The amendments in this ASU require disclosure of more information about certain expenses and costs and should be applied on either a prospective or retrospective basis. The amendments in this ASU are effective for fiscal periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements.
v3.25.1
Revenues
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Revenues Revenues
The Company earns revenue from contracts with customers, primarily through the provision of cloud-based communication and digital signature solutions that allow customers to access the Company’s software without taking possession. The contracts include both recurring subscription and usage-based fees, and the total transaction price is allocated to performance obligations in each contract as appropriate. Revenue for cloud-based services is recognized over time in the period earned. The contracts may be terminated early. Fees collected in advance are non-refundable, and they are deferred and recognized in revenue when the related performance obligations are satisfied. Standard Corporate contracts billed monthly include a termination charge equal to the minimum fees payable through the last day of the contract term.
Revenues from external customers classified by revenue source are as follows (in thousands):
Three Months Ended March 31,
20252024
Revenues
Corporate$54,289 $51,390 
Small office home office (“SoHo”)32,849 36,754 
Other— 2 
Total
$87,138 $88,146 
Timing of revenue recognition
Point in time$643 $210 
Over time86,495 87,936 
Total$87,138 $88,146 
The Company has recorded $9.5 million and $10.1 million of revenue for the three months ended March 31, 2025 and 2024, respectively, that was previously included in the deferred revenue balance as of the beginning of each respective year.
Performance Obligations
Generally, the Company’s contracts with customers include one performance obligation, however, certain contracts may include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on their relative standalone selling price.
The Company satisfies its performance obligations upon delivery of products or services to its customers. Payment terms vary by type and location of the Company’s customers and the products and services offered. The time between invoicing and when payment is due is not significant. Due to the nature of the services provided, there are no obligations for returns.
Significant Judgments
Determining whether products and services are considered distinct performance obligations may require significant judgment. When a contract includes both on-premises software licenses and cloud-based services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud-based service and recognized over time.
Judgment is also required to determine the standalone selling price for each distinct performance obligation when there are multiple performance obligations. In certain cases, the Company is able to establish the standalone selling price based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a range of amounts to estimate the standalone selling price when each of the products and services is sold separately to determine whether there is a discount to be allocated based on the relative standalone selling price of the various products and services.
Performance Obligations Satisfied Over Time
The Company’s business consists primarily of performance obligations that are satisfied over time based on the fact that the nature of the cloud-based services offered is subscription based where the customer simultaneously receives and consumes the benefit of the services provided regardless of whether the customer uses the services or not. Depending on the individual contracts with the customer, revenue for these services is recognized over the contract period when services are provided. The Company expects to recognize revenue for Corporate contracts typically in a range from month-to-month up to 36 months and recognize revenue for SoHo contracts in a range from month-to-month up to one year. Revenue from usage-based fees is recognized in proportion to the amount for which the Company has the right to invoice for services performed, which corresponds with the utilization of the services by the customer.

The Company has concluded that the best measure of progress toward the complete satisfaction of the performance obligations over time is a time-based measure. The Company recognizes revenue on a straight-line basis throughout the subscription period and believes that the method used is a faithful depiction of the transfer of goods and services.
Practical Expedients
Existence of a Significant Financing Component in a Contract
As a practical expedient, the Company has not assessed whether a contract has a significant financing component because the Company expects at contract inception that the period between payment by the customer and the transfer of promised goods or services by the Company to the customer will be one year or less. In addition, the Company has determined that the payment terms the Company provides to its customers are structured primarily for reasons other than the provision of finance to the Company. The Company typically charges an upfront subscription amount for services, or an amount for usage in arrears, or a combination thereof, as other payment terms would affect the nature of the risk assumed by the Company due to the costs of the customer acquisition and the highly competitive and commoditized nature of the business the Company operates.
Costs to Fulfill a Contract
The Company’s revenues are primarily generated from customer contracts that are for one year or less. Costs primarily consist of incentive compensation paid based on the achievements of sales targets in a given period for related revenue streams and are recognized in the month when the revenue is earned. Incentive compensation is paid upon the issuance or renewal of the customer contract. As a practical expedient, for amortization periods that are determined to be one year or less, the Company expenses any incremental costs of obtaining the contract with a customer when incurred. For those customer contracts greater than one year, the Company capitalizes and amortizes the expenses, when appropriate, over the period of benefit.
Revenues Invoiced
The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.
v3.25.1
Fair Value Measurements
 3 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company complies with the provisions of FASB ASC Topic No. 820, Fair Value Measurement, (“ASC 820”), which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
§Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
§Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
§Level 3 – Unobservable inputs which are supported by little or no market activity.
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents include money market funds of $46.1 million and $26.8 million as of March 31, 2025 and December 31, 2024, respectively, which are valued based on Level 1 inputs consisting of quoted prices in active markets. The carrying value of the Company’s cash and cash equivalents approximates fair value.
The fair value of long-term debt is determined using recent quoted market prices or dealer quotes for each of the Company’s instruments, which are Level 1 inputs (see Note 7 - Long-Term Debt). The carrying value of long-term debt is reflected in the financial statements at cost.
Assets Measured on a Non-Recurring Basis
The Company’s non-financial assets, which primarily consist of goodwill, indefinite-lived intangible assets, long-lived assets and equity securities without a readily determinable fair value are reported at carrying value, or at fair value as of their acquisition dates, and are not required to be measured at fair value on a recurring basis. However, if any of these types of assets become impaired, the carrying values of the assets are written down to fair value using Level 3 inputs.
The carrying amount of the Company’s investments accounted for using the measurement alternative method in accordance with FASB ASC Topic No. 321, Investments - Equity Securities (“ASC 321”) as of March 31, 2025 and December 31, 2024, was $8.0 million and $4.0 million, respectively, and is included in other assets within the Company’s Condensed Consolidated Balance Sheets. If the Company becomes aware of a significant decline in value that is other-than-temporary, the Company assesses whether an other-than-temporary impairment loss on an investment has occurred due to declines in fair value or other market conditions. The loss will be recorded in the period in which the Company identifies the decline. During the three months ended March 31, 2025 and 2024, the Company did not recognize any unrealized gains or losses and did not have any impairments during the respective periods.
v3.25.1
Property and Equipment
 3 Months Ended
Mar. 31, 2025
Property, Plant and Equipment [Abstract]  
Property and Equipment Property and Equipment
Property and equipment, stated at cost, as of March 31, 2025 and December 31, 2024 consisted of the following (in thousands):
March 31, 2025December 31, 2024
Internal-use software development costs
$89,670 $88,244 
Computers, software and equipment
18,779 18,616 
Furniture and fixtures
885 882 
Leasehold improvements1,718 1,715 
Internal-use software development costs in process
53,140 46,676 
164,192 156,133 
Less: Accumulated depreciation and amortization(60,684)(56,057)
 Total property and equipment, net$103,508 $100,076 

Depreciation and amortization expense was $4.5 million and $3.9 million for the three months ended March 31, 2025 and 2024, respectively.

No impairment was recorded in the three months ended March 31, 2025 and 2024.
v3.25.1
Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in carrying amounts of goodwill for the three months ended March 31, 2025 are as follows (in thousands):
Amount
Balance as of January 1, 2025
$345,036 
Foreign exchange translation2,375 
Balance as of March 31, 2025$347,411 
As of March 31, 2025 the Company’s goodwill had no accumulated impairment.
Intangible Assets with Indefinite Lives:
Intangible assets are summarized as of March 31, 2025 and December 31, 2024 as follows (in thousands):
March 31, 2025December 31, 2024
Trade names$27,348 $27,316 
Other4,045 4,045 
Total$31,393 $31,361 

Intangible Assets Subject to Amortization:
As of March 31, 2025, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.2 years$8,165 $7,916 $249 
Patent and patent licenses0.0 years54,341 54,341 — 
Customer relationships (1)
2.0 years108,016 100,310 7,706 
Other purchased intangibles 1.1 years11,920 10,708 1,212 
Total
 $182,442 $173,275 $9,167 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.

    As of December 31, 2024, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.2 years$8,107 $7,826 $281 
Patent and patent licenses0.0 years54,341 54,341 — 
Customer relationships (1)
2.1 years107,287 99,054 8,233 
Other purchased intangibles 1.2 years11,914 10,576 1,338 
Total$181,649 $171,797 $9,852 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.

Expected amortization expenses for intangible assets subject to amortization at March 31, 2025 are as follows (in thousands):
Fiscal Year:Amount
2025 (remainder)
$1,888 
2026
2,099 
2027
1,399 
2028
986 
2029
803 
Thereafter1,992 
Total$9,167 
Amortization expense was $0.7 million and $0.9 million for the three months ended March 31, 2025 and 2024, respectively.

No impairment of intangible assets was recorded in the three months ended March 31, 2025 and 2024.
v3.25.1
Long-Term Debt
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt as of March 31, 2025 and December 31, 2024 consists of the following (in thousands):
March 31, 2025December 31, 2024
2026 Senior Notes$240,139 $248,980 
2028 Senior Notes348,247 349,137
Total
588,386 598,117 
Less: deferred issuance costs
(4,670)(5,135)
Total debt
583,716 592,982 
Less: current portion, net of debt issuance costs
(6,126)(18,902)
Total long-term debt, less current portion
$577,590 $574,080 

As of March 31, 2025 and December 31, 2024, the estimated fair value of the 2026 Senior Notes (as defined below) was approximately $239.2 million and $246.2 million, respectively.
As of March 31, 2025 and December 31, 2024, the estimated fair value of the 2028 Senior Notes (as defined below) was approximately $340.4 million and $346.1 million, respectively.
At March 31, 2025, future contractual principal payments for debt were as follows (in thousands):
Fiscal year:Total
2025 (1) (remainder)
$6,000 
2026234,139 
2027— 
2028348,247 
2029— 
Thereafter— 
Total$588,386 
(1) The Company has reclassified $6.0 million from the 2026 period into the 2025 period as debt repurchases were made subsequent to March 31, 2025 but prior to the filing of these financial statements (see Note 15 - Subsequent Event).

The Company capitalized $0.8 million and $0.7 million of interest expense within property and equipment, net on the Company’s Condensed Consolidated Balance Sheets during the three months ended March 31, 2025 and 2024, respectively.

2026 Senior Notes
On October 7, 2021, Consensus issued $305.0 million of senior notes due in 2026 (the “2026 Senior Notes”), receiving net proceeds of $301.2 million, after deducting the initial purchasers’ discounts, commissions and offering expenses. The 2026 Senior Notes are presented as current portion of long-term debt and long-term debt, net of current portion, which is presented net of deferred issuance costs, on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024. The 2026 Senior Notes bear interest at a rate of 6.0% per annum and mature on October 15, 2026. The Company may redeem some or all of the 2026 Senior Notes at any time on or after October 15, 2023 at specified redemption prices, plus accrued and unpaid interest, if any, up to, but excluding the redemption date.

The indenture pursuant to which the 2026 Senior Notes were issued contains covenants that restrict the Company’s ability to (i) pay dividends or make distributions on the Company’s common stock; (ii) make certain restricted payments; (iii) create liens or enter into sale and leaseback transactions; (iv) enter into transactions with affiliates; (v) merge or consolidate with another company; and (vi) transfer and sell assets. These covenants contain certain exceptions. Restricted payments are applicable only if Consensus Cloud Solutions, Inc. and subsidiaries designated as restricted subsidiaries has a net leverage ratio
of greater than 3.0 to 1.0. In addition, if such net leverage ratio is in excess of 3.0 to 1.0, the restriction on restricted payments is subject to various exceptions, including the total aggregate amount not to exceed the greater of (A) $100.0 million and (B) 50.0% of EBITDA for the most recently ended four fiscal quarter period ended immediately prior to such date for which internal financial statements are available. The Company is in compliance with its debt covenants as of March 31, 2025.

2028 Senior Notes
On October 7, 2021, Consensus issued $500.0 million of 6.5% senior notes due in 2028 (the “2028 Senior Notes”) to Ziff Davis, Inc. (“Ziff Davis” or the “Former Parent”) in exchange for the equity interest in the Company. Ziff Davis then exchanged the 2028 Senior Notes with lenders under its credit agreement (or their affiliates) in exchange for extinguishment of a similar amount of indebtedness under such credit agreement. The 2028 Senior Notes are presented as current portion of long-term debt and long-term debt, net of current portion, which is presented net of deferred issuance costs, on the Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024. The 2028 Senior Notes bear interest at a rate of 6.5% per annum and mature on October 15, 2028. The Company may redeem some or all of the 2028 Senior Notes at any time on or after October 15, 2026 at specified redemption prices plus accrued and unpaid interest, if any, up to, but excluding the redemption date.

The indenture pursuant to which the 2028 Senior Notes were issued contains covenants that restrict the Company’s ability to (i) pay dividends or make distributions on the Company’s common stock; (ii) make certain restricted payments; (iii) create liens or enter into sale and leaseback transactions; (iv) enter into transactions with affiliates; (v) merge or consolidate with another company; and (vi) transfer and sell assets. These covenants contain certain exceptions. Restricted payments are applicable only if Consensus Cloud Solutions, Inc. and subsidiaries designated as restricted subsidiaries has a net leverage ratio of greater than 3.0 to 1.0. In addition, if such net leverage ratio is in excess of 3.0 to 1.0, the restriction on restricted payments is subject to various exceptions, including the total aggregate amount not to exceed the greater of (A) $100.0 million and (B) 50.0% of EBITDA for the most recently ended four fiscal quarter period ended immediately prior to such date for which internal financial statements are available. The Company is in compliance with its debt covenants as of March 31, 2025.

Credit Agreement
On March 4, 2022, the Company entered into a Credit Agreement (the “Credit Agreement”) with certain lenders party thereto (the “Lenders”) and MUFG Union Bank, N.A., as agent (the “Agent”). Pursuant to the Credit Agreement, the Lenders have provided Consensus with a senior secured revolving credit facility of $25.0 million (the “Credit Facility”) with an option held by the Company to obtain an additional commitment of up to a maximum of $25.0 million. The final maturity of the Credit Facility will occur on March 4, 2027. As of March 31, 2025, no amount had been drawn down on the Credit Facility. The Credit Facility is guaranteed by each wholly-owned material domestic subsidiary of Consensus, and secured by substantially all assets of Consensus and the guarantors. The loans made under the Credit Facility are subject to a Secured Overnight Financing Rate (“SOFR”) base interest rate plus a SOFR margin between 1.75% - 2.50%, with stepdowns subject to the total net leverage ratio.
The Credit Facility is subject to a total net leverage ratio covenant and a minimum EBITDA requirement, in each case tested on a quarterly basis. The Credit Agreement contains covenants that restrict the Company’s ability to (i) pay dividends or make distributions on the Company’s common stock; (ii) make certain restricted payments; (iii) create liens or enter into sale and leaseback transactions; (iv) enter into transactions with affiliates; (v) merge or consolidate with another company; and (vi) transfer and sell assets. These covenants contain certain exceptions. Unsecured indebtedness may be incurred, assets may be disposed of, restricted payments may be made and investments may be made, in each case subject to compliance with the Company’s financial covenants. The Company is in compliance with its covenants as of March 31, 2025.
Debt Repurchase Program
On November 9, 2023, the Board of Directors approved a debt repurchase program, pursuant to which Consensus may reduce, through redemptions, open market purchases, tender offers, privately negotiated purchases or other retirements, a combination of the outstanding principal balance of the 2026 Senior Notes and 2028 Senior Notes (“Debt Repurchase Program”). The authorization permits an aggregate principal amount reduction of up to $300 million and expires on November 9, 2026. The timing and amounts of purchases will be determined by the Company, depending on market conditions and other factors it deems relevant. During the three months ended March 31, 2025 and 2024, the Company retired $9.7 million and $63.5 million, respectively, in principal of its senior notes. Refer to Note 15 - Subsequent Event for debt repurchases made subsequent to March 31, 2025 but prior to the filing of these financial statements. As of March 31, 2025, the Company had retired an
aggregate of $216.6 million in principal of its senior notes under this program. In connection with the Debt Repurchase Program, the Company reclassified $6.1 million and $18.9 million of long-term debt, net of current portion to the current portion of long-term debt as of March 31, 2025 and December 31, 2024, respectively, as the Company had the intention and cash on hand to extinguish the respective amounts of debt within twelve months of the end of the reporting periods.
For the three months ended March 31, 2025 and 2024, a net (loss) gain on debt extinguishment of $(0.1) million and $4.9 million, respectively, related to the Debt Repurchase Program is included in interest expense on the Condensed Consolidated Statements of Income.
v3.25.1
Commitments and Contingencies
 3 Months Ended
Mar. 31, 2025
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Litigation
From time to time, the Company and its affiliates are involved in litigation and other legal disputes or regulatory inquiries that arise in the ordinary course of business. Any claims or regulatory actions against the Company and its affiliates, whether meritorious or not, could be time consuming and costly, and could divert significant operational resources. The outcomes of such matters are subject to inherent uncertainties, carrying the potential for unfavorable rulings that could include monetary damages and injunctive relief.

The Company does not believe, based on current knowledge, that any legal proceedings or claims currently exist which, after giving effect to existing accrued liabilities, are likely to have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows. It is the Company’s policy to expense legal fees related to any litigation as incurred.

Non-Income Related Taxes

In the third quarter of 2022, the Company initiated a Voluntary Disclosure Agreement (“VDA”) process to voluntarily report sales tax liability related to prior periods where the Company had previously not been able to estimate its exposure. The Company recorded an accrual as the exposure became probable and estimable. The VDA process was completed in the fourth quarter of 2023. While the Company believes that it has sufficiently reserved for historical sales tax liabilities under FASB ASC Topic No. 450, Contingencies, some state taxing authorities may still challenge the Company’s sales tax position, the methodology used to calculate the sales tax liability, and may also impose other taxes on its business. Taxing authorities may successfully assert that the Company should have collected, or in the future should collect sales and use, telecommunications or similar taxes, and could be subject to liability with respect to past or future tax, which could adversely affect the Company’s operating results. The Company will continue to review and monitor the impact of sales tax rules in order to mitigate any associated risks on its business.
v3.25.1
Other Balance Sheet Account Details
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Account Details Other Balance Sheet Account Details
Prepaid expenses and other current assets
Prepaid expenses and other current assets consisted of the following (in thousands):
March 31, 2025December 31, 2024
Prepaid insurance$1,839 $2,601 
Prepaid income taxes673 2,065 
Prepaid marketing expense
— 3,365 
Prepaid software licenses
4,812 4,346 
Other prepaid expenses
3,778 3,389 
Other current assets248 293 
Total$11,350 $16,059 
Accounts payable and accrued expenses
Accounts payable and accrued expenses consisted of the following (in thousands):
March 31, 2025December 31, 2024
Accounts payable$6,509 $7,383 
Accrued sales and other taxes6,821 6,796 
Accrued interest17,000 7,939 
Accrued compensation5,023 10,425 
Accrued advertising expenses1,566 2,719 
Other accrued expenses
2,944 1,215 
Total$39,863 $36,477 
v3.25.1
Income Taxes
 3 Months Ended
Mar. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s tax provision for interim periods is determined using an estimate of the Company’s annual effective tax rate adjusted for discrete interim period tax impacts. Each quarter the Company updates its estimated annual effective tax rate and, if the estimate changes, makes a cumulative adjustment. Changes in the geographical mix, permanent differences or the estimated level of annual pre-tax income can affect the effective tax rate. The Company’s effective tax rate for the three months ended March 31, 2025 and 2024 was 24.1% and 27.3%, respectively. The decrease in the Company’s effective income tax rate for the three months ended March 31, 2025 was primarily due to a change in the geographical mix of income, a decreased impact of the valuation allowance on the quarter and a decrease in uncertain tax positions.

The Company’s effective tax rates for the three months ended March 31, 2025 and 2024 differed from the U.S. federal statutory rates of 21% primarily as a result of state income taxes, certain expenses not deductible for tax purposes, foreign rate differential, foreign income inclusion, various tax credits and uncertain tax positions.

As of March 31, 2025 and December 31, 2024, the Company had $13.6 million and $13.2 million, respectively, in liabilities for uncertain income tax positions, including interest and penalties. Accrued interest and penalties related to unrecognized tax benefits are recognized in income tax expense on the Company’s Condensed Consolidated Statements of Income.

Income Tax Audits
The Company is required to file tax returns in the United States, Ireland, Canada, Japan, Netherlands and Hong Kong. As of March 31, 2025, the Company was not under audit in any jurisdiction that it operates within. In respect to these international subsidiaries, tax returns for the years from 2018 onwards are still open to examination by tax authorities.
v3.25.1
Stockholders' Deficit
 3 Months Ended
Mar. 31, 2025
Equity [Abstract]  
Stockholders' Deficit Stockholders’ Deficit
Common Stock Repurchase Program
In March 2022, the Company’s Board of Directors approved a share buyback program. Under this program, the Company may purchase in the public market or in off-market transactions up to $100.0 million of the Company’s common stock through February 2025. In February 2025, the Company’s Board of Directors authorized and approved a three-year extension of the share repurchase program through February 2028. The program may end before this date if the maximum amount of repurchases has been reached or at the discretion of the Company’s Board of Directors. The timing and amounts of purchases are determined by the Company, depending on market conditions and other factors it deems relevant. The Company entered into Rule 10b-18 and Rule 10b5-1 trading plans under this program. During the three months ended March 31, 2025, the Company repurchased 1,471 shares under this program for a minimal amount. During the three months ended March 31, 2024, the Company repurchased 42,962 shares under this program at an aggregate cost of $0.7 million. Cumulatively as of March 31, 2025, 1,087,196 shares have been repurchased under this program at an aggregate cost of $32.4 million (inclusive of excise tax of $0.2 million). The excise tax is assessed at 1% of the fair market value of net stock repurchases after December 31, 2022.
Vested Restricted Stock
At the time of certain vesting events related to restricted stock units or restricted stock awards that are held by participants in Consensus’ Equity Incentive Plan, a portion of the awards subject to vesting are withheld by the Company to satisfy the employees’ tax withholding obligations that arise upon the vesting of restricted stock. As a result, the number of shares issued upon vesting for these awards is net of the statutory withholding requirements that the Company pays on behalf of its employees. Although shares withheld are not issued, they are treated as common share repurchases in the Company’s condensed consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. These shares do not count against the authorized capacity under the Company’s share repurchase program described above. During the three months ended March 31, 2025 and 2024, the Company withheld shares on its vested restricted stock units and restricted stock awards relating to its share-based compensation plans of 13,477 shares and 15,340 shares, respectively.

Dividends
The Company currently does not issue dividends to Consensus shareholders. Future dividends are subject to Board approval. Our current debt agreements could trigger restrictions on dividend payments under certain circumstances (see Note 7 - Long-Term Debt).
v3.25.1
Equity Incentive Plan
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Equity Incentive Plan Equity Incentive Plan
The Company’s share-based compensation plans include the 2021 Equity Incentive Plan (the “2021 Plan”).

2021 Equity Incentive Plan
In December 2021, Consensus’ Board of Directors adopted the 2021 Plan, which provides for the grant of incentive stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and share units and other share-based awards. Under the 2021 Plan, 4,000,000 shares of common stock are authorized to be granted. As of March 31, 2025, 1,374,900 shares were available to be used under the 2021 Plan.

Restricted stock unit activity for the three months ended March 31, 2025 is set forth below:
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Outstanding at January 1, 2025
2,096,316$33.24 
Granted18,724 28.03 
Vested(31,885)44.43 
Canceled(22,787)29.29 
Outstanding at March 31, 2025
2,060,368 $33.07 

As of March 31, 2025, the Company had unrecognized share-based compensation cost related to its restricted stock units of $34.3 million, which is expected to be recognized over a weighted-average period of 2.5 years.
The Company capitalized $0.7 million of share-based compensation cost during both of the three months ended March 31, 2025 and 2024, respectively, within property and equipment, net on its Condensed Consolidated Balance Sheets.
v3.25.1
Earnings Per Share
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Earnings Per Share Earnings Per Share
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data):
Three Months Ended March 31,
20252024
Numerator for basic and diluted net income per common share:
Net income attributable to common shareholders
$21,152 $26,370 
Net income available to participating securities (1)
— (10)
Net income available to common shareholders from operations$21,152 $26,360 
Denominator:
Weighted-average outstanding shares of common stock 19,530,579 19,220,340 
Dilutive effect of:
Equity incentive plans155,786 4,582 
Employee Stock Purchase Plan4,457 8,814 
Common stock and common stock equivalents 19,690,822 19,233,736 
Net income per share from operations:
Basic$1.08 $1.37 
Diluted$1.07 $1.37 
(1) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid).
For the three months ended March 31, 2025 and 2024, there were 982,400 and 1,406,900 anti-dilutive shares, respectively, that were excluded from the earnings per share calculation.
v3.25.1
Segment Information
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Segment Information Segment Information
The following presents the segment information of Cloud Fax (in thousands):
 Three Months Ended March 31,
 20252024

Revenues$87,138 $88,146 
Less:
Salary and benefits19,951 21,715 
Marketing5,032 4,460 
Phone operations4,235 4,044 
Outside services3,836 4,341 
Depreciation and amortization5,178 4,767 
Other segment items (1)
11,409 11,152 
Segment operating profit37,497 37,667 
Interest expense(8,976)(6,199)
Interest income451 923 
Other (expense) income, net (2)
(1,097)3,902 
Segment earnings before income taxes27,875 36,293 
Income tax expense6,723 9,923 
Segment net income$21,152 $26,370 
(1) Other segment items includes: database hosting expenses, computer and related expenses, processing fees, bad debt expense, taxes and insurance expenses, office expenses, travel and entertainment expenses, other administrative expenses and miscellaneous expenses.
(2) Other (expense) income, net includes: gain/loss on foreign currency exchange and miscellaneous income/expense.
The Company maintains operations in the U.S., Canada, Ireland and other countries. Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on markets where revenues are reported (in thousands):
Three Months Ended March 31,
20252024
Revenues:
United States$68,756 $69,712 
Canada13,623 13,119 
Ireland2,702 3,174 
All other countries2,057 2,141 
Foreign countries18,382 18,434 
Total
$87,138 $88,146 
The following presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets (in thousands):
March 31, 2025December 31, 2024
Long-lived assets:
United States$109,324 $106,244 
Canada170 191 
Ireland139 155 
All other countries1 1 
Foreign countries310 347 
Total$109,634 $106,591 
v3.25.1
Subsequent Events
 3 Months Ended
Mar. 31, 2025
Subsequent Events [Abstract]  
Subsequent Events Subsequent Event
In connection with the Company’s Debt Repurchase Program (see Note 7 - Long-Term Debt), the Company paid $6.0 million, which includes accrued interest, to repurchase $6.0 million in principal of its senior notes subsequent to the period ended March 31, 2025.
v3.25.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Pay vs Performance Disclosure    
Net income $ 21,152 $ 26,370
v3.25.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2025
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.25.1
Basis of Presentation (Policies)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Principles of Consolidation
Principles of Consolidation
The accompanying interim condensed consolidated financial statements include the accounts of Consensus and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Basis of Presentation
Basis of Presentation
The accompanying interim condensed consolidated financial statements are unaudited and have been prepared in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X issued by the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. The Company believes that the disclosures made are adequate to make that information not misleading. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for the fair statement of these interim financial statements have been reflected. It is suggested that these financial statements be read in conjunction with the audited financial statements and the related notes thereto for the year ended December 31, 2024, included in our Annual Report (Form 10-K) filed with the SEC on February 20, 2025. Accordingly, significant accounting policies and other disclosures normally provided have been omitted since such items are disclosed therein.
The results of operations for this interim period are not necessarily indicative of the operating results for the full year or for any future period.
Use of Estimates
Use of Estimates
The preparation of condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, including judgments about the reported amounts of revenue and expenses during the reporting period. The Company believes that its most significant estimates are those related to revenue recognition, internal-use software development costs, share-based compensation expense and income taxes. On an ongoing basis, management evaluates its estimates based on historical experience and on various other factors that the Company believes to be reasonable under the circumstances. Actual results could materially differ from those estimates due to risks and uncertainties, including uncertainty in the current economic environment due to factors such as inflationary pressures and elevated interest rates.
Significant Accounting Policies
There have been no material changes to our significant accounting policies from our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Segment Reporting
Segment Reporting
FASB ASC Topic No. 280, Segment Reporting (“ASC 280”), establishes standards for the way that public business enterprises report information about reportable segments in their annual consolidated financial statements and requires that those entities report selected information about reportable segments in interim financial reports. ASC 280 also establishes
standards for related disclosures about products and services, geographic areas and major customers. The Company’s business segment is based on the organization’s structure used by the chief operating decision maker (“CODM”), who is our chief executive officer (“CEO”), for making operating and investment decisions and for assessing performance. The Company’s CEO reviews financial information presented on a consolidated basis for purposes of assessing performance and making decisions on how to allocate resources. The CEO uses consolidated profit or loss from operations before interest and income taxes to allocate resources predominantly in the annual budget and forecasting process. The CEO considers budget-to-actual variances on a monthly basis when making decisions about allocating capital and personnel. The CEO also uses consolidated profit or loss from operations before interest and income taxes and consolidated net income to assess performance. Accordingly, the Company has determined that it operates one reportable segment known as Cloud Fax (see Note 14 - Segment Information). The condensed consolidated financial statements and related disclosures reflect the segment operations of Cloud Fax.
Reclassifications
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.
Recent Accounting Pronouncements Recent Accounting Pronouncements
In October 2023, the FASB issued Accounting Standards Update (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which amends the disclosure or presentation requirements of a variety of topics in the accounting standards codification in order to conform with certain SEC amendments in Release No. 33-10532, Disclosure Update and Simplification. The effective date for each amendment will be the date on which the SEC removes that related disclosure from its rules. However, if by June 30, 2027, the SEC has not removed the related disclosure from its regulations, the amendments will be removed from the Codification and not become effective. The Company is evaluating the potential impact of this guidance on its consolidated financial statements.
In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The amendments are intended to improve the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. The amendments in this ASU should be applied on either a prospective or retrospective basis. The amendments in this ASU are effective for annual periods beginning after December 15, 2024. Early adoption is permitted. The Company is evaluating the potential impact of this guidance on its consolidated financial statements.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement: Expense Disaggregation Disclosures. The amendments in this ASU require disclosure of more information about certain expenses and costs and should be applied on either a prospective or retrospective basis. The amendments in this ASU are effective for fiscal periods beginning after December 15, 2026. Early adoption is permitted. The Company is currently evaluating the potential impact of this guidance on its consolidated financial statements.
Revenue Recognition
The Company earns revenue from contracts with customers, primarily through the provision of cloud-based communication and digital signature solutions that allow customers to access the Company’s software without taking possession. The contracts include both recurring subscription and usage-based fees, and the total transaction price is allocated to performance obligations in each contract as appropriate. Revenue for cloud-based services is recognized over time in the period earned. The contracts may be terminated early. Fees collected in advance are non-refundable, and they are deferred and recognized in revenue when the related performance obligations are satisfied. Standard Corporate contracts billed monthly include a termination charge equal to the minimum fees payable through the last day of the contract term.
Performance Obligations
Generally, the Company’s contracts with customers include one performance obligation, however, certain contracts may include multiple performance obligations. For such arrangements, revenues are allocated to each performance obligation based on their relative standalone selling price.
The Company satisfies its performance obligations upon delivery of products or services to its customers. Payment terms vary by type and location of the Company’s customers and the products and services offered. The time between invoicing and when payment is due is not significant. Due to the nature of the services provided, there are no obligations for returns.
Significant Judgments
Determining whether products and services are considered distinct performance obligations may require significant judgment. When a contract includes both on-premises software licenses and cloud-based services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the cloud-based service and recognized over time.
Judgment is also required to determine the standalone selling price for each distinct performance obligation when there are multiple performance obligations. In certain cases, the Company is able to establish the standalone selling price based on observable prices of products or services sold or priced separately in comparable circumstances to similar customers. The Company uses a range of amounts to estimate the standalone selling price when each of the products and services is sold separately to determine whether there is a discount to be allocated based on the relative standalone selling price of the various products and services.
Performance Obligations Satisfied Over Time
The Company’s business consists primarily of performance obligations that are satisfied over time based on the fact that the nature of the cloud-based services offered is subscription based where the customer simultaneously receives and consumes the benefit of the services provided regardless of whether the customer uses the services or not. Depending on the individual contracts with the customer, revenue for these services is recognized over the contract period when services are provided. The Company expects to recognize revenue for Corporate contracts typically in a range from month-to-month up to 36 months and recognize revenue for SoHo contracts in a range from month-to-month up to one year. Revenue from usage-based fees is recognized in proportion to the amount for which the Company has the right to invoice for services performed, which corresponds with the utilization of the services by the customer.

The Company has concluded that the best measure of progress toward the complete satisfaction of the performance obligations over time is a time-based measure. The Company recognizes revenue on a straight-line basis throughout the subscription period and believes that the method used is a faithful depiction of the transfer of goods and services.
Practical Expedients
Existence of a Significant Financing Component in a Contract
As a practical expedient, the Company has not assessed whether a contract has a significant financing component because the Company expects at contract inception that the period between payment by the customer and the transfer of promised goods or services by the Company to the customer will be one year or less. In addition, the Company has determined that the payment terms the Company provides to its customers are structured primarily for reasons other than the provision of finance to the Company. The Company typically charges an upfront subscription amount for services, or an amount for usage in arrears, or a combination thereof, as other payment terms would affect the nature of the risk assumed by the Company due to the costs of the customer acquisition and the highly competitive and commoditized nature of the business the Company operates.
Costs to Fulfill a Contract
The Company’s revenues are primarily generated from customer contracts that are for one year or less. Costs primarily consist of incentive compensation paid based on the achievements of sales targets in a given period for related revenue streams and are recognized in the month when the revenue is earned. Incentive compensation is paid upon the issuance or renewal of the customer contract. As a practical expedient, for amortization periods that are determined to be one year or less, the Company expenses any incremental costs of obtaining the contract with a customer when incurred. For those customer contracts greater than one year, the Company capitalizes and amortizes the expenses, when appropriate, over the period of benefit.
Revenues Invoiced
The Company has applied the practical expedient for certain revenue streams to exclude the value of remaining performance obligations for (i) contracts with an original expected term of one year or less or (ii) contracts for which the Company recognizes revenue in proportion to the amount it has the right to invoice for services performed.
Fair Value Measurements
The Company complies with the provisions of FASB ASC Topic No. 820, Fair Value Measurement, (“ASC 820”), which defines fair value, provides a framework for measuring fair value and expands the disclosures required for fair value measurements of financial and non-financial assets and liabilities. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
§Level 1 – Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
§Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
§Level 3 – Unobservable inputs which are supported by little or no market activity.
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.
The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. Cash and cash equivalents include money market funds of $46.1 million and $26.8 million as of March 31, 2025 and December 31, 2024, respectively, which are valued based on Level 1 inputs consisting of quoted prices in active markets. The carrying value of the Company’s cash and cash equivalents approximates fair value.
The fair value of long-term debt is determined using recent quoted market prices or dealer quotes for each of the Company’s instruments, which are Level 1 inputs (see Note 7 - Long-Term Debt). The carrying value of long-term debt is reflected in the financial statements at cost.
Assets Measured on a Non-Recurring Basis
The Company’s non-financial assets, which primarily consist of goodwill, indefinite-lived intangible assets, long-lived assets and equity securities without a readily determinable fair value are reported at carrying value, or at fair value as of their acquisition dates, and are not required to be measured at fair value on a recurring basis. However, if any of these types of assets become impaired, the carrying values of the assets are written down to fair value using Level 3 inputs.
v3.25.1
Revenues (Tables)
 3 Months Ended
Mar. 31, 2025
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue
Revenues from external customers classified by revenue source are as follows (in thousands):
Three Months Ended March 31,
20252024
Revenues
Corporate$54,289 $51,390 
Small office home office (“SoHo”)32,849 36,754 
Other— 2 
Total
$87,138 $88,146 
Timing of revenue recognition
Point in time$643 $210 
Over time86,495 87,936 
Total$87,138 $88,146 
v3.25.1
Property and Equipment (Tables)
 3 Months Ended
Mar. 31, 2025
Property, Plant and Equipment [Abstract]  
Property, Plant and Equipment
Property and equipment, stated at cost, as of March 31, 2025 and December 31, 2024 consisted of the following (in thousands):
March 31, 2025December 31, 2024
Internal-use software development costs
$89,670 $88,244 
Computers, software and equipment
18,779 18,616 
Furniture and fixtures
885 882 
Leasehold improvements1,718 1,715 
Internal-use software development costs in process
53,140 46,676 
164,192 156,133 
Less: Accumulated depreciation and amortization(60,684)(56,057)
 Total property and equipment, net$103,508 $100,076 
v3.25.1
Goodwill and Intangible Assets (Tables)
 3 Months Ended
Mar. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amounts of Goodwill
The changes in carrying amounts of goodwill for the three months ended March 31, 2025 are as follows (in thousands):
Amount
Balance as of January 1, 2025
$345,036 
Foreign exchange translation2,375 
Balance as of March 31, 2025$347,411 
As of March 31, 2025 the Company’s goodwill had no accumulated impairment.
Intangible Assets with Indefinite Lives
Intangible assets are summarized as of March 31, 2025 and December 31, 2024 as follows (in thousands):
March 31, 2025December 31, 2024
Trade names$27,348 $27,316 
Other4,045 4,045 
Total$31,393 $31,361 
Intangible Assets Subject to Amortization
As of March 31, 2025, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.2 years$8,165 $7,916 $249 
Patent and patent licenses0.0 years54,341 54,341 — 
Customer relationships (1)
2.0 years108,016 100,310 7,706 
Other purchased intangibles 1.1 years11,920 10,708 1,212 
Total
 $182,442 $173,275 $9,167 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.

    As of December 31, 2024, intangible assets subject to amortization are summarized as follows (in thousands):
Weighted-Average Remaining
  Amortization
Period
Historical
Cost		Accumulated
Amortization		Net
Trade names0.2 years$8,107 $7,826 $281 
Patent and patent licenses0.0 years54,341 54,341 — 
Customer relationships (1)
2.1 years107,287 99,054 8,233 
Other purchased intangibles 1.2 years11,914 10,576 1,338 
Total$181,649 $171,797 $9,852 
(1) The Company amortizes its customer relationship assets in a pattern that best reflects the pace in which the assets’ benefits are consumed. This pattern results in a substantial majority of the amortization expense being recognized in the first four to five years, which may not correlate to the overall life of the asset.
Estimated Intangible Assets Amortization Expense
Expected amortization expenses for intangible assets subject to amortization at March 31, 2025 are as follows (in thousands):
Fiscal Year:Amount
2025 (remainder)
$1,888 
2026
2,099 
2027
1,399 
2028
986 
2029
803 
Thereafter1,992 
Total$9,167 
v3.25.1
Long-Term Debt (Tables)
 3 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Summary of Long-term Debt
Long-term debt as of March 31, 2025 and December 31, 2024 consists of the following (in thousands):
March 31, 2025December 31, 2024
2026 Senior Notes$240,139 $248,980 
2028 Senior Notes348,247 349,137
Total
588,386 598,117 
Less: deferred issuance costs
(4,670)(5,135)
Total debt
583,716 592,982 
Less: current portion, net of debt issuance costs
(6,126)(18,902)
Total long-term debt, less current portion
$577,590 $574,080 
Future Principal Payments for Debt
At March 31, 2025, future contractual principal payments for debt were as follows (in thousands):
Fiscal year:Total
2025 (1) (remainder)
$6,000 
2026234,139 
2027— 
2028348,247 
2029— 
Thereafter— 
Total$588,386 
(1) The Company has reclassified $6.0 million from the 2026 period into the 2025 period as debt repurchases were made subsequent to March 31, 2025 but prior to the filing of these financial statements (see Note 15 - Subsequent Event).
v3.25.1
Other Balance Sheet Account Details (Tables)
 3 Months Ended
Mar. 31, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
March 31, 2025December 31, 2024
Prepaid insurance$1,839 $2,601 
Prepaid income taxes673 2,065 
Prepaid marketing expense
— 3,365 
Prepaid software licenses
4,812 4,346 
Other prepaid expenses
3,778 3,389 
Other current assets248 293 
Total$11,350 $16,059 
Schedule of Accounts Payable and Accrued Liabilities
Accounts payable and accrued expenses consisted of the following (in thousands):
March 31, 2025December 31, 2024
Accounts payable$6,509 $7,383 
Accrued sales and other taxes6,821 6,796 
Accrued interest17,000 7,939 
Accrued compensation5,023 10,425 
Accrued advertising expenses1,566 2,719 
Other accrued expenses
2,944 1,215 
Total$39,863 $36,477 
v3.25.1
Equity Incentive Plan (Tables)
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Restricted Stock Unit Award Activity
Restricted stock unit activity for the three months ended March 31, 2025 is set forth below:
Number of
Shares		Weighted-Average
Grant-Date
Fair Value
Outstanding at January 1, 2025
2,096,316$33.24 
Granted18,724 28.03 
Vested(31,885)44.43 
Canceled(22,787)29.29 
Outstanding at March 31, 2025
2,060,368 $33.07 
v3.25.1
Earnings Per Share (Tables)
 3 Months Ended
Mar. 31, 2025
Earnings Per Share [Abstract]  
Components of Basic and Diluted Earnings Per Share
The components of basic and diluted earnings per share are as follows (in thousands, except share and per share data):
Three Months Ended March 31,
20252024
Numerator for basic and diluted net income per common share:
Net income attributable to common shareholders
$21,152 $26,370 
Net income available to participating securities (1)
— (10)
Net income available to common shareholders from operations$21,152 $26,360 
Denominator:
Weighted-average outstanding shares of common stock 19,530,579 19,220,340 
Dilutive effect of:
Equity incentive plans155,786 4,582 
Employee Stock Purchase Plan4,457 8,814 
Common stock and common stock equivalents 19,690,822 19,233,736 
Net income per share from operations:
Basic$1.08 $1.37 
Diluted$1.07 $1.37 
(1) Represents unvested share-based payment awards that contain certain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid).
v3.25.1
Segment Information (Tables)
 3 Months Ended
Mar. 31, 2025
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following presents the segment information of Cloud Fax (in thousands):
 Three Months Ended March 31,
 20252024

Revenues$87,138 $88,146 
Less:
Salary and benefits19,951 21,715 
Marketing5,032 4,460 
Phone operations4,235 4,044 
Outside services3,836 4,341 
Depreciation and amortization5,178 4,767 
Other segment items (1)
11,409 11,152 
Segment operating profit37,497 37,667 
Interest expense(8,976)(6,199)
Interest income451 923 
Other (expense) income, net (2)
(1,097)3,902 
Segment earnings before income taxes27,875 36,293 
Income tax expense6,723 9,923 
Segment net income$21,152 $26,370 
(1) Other segment items includes: database hosting expenses, computer and related expenses, processing fees, bad debt expense, taxes and insurance expenses, office expenses, travel and entertainment expenses, other administrative expenses and miscellaneous expenses.
(2) Other (expense) income, net includes: gain/loss on foreign currency exchange and miscellaneous income/expense.
Revenues and Long-lived Assets by Geographic Information Geographic information about the U.S. and all other countries for the reporting periods is presented below. Such information attributes revenues based on markets where revenues are reported (in thousands):
Three Months Ended March 31,
20252024
Revenues:
United States$68,756 $69,712 
Canada13,623 13,119 
Ireland2,702 3,174 
All other countries2,057 2,141 
Foreign countries18,382 18,434 
Total
$87,138 $88,146 
The following presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets (in thousands):
March 31, 2025December 31, 2024
Long-lived assets:
United States$109,324 $106,244 
Canada170 191 
Ireland139 155 
All other countries1 1 
Foreign countries310 347 
Total$109,634 $106,591 
v3.25.1
Basis of Presentation (Details)
 3 Months Ended
Mar. 31, 2025
segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of reportable segments 1
v3.25.1
Revenues (Disaggregation of Revenue) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Disaggregation of Revenue [Line Items]    
Revenues $ 87,138 $ 88,146
Point in time    
Disaggregation of Revenue [Line Items]    
Revenues 643 210
Over time    
Disaggregation of Revenue [Line Items]    
Revenues 86,495 87,936
Corporate    
Disaggregation of Revenue [Line Items]    
Revenues 54,289 51,390
Small office home office (“SoHo”)    
Disaggregation of Revenue [Line Items]    
Revenues 32,849 36,754
Other    
Disaggregation of Revenue [Line Items]    
Revenues $ 0 $ 2
v3.25.1
Revenues (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]    
Contract liability, revenue recognized $ 9.5 $ 10.1
v3.25.1
Fair Value Measurements (Details) - USD ($)
$ in Millions
Mar. 31, 2025
Dec. 31, 2024
Fair Value Disclosures [Abstract]    
Money market funds $ 46.1 $ 26.8
Carrying amount of investments accounted for using alternative method $ 8.0 $ 4.0
v3.25.1
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 164,192 $ 156,133
Less: Accumulated depreciation and amortization (60,684) (56,057)
Property and equipment, net 103,508 100,076
Internal-use software development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 89,670 88,244
Computers, software and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 18,779 18,616
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 885 882
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 1,718 1,715
Internal-use software development costs in process    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 53,140 $ 46,676
v3.25.1
Property and Equipment (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Property, Plant and Equipment [Abstract]    
Depreciation and amortization expense $ 4,500,000 $ 3,900,000
Impairment $ 0 $ 0
v3.25.1
Goodwill and Intangible Assets (Changes in Carrying Amounts of Goodwill) (Details)
 3 Months Ended
Mar. 31, 2025
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 345,036,000
Foreign exchange translation 2,375,000
Ending balance 347,411,000
Goodwill accumulated impairment $ 0
v3.25.1
Goodwill and Intangible Assets (Intangible Assets with Indefinite Lives) (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 31,393 $ 31,361
Trade names    
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets 27,348 27,316
Other    
Indefinite-lived Intangible Assets [Line Items]    
Intangible assets $ 4,045 $ 4,045
v3.25.1
Goodwill and Intangible Assets (Intangible Assets Subject to Amortization) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Finite-Lived Intangible Assets [Line Items]      
Historical Cost $ 182,442   $ 181,649
Accumulated Amortization 173,275   171,797
Net $ 9,167   $ 9,852
Trade names      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Remaining   Amortization Period 2 months 12 days   2 months 12 days
Historical Cost $ 8,165   $ 8,107
Accumulated Amortization 7,916   7,826
Net $ 249   $ 281
Patent and patent licenses      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Remaining   Amortization Period 0 years   0 years
Historical Cost $ 54,341   $ 54,341
Accumulated Amortization 54,341   54,341
Net $ 0   $ 0
Customer relationships      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Remaining   Amortization Period 2 years   2 years 1 month 6 days
Historical Cost $ 108,016   $ 107,287
Accumulated Amortization 100,310   99,054
Net $ 7,706   $ 8,233
Customer relationships | Minimum      
Finite-Lived Intangible Assets [Line Items]      
Substantial amortization period, majority of amortization expense 4 years 4 years  
Customer relationships | Maximum      
Finite-Lived Intangible Assets [Line Items]      
Substantial amortization period, majority of amortization expense 5 years 5 years  
Other purchased intangibles      
Finite-Lived Intangible Assets [Line Items]      
Weighted-Average Remaining   Amortization Period 1 year 1 month 6 days   1 year 2 months 12 days
Historical Cost $ 11,920   $ 11,914
Accumulated Amortization 10,708   10,576
Net $ 1,212   $ 1,338
v3.25.1
Goodwill and Intangible Assets (Estimated Intangible Assets Amortization Expense) (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Fiscal Year:    
2025 (remainder) $ 1,888  
2026 2,099  
2027 1,399  
2028 986  
2029 803  
Thereafter 1,992  
Net $ 9,167 $ 9,852
v3.25.1
Goodwill and Intangible Assets (Narrative) (Details) - USD ($)
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization expense $ 700,000 $ 900,000
Impairment of intangible assets $ 0 $ 0
v3.25.1
Long-Term Debt (Summary of Long-term Debt) (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Debt Instrument [Line Items]    
Gross long-term debt $ 588,386  
Less: deferred issuance costs (4,670) $ (5,135)
Total debt 583,716 592,982
Less: current portion, net of debt issuance costs (6,126) (18,902)
Long-term debt, net of current portion 577,590 574,080
Senior Notes    
Debt Instrument [Line Items]    
Gross long-term debt 588,386 598,117
2026 Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Gross long-term debt 240,139 248,980
2028 Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Gross long-term debt $ 348,247 $ 349,137
v3.25.1
Long-Term Debt - Future Principal Payments for Debt (Details) - USD ($)
$ in Thousands
May 08, 2025
Mar. 31, 2025
Debt Instrument [Line Items]    
2025   $ 6,000
2026   234,139
2027   0
2028   348,247
2029   0
Thereafter   0
Total   $ 588,386
Senior Notes | Subsequent Event    
Debt Instrument [Line Items]    
Reclassified debt from 2026 $ 6,000  
v3.25.1
Long-Term Debt (Narrative) (Details) - USD ($)
 3 Months Ended
Nov. 09, 2023
Mar. 04, 2022
Oct. 07, 2021
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Debt Instrument [Line Items]            
Interest expense       $ 800,000 $ 700,000  
Debt repurchase program, principal reduction amount $ 300,000,000          
Principal retired       9,700,000 63,500,000  
Reclassified amount of long term debt       6,126,000   $ 18,902,000
Net (loss) gain on debt extinguishment       (77,000) $ 4,865,000  
Senior Notes            
Debt Instrument [Line Items]            
Retired debt, principal       216,600,000    
Senior Notes | 2026 Notes            
Debt Instrument [Line Items]            
Notes payable, fair value       239,200,000   246,200,000
Debt instrument, face amount     $ 305,000,000      
Proceeds from issuance of senior long-term debt     $ 301,200,000      
Stated interest rate     6.00%      
Covenant, leverage ratio, minimum     3.0      
Covenant, leverage ratio, maximum     3.0      
Covenant, restriction on payments, aggregate amount, maximum     $ 100,000,000      
Covenant, earnings before interest, taxes, depreciation, and amortization, maximum     50.00%      
Senior Notes | 2028 Notes            
Debt Instrument [Line Items]            
Notes payable, fair value       340,400,000   $ 346,100,000
Debt instrument, face amount     $ 500,000,000      
Stated interest rate     6.50%      
Covenant, leverage ratio, minimum     3.0      
Covenant, leverage ratio, maximum     3.0      
Covenant, restriction on payments, aggregate amount, maximum     $ 100,000,000      
Covenant, earnings before interest, taxes, depreciation, and amortization, maximum     50.00%      
Line of Credit | Revolving Credit Facility            
Debt Instrument [Line Items]            
Line of credit facility, maximum borrowing capacity   $ 25,000,000        
Line of credit facility, accordion feature, increase limit   $ 25,000,000        
Long-term line of credit       $ 0    
Line of Credit | Revolving Credit Facility | Minimum            
Debt Instrument [Line Items]            
Debt instrument, basis spread on variable rate   1.75%        
Line of Credit | Revolving Credit Facility | Maximum            
Debt Instrument [Line Items]            
Debt instrument, basis spread on variable rate   2.50%        
v3.25.1
Other Balance Sheet Account Details -Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Prepaid insurance $ 1,839 $ 2,601
Prepaid income taxes 673 2,065
Prepaid marketing expense 0 3,365
Prepaid software licenses 4,812 4,346
Other prepaid expenses 3,778 3,389
Other current assets 248 293
Prepaid expenses and other current assets $ 11,350 $ 16,059
v3.25.1
Other Balance Sheet Account Details - Accounts Payable and Accrued Liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2025
Dec. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accounts payable $ 6,509 $ 7,383
Accrued sales and other taxes 6,821 6,796
Accrued interest 17,000 7,939
Accrued compensation 5,023 10,425
Accrued advertising expenses 1,566 2,719
Other accrued expenses 2,944 1,215
Total $ 39,863 $ 36,477
v3.25.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Income Tax Disclosure [Abstract]      
Effective income tax rate 24.10% 27.30%  
Liability for uncertain income tax positions $ 13,635   $ 13,218
v3.25.1
Stockholders' Deficit (Details)
 3 Months Ended 37 Months Ended
Mar. 31, 2025
shares
Mar. 31, 2024
USD ($)
shares
Mar. 31, 2025
USD ($)
shares
Mar. 01, 2022
USD ($)
Stockholder's Equity [Line Items]        
Stock repurchase program, authorized amount       $ 100,000,000
Stock repurchased during period, shares (in shares) | shares 1,471 42,962 1,087,196  
Aggregate cost for repurchase of common stock   $ 700,000 $ 32,400,000  
Sales and excise tax payable     $ 200,000  
Excise tax rate     0.01  
Common stock        
Stockholder's Equity [Line Items]        
Share-based payment arrangement, shares withheld for tax withholding obligation (in shares) | shares 13,477 15,340    
v3.25.1
Equity Incentive Plan (Narrative) (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based payment arrangement, amount capitalized $ 0.7 $ 0.7  
Restricted Stock Units      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation cost related to non-vested awards granted $ 34.3    
Weighted-average period to recognize compensation cost 2 years 6 months    
Equity Incentive Plan 2021      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Maximum issuance of common stock (in shares) 1,374,900   4,000,000
v3.25.1
Equity Incentive Plan (Restricted Stock and Restricted Stock Unit Award Activity) (Details) - Restricted Stock Units
 3 Months Ended
Mar. 31, 2025
$ / shares
shares
Number of Shares  
Beginning of period (in shares) | shares 2,096,316
Granted (in shares) | shares 18,724
Vested (in shares) | shares (31,885)
Canceled (in shares) | shares (22,787)
End of period (in shares) | shares 2,060,368
Weighted-Average Grant-Date Fair Value  
Nonvested at beginning of period (in dollars per share) | $ / shares $ 33.24
Granted (in dollars per share) | $ / shares 28.03
Vested (in dollars per share) | $ / shares 44.43
Canceled (in dollars per share) | $ / shares 29.29
Nonvested at end of period (in dollars per share) | $ / shares $ 33.07
v3.25.1
Earnings Per Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Numerator for basic and diluted net income per common share:    
Net income attributable to common shareholders $ 21,152 $ 26,370
Net income available to participating securities, basic 0 (10)
Net income available to participating securities, diluted 0 (10)
Net income available to common shareholders from operations 21,152 26,360
Net income available to common shareholders from operations $ 21,152 $ 26,360
Denominator:    
Weighted-average outstanding shares of common stock (in shares) 19,530,579 19,220,340
Dilutive effect of:    
Common stock and common stock equivalents (in shares) 19,690,822 19,233,736
Net income per share from operations:    
Basic (in dollars per share) $ 1.08 $ 1.37
Diluted (in dollars per share) $ 1.07 $ 1.37
Anti-dilutive shares were excluded from earnings per share calculation (in shares) 982,400 1,406,900
Equity incentive plans    
Dilutive effect of:    
Equity incentive plans (in shares) 155,786 4,582
Employee Stock Purchase Plan    
Dilutive effect of:    
Equity incentive plans (in shares) 4,457 8,814
v3.25.1
Segment Information - Segment Information by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Segment Reporting Information [Line Items]    
Income from operations $ 37,497 $ 37,667
Interest expense (8,976) (6,199)
Interest income 451 923
Other (expense) income, net (1,097) 3,902
Segment earnings before income taxes 27,875 36,293
Income tax expense 6,723 9,923
Income from continuing operations 21,152 26,370
Cloud Fax Segment    
Segment Reporting Information [Line Items]    
Revenues 87,138 88,146
Salary and benefits 19,951 21,715
Marketing 5,032 4,460
Phone operations 4,235 4,044
Outside services 3,836 4,341
Depreciation and amortization 5,178 4,767
Other segment items 11,409 11,152
Income from operations 37,497 37,667
Interest expense (8,976) (6,199)
Interest income 451 923
Other (expense) income, net (1,097) 3,902
Segment earnings before income taxes 27,875 36,293
Income tax expense 6,723 9,923
Income from continuing operations $ 21,152 $ 26,370
v3.25.1
Segment Information (Revenues and Long-lived Assets by Geographic Information) (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2025
Mar. 31, 2024
Dec. 31, 2024
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues $ 87,138 $ 88,146  
Long-lived assets 109,634   $ 106,591
United States      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 68,756 69,712  
Long-lived assets 109,324   106,244
Canada      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 13,623 13,119  
Long-lived assets 170   191
Ireland      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 2,702 3,174  
Long-lived assets 139   155
All other countries      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 2,057 2,141  
Long-lived assets 1   1
Foreign countries      
Revenues from External Customers and Long-Lived Assets [Line Items]      
Revenues 18,382 $ 18,434  
Long-lived assets $ 310   $ 347
v3.25.1
Subsequent Events (Details) - Senior Notes - USD ($)
$ in Millions
May 07, 2025
Mar. 31, 2025
Subsequent Event [Line Items]    
Retired debt, principal   $ 216.6
Subsequent Event    
Subsequent Event [Line Items]    
Repurchased amount $ 6.0  
Retired debt, principal $ 6.0