CSG SYSTEMS INTERNATIONAL INC Q1 FY26 Results

Summary

CSG Systems International reported a solid first quarter for 2026, with total revenue climbing 4.8% year-over-year to $313.7 million, largely attributed to the expansion of its SaaS and related solutions. The company demonstrated strong profit growth, with GAAP operating income increasing 19.4% to $35.1 million and non-GAAP operating income rising 10.6% to $56.9 million. GAAP diluted EPS saw a substantial 45.6% jump to $0.83, while non-GAAP diluted EPS grew 20.2% to $1.37. Additionally, non-GAAP adjusted free cash flow improved by 12.9% to $8.0 million, and the company's merger with NEC Corporation is on track to close by year-end 2026.

Key Highlights

1. 1

   Total revenue for the first quarter of 2026 reached $313.7 million, marking a 4.8% increase compared to the first quarter of 2025, primarily driven by growth in SaaS and related solutions.

2. 2

   GAAP operating income for Q1 2026 grew by 19.4% to $35.1 million, achieving an operating margin of 11.2%.

3. 3

   Non-GAAP operating income increased by 10.6% to $56.9 million, resulting in a non-GAAP adjusted operating margin of 20.0%.

4. 4

   GAAP earnings per diluted share (EPS) significantly rose by 45.6% to $0.83, while non-GAAP EPS increased by 20.2% to $1.37.

5. 5

   Non-GAAP adjusted free cash flow improved by 12.9% to $8.0 million for the quarter.

6. 6

   CSG declared a quarterly cash dividend of $0.34 per share of common stock, totaling approximately $10 million.

7. 7

   The previously announced merger with NEC Corporation received stockholder approval on January 30, 2026, and is anticipated to close by the end of 2026, pending customary closing conditions and regulatory approvals.