Synchronoss Technologies reported a decrease in revenue to $42 million, down from $43 million in the prior year, attributing it to delayed new customer contracts and weaker subscriber growth. The company reduced its full-year revenue guidance to $169 million-$172 million and adjusted EBITDA guidance to $50 million-$53 million. While subscriber growth decelerated to approximately one percent year-over-year, recurring revenue remained strong at 93.8% of total revenue. Additionally, the company saw a one-time net income boost of $5.8 million, supported by a $5.2 million IRS interest income event. Adjusted EBITDA was reported at $12 million, with an adjusted gross margin of 28.5%. Operating expenses decreased by 3.5% to $36.1 million. Free cash flow reached $36 million, driven primarily by a tax refund receipt, while adjusted free cash flow stood at $4.2 million. The company also pre-paid a $25.4 million term loan at par following the receipt of a $33.9 million tax refund, resulting in a reduced net debt of $139.8 million. Management highlighted ongoing AI initiatives and improvements in product innovation. With strategic advancements with major customers like AT&T, Verizon, and SoftBank, the company aims to improve customer penetration levels and drive growth in 2026 and beyond.

Read more at Nasdaq: Synchronoss (SNCR) Q3 2025 Earnings Transcript