Synchronoss Technologies Reports Third Quarter 2025 Results

Net Income of $5.8 Million and Diluted EPS of $0.51 Per Share Revenue of $42.0 Million, Including 93.8% Recurring Revenue Company Reiterates Expectation of Adding a New Customer in 2025 Additional Tier 1 Customer Signing Expected in First Half of 2026 BRIDGEWATER, N.J., Nov. 04, 2025 (GLOBE NEWSWIRE) -- Synchronoss Technologies Inc. (“Synchronoss” or the “Company”) (Nasdaq: SNCR), a global leader and innovator in Personal Cloud platforms, today reported financial results for its third quarter ended September 30, 2025. Third Quarter and Recent Operational Highlights Reported total revenue of $42.0 million including 93.8% recurring revenue, driven primarily by approximately 1% cloud subscriber growth year-over-year.Quarterly results included net income of $5.8 million, $5.9 million in income from operations, $35.9 million in free cash flow, $4.2 million in adjusted free cash flow*, and $12.0 million in adjusted EBITDA*.Received the entirety of the $33.9 million of the outstanding balance of the CARES Act Tax refund and used proceeds to materially reduce net debt to approximately 2.7x anticipated FY25 adjusted EBITDA and annual interest payments by approximately $2.8 million.Successfully completed and deployed a hybrid cloud AI model for advanced content intelligence, which continues our focus on cost optimization by enabling in-house photo tagging and image embeddings to be dynamically distributed across both Company-owned and public cloud environments.The Company has reiterated its expectations of adding a new customer in 2025 and continues to make forward progress on adding a new tier 1 customer in the first half of 2026, both of which would contribute to revenue growth and enhanced profitability next year. “In the third quarter, we demonstrated the strength of our SaaS powered cloud model, generating $42 million in revenue with 93.8% being recurring, net income of $5.8 million resulting in diluted EPS of $0.51, and $12.0 million adjusted EBITDA while facing headwinds from subscriber growth weakness at certain customers. We also received the remaining balance of our CARES Act Tax refund in the quarter, which was used to reduce our total debt load while providing additional cash to the balance sheet to invest in future growth initiatives,” stated Jeff Miller, President and CEO of Synchronoss. “We continue to make meaningful progress with our key customers, including strong subscriber growth at AT&T, implementing new initiatives to accelerate growth at Verizon, and advancing cloud application discovery integrations at SoftBank that position us for expanded subscriber reach. Given the sales cycle in our business and a robust pipeline, we have high confidence in adding at least one new cloud customer in 2025 and a new tier 1 customer in the first half of 2026. We expect that these new wins will allow us to return to strong, profitable growth in 2026 and beyond. As a result, we believe we are well-positioned to drive enhanced shareholder value as we enter next year.” Third Quarter 2025 Financial Results:Results compare the three months ended September 30, 2025 to the three months ended September 30, 2024. Total revenue decreased to $42.0 million from $43.0 million in the prior year period, due to delays in new customer signings and subscriber growth weakness at some customers during the quarter.Quarterly recurring revenue* was 93.8% of total revenue, compared to 92.2% in the prior year period.Gross profit was $29.2 million (gross margin of 69.4%) compared to $29.9 million (gross margin of 69.6%) in the prior year period.Adjusted gross profit* was $33.4 million (adjusted gross margin of 79.5%*) compared to $34.2 million (adjusted gross margin of 79.6%) in the prior year period.Income from operations was $5.9 million compared to $5.5 million in the prior year period.Net income (loss) attributable to Synchronoss was $5.8 million, or $0.51 per diluted share, compared to $(5.7) million, or $(0.56) per diluted share, in the prior year period. This change was driven primarily by a $5.2 million one-time interest income event from our tax refund.Adjusted EBITDA* was $12.0 million (adjusted EBITDA margin* of 28.5%) compared to $12.7 million (adjusted EBITDA margin of 29.5%) in the prior year period.Cash and cash equivalents* were $34.8 million as of September 30, 2025, compared to $24.6 million as of June 30, 2025. In the third quarter of 2025, free cash flow was $35.9 million and adjusted free cash flow* was $4.2 million, compared to free cash flow of $(27) thousand and adjusted free cash flow of $1.3 million in the prior year period. 2025 Financial Outlook Based on information available as of November 4, 2025, the Company is revising its full 2025 outlook items as follows: Revenue range of between $169 and $172 million.Recurring revenue* of at least 90% of total revenue.Adjusted gross margin* of between 78%-80%.Adjusted EBITDA* of between $50 million and $53 million, which equals at least 30% adjusted EBITDA margin*.Free Cash Flow* of between $6 and $10 million. The Company’s free cash flow guidance excludes proceeds from the federal tax refund of approximately $33.9 million and approximately $4.4 million of transaction fees from the 2025 term loan. These statements are forward-looking and actual results may differ materially. Refer to the “Forward-Looking Statements” below for information on the factors that could cause Synchronoss' actual results to differ materially from these forward-looking statements. * A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading “Non-GAAP Financial Measures.” A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is included below under the heading "Non-GAAP Financial Measures." With respect to forward-looking statements related to adjusted EBITDA, adjusted EBITDA margin, adjusted gross margin and free cash flow, the Company has relied upon the exception in item 10(e)(1)(i)(B) of Regulation S-K and has not provided a quantitative reconciliation of (i) forecasted adjusted EBITDA to forecasted GAAP net income (loss) attributable to Synchronoss or to forecasted GAAP income (loss) from operations, before taxes, (ii) adjusted gross margin or adjusted EBITDA margin to GAAP gross margin and (iii) free cash flow to income (loss) from operations within this earnings release because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items relating to those financial measures with confidence. These items include, but are not limited to, fair value of stock-based compensation expense, acquisition-related costs, restructuring, transition and cease-use lease expense, change in contingent consideration, litigation, remediation and refiling costs, depreciation and amortization, interest income, interest expense, loss on debt extinguishment, debt modification expense, foreign exchange impact, net loss (income) from discontinued operations, loss (gain) on divestitures, other (income) expense, provision (benefit) for income taxes, net loss (income) attributable to non-controlling interests and preferred dividends, net of gain on repurchase of preferred stock. Conference Call Synchronoss will hold a conference call today, November 4, 2025, at 4:30 p.m. Eastern time (1:30 p.m. Pacific time) to discuss these results. Synchronoss management will host the call, followed by a question-and-answer period. Dial-In Number: 877-451-6152 (domestic) or 201-389-0879 (international)Conference ID: 13755797 The conference call will be broadcast live and available for replay here:https://edge.media-server.com/mmc/p/bxc9u3wi/ and via the Investor Relations section of Synchronoss' website at www.synchronoss.com. Non-GAAP Financial Measures Synchronoss has provided in this release selected financial information that has not been prepared in accordance with GAAP although this non-GAAP financial information is derived from numbers that have been prepared in accordance with GAAP. This information includes adjusted gross profit, adjusted gross margin, adjusted EBITDA, Adjusted EBITDA margin, non-GAAP net income (loss) attributable to Synchronoss, diluted non-GAAP net income (loss) per share, free cash flow, adjusted free cash flow (which excludes cash payments and receipts related to non-core business activities) and recurring revenue. The Company believes that the exclusion of non-routine cash-settled expenses, such as litigation and remediation costs (net), and restructuring costs in the calculation of adjusted free cash flow which do not correlate to the operation of its business, provide for more useful period-to-period comparisons of the Company’s results. Synchronoss uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Synchronoss’ ongoing operational performance. Synchronoss believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends, and in comparing its financial results with other companies in Synchronoss’ industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial results discussed above add back or deduct certain expenses. These expenses include but are not limited to the following: fair value of stock-based compensation expense, acquisition-related costs, restructuring, transition and cease-use lease expense, change in contingent consideration, litigation, remediation and refiling costs, non-recurring professional fees, depreciation and amortization, interest income, interest expense, loss on debt extinguishment, debt modification expense, foreign exchange impact, net loss (income) from discontinued operations, loss (gain) on divestitures, other (income) expense, provision (benefit) for income taxes, net loss (income) attributable to non-controlling interests and preferred dividends, net of gain on repurchase of preferred stock. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measures as detailed above. Investors are encouraged to also review the Balance Sheet, Statement of Operations, and Statement of Cash Flow. As previously mentioned, a reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. Adjusted EBITDA is calculated by taking GAAP Net (loss) income attributable to Synchronoss and making specific adjustments to it, such as adding back certain non-recurring expenses or removing certain one-time income items to provide a more normalized view of the company's operating performance. These adjustments include, but are not limited to, fair value of stock-based compensation expense, acquisition-related costs, restructuring, transition and cease-use lease expense, net, change in contingent consideration, litigation, remediation and refiling costs, non-recurring professional fees, depreciation and amortization, interest income, interest expense, net loss (income) from discontinued operations, loss (gain) on divestitures, other (income) expense, loss on debt extinguishment, debt modification expense, foreign exchange impact, provision (benefit) for income taxes, net loss (income) attributable to non-controlling interests and preferred dividends, net of gain on repurchase of preferred stock. Adjusted EBITDA Margin is calculated as Adjusted EBITDA divided by revenue. Adjusted Gross Profit is calculated by starting with the standard gross profit (Revenue minus cost of revenues, less the restructuring costs associated with cost of revenues and depreciation and amortization expenses associated with cost of revenues). Gross profit is then adjusted by adding back fair value of stock-based compensation expense, restructuring, transition and cease-use lease expense, net and depreciation and amortization expenses associated with cost of revenues. Adjusted Gross Margin is calculated as Adjusted Gross Profit divided by Revenue. Free Cash Flow is calculated by starting with operating cash flow and subtracting capital expenditures related to capitalized software and property and equipment. Adjusted Free Cash Flow is calculated by starting with Free Cash Flow and subtracting net cash related to litigation and remediation, and restructuring activities. Recurring Revenue is calculated as a sum of Subscription revenue and Transaction revenue. Forward-Looking Statements This press release includes statements concerning Synchronoss and its future expectations, plans and prospects that constitute “forward-looking statements” within the meaning of federal securities law. These forward-looking statements reflect our current views with respect to, among other things, future events and our financial performance. These statements are often, though not always made through the use of words or phrases such as “may,” “might,” “should,” “could,” “predict,” “will,” “seek,” “estimate,” “project,” “projection,” "outlook," “annualized,” “strive,” “goal,” “target,” “outlook,” “aim,” “expect,” “plan,” “anticipate,” “intends,” “believes,” “potential” or “continue” or other similar expressions are intended to identify forward-looking statements. These forward-looking statements are not historical facts and are based on current expectations and projections about future events and financial trends that management believes may affect its business, financial condition and results of operations, any of which, by their nature, are uncertain and beyond our control. Accordingly, we caution you that any such forward-looking statements are not guarantees of future performance and are subject to risks, assumptions, estimates and uncertainties that are difficult to predict. Although we believe that the expectations reflected in these forward looking statements are reasonable as of the date made, actual results may prove to be materially different from the results expressed or implied by the forward-looking statements. Except as otherwise indicated, these forward-looking statements speak only as of the date of this press release and are subject to a number of risks, uncertainties and assumptions including, without limitation, risks relating to the Company’s ability to sustain or increase revenue from its larger customers and generate revenue from new customers, the Company’s expectations regarding expenses and revenue, the sufficiency of the Company’s cash resources, the impact of legal proceedings involving the Company, the extended sales cycles of potential customers and other risks and factors that are described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024, which is on file with the Securities and Exchange Commission (“SEC”) and available on the SEC’s website at www.sec.gov. Additional factors may be described in those sections of the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 on file with the SEC and the quarter ended September 30, 2025, expected to be filed with the SEC in the fourth quarter of 2025. The company does not undertake any obligation to update any forward-looking statements contained in this press release as a result of new information, future events or otherwise. About Synchronoss Synchronoss Technologies (Nasdaq: SNCR), a global leader in personal Cloud solutions, empowers service providers to establish secure and meaningful connections with their subscribers. Our SaaS Cloud platform simplifies onboarding processes and fosters subscriber engagement, resulting in enhanced revenue streams, reduced expenses, and faster time-to-market. Millions of subscribers trust Synchronoss to safeguard their most cherished memories and important digital content. Explore how our Cloud-focused solutions redefine the way you connect with your digital world at www.synchronoss.com. Media Relations Contact:Domenick CileaSpringboarddcilea@springboardpr.com Investor Relations Contact: Ryan GardellaICR for Synchronosssncrir@icrinc.com SYNCHRONOSS TECHNOLOGIES, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited) (In thousands) September 30, 2025 December 31, 2024ASSETS Cash and cash equivalents $34,827 $33,375Accounts receivable, net 17,508 18,129Operating lease right-of-use assets 3,520 8,445Goodwill 188,784 179,408Other assets 33,581 54,468Total assets 278,220 293,825 LIABILITIES AND STOCKHOLDERS’ EQUITY Accounts payable and accrued expenses 39,724 37,586Debt, current — 1,875Deferred revenues 100 837Debt, non-current 163,200 184,840Operating lease liabilities, non-current 10,141 16,776Other liabilities 9,701 9,636Redeemable noncontrolling interest — 12,500Stockholders’ equity 55,354 29,775Total liabilities and stockholders’ equity $278,220 $293,825 SYNCHRONOSS TECHNOLOGIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net revenues $42,003 $42,964 $126,702 $129,387 Costs and expenses: Cost of revenues1 8,665 8,975 26,298 29,599 Research and development 10,837 10,333 30,939 32,560 Selling, general and administrative 12,174 13,755 35,404 39,800 Restructuring charges — — 165 267 Depreciation and amortization 4,458 4,386 12,938 12,773 Total costs and expenses 36,134 37,449 105,744 114,999 Income from operations 5,869 5,515 20,958 14,388 Interest income 5,404 165 5,906 556 Interest expense (7,776) (5,526) (19,763) (12,529)Debt modification expense — — (4,384) — Loss on debt extinguishment — — (1,993) — Foreign exchange gain (loss) 512 (5,461) (17,598) (440)Other income, net 8 220 11 230 Income (loss) from operations, before taxes 4,017 (5,087) (16,863) 2,205 Benefit (provision) for income taxes 1,796 (628) (745) (3,939)Net income (loss) 5,813 (5,715) (17,608) (1,734)Net income attributable to redeemable non-controlling interests — 14 — 14 Preferred stock dividend, net of gain on repurchase of preferred stock — — — (1,562)Net income (loss) attributable to Synchronoss $5,813 $(5,701) $(17,608) $(3,282)Earnings (loss) per share: Basic $0.55 $(0.56) $(1.70) $(0.33)Diluted $0.51 $(0.56) $(1.70) $(0.33)Weighted average common shares outstanding: Basic 10,632 10,095 10,357 9,994 Diluted 11,473 10,095 10,357 9,994 1 Cost of revenues excludes depreciation and amortization which are shown separately. SYNCHRONOSS TECHNOLOGIES, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) (In thousands) Nine Months Ended September 30, 2025 2024 Net loss$(17,608) $(1,734)Adjustments to reconcile net income (loss) to net cash used in operating activities: Non-cash items 38,846 23,450 Changes in operating assets and liabilities 20,698 (6,511)Net cash provided by operating activities 41,936 15,205 Investing activities: Purchases of fixed assets (1,013) (1,038)Purchases of intangible assets and capitalized software (9,170) (9,864)Other investing activities — 1,793 Net cash used in investing activities (10,183) (9,109)Financing activities: Net cash used in financing activities (30,285) (5,384)Effect of exchange rate changes on cash (16) (56)Net increase in cash and cash equivalents$1,452 $656 Beginning cash and cash equivalents 33,375 24,572 Ending cash and cash equivalents$34,827 $25,228 SYNCHRONOSS TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Non-GAAP financial measures and reconciliation: GAAP Revenue $42,003 $42,964 $126,702 $129,387 Less: Cost of revenues 8,665 8,975 26,298 29,599 Less: Restructuring1 — — 13 — Less: Depreciation and amortization2 4,177 4,068 12,059 11,792 Gross profit 29,161 29,921 88,332 87,996 Gross margin 69.4% 69.6% 69.7% 68.0%Add / (Less): Stock-based compensation expense1 60 164 218 258 Restructuring, transition and cease-use lease expense, net1 7 29 (156) 585 Depreciation and amortization2 4,177 4,068 12,059 11,792 Adjusted gross profit $33,405 $34,182 $100,453 $100,631 Adjusted gross margin 79.5% 79.6% 79.3% 77.8% 1 Amounts associated with cost of revenues.2 Depreciation and amortization contains a reasonable allocation for expenses associated with cost of revenues. SYNCHRONOSS TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited) (In thousands, except per share data) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 GAAP Net income (loss) attributable to Synchronoss $5,813 $(5,701) $(17,608) $(3,282)Add / (Less): Stock-based compensation expense 1,140 3,021 4,292 5,376 Restructuring, transition and cease-use lease expense, net 198 157 (761) 2,957 Amortization expense1 273 273 819 819 Sublease receivable impairment — — — 806 Change in contingent consideration (100) — (300) — Litigation, remediation and refiling costs, net — (425) — 247 Non-recurring professional fees 417 — 417 — Debt modification expense — — 4,384 — Loss on debt extinguishment — — 1,993 — Foreign exchange impact $(512) $5,461 $17,598 $440 Non-GAAP Net income attributable to Synchronoss $7,229 $2,786 $10,834 $7,363 Non-GAAP Earnings per share: Basic $0.68 $0.28 $1.05 $0.74 Diluted $0.63 $0.26 $0.96 $0.70 Weighted-average shares outstanding: Basic 10,632 10,095 10,357 9,994 Diluted 11,473 10,837 11,262 10,455 1 Amortization from acquired intangible assets. SYNCHRONOSS TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited) (In thousands) Three Months Ended Nine Months Ended September30, 2025 June30, 2025 March31, 2025 December31, 2024 September30, 2024 September30, 2025 September30, 2024Net income (loss) attributable to Synchronoss $5,813 $(19,604) $(3,817) $7,889 $(5,701) $(17,608) $(3,282)Add / (Less): Stock-based compensation expense 1,140 1,023 2,129 996 3,021 4,292 5,376 Restructuring, transition and cease-use lease expense, net 198 632 (1,591) 1,976 157 (761) 2,957 Sublease receivable impairment — — — — — — 806 Change in contingent consideration (100) (100) (100) (100) — (300) — Litigation, remediation and refiling costs, net — — — (617) (425) — 247 Non-recurring professional fees 417 — — — — 417 — Depreciation and amortization 4,458 4,402 4,078 4,318 4,386 12,938 12,773 Interest income (5,404) (269) (233) (254) (165) (5,906) (556)Interest expense 7,776 6,565 5,422 5,474 5,526 19,763 12,529 Loss on debt extinguishment — 1,993 — — — 1,993 — Debt modification expense — 4,384 — — — 4,384 — Foreign exchange impact (512) 12,531 5,579 (9,334) 5,461 17,598 210 Other, net (8) (3) — (154) (220) (11) — (Benefit) provision for income taxes (1,796) 1,263 1,278 3,674 628 745 3,939 Net income attributable to non-controlling interests — — — (1) (14) — (14)Preferred stock dividend, net of gain on repurchase of preferred stock — — — — — — 1,562 Adjusted EBITDA (non-GAAP) $11,982 $12,817 $12,745 $13,867 $12,654 $37,544 $36,547 SYNCHRONOSS TECHNOLOGIES, INC.RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES(Unaudited) (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net cash provided by operating activities $39,358 $3,365 $41,936 $15,205 Add / (Less): Capitalized software (3,140) (3,250) (9,170) (9,864)Property and equipment (358) (142) (1,013) (1,038)Free cashflow 35,860 (27) 31,753 4,303 Add / (Less): Litigation and remediation costs, net — 281 266 3,287 Restructuring, net 742 1,092 763 3,303 Debt modification expense 1,447 — 2,984 — Adjusted free cashflow $38,049 $1,346 $35,766 $10,893

Synchronoss Technologies Reports Third Quarter 2025 Results

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