Synchronoss Technologies Inc (NASDAQ:SNCR) reported second-quarter results reflecting steady subscriber growth and strengthened financial flexibility, while reaffirming its outlook for 2025.
The company posted total revenue of $42.5 million for the quarter ended June 30, supported by 2% year-over-year growth in cloud subscribers.
Recurring revenue remained at 92.6% of total revenue, underscoring the predictability of Synchronoss’ cloud-centric business model.
Income from operations rose to $6.9 million, improving from $4.3 million in the same period last year. Adjusted EBITDA was $12.8 million, representing a 30.2% margin, in line with company expectations.
The reported net loss of $19.6 million primarily reflected non-cash foreign exchange losses of $12.5 million related to intercompany revaluations, as well as $6.4 million in refinancing costs tied to the company’s recent recapitalization efforts.
During the quarter, Synchronoss successfully closed a $200 million, four-year term loan, which enabled the retirement of $73.6 million of prior term debt and $121.4 million in senior notes.
Following quarter-end, the company received its full $33.9 million CARES Act tax refund, using $25.4 million to pay down debt, reducing annual interest costs by approximately $2.9 million. The remaining $8.5 million will support continued operational initiatives.
Looking ahead, Synchronoss reaffirmed its 2025 guidance, forecasting revenue between $170 million and $180 million, with recurring revenue making up at least 90% of total revenue. The company expects adjusted gross margins between 78% and 80%, adjusted EBITDA of $52 million to $56 million, and free cash flow between $11 million and $16 million, excluding tax refund proceeds and transaction fees related to refinancing.
“Amid macroeconomic uncertainties and carriers' increased focus on value-added services, we're confident in our strategy and our business model, allowing us to reaffirm all annual guidance metrics,” Miller said.
“Continued progress with our new customer pipeline places us on track to sign at least one new customer in 2025, positioning us for sustained growth into 2026.”
Miller also highlighted the company’s recent agreement to integrate its personal cloud storage solution into SoftBank’s native customer account application via SDK, which is expected to drive subscriber uptake heading into 2026.