Synchronoss Technologies Inc (NASDAQ:SNCR) posted a profitable third quarter, driven by its recurring cloud software business.
Revenue for the quarter was $42 million, with 93.8% coming from recurring subscriptions, underscoring the stability of its SaaS-powered Personal Cloud platform.
Strong subscriber growth at AT&T and ongoing initiatives with Verizon and SoftBank helped offset weaker growth at other clients.
The company reported net income of $5.8 million, or $0.51 per diluted share, reversing a loss of $5.7 million a year earlier. Free cash flow reached $35.9 million, boosted by the full receipt of a $33.9 million CARES Act tax refund, which was used to reduce debt and cut annual interest payments by $2.8 million. Adjusted EBITDA was $12 million, representing 28.5% of revenue.
CEO Jeff Miller highlighted the company’s ongoing momentum with key clients, including strong subscriber growth at AT&T, growth initiatives at Verizon, and cloud integration projects at SoftBank. “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,” Miller told shareholders in a statement. “We expect that these new wins will allow us to return to strong, profitable growth in 2026 and beyond.”
The company also deployed a hybrid cloud AI model for content intelligence, enabling in-house photo tagging and image embedding across company-owned and public cloud environments, reflecting a focus on operational efficiency and cost optimization.
For full-year 2025, Synchronoss expects revenue of $169 million to $172 million, recurring revenue of at least 90%, adjusted EBITDA of $50 million to $53 million, and free cash flow of $6 million to $10 million, excluding the federal tax refund.