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1. Company Snapshot

1.a. Company Description

Synchronoss Technologies, Inc.provides cloud, messaging, digital, and network management platforms, products, and solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.The company's platforms, products, and solutions include content backup, view, manage, engage, transfer, and restore solutions in operating systems and devices; multi-channel messaging, peer-to-peer communications, and application-to-person commerce solutions; email solutions; customer journey and workflow design, development, orchestration, and experience management solutions; and telecom network infrastructure designing, procuring, managing, and optimizing solutions.


It also streamlines the activation of new services and devices.In addition, the company offers software development and customization services.It markets and sells its services through direct sales force and strategic partners.


The company was incorporated in 2000 and is headquartered in Bridgewater, New Jersey.

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1.b. Last Insights on SNCR

Synchronoss Technologies' recent performance was impacted by concerns over its growth prospects, despite a profitable Q3 driven by recurring cloud subscriptions. The company's revenue was $42 million, with 93.8% coming from recurring subscriptions. While it reported a net income of $5.8 million and diluted EPS of $0.51 per share, investors may be worried about the sustainability of this growth. The company reiterated its expectation of adding a new customer in 2025 and an additional Tier 1 customer signing expected in the first half of 2026.

1.c. Company Highlights

2. Synchronoss Technologies' Q3 2025 Earnings: A Mixed Bag

Synchronoss Technologies reported a revenue of $42 million for Q3 2025, slightly below expectations due to subscriber growth weakness among certain customers and delayed new customer contracts. However, the company delivered strong profitability performance, with EBITDA of $12 million, net income of $5.8 million, and diluted earnings per share of $0.51. Notably, the actual EPS came out at $0.63, significantly higher than the estimated $0.35. Recurring revenue represented 93.8% of total revenue, indicating a stable source of income.

Publication Date: Nov -26

📋 Highlights
  • Q3 Revenue Missed Expectations: Revenue of $42 million fell slightly short due to subscriber growth weakness and delayed contracts.
  • Strong Profitability: Delivered $12 million EBITDA, $5.8 million net income, and $0.51 diluted EPS despite revenue shortfall.
  • Recurring Revenue Dominance: 93.8% of total revenue was recurring, highlighting stable, long-term customer relationships.
  • Strategic Financing & Tax Refund: $200 million term loan refinancing completed, followed by $33.9 million CARES Act refund and $25.4 million prepayment.
  • 2025 Guidance Adjusted: Revenue outlook set at $169–$172 million, with adjusted EBITDA of $50–$53 million and free cash flow of $6–$10 million.

Financial Performance Highlights

The company's financial performance was marked by a 1% year-over-year subscriber growth, with hundreds of thousands of subscribers added in the quarter. Despite subscription growth, revenue was down sequentially due to fewer one-time license and professional services fees. A large contract with SoftBank that closed in Q2 contributed to the revenue difference.

Guidance and Outlook

Synchronoss adjusted its 2025 guidance to revenue of $169-$172 million, adjusted EBITDA of $50-$53 million, and free cash flow of $6-$10 million. The guidance reflects anticipated continuation of subscriber headwinds and new customer contract contributions. The company expects mid-single-digit subscriber growth complemented by new customer additions, with a healthy pipeline for new customers in the US, Asia, and Europe.

Capital Structure and Allocation

The company completed a strategic $200 million 4-year term loan refinancing, retiring senior notes and prior term loan, strengthening its capital structure. This was followed by a $33.9 million CARES Act refund, which led to a $25.4 million prepayment on the term loan and $8.5 million in inorganic investments. Synchronoss is focused on driving growth through its core offering and exploring adjacencies to expand its total addressable market.

Valuation and Growth Prospects

With a P/E Ratio of -5.27 and an EV/EBITDA of 0.84, the market seems to have already priced in the company's challenges. However, analysts estimate next year's revenue growth at 5.7%, indicating potential for improvement. The company's strong financial foundation, disciplined approach to control, and advancements in AI functionality are expected to drive growth. The current valuation metrics suggest that the stock may be undervalued, presenting a potential buying opportunity.

3. NewsRoom

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Halper Sadeh LLC Encourages EB and SNCR Shareholders to Contact the Firm to Discuss Their Rights

Dec -05

Source: prnewswire.com

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Synchronoss Technologies Investor Alert By The Former Attorney General Of Louisiana: Kahn Swick & Foti, LLC Investigates Adequacy of Price and Process in Proposed Sale of Synchronoss Technologies, Inc. - SNCR

Dec -05

Source: businesswire.com

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SHAREHOLDER NOTICE: Brodsky & Smith Announces an Investigation of Synchronoss Technologies (Nasdaq – SNCR)

Dec -04

Source: globenewswire.com

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$HAREHOLDER ALERT: The M&A Class Action Firm Announces An Investigation of Synchronoss Technologies, Inc. (NASDAQ: SNCR)

Dec -04

Source: prnewswire.com

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Lumine Group to Acquire Synchronoss Technologies

Dec -04

Source: globenewswire.com

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SNCR Stock Alert: Halper Sadeh LLC is Investigating Whether the Sale of Synchronoss Technologies, Inc. is Fair to Shareholders

Dec -04

Source: businesswire.com

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Synchronoss Technologies to be acquired by Lumine Group for $116M

Dec -04

Source: proactiveinvestors.com

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Synchronoss Technologies, Inc. to Be Acquired by Lumine Group

Dec -04

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.51%)

6. Segments

Cloud

Expected Growth: 4.5%

Synchronoss Technologies' Cloud segment growth of 4.5% is driven by increasing demand for cloud-based solutions, expansion of 5G networks, and rising adoption of IoT devices. Additionally, the company's strategic partnerships and investments in AI-powered cloud platforms contribute to its growth momentum.

Messaging

Expected Growth: 4.8%

Synchronoss Technologies' 4.8% growth is driven by increasing demand for cloud-based messaging solutions, expansion into new markets, and strategic partnerships. The company's focus on innovation, particularly in AI-powered messaging, has also contributed to its growth. Additionally, the rise of 5G networks and IoT devices has led to an increase in messaging traffic, further fueling the company's growth.

NetworkX

Expected Growth: 5.2%

NetworkX's 5.2% growth is driven by increasing demand for cloud-based infrastructure, rising adoption of 5G networks, and growing need for secure data management. Additionally, Synchronoss' strategic partnerships and investments in AI-powered network management solutions contribute to the segment's growth.

7. Detailed Products

Cloud Sync

A cloud-based platform that enables users to access and manage their content across multiple devices and platforms

Device and Service Management

A platform that enables carriers and OEMs to remotely manage devices and services, reducing support costs and improving customer satisfaction

Content Transfer

A solution that enables users to transfer content from one device to another, including contacts, photos, and videos

Activation and Provisioning

A platform that streamlines the activation and provisioning process for carriers and OEMs, reducing costs and improving customer satisfaction

Digital Channel Platform

A platform that enables carriers and OEMs to create and manage digital channels, including online marketplaces and self-service portals

Analytics and Insights

A platform that provides real-time analytics and insights, enabling carriers and OEMs to make data-driven decisions

8. Synchronoss Technologies, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Synchronoss Technologies, Inc. operates in a niche market, providing cloud-based, white-label software platforms for communication service providers. While there are some substitutes available, they are not as comprehensive as Synchronoss' offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Synchronoss' customers are primarily large communication service providers, which reduces their bargaining power. These customers require customized solutions, making it difficult for them to switch to alternative providers.

Bargaining Power Of Suppliers

Synchronoss has a diversified supplier base, reducing its dependence on any single supplier. The company's suppliers are primarily technology and infrastructure providers, which are readily available in the market.

Threat Of New Entrants

The cloud-based software platform market is highly competitive, and new entrants can easily disrupt the market with innovative solutions. Synchronoss needs to continuously innovate and improve its offerings to stay ahead of new entrants.

Intensity Of Rivalry

The cloud-based software platform market is highly competitive, with several established players. Synchronoss faces intense competition from companies like Salesforce, Oracle, and SAP, which have strong brand recognition and significant resources.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 62.54%
Debt Cost 6.44%
Equity Weight 37.46%
Equity Cost 12.57%
WACC 8.73%
Leverage 166.93%

11. Quality Control: Synchronoss Technologies, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Yext

A-Score: 4.3/10

Value: 2.4

Growth: 6.9

Quality: 5.9

Yield: 0.0

Momentum: 7.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Zuora

A-Score: 4.2/10

Value: 5.2

Growth: 4.3

Quality: 3.9

Yield: 0.0

Momentum: 6.5

Volatility: 5.3

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Appian

A-Score: 4.2/10

Value: 4.9

Growth: 6.4

Quality: 5.4

Yield: 0.0

Momentum: 4.0

Volatility: 4.3

1-Year Total Return ->

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Stock-Card
Bandwidth

A-Score: 3.9/10

Value: 6.8

Growth: 7.1

Quality: 2.6

Yield: 0.0

Momentum: 4.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Synchronoss Technologies

A-Score: 3.3/10

Value: 8.4

Growth: 6.2

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
AuthID

A-Score: 2.8/10

Value: 6.6

Growth: 4.7

Quality: 4.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.66$

Current Price

8.66$

Potential

-0.00%

Expected Cash-Flows