CSG Maintains Dividend Growth Amid Merger Transition

As it approaches its planned acquisition by NEC, CSG International Inc. has presented a complex financial picture. The company's latest earnings report reveals robust underlying operational performance, which is being overshadowed by significant one-time costs related to the pending transaction. This duality highlights the dynamics at play during this corporate transition.

Demonstrating a continued commitment to its investors, CSG's board has approved a dividend increase. The quarterly cash payout will rise by 6% to $0.34 per share. This adjustment marks the thirteenth consecutive year in which the company has raised its distribution. Shareholders of record on March 18, 2026, will receive the payment on April 1, 2026. This decision underscores management's confidence in the firm's financial health even as it navigates the consolidation within the Business Support Systems (BSS) sector.

Revenue Growth Contrasts with Reported Profit

For the full 2025 fiscal year, CSG achieved total revenue of approximately $1.22 billion, representing a 2.2% year-over-year increase. The company's fourth-quarter performance also showed top-line strength, with sales advancing to $323.1 million from $316.65 million in the same period a year earlier.

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However, the bottom-line figures tell a different story. On a GAAP basis, net income for Q4 fell sharply to just $7 million, a significant drop from the over $34 million reported in the prior-year quarter. The primary drivers of this decline were expenses tied to the impending merger with NEC and increased costs related to stock-based compensation.

Adjusted Metrics Paint a Stronger Picture

When these special items are excluded, CSG's operational strength becomes clearer. The non-GAAP adjusted earnings per share for the quarter came in at a solid $1.53, substantially surpassing the consensus estimates of market analysts. In contrast, the GAAP earnings per share from continuing operations was only $0.25.

This divergence between reported and adjusted profit illustrates the substantial financial impact of the transaction-related costs. The company's core business model appears stable on an annual basis, maintaining its trajectory despite the operational headwinds created by the takeover announcement made in October 2025.