...March 25, 2025 We expect a reversion in revenue growth in fiscal 2025 as financial performance normalizes from large deal recognition. In 2024, Cloud Software Group Holdings Inc. benefited from large multiyear deal renewals that were the primary drivers for higher upfront revenue recognition and EBITDA growth, with total revenues increasing 15% year over year. As a result, its debt to EBITDA (S&P Global Ratings-adjusted) declined to about 5.7x at the end of fiscal 2024 down from 8.5x in 2023. On the other hand, free operating cash flow (FOCF) improved but at a slower pace given the pull forward of revenue recognition, the related decrease in deferred revenue, and meaningful cash interest expense. The company generated annual EBITDA of about $3.5 billion and meaningfully lower $546 million of operating cash flow. While we expect steady business performance in 2025, we forecast the top line to decline about 16% converging with its annual recurring revenue base. Additionally, the company will...
