CSG SYSTEMS INTERNATIONAL INC Revenue Disclosure
Revenue Recognition. We recognize revenue from our customer contracts when we satisfy our performance obligations by transferring control of a particular product or service, or group of products or services, to our customers, as described in more detail below. Taxes assessed on our products and services based on governmental authorities at the time of invoicing are generally excluded from our revenue.
Transaction Price Allocated to Remaining Performance Obligations
As of December 31, 2025, our aggregate amount of the transaction price allocated to the remaining performance obligations was approximately $2.2 billion, which is made up of fixed fee consideration and guaranteed minimums expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied). We expect to recognize over 65% of this amount by the end of 2028, with the remaining amount recognized by the end of 2036. We have excluded from this amount variable consideration expected to be recognized in the future related to performance obligations that are unsatisfied. The majority of our future revenue is related to our SaaS and related solutions customer contracts that includes variable consideration dependent upon a series of monthly volumes and/or daily usage of services and have contractual terms ending from 2026 through 2036.
Disaggregation of Revenue
The nature, amount, timing, and uncertainty of our revenue and how revenue and cash flows are affected by economic factors is most appropriately depicted by revenue type, geographic region, and customer vertical.
Revenue by type for 2025, 2024, and 2023 was as follows (in thousands):
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Revenue: |
|
|
|
|
|
|
|
|
|
|||
SaaS and related solutions |
|
$ |
1,101,700 |
|
|
$ |
1,069,325 |
|
|
$ |
1,024,572 |
|
Software and services |
|
|
74,305 |
|
|
|
80,935 |
|
|
|
98,078 |
|
Maintenance |
|
|
47,284 |
|
|
|
46,988 |
|
|
|
46,608 |
|
Total revenue |
|
$ |
1,223,289 |
|
|
$ |
1,197,248 |
|
|
$ |
1,169,258 |
|
We use the location of the customer as the basis of attributing revenue to geographic regions. Revenue by geographic region for 2025, 2024, and 2023, as a percentage of our total revenue, was as follows:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Americas (principally the U.S.) |
|
|
85 |
% |
|
|
87 |
% |
|
|
86 |
% |
Europe, Middle East, and Africa |
|
|
10 |
% |
|
|
9 |
% |
|
|
10 |
% |
Asia Pacific |
|
|
5 |
% |
|
|
4 |
% |
|
|
4 |
% |
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
We generate our revenue primarily from the global communications markets; however, we serve an expanding group of customers in markets including retail, financial services, healthcare, insurance, and government entities. Revenue by customer vertical for 2025, 2024, and 2023, as a percentage of our total revenue, was as follows:
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
Broadband/Cable/Satellite |
|
|
51 |
% |
|
|
52 |
% |
|
|
52 |
% |
Telecommunications |
|
|
18 |
% |
|
|
18 |
% |
|
|
20 |
% |
Other |
|
|
31 |
% |
|
|
30 |
% |
|
|
28 |
% |
Total revenue |
|
|
100 |
% |
|
|
100 |
% |
|
|
100 |
% |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.