Is Consensus Cloud Solutions (CCSI) a Resilient Stock?

Meridian Funds, managed by ArrowMark Partners, released its third-quarter 2025 investor letter for the “Meridian Small Cap Growth Fund.” A copy of the letter can be downloaded here. Driven by continued gains in technology and falling bond yields, equities reached record highs in the quarter. U.S. small caps outperformed in the quarter, gaining 12.4%, while large caps returned 5.3%. Among small caps, value stocks slightly surpassed growth stocks, returning 12.6% and 12.2%, respectively, according to Russell indices. In this environment, the fund returned 4.20% (net) in the third quarter compared to the Russell 2000 Growth Index’s 12.19% return. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Meridian Small Cap Growth Fund highlighted stocks such as Consensus Cloud Solutions, Inc. (NASDAQ:CCSI). Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a leading information delivery services provider with a software-as-a-service platform. The one-month return of Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) was -24.36%, and its shares lost 9.83% of their value over the last 52 weeks. On December 02, 2025, Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) stock closed at $22.48 per share, with a market capitalization of $427.25 million.

Meridian Small Cap Growth Fund stated the following regarding Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) in its third quarter 2025 investor letter:

“Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is a leading supplier of both secure data delivery for enterprise healthcare and cloud fax solutions to small office home office (SoHo) customers. Consensus has historically enjoyed a high percentage of recurring revenues, low churn in the enterprise segment, and high margins. The stock performed well during the quarter by returning to growth two quarters earlier than expected. The company also reported strong margins in the mid-50% range, while securing a credit facility that alleviated market concerns about upcoming debt maturity. We continue to see upside potential and, while trading at a multiple of around five times earnings with ~20% free cash flow yield, limited downside potential. We maintained our position in the company during the quarter.”

Is Consensus Cloud Solutions, Inc. (CCSI) the Best Breakout Stock to Buy According to Analysts?

Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) at the end of the third quarter, which was 15 in the previous quarter. In Q3 2025, Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) recorded revenue of $87.8 million, which was consistent with Q3 2024. While we acknowledge the risk and potential of Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Consensus Cloud Solutions, Inc. (NASDAQ:CCSI) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.