CIMPRESS plc (CMPR) Q2 2025 Earnings Summary

Executive Summary

Q2 FY2025 was operationally mixed: revenue grew 2–3% to $939.2M, but operating income fell 25% YoY to $80.9M and adjusted EBITDA declined 21% to $132.3M due to non-recurrence of prior-year one-time benefits, U.S. consumer softness, higher performance ad costs, and specific one-time charges .
EPS improved YoY to $2.36 (vs. $2.14) aided by other income from currency marks; sequentially EPS rebounded from Q1’s $(0.50) loss as December quarter seasonality and working-capital inflows returned .
Management lowered full-year expectations while reaffirming multi‑year framework; H2 guidance calls for at least 4% organic CC revenue growth, ≥$220M adjusted EBITDA, and ≥$50M adjusted FCF; FY2025 at least $440M adjusted EBITDA and ~$289M CFO, ending net leverage ~3.0x (target 2.5x LT) .
Key catalysts: U.S. Upload & Print launch (Pixartprinting) in Q4 FY2025, expanding cross-Cimpress fulfillment, and leveraging AI to improve efficiency across engineering, manufacturing, service, and marketing .

What Went Well and What Went Wrong

What Went Well

Upload & Print revenue grew 6–7% YoY with continued order volume strength; The Print Group EBITDA expanded YoY with gross margin improvement and lower LT incentive OpEx .
Strong growth in higher‑complexity categories (packaging, apparel, signage, promotional, labels) with Vista bookings growing high‑single to high‑teens; H1 bookings outside business cards/consumer +11% YoY .
Liquidity and balance sheet actions: repriced and upsized USD Term Loan B, eliminating the €46M tranche; annual cash interest reduced by ~$5M; cash and equivalents $224.4M; revolver undrawn .

Management quote: “Despite occasional near‑term financial volatility… we can drive attractive multi‑year growth in revenue, adjusted EBITDA and per‑share cash flows” (Robert Keane) .

What Went Wrong

U.S. consumer/legacy products underperformed; Vista consumer bookings declined in holiday cards and business cards, with cost-per-click in peak weeks up ~50% YoY and intensified competitive discounting; Canadian postal strike reduced Q2 revenue by ~$3M and EBITDA by ~$1.8M .
Consolidated gross margin fell ~200 bps at Vista due to mix shift to lower‑margin categories and non‑recurrence of one-time benefits; Vista segment EBITDA down $15.4M YoY to $92.4M .
One-time charges: $2.9M land duty tax in Australia; consolidated one-time headwinds >$16M YoY including prior-year favorable items non-recurrence .

Financial Results

Metric	Q2 FY2024	Q1 FY2025	Q2 FY2025
Revenue ($USD Millions)	$921.4	$805.0	$939.2
Diluted EPS ($USD)	$2.14	$(0.50)	$2.36
Gross Profit ($USD Millions)	$458	$382	$450
Gross Margin (%)	50%	47%	48%
Operating Income ($USD Millions)	$107.7	$39.3	$80.9
Operating Margin (%)	12%	5%	9%
Adjusted EBITDA ($USD Millions)	$166.4	$87.8	$132.3
Adjusted EBITDA Margin (%)	18%	11%	14%
Operating Cash Flow ($USD Millions)	$174.9	$4.4	$176.5
Adjusted Free Cash Flow ($USD Millions)	$150.0	$(25.6)	$133.5

Segment revenue and EBITDA:

Segment	Q2 FY2024 Revenue ($000s)	Q2 FY2025 Revenue ($000s)	Q2 FY2024 Segment EBITDA ($000s)	Q2 FY2025 Segment EBITDA ($000s)
Vista	485,445	497,677	107,870	92,423
PrintBrothers	165,551	174,508	28,802	23,333
The Print Group	92,135	98,628	17,309	18,526
National Pen	130,096	131,423	25,389	23,299
All Other Businesses	59,762	60,333	7,371	3,667
Inter-segment Eliminations	(11,626)	(23,410)	(2,934)	(6,579)
Total	921,363	939,159	183,807	154,669

KPIs and operating metrics:

KPI	Q2 FY2024	Q1 FY2025	Q2 FY2025
Vista Advertising as % of Revenue	16%	15%	17%
Consolidated Net Leverage (credit agreement)	2.87x	3.13x	3.12x
Cash & Equivalents ($USD Millions)	$274.2	$153.0	$224.4
Shares Repurchased (QTD)	—	123,325 for $10.6M	533,868 for $42.4M

Notes on non-GAAP: Adjusted EBITDA adds back D&A, SBC, restructurings, certain adjustments, and includes realized gains/losses on currency hedges; reconciliations provided in the earnings document .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Organic Constant-Currency Revenue Growth	Multi-year	Mid-single digit (possibly higher)	H2 FY2025: ≥4%; FY2025: ≥4%	Maintained multi-year pace; near-term lowered vs prior internal plan
Operating Income	FY2025	No explicit numeric prior FY2025 guidance disclosed	FY2025: ≥$233.9M; H2 FY2025: ≥$113.7M	Formalized specific “at least” targets
Adjusted EBITDA	Multi-year	Grow faster than revenue	H2 FY2025: ≥$220M; FY2025: ≥$440M	Near-term lowered vs stronger FY2024; multi-year maintained
Net Cash from Operating Activities	FY2025	Not specified previously	H2 FY2025: ≥$109M; FY2025: ≥$289M	New explicit targets
Adjusted Free Cash Flow	FY2025	45–50% EBITDA conversion multi-year	H2 FY2025: ≥$50M; FY2025: ≥$157M	Lower near-term level; conversion rate context maintained
Net Leverage	FY2025 & LT	LT target ~2.5x; FY2025 reduce leverage (prior)	End FY2025 ~3.0x; LT target 2.5x maintained	FY2025 ending leverage higher; LT unchanged

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 FY2024)	Previous Mentions (Q1 FY2025)	Current Period (Q2 FY2025)	Trend
AI/Technology	Focus on MCP modernization, product dev, data infrastructure; improved cohorts	Migration enables faster iteration and data-driven decisions	Explicit plan to “increasingly leverage AI” across engineering, manufacturing, service, design, marketing, G&A	Accelerating AI adoption
Supply Chain/Costs	Multi-year efficiency gains; higher CapEx for production advantages	Working capital seasonality; Red Sea shipping issues modestly increased inventory prep	Production consolidation via cross-Cimpress; focused hubs; cost leverage	Efficiency focus sustained
Tariffs/Macro	Not a major focus	Working capital and currency programs discussed	Scenario planning for potential Canada tariffs and Section 321 changes; capacity across NA facilities; ability to relocate equipment	Heightened watchlist risk
Product Performance	Broad growth in complex categories; Vista customer value up	Vista 8% CC revenue; business cards slight decline; consumer up 5 quarters	U.S. holiday cards/business cards weak; signage/promo/packaging strong globally	Mix shifting to complex categories
Regional Trends	Strength in Europe; Upload & Print to end customers	Vista Europe strong; U.S. legacy softness	U.S. weakness (org search changes, higher ad costs); Europe stable to slightly up in consumer/business cards	Europe resilient; U.S. recovering into Jan
Regulatory/Legal	—	—	$2.9M land duty tax in Australia; Canadian postal strike impact	One-offs pressured Q2
Capital Allocation	Share repurchases; leverage reduction	Plan to repurchase if attractive; end FY at ≤2.75x if buybacks	Q2 repurchases $42.4M; FY end leverage ~3.0x; limited buyback capacity near-term	Opportunistic within leverage guardrails

Management Commentary

“We delivered disappointing financial results in our second quarter… All together these items weighed on year‑over‑year profitability by over $16 million” (Robert Keane, letter) .
“We believe… we can drive attractive multi‑year growth in revenue, adjusted EBITDA and per‑share cash flows… despite occasional near‑term financial volatility” (Robert Keane) .
“H2 FY2025 adjusted EBITDA at least $220 million… adjusted free cash flow at least $50 million” (Sean Quinn) .
“Pixartprinting will open for business in the U.S. in Q4 FY2025… leveraging cross‑Cimpress fulfillment” (Robert Keane) .
“We are increasingly leveraging AI… to improve efficiency… while increasing the velocity of customer‑facing improvements” (Robert Keane) .

Q&A Highlights

U.S. holiday cards and business cards impacted by higher CPC (~50% in peak), competitive discounting, and Google core algorithm changes; Europe was stable to slightly up; consumer in North America returned to modest growth in January .
Canadian postal strike reduced Vista consumer revenue by nearly $3M and EBITDA by ~$1.8M; BuildASign canvas prints down ~$5M YoY continuing post‑pandemic normalization .
Actions underway: cost controls, pricing optimization, ad channel reallocation; H2 advertising intensity lower than H1; no major restructuring planned .
Tariff contingency: multiple NA facilities, capacity to relocate equipment; Section 321 removal would be a near-term headwind but potentially offset via pricing power; active scenario planning .
Capital allocation: end FY net leverage ~3.0x; room for limited buybacks depending on results; leverage policy unchanged .

Estimates Context

Wall Street consensus (S&P Global) for Q2 FY2025 was unavailable at the time of this analysis due to data access limitations; therefore, comparison to consensus EPS and revenue cannot be provided. Values would be retrieved from S&P Global.*

Key Takeaways for Investors

Near-term: Expect modest sequential recovery driven by consumer seasonality abating and ad spend normalization; H2 guide implies EBITDA uplift vs H1 and positive FCF—watch January/February bookings trajectory and Vista’s ad mix efficiency .
Mix pivot: Continued growth in higher-complexity categories and cross-Cimpress fulfillment should structurally support revenue scale and margin dollars; monitor Vista gross profit per customer and Upload & Print U.S. launch milestones .
U.S. legacy products remain a headwind: Business cards/holiday cards softness likely persists; focus on protecting profit pools via pricing, merchandising, and design services .
Cost/FX dynamics: Other income volatility from currency hedges can swing GAAP EPS; adjusted EBITDA neutral on FX over FY per program design—anchor on non-GAAP metrics for run‑rate .
Balance sheet: Liquidity remains strong; TLB repricing lowers cash interest; buybacks opportunistic but constrained by ~3.0x year‑end leverage—expect capital deployment skewed to growth CapEx and MCP enablement .
Policy risk: Tariffs/de minimis changes are key watch items; contingency capacity and equipment mobility mitigate medium‑term impact; potential pricing power offset .
Medium-term thesis: Multi‑year mid‑single digit organic CC revenue growth with faster adjusted EBITDA growth and 45–50% conversion intact; AI and focused production hubs are levers to expand profitability per share .

*Values would be retrieved from S&P Global.