CIMPRESS plc (CMPR) Q3 2025 Earnings Summary

Executive Summary

Q3 FY2025 revenue was $789.47M (+1% reported, +3% organic CC), GAAP diluted EPS was -$0.33; both were below S&P consensus (revenue $798.02M*, EPS $0.55*) as Vista growth was offset by legacy product and U.S. SEO headwinds .
Adjusted EBITDA was $90.70M (down $3.46M YoY), gross margin contracted to 47.2% on mix shift away from higher-margin business cards and pre-production/impairment items; consolidated advertising held flat at 13.1% of revenue .
Management withdrew FY2025 and longer-term guidance due to tariff uncertainty; mitigation includes alternative sourcing, price increases, and reducing China-origin PPAG exposure to <$20M annual COGS over several months .
Stock catalysts: tariff implementation path and price elasticity, U.S. organic search recovery, Q4 seasonally higher cash inflows, and potential buybacks balanced against leverage target (2.5x) and liquidity priorities .

What Went Well and What Went Wrong

What Went Well

Elevated product categories delivered double-digit growth (promotional products, apparel & gifts, signage, packaging/labels) at Vista; segment EBITDA rose to $78.1M (+2% YoY) .
Cross-Cimpress fulfillment accelerated, including Pixartprinting’s U.S. facility going live in March, initially fulfilling for other units and enabling new product introductions .
Management reiterates confidence in long-term per-share cash flow growth despite near-term volatility: “we can deliver attractive growth in per-share cash flow over the coming years” .

What Went Wrong

Legacy categories weighed on margins: business cards & stationery declined 3%, contributing to 130 bps Vista gross margin contraction; consolidated gross margin fell 100 bps YoY to 47.2% .
GAAP net loss increased to -$8.0M (vs. -$5.2M YoY), driven by unrealized losses on currency hedges and higher tax, partly offset by lower interest expense .
Adjusted free cash flow was a $30.75M outflow, driven by planned higher capex and timing of cash interest payments; operating cash flow was $9.70M .

Financial Results

Consolidated Performance vs. Prior Year and Prior Quarters

Metric	Q3 FY2024	Q1 FY2025	Q2 FY2025	Q3 FY2025
Revenue ($USD Millions)	$780.59	$804.97	$939.16	$789.47
Reported Revenue Growth YoY (%)	5%	6%	2%	1%
Gross Margin (%)	48%	48%	48%	47.2%
Operating Income ($USD Millions)	$39.24	$39.34	$80.95	$40.54
GAAP Diluted EPS ($)	-$0.15	-$0.50	$1.86	-$0.33
Adjusted EBITDA ($USD Millions)	$94.16	$87.77	$132.25	$90.70
Operating Cash Flow ($USD Millions)	$8.43	$4.38	$176.52	$9.70
Adjusted Free Cash Flow ($USD Millions)	-$16.65	-$25.62	$133.52	-$30.75

Actual vs S&P Global Consensus (Q3 FY2025)

Metric	Actual	Consensus*	Notes
Revenue ($USD Millions)	$789.47	$798.02*	Slight miss vs consensus*
GAAP Diluted EPS ($)	-$0.33	$0.55*	Miss vs consensus*
Revenue - # of Estimates	—	2*	—
EPS - # of Estimates	—	2*	—

Values marked with an asterisk (*) were retrieved from S&P Global.

Segment Breakdown (Q3 FY2025)

Segment	Revenue ($USD Thousands)	Reported YoY Growth	Organic CC Growth	Segment EBITDA ($USD Thousands)
Vista	$430,651	+3%	+4%	$78,100
PrintBrothers	$155,981	+4%	+6%	$17,729
The Print Group	$89,348	+3%	+6%	$15,128
National Pen	$88,299	0%	+1%	$3,835
All Other Businesses	$51,101	+5%	+8%	$5,132
Inter-segment Eliminations	$(25,912)	—	—	$(7,388)
Total	$789,468	+1%	+3%	Adjusted EBITDA: $90,700

KPIs and Capital Structure (Q3 FY2025)

KPI	Q3 FY2025
Contribution Profit ($USD Millions)	$255.3
Contribution Margin (%)	32%
Consolidated Advertising (% of Revenue)	13.1%
Cash & Marketable Securities ($USD Millions)	$183.0
Net Leverage (TTM, Credit Agreement)	3.27x
Net Debt ($USD Millions)	$(1,425)

Notes: Gross profit was impacted by a $2.6M National Pen facility impairment and $1.1M pre-production startup costs for Pixartprinting’s U.S. facility; these were excluded from segment and adjusted EBITDA .

Guidance Changes

Metric	Period	Previous Guidance (1/29/25)	Current (4/30/25)	Change
Reported Revenue Growth	FY2025	At least 3%	Withdrawn	Lowered/Withdrawn
Organic CC Revenue Growth	FY2025	At least 4%	Withdrawn	Lowered/Withdrawn
Operating Income ($USD Millions)	H2 FY2025	≥ $113.7	Withdrawn	Lowered/Withdrawn
Adjusted EBITDA ($USD Millions)	H2 FY2025	≥ $220	Withdrawn	Lowered/Withdrawn
Adjusted EBITDA ($USD Millions)	FY2025	≥ $440	Withdrawn	Lowered/Withdrawn
Net Cash from Operations ($USD Millions)	H2 FY2025	≥ $109	Withdrawn	Lowered/Withdrawn
Adjusted Free Cash Flow ($USD Millions)	H2 FY2025	≥ $50	Withdrawn	Lowered/Withdrawn
Net Leverage Target (TTM)	Policy	Target 2.5x; ~3.0x expected at FY end	Target 2.5x maintained; 3.27x as of Q3	Policy maintained; current ratio higher

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Elevated product growth (PPAG, signage, packaging/labels)	Q1: Vista +8% rev; elevated products growth; Q2: high-single to high-teens bookings growth in elevated categories	Double-digit growth in PPAG/signage/packaging/labels; Vista EBITDA +2%	Improving mix to elevated products
U.S. organic search	Q2: weaker organic search and higher ad costs impacted consumer/business cards	Continued SEO challenges; improvement in March vs Jan/Feb	Gradual recovery
Tariffs and PPAG China exposure	Q2 outlook excluded potential tariff changes ; early March 8-K framework noted minimal Canada/Mexico impact	Withdrawn guidance; plan to cut China PPAG exposure to <$20M, raise prices; minimal Canada/Mexico impact (USMCA, exemptions, de minimis)	Mitigation in-flight; uncertainty high
Cross-Cimpress fulfillment	Q2: doubling YoY; multiple pilots; freeing capacity	Continues; Pixartprinting U.S. plant live, fulfilling internally	Scaling
Pixartprinting U.S. expansion	Q2: U.S. launch planned Q4 FY2025	Facility live in March; start-up costs recognized	Execution underway
Capital allocation & buybacks	Q1: $20.0M repurchases; target ≤2.75x by FY end	Jan: $3.9M repurchases; paused Feb/Mar amid tariff uncertainty; balance organic investments, deleveraging, buybacks	Opportunistic, cautious
National Pen mail order	Q2: mail order optimized lower ad spend; EBITDA down	Mail order declines persist; impairment and EBITDA down $0.4M YoY	Structural pressure

Management Commentary

CEO: “We continue to see strong growth in elevated products… Expanding into elevated products helps us serve customers with a higher lifetime value… new customers acquired via signage, packaging and labels in Q3 grew more than 10%” .
CEO: “We’re preparing for our entry into the U.S. upload & print market… Pixartprinting’s new production facility live in the U.S.” .
CFO: “We estimate USMCA and informational product exclusions cover about 90% of relevant costs for Canada/Mexico origin; impact remains minimal” .
CFO: “We expect to substantially reduce our exposure to less than $20M annually for direct-sourced PPAG materials from China… plan to increase prices to at least partially offset increased costs” .
CEO closing: “Times of adversity have allowed us to extend our industry leadership and take market share… expectation in the current environment” .

Q&A Highlights

Tariff math and exposure: <$20M residual China PPAG direct sourcing post-mitigation; the simple 145% rate math overstates net impact due to pricing actions and substitution; 3PF exposure exists but timing/visibility vary; minimal Canada/Mexico impact under USMCA/exemptions .
Cost actions: Management will flex variable/semi-variable cost base if demand/costs warrant; high bar maintained for growth investments; FY2026 planning underway .
April intra-quarter trends: April described as “stable to March” across regions after normalizing holiday timing; no segment-level disclosure .
CapEx cycle: Multiyear for Pixartprinting U.S.; broader capex evaluated bottoms-up each year; high-probability returns in packaging expansion and U.S. upload & print .
Share repurchases: Paused in Feb/Mar to assess tariff complexity; will balance internal returns vs buybacks while managing leverage and liquidity .
Guidance withdrawal rationale: Solely tariff/trade uncertainty and potential demand impact where price increases are implemented; operational focus unchanged .

Estimates Context

Q3 FY2025 results missed S&P Global consensus: revenue $789.47M vs $798.02M*, EPS -$0.33 vs $0.55*; coverage limited (2 estimates each)* .
Values marked with an asterisk (*) were retrieved from S&P Global.

Key Takeaways for Investors

Elevated product growth (PPAG/signage/packaging/labels) and cross-unit fulfillment are driving mix toward higher absolute gross profit per customer, even as percentage margins compress; this supports medium-term EBITDA and cash flow scaling .
Near-term headline risk from tariff uncertainty persists; watch mitigation execution (alternative sourcing timelines, price increases) and any demand elasticity impacts, especially in PPAG hard goods .
U.S. organic search recovery was visible in March; continued algorithm optimization is a tactical lever for Vista’s legacy categories and overall traffic efficiency .
Q4 is seasonally stronger for profit/cash flow; management expects increased liquidity, enabling capital allocation flexibility (organic investments, deleveraging, opportunistic buybacks) .
Balance sheet/liquidity remain solid: $183.0M cash/marketable securities, undrawn $250M revolver, net leverage 3.27x; watch trajectory relative to 2.5x target as tariff impacts unfold .
National Pen’s mail order weakness continues; e-commerce and cross-fulfillment offset partially—expect continued reallocation of ad dollars toward higher ROI channels .
Stock reaction will hinge on clarity/timing of tariff policy changes and demonstrated ability to pass through costs without materially impairing demand; near-term trading likely sensitive to incremental tariff headlines and update cadence .

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