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CIMPRESS plc (CMPR) Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 revenue beat: $869.5M vs S&P Global consensus $844.2M (+3.0%), driven by Vista’s elevated categories and double-digit growth at National Pen . EPS missed sharply as GAAP diluted EPS was -$1.02 vs $0.98 consensus, driven by a $126.7M YoY increase in tax expense and FX hedge losses .
  • Mix shift toward higher LTV, lower gross-margin products and ~$3M net tariff costs compressed gross margin by 110 bps YoY to 47% in Q4; advertising efficiency improved (11.3% of revenue, -120 bps YoY) .
  • FY2026 guidance reinstated: reported revenue growth 5–6% (organic CC 2–3%), net income ≥$72M, adjusted EBITDA ≥$450M, OCF $310M, FCF ~$140M, capex ~$100M, cap software ~$70M; net leverage to decline slightly, LT target 2.5x .
  • Management highlighted elevated product momentum (e.g., PPAG, signage, packaging/labels), Upload & Print U.S. rollout, and $70–80M annualized EBITDA efficiencies by FY2027 from capex/ops programs; reiterated willingness to repurchase shares at attractive prices .

What Went Well and What Went Wrong

What Went Well

  • Elevated categories drove growth: Vista grew 6% YoY in Q4 (organic CC +4%), led by PPAG, signage, packaging/labels; Vista segment EBITDA +18% YoY to $100.3M .
  • National Pen revenue +12% YoY; telesales and e-commerce growth, plus cross-Cimpress fulfillment; segment EBITDA modestly up despite tariffs .
  • Advertising efficiency improved: consolidated ad spend was 11.3% of revenue (-120 bps YoY), supporting a 5% increase in contribution profit and improved contribution margin .

Quote: “This transition dilutes our near-term growth rate and profit percentage margins, but we believe it will lead to a future of steady growth of gross profit dollars and much higher per customer lifetime value.” — Robert Keane .

What Went Wrong

  • EPS miss and net loss: GAAP diluted EPS -$1.02 on $28.4M net loss, driven by $126.7M higher tax expense (valuation allowance in Switzerland; non-cash) and increased unrealized FX hedge losses .
  • Gross margin pressure (47%, -110 bps YoY) from product mix shift away from high-margin legacy products and ~$3M net tariff costs in Q4 (mostly National Pen) .
  • Upload & Print profitability weighed by start-up costs for Pixartprinting U.S.; combined U&P EBITDA down $3.1M YoY in Q4 .

Financial Results

Headline results vs prior periods

MetricQ4 FY2024Q3 FY2025Q4 FY2025
Revenue ($M)$832.6 $789.5 $869.5
GAAP Operating Income ($M)$66.3 $40.5 $65.4
GAAP Net (Loss) Income ($M)$118.2 $(8.0) $(28.4)
Diluted EPS ($)$4.33 N/A$(1.02)
Adjusted EBITDA ($M)$119.4 $90.7 $122.4
Gross Margin (%)49% 47% 47%
Advertising as % of Revenue12.5% (implied YoY +120 bps) 13.1% 11.3%

Results vs S&P Global consensus (Q4 FY2025)

MetricConsensusActualSurprise
Revenue ($M)$844.2*$869.5 +$25.2 (+3.0%)*
Primary EPS ($)$0.98*$(1.02) Miss*
EBITDA ($M)$109.1*$106.3*Slight miss*

Values marked with * retrieved from S&P Global.

Notes: Company’s adjusted EBITDA was $122.4M ; S&P’s “EBITDA actual” may not align with company’s adjusted definition.

Segment revenue and growth (Q4 FY2025 vs Q4 FY2024)

SegmentQ4 FY2024 Revenue ($M)Q4 FY2025 Revenue ($M)YoY Growth (reported)
Vista$442.1 $466.4 6%
PrintBrothers$170.8 $178.2 4%
The Print Group$96.1 $106.0 10%
National Pen$83.6 $93.6 12%
All Other Businesses$53.7 $58.8 9%
Inter-segment elim.$(13.7) $(33.7) N/A

KPIs and cash/leverage

KPIQ3 FY2025Q4 FY2025
Cash from Operations ($M)$9.7 $107.5
Adjusted Free Cash Flow ($M)$(30.8) $70.9
Cash & Equivalents ($M)$183.0 $234.0
Net Leverage (Consolidated)3.27x 3.12x
Capital Expenditures ($M)$24.8 $20.8
Capitalized Software ($M)$16.3 $16.5

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Reported Revenue GrowthFY2026N/A (FY2025 guidance withdrawn in Q3) 5%–6% New
Organic CC Revenue GrowthFY2026N/A 2%–3% New
Net IncomeFY2026N/A ≥$72M New
Adjusted EBITDAFY2026N/A ≥$450M New
Operating Cash FlowFY2026N/A $310M New
Adjusted Free Cash FlowFY2026N/A ~$140M New
CapexFY2026N/A ~$100M
Capitalized SoftwareFY2026N/A ~$70M
Cash TaxesFY2026N/A ~$55–60M
Net LeverageFY2026Target 2.5x LT Decrease slightly in FY26; LT target 2.5x Reiterated LT target

Earnings Call Themes & Trends

TopicPrevious Mentions (Q2 & Q3 FY2025)Current Period (Q4 FY2025)Trend
Product mix shift to elevated categoriesQ2: Elevated products growing double-digits; legacy consumer/business cards softness in NA . Q3: Mix shift compressed gross margin; elevated categories drove growth .Continued: elevated categories drove Vista growth; gross margin % lower but higher GP$ per order and LTV .Positive revenue mix; margin % pressure persists.
Tariffs / TradeQ2: Noted tariff uncertainty; mitigation plans; de minimis for China removed May 2; planned price offsets . Q3: Still dynamic; limited impact in Canada/Mexico via USMCA; prepared for alt sourcing .~$3M net tariff cost in Q4 (mostly National Pen); pricing offsets largely effective; tariff rates normalized in June; mitigation ongoing .Managed; near-term costs but offsets improving.
Advertising efficiencyQ2: Peak holiday ad costs elevated; mix evolve . Q3: Ad as % revenue 13.1% (flat YoY) .Q4 ad as % revenue 11.3% (-120 bps YoY); contribution profit up 5% .Improving efficiency.
Upload & Print expansion (Pixart U.S.)Q2: Facility launched Mar; start-up costs weighed .Q4: U.S. start-up costs continued; 2026 start-up losses included in guidance; expected FY2027 benefits .Near-term drag; longer-term tailwind.
Currency / HedgingQ2: Adjusted EBITDA currency -$0.7M; other income/FX volatility . Q3: EBITDA +$1.0M currency benefit .Q4: Adjusted EBITDA +$3.6M currency; higher unrealized hedge losses hurt net income .Mixed: EBITDA helped, net income volatile.
Capital allocationQ2: Share repo $42.4M; leverage ~3.1x . Q3: Indicated flexibility for repurchases .Q4: Repurchased $20.8M; open to further buybacks if attractive; leverage to tick down FY26 .Opportunistic buybacks within leverage guardrails.

Management Commentary

  • Strategic transition: “We are succeeding in this transition... to categories like packaging, promotional products, apparel, labels, signage... leading to higher per-customer lifetime value.” — Robert Keane .
  • Investment payoffs: “Investments will allow us to deliver cost reductions worth about $70–$80 million of incremental annualized adjusted EBITDA improvements by the end of fiscal 2027.” — Robert Keane .
  • Shareholder return posture: “If our shares continue to trade at these levels, we see this as an opportunity to... repurchases... even as we maintain a strong balance sheet.” — Robert Keane .
  • Tariff mitigation: “Outside of the period of the heightened tariff rates in May, we were able to offset tariff impacts... through pricing and sourcing.” — Sean Quinn .

Q&A Highlights

  • Free cash flow conversion: FY2026 guide implies ~31% conversion; management still targets normalized 45%–50% as capex normalizes and working capital trends revert, with benefits expected by FY2027 .
  • Category trajectory and margins: Legacy products (e.g., business cards) planned to keep declining; elevated categories expected to grow with opportunities to improve variable gross margins via scale, automation, insourcing, and attribute upsells over time .
  • Growth ambition: FY2026 organic CC guide at 2–3% reflects macro/trade caution; aspiration is to return to mid-single-digit growth or higher over time as elevated products scale (not guidance) .
  • Maintenance capex: Elevated in FY2025–FY2026 due to replacement cycles and higher maintenance share of MCP software; expected to normalize post-FY2026 .
  • Leverage and buybacks: Outlook allows room for repurchases and small tuck-in M&A; LT leverage target remains 2.5x .
  • Tariffs: No evidence of demand pull-forward; pricing offsets applied mostly in National Pen and Vista PPAG; net costs mainly during peak Chinese tariff weeks in May .
  • FX/Other income: Unrealized hedge losses were a drag in Q4; management expects currency to be slightly favorable to FY2026 EBITDA despite the Q4 marks .

Estimates Context

  • Revenue beat: $869.5M vs $844.2M consensus (+3.0%)* .
  • EPS miss: GAAP diluted EPS -$1.02 vs $0.98 “Primary EPS” consensus*; miss driven by $126.7M higher tax expense (valuation allowance) and unrealized FX hedge losses .
  • EBITDA mixed vs S&P’s construct: S&P “EBITDA” $109.1M* (consensus) vs $106.3M* (actual) while company-reported adjusted EBITDA was $122.4M; definitional differences apply .
  • Coverage: 2 estimates for revenue and EPS in the quarter*; target price consensus $86.5 based on 2 estimates*.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • The quarter’s narrative is “top-line resilience, bottom-line noise”: revenue beat on elevated categories and improved ad efficiency, but EPS weighed by non-cash tax and FX items that do not reflect underlying operating momentum .
  • Mix shift is by design: gross margin % pressure should continue near term as mix tilts to elevated products, but higher GP$/order and LTV plus cost initiatives aim to expand profit dollars over time .
  • Tariff risk is real but manageable: Q4 showed ~$3M net costs; pricing and sourcing mitigations were largely effective as rates normalized in June; FY2026 guidance includes trade uncertainty .
  • Reinstated FY2026 guidance supports stabilization: ≥$450M adjusted EBITDA, OCF $310M, FCF ~$140M — with capex/software elevated again in FY2026 before normalization, and targeted leverage reduction .
  • Watch Upload & Print U.S. ramp: near-term start-up drag, but expected material benefits by FY2027 as cross-Cimpress fulfillment scales .
  • Capital allocation remains shareholder-friendly within leverage goals: continued buybacks at attractive prices, no near-term M&A plans; LT leverage target 2.5x reiterated .
  • Estimate revisions likely: revenue beat vs consensus*, but EPS miss on tax/FX could prompt model adjustments to tax and other income lines; EBITDA definitional differences should be reconciled in forecasts*.
All document-linked figures are cited. Values marked with * are retrieved from S&P Global.

Citations:

  • Q4 FY2025 8-K and earnings document:
  • Q4 FY2025 earnings call transcript:
  • Q3 FY2025 8-K:
  • Q2 FY2025 8-K:
  • Q4 FY2025 press releases:

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