Executive Summary

Q1 FY2025 (quarter ended May 31, 2024) revenue was $103.1M, diluted EPS $0.41, and gross margin 30.0%; sequential margins improved vs Q4 FY2024 and EBITDA rose to $19.0M (18.4% of sales) .
Year over year, revenue declined 7.4% and EPS fell from $0.45 to $0.41 as demand softened and competitive pricing persisted; gross margin compressed 60 bps YoY .
Capital allocation remained supportive: $0.25 quarterly dividend declared and 91,883 shares repurchased at $19.79; balance sheet remained net cash with $91.4M cash and $32.3M short-term investments .
Wall Street consensus from S&P Global was unavailable due to access limitations; external sources indicate EPS modest beat (~$0.41 vs $0.36–$0.37) and revenue mixed vs estimates (variously ~$99.3–$100.85M), suggesting a minor headline beat/miss split; treat as directional context, not SPGI official. Bold catalysts: margin improvement and disciplined pricing/cost actions, ongoing M&A integration.

What Went Well and What Went Wrong

What Went Well

Sequential margin improvement and EBITDA resilience: gross margin rose 160 bps vs Q4; EBITDA increased to $19.0M (18.4% of sales) with pricing discipline and cost management .
ERP integrations at recent acquisitions completed, beginning to improve performance; management emphasized disciplined cost management and pricing strategies supporting margin gains .
Strong balance sheet and shareholder returns: no debt, significant cash; repurchased 91,883 shares (~$19.79) and maintained $0.25 dividend .

What Went Wrong

Top-line softness: revenue declined 7.4% YoY to $103.1M amid soft demand and competitive pricing pressures .
YoY profitability compression: diluted EPS decreased to $0.41 (from $0.45); gross margin fell to 30.0% (from 30.6%) YoY .
Ongoing competitive pricing pressure and softening demand conditions noted by management, pointing to continued headwinds on volume and price realization .

Financial Results

Sequential and Trend Comparison

Metric	Q3 FY2024 (Nov 30, 2023)	Q4 FY2024 (Feb 29, 2024)	Q1 FY2025 (May 31, 2024)
Revenue ($USD Millions)	$99.8	$97.4	$103.1
Diluted EPS ($USD)	$0.39	$0.39	$0.41
Gross Profit ($USD Millions)	$29.2	$27.7	$30.9
Gross Profit Margin %	29.3%	28.4%	30.0%
EBITDA (non-GAAP) ($USD Millions)	$18.2	$18.1	$19.0
EBITDA Margin %	18.2%	18.6%	18.4%
Operating Income ($USD Millions)	$13.0	$12.0	$13.7
SG&A ($USD Millions)	$16.3	$14.7	$17.2
Other Income ($USD Millions)	$(1.0)	$(0.9)	$1.0

Year-over-Year Comparison (Q1 FY2025 vs Q1 FY2024)

Metric	Q1 FY2024 (May 31, 2023)	Q1 FY2025 (May 31, 2024)
Revenue ($USD Millions)	$111.3	$103.1
Diluted EPS ($USD)	$0.45	$0.41
Gross Profit ($USD Millions)	$34.0	$30.9
Gross Profit Margin %	30.6%	30.0%
EBITDA (non-GAAP) ($USD Millions)	$20.5	$19.0
EBITDA Margin %	18.4%	18.4%

KPIs and Balance Sheet/CF

KPI	Q3 FY2024 (Nov 30, 2024)	Q4 FY2024 (Feb 28, 2025)	Q1 FY2025 (May 31, 2024)
Cash ($USD Millions)	$55.7	$67.0	$91.4
Short-term Investments ($USD Millions)	$12.9	$5.5	$32.3
Cash from Operations ($USD Millions)	$53.1 (9M)	$65.9 (FY)	$23.1 (Q)
Share Repurchases (shares)	—	—	91,883

Notes:

Segment breakdown: not disclosed; company reports consolidated results .

Estimates vs Actuals

S&P Global consensus estimates unavailable due to access limitations.
External directional context (non-SPGI): EPS actual $0.41 vs consensus ~$0.36–$0.37 (beat); revenue $103.1M vs consensus ~$99.3–$100.85M (mixed depending source). Use cautiously for narrative only.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q1 FY2025	Not provided	Not provided	N/A
Gross Margin	Q1 FY2025	Not provided	Not provided	N/A
EPS	Q1 FY2025	Not provided	Not provided	N/A
Dividend per Share	Ongoing	$0.25 (prior quarters)	$0.25 declared Jun 14, 2024	Maintained
Share Repurchases	Q1 FY2025	Not disclosed	91,883 shares repurchased; avg $19.79	Execution update

Management did not provide formal quantitative guidance; focus remains on margin discipline, ERP integration of acquisitions, and opportunistic M&A pipeline .

Earnings Call Themes & Trends

No earnings call transcript was available for Q1 FY2025; themes below reflect management’s prepared remarks across recent releases.

Topic	Previous Mentions (Q3 FY2024)	Previous Mentions (Q4 FY2024)	Current Period (Q1 FY2025)	Trend
Demand & Pricing	Soft demand; competitive pricing; cost control emphasis	Print market soft; competitive pricing; margin-focused	Softening demand; increasingly competitive pricing; margins up sequentially	Stable headwinds; margin defense improving
ERP & M&A Integration	Recent acquisitions diluted margins; ERP rollout planned	ERP implementations ongoing; margins expected to improve; acquisitions added $4.5M revenue in Q4	ERP integration completed at two acquisitions; performance improving	Improving execution
Margins (Gross/EBITDA)	Gross margin 29.3%; EBITDA margin 18.2%	Gross margin 28.4%; EBITDA margin 18.6%	Gross margin 30.0%; EBITDA margin 18.4%; sequential improvement	Sequential uptrend
Capital Allocation	Special dividend paid; cost reduction in SG&A	Strong cash; inventory reduction; buybacks; dividends	Buybacks; dividend maintained; cash/investments strong	Consistent returns
Balance Sheet	No debt; substantial cash; T-bill investments	No debt; cash + ST investments $110.9M	No debt; cash $91.4M; ST investments $32.3M	Strong liquidity sustained

Management Commentary

“Our results for the quarter were within our expectations given softening demand amidst an uncertain economic environment… our gross profit margin showed a 160-basis point increase over the previous quarter as revenues, profits and earnings per share all increased this quarter. Our EBITDA increased from $18.1 million last quarter to $19.0 million this quarter.” — Keith Walters, Chairman, CEO & President .
“In the first quarter we completed the integration of our ERP system at two of our recent acquisitions and are beginning to see improved performance… disciplined cost management and pricing strategies contributed to our improved margins over the sequential quarter.” .
“We believe we have one of the strongest balance sheets in the industry, with no debt and significant cash… we repurchased 91,883 shares… and increased our investment in U.S. government treasury bills.” .

Q&A Highlights

No Q1 FY2025 earnings call transcript or Q&A was available in our document set or public sources; the company communicates primarily through press releases and 8-K filings .

Estimates Context

S&P Global consensus data was unavailable due to access limitations; therefore formal SPGI comparisons cannot be provided.
External directional context: reports indicate EPS beat by ~~$0.04–$0.05 vs certain estimates, with revenue mixed vs differing consensus sources (~~$99.3–$100.85M), implying a headline EPS beat and revenue near expectations. Use cautiously; not a substitute for SPGI.

Key Takeaways for Investors

Margin defense is working: sequential gross margin and EBITDA improved, reflecting pricing discipline and cost control despite soft demand; watch for sustainability as competitive pricing persists .
ERP integrations at acquisitions reached a positive inflection, supporting margin trajectory and incremental contribution from acquired operations over coming quarters .
Balance sheet strength (no debt; ample cash and T-bills) enables continued dividends, buybacks, and tuck-in M&A without leverage—an attractive defensive profile .
Top-line remains pressured YoY; any stabilization in demand or pricing could be a catalyst given operating leverage to margins; monitor order volumes and mix .
Trading setup: near term, focus on margin resilience and capital returns; medium term, thesis centers on disciplined consolidation (envelopes, specialty print) and ERP-enabled efficiencies .
If relying on estimates, note SPGI consensus was unavailable; external sources suggest a small EPS beat and revenue near/mixed vs expectations—position sizing should reflect lower visibility on Street comparables .
Dividend continuity and opportunistic buybacks remain core to return-of-capital strategy, providing downside support while the company navigates demand softness .

ENNIS, INC. (EBF)·Q1 2025 Earnings Summary