Cimpress Q2 Earnings Call Highlights

Cimpress (NASDAQ:CMPR) executives highlighted record quarterly revenue, improving growth trends in key “elevated” product categories, and a higher full-year outlook during the company’s fiscal 2026 second-quarter earnings follow-up call. Founder, Chairman and CEO Robert Keane and CFO Sean Quinn said the company is tracking ahead of its initial fiscal 2026 expectations and reiterated confidence in longer-term fiscal 2028 profitability and deleveraging targets.

Revenue tops $1 billion as guidance rises

Quinn said the second quarter marked the first time Cimpress exceeded $1 billion in quarterly revenue. For Q2, revenue increased 11% on a reported basis and 4% on an organic constant-currency basis, with growth across all segments. Through the first half, Cimpress delivered 4% organic constant-currency revenue growth, which Quinn said was ahead of the company’s prior full-year organic growth guidance range of 2% to 3%.

On the back of the first-half performance, Cimpress raised its fiscal 2026 outlook. The company now expects:

• Revenue growth of 7% to 8%, including 3% to 4% organic constant-currency growth
• Net income of at least $79 million
• Adjusted EBITDA of at least $460 million (up from at least $450 million)
• Operating cash flow of approximately $313 million
• Adjusted free cash flow of approximately $145 million (up from $140 million)

Quinn said the reported growth rate included benefits from currency and a tuck-in acquisition in the PrintBrothers segment. He added that the company’s year-over-year adjusted EBITDA growth in the first half matched the full-year dollar growth implied in prior guidance, which supported raising the EBITDA outlook.

Vista growth led by elevated categories; legacy products stabilize

In Vista, Cimpress reported 5% organic constant-currency growth, up from 3% in the prior-year quarter. Quinn said growth was supported by promotional products, apparel and gifts, and packaging and labels, each of which delivered double-digit growth. He emphasized that these elevated categories are important for serving and retaining higher-value customers.

Keane and Quinn pointed investors to a key metric they have been discussing: variable gross profit per customer. Quinn said the metric grew 9% year-over-year in Q2 (following 7% growth in Q1), which management described as evidence of increasing wallet share among small business customers.

Legacy categories remained a mixed picture but showed relative stability. Quinn said business cards and stationery declined 1%, consistent with Q1 and an improvement from the prior year’s decay rate. On the consumer side, he said U.S. holiday cards and calendars volume was flat year-over-year, while Canada grew double digits. Europe was described as the weaker area for consumer performance due to a tough comparison, with consumer down slightly year-over-year in the region during Q2.

Profitability: higher adjusted EBITDA despite margin pressure

Adjusted EBITDA increased $6.6 million year-over-year in Q2, and Quinn said profit dollars rose 8% on a consolidated basis due to growth in higher-value product categories and favorable currency movements. Currency provided a $4.1 million benefit to EBITDA in the quarter, and Quinn said it should remain a source of year-over-year favorability in the second half and looking into next year as hedges are locked in.

Gross margin declined 110 basis points. Quinn attributed most of the decline to tariff impacts at National Pen, including both tariff costs and the offsetting pricing actions. National Pen’s revenue also benefited from tariff-related price increases, according to Quinn.

In Vista, segment EBITDA improved 10% (about $10 million) on revenue strength, stable gross profit margins, and currency benefits. Quinn noted several quarter-specific headwinds within Vista:

• ~$2 million of negative impact associated with a hurricane that hit Jamaica, with some costs potentially recoverable through insurance
• $1.5 million of production startup costs tied to expansion of the North American production network
• $1 million of tariffs, net of pricing increases; management expects the impact to lessen as supply chain remediation ramps

Cross-Cimpress Fulfillment and shared capabilities

Keane focused much of his commentary on operational themes outlined in prior communications, including “Cross-Cimpress Fulfillment” (XCF), shared technology, and the role of elevated products. He said Cimpress is optimizing its production footprint through focused production hubs and accelerating new product introductions, noting this comes with a period of elevated capital expenditures focused on manufacturing equipment.

Keane also said Cimpress is deepening collaboration between Vista, National Pen, and BuildASign to share back-end capabilities—such as product development, sourcing, performance marketing, telesales, direct mail, and manufacturing—while keeping brands separate. He said multiple brands can be advantageous in the market, while back-end sharing can drive synergies, improve customer value, and optimize advertising ROI across the portfolio.

On XCF specifically, Keane said the initiative is still early but growing quickly. He stated XCF volume was a little over $40 million in the first half of fiscal 2025 and over $80 million in the first half of fiscal 2026, effectively doubling year-over-year. He said fiscal 2025 XCF delivered about $15 million of gross profit increase, and management expects XCF to continue growing strongly, though Cimpress did not disclose a long-term targeted activity level.

Capital allocation: leverage down, buybacks continue, selective M&A

Cimpress ended Q2 with net leverage of 2.97x trailing twelve-month EBITDA under its credit agreement, down sequentially despite allocating more than $25 million to share repurchases during the quarter. Cash ended the quarter at $258 million, and the company had $250 million remaining undrawn on its credit facility.

Quinn said the company expects net leverage to decrease slightly by the end of fiscal 2026 versus fiscal 2025’s 3.1x, while leaving room for additional capital allocation. He said repurchases in the second half would likely be less intense than Q2 but remain price dependent, and he characterized recent price levels as an attractive use of capital.

On M&A, Keane described a tuck-in acquisition of an Austrian printing group with about $70 million in annual revenue and about $5 million in annualized EBITDA prior to synergies. He said the enterprise value paid, relative to pre-synergy EBITDA, was “comfortably below five,” with expected synergies lowering the effective multiple further and producing returns “very comfortably higher than 15%.” He added that Cimpress evaluates M&A opportunities alongside alternatives such as internal investment, share repurchases, and deleveraging.

Management reiterated confidence in fiscal 2028 targets, which include 4% to 6% organic constant-currency growth in fiscal 2028, $200 million in net income, adjusted EBITDA of at least $600 million, and adjusted EBITDA-to-free-cash-flow conversion of approximately 45%, alongside a plan to reduce net leverage to below 2.0x by fiscal 2028, subject to capital allocation choices.

About Cimpress (NASDAQ:CMPR)

Cimpress NV is a global leader in mass customization and web-to-print services, offering businesses and consumers an online platform to design, order and personalize printed marketing materials and promotional products. As the parent company of Vistaprint and a portfolio of regional print service providers, Cimpress leverages proprietary technology to connect millions of small- and medium-sized customers with a network of manufacturing facilities around the world. Its product range spans business cards, brochures, signage, labels, apparel, packaging and a variety of bespoke merchandise.

The company traces its roots to Vistaprint, founded in 1995 by Robert W.