Cimpress (CMPR) investor relations material

Strategic priorities and business transformation

• Elevated products are driving significant improvements in per-customer lifetime value and wallet share, with strong growth in packaging, signage, labels, promotional products, apparel, and multi-page products, while legacy categories decline.

• Investments in technology, especially the Mass Customization Platform (MCP), manufacturing, and AI, are reducing costs, improving operational efficiency, accelerating new product introductions, and enhancing user experience.

• Artificial intelligence is being integrated across design, manufacturing, customer care, and marketing, enhancing productivity, customer experience, and operational efficiency.

• Cross-business fulfillment (XCF) and focused production hubs are enabling scale advantages, cost savings, faster delivery, and rapid product launches, with XCF expected to grow as a share of total COGS.

• The Upload & Print model is expanding into North America, leveraging Pixartprinting’s expertise and Cimpress’ scale for faster market penetration and cost efficiencies.

Financial outlook and capital allocation

• Clear path to FY28 adjusted EBITDA of at least $600 million, representing over 11% CAGR from FY2025, with net income of at least $200 million and adjusted free cash flow conversion of ~45% of adjusted EBITDA.

• FY2026 guidance includes revenue growth of 5–6%, adjusted EBITDA of at least $450 million, and operating cash flow of $310 million, with net leverage expected to decrease.

• Capital expenditures are elevated in FY2025 and FY2026 (about $100 million per year), focused on both replacement and growth investments to drive efficiency and support elevated product growth.

• Significant delevering is expected, with net leverage projected to decrease to 2.5x by FY2027 and meaningfully below 2.0x by FY2028, allowing for continued share repurchases and capital allocation flexibility.

• Historical and ongoing capital allocation includes organic growth investments, M&A, and share repurchases, with a focus on maintaining leverage at or below 2.5x trailing-twelve-month EBITDA.

Operational excellence and innovation

• Collaboration with leading equipment suppliers (HP, Heidelberg, Canon, Ricoh) enables co-development of advanced manufacturing solutions, driving cost reductions and product innovation.

• Manufacturing and supply chain excellence, including automation and insourcing, delivered $12 million in cost savings in FY2025.

• Product assortment is expanding rapidly, with over 200 new products added monthly through XCF, direct investments, and third-party fulfillers.

• Design enablement, including AI-powered tools and professional services, is making complex product design more accessible, increasing customer satisfaction and conversion.

• AI is delivering measurable OpEx reductions, improved customer care, and enhanced personalization, with ongoing upskilling and cultural transformation to maximize its impact.