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Quad/Graphics (QUAD) investor relations material
Quad/Graphics Q2 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Net sales for Q2 2025 were $572M, down 10% year-over-year, or 4% excluding the European divestiture; year-to-date sales were $1.2B, down 7% year-over-year.
Adjusted EBITDA for Q2 2025 was $43M (7.6% margin), down from $52M (8.2%) in Q2 2024; adjusted diluted EPS rose to $0.14 from $0.12.
Free cash flow improved by $16M year-over-year to negative $66M for the first half; net debt at June 30, 2025, was $448M.
Continued investment in AI-powered marketing, data intelligence, and retail media networks, with recognition for industry leadership.
Divestiture of European operations completed in February 2025, impacting year-over-year comparisons.
Financial highlights
Cost of sales decreased to $448.1M in Q2 2025; SG&A expenses fell to $80.2M; interest expense decreased to $13.2M.
Year-to-date adjusted EBITDA was $89M, down from $102M in 2024; year-to-date adjusted EPS was $0.34, up from $0.22.
Free cash flow for the first half of 2025 improved to negative $66M; liquidity at June 30, 2025, was $202M–$217.6M.
Net debt leverage ratio at June 30, 2025, was 2.13x, up from 1.56x at year-end 2024.
Capital expenditures for H1 2025 were $24.3M, down from $33.5M in H1 2024.
Outlook and guidance
2025 guidance: adjusted net sales expected to decline 2%–6%, adjusted EBITDA of $180M–$220M, free cash flow of $40M–$60M, capital expenditures of $65M–$75M, and year-end debt leverage ratio of ~1.5x.
By 2028, net sales growth anticipated, with adjusted EBITDA margin improvement of at least 100 basis points over 2024 and long-term margin targets in low double digits.
Free cash flow conversion expected to rise from 25% in 2025 to 35% by 2028 and 40% long-term.
Sequentially higher EBITDA expected in Q3 and Q4 due to seasonal production peaks.
Management anticipates ongoing benefits from cost reduction and productivity initiatives despite industry headwinds.
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