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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.
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Q2 2025 earnings summary30 Jul, 2025

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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Frequently asked questions

Quad/Graphics Inc, operating as Quad, provides marketing solutions including print, logistics, and content development services. The company offers end-to-end marketing support from strategy and creative design to multichannel execution. It serves clients in retail, publishing, financial services, and other industries. The company is headquartered in Sussex, Wisconsin, and its shares are listed on the NYSE.

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