Cimpress (CMPR) Q1 2025 earnings summary

Executive summary

• Revenue grew 6% year-over-year to $805.0 million in Q1 FY2025, with all segments contributing and Vista driving strong performance through new product introductions.

• Adjusted EBITDA declined 1% to $87.8 million, impacted by higher operating expenses, advertising spend, and negative currency effects.

• Operating income increased by $5.2 million to $39.3 million compared to the prior year.

• Net loss attributable to Cimpress plc was $(12.5) million, with diluted EPS of $(0.50), mainly due to currency impacts and higher interest expense.

• Operating cash flow dropped to $4.4 million, and adjusted free cash flow was a $25.6 million outflow, primarily due to working capital changes and increased interest payments.

Financial highlights

• Q1 FY2025 revenue reached $804.97 million, up from $757.29 million in Q1 FY2024.

• Adjusted EBITDA margin was 10.9%–11% for the quarter, down from 11.7% year-over-year.

• Gross margin for the quarter was 47%, down from 48% in Q1 FY2024.

• Cost of revenue rose to $422.7 million (52.5% of revenue), up from $398.8 million (52.7%).

• Cash and cash equivalents at quarter-end were $153.0 million; total debt was $1,617.5 million.

Outlook and guidance

• Management expects continued constant-currency organic revenue, adjusted EBITDA, and adjusted free cash flow growth over the multi-year period.

• Net leverage is targeted to fall to or below 2.75x trailing-twelve-month EBITDA by FY2025 year-end, assuming continued share repurchases.

• Working capital inflows expected for full year FY25, though less than FY24.

• Holiday season preparations are strong, but five fewer selling days and the U.S. election may dampen demand.

• No material legal proceedings or risks expected to impact future results.