Cimpress (CMPR) Q1 2025 earnings summary

Executive summary

• Q1 FY2025 revenue grew 6% year-over-year to $805M, with all segments contributing and Vista driving strong performance through new product introductions.

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

• Operating income increased by $5.2M to $39.3M, while net loss attributable to Cimpress plc was $(12.5)M, mainly due to currency and interest expense.

• Operating cash flow dropped to $4.4M, with adjusted free cash flow at a $25.6M outflow, primarily from working capital and interest payments.

• Net leverage improved to 3.1x trailing-twelve-month EBITDA, supported by a $525M senior notes refinancing and ongoing share repurchases.

Financial highlights

• Q1 consolidated revenue reached $804.97M, up 6% year-over-year on both reported and organic constant currency basis.

• Adjusted EBITDA was $87.8M, down $1.0M year-over-year; adjusted EBITDA margin was 10.9%–11%.

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

• Operating margin increased to 4.9% from 4.5% in the prior year.

• Free cash flow was lower year-over-year, mainly due to higher working capital outflows and increased cash interest payments.

Outlook and guidance

• Management expects continued growth in constant-currency organic revenue, adjusted EBITDA, and free cash flow 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.

• Currency impact on adjusted EBITDA expected to be approximately neutral for FY25.

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

• Management expects continued volatility from currency and interest rate fluctuations.