Cimpress (CMPR) Q2 2025 earnings summary

Executive summary

• Q2 results were below expectations, with revenue up 2% year-over-year to $939.2 million, but profitability impacted by non-recurring items, operational headwinds, and higher costs, especially in the U.S. market.

• Adjusted EBITDA declined by $34.2 million year-over-year to $132.3 million, and operating income fell $26.7 million to $80.9 million, mainly due to prior-year one-time benefits and a $2.9 million land duty tax.

• Management remains confident in the long-term growth trajectory, focusing on expanding high-growth product categories and leveraging production hubs.

• Share repurchases totaled $42.4 million in Q2, with year-to-date repurchases at $53.0 million, reducing diluted share count.

• Cash from operations was $180.9 million for the six months, with adjusted free cash flow down to $107.9 million due to higher capital expenditures.

Financial highlights

• Q2 revenue grew 2% year-over-year to $939.2 million on both reported and organic constant-currency basis.

• Adjusted EBITDA margin for the quarter was 14.1%, down from 18.1% in the prior year.

• Operating income was $80.9 million, down from $107.7 million in Q2 FY2024.

• Net income attributable to Cimpress plc was $61.1 million, up from $58.1 million in Q2 FY2024.

• Cash and cash equivalents at quarter end were $224.4 million.

Outlook and guidance

• FY2025 revenue expected to grow at least 3% reported and 4% organic constant-currency; H2 FY2025 revenue growth at least 3% reported and 4% organic constant-currency.

• FY2025 adjusted EBITDA expected at least $440 million; H2 FY2025 at least $220 million.

• FY2025 operating income expected at least $233.9 million; H2 FY2025 at least $113.7 million.

• FY2025 net cash from operations at least $289 million; adjusted free cash flow at least $157 million.

• Net leverage expected to end FY2025 at approximately 3.0x, with a long-term target of 2.5x.