Cimpress (CMPR) Q4 2025 earnings summary

Executive summary

• Q4 and FY 2025 results reflect a major transition from legacy products to higher-value categories, diluting near-term growth and margins but positioning for future gross profit and customer lifetime value growth.

• Investments in manufacturing, technology, and customer experience are driving expansion into packaging, promotional products, apparel, labels, signage, and more.

• The company is leveraging its scale and capabilities to disrupt a fragmented $100B+ market, aiming to capture greater wallet share from higher-value customers.

Financial highlights

• Q4 consolidated revenue grew 4% reported, 2% organic constant currency; full year up 3% both reported and constant currency.

• Vista's promotional products, apparel, and gifts category grew 18% for the year, now exceeding $300M in revenue.

• Adjusted EBITDA increased $3.1M year-over-year in Q4 but declined $35.5M for the full year, with Q4 profit trend improving.

• Gross profit dollars grew year-over-year in Q4 despite 110bps margin compression and $3M tariff impact.

• Advertising as a percentage of revenue declined 120bps to 11.3% in Q4; contribution profit grew 5%.

Outlook and guidance

• FY 2026 guidance: revenue growth of 5%-6% (2%-3% organic constant currency), net income at least $72M, adjusted EBITDA at least $450M.

• Operating cash flow expected at $310M, adjusted free cash flow ~$140M; CapEx ~$100M, capitalized software ~$70M.

• Net leverage expected to decrease slightly by end of FY 2026; committed to 2.5x leverage target.

• Free cash flow conversion expected to return to 45%-50% post-2026 as CapEx normalizes and efficiency gains materialize.