Quad/Graphics (QUAD) Q2 2026 earnings summary

Executive summary

• Net sales increased 1% year-over-year to $578 million in Q2 2026, with net earnings of $4 million and adjusted diluted EPS up 71% to $0.24; strong free cash flow generation and continued investment in packaging and retail media, including a new Salt Lake City facility and expanded partnerships with Wakefern and Vallarta.

• $13 million returned to shareholders in H1 2026 via $10 million in dividends and $3 million in share repurchases.

• Industry recognition received for integrated marketing capabilities, including Ad Age, MM+M, and Forrester listings.

• Company focus on cost reduction, operational efficiency, and transformation into a marketing experience (MX) company.

Financial highlights

• Q2 2026 net sales: $578 million (+1% YoY); adjusted EBITDA: $42 million (7.3% margin), down from $43 million (7.6%) in Q2 2025; adjusted diluted EPS: $0.24 vs. $0.14; free cash flow for Q2 2026: $41 million, with year-to-date free cash flow at -$66 million, consistent with prior year.

• Year-to-date net sales: $1.2 billion, down 2% year-over-year excluding the European divestiture; adjusted EBITDA: $87 million (7.5% margin); adjusted diluted EPS: $0.48 vs. $0.34.

• Net debt at June 30, 2026: $394 million, up from $308 million at year-end 2025 but down from $448 million at June 30, 2025; total liquidity at $208 million.

• Returned $13 million to shareholders in H1 2026 via dividends and share repurchases; share repurchases since 2022: 7.9 million shares (14.1% of outstanding stock at inception).

• Blended interest rate on debt: 6.6%; next major maturity in October 2029.

Outlook and guidance

• 2026 net sales expected to decline 1%-5% versus 2025, excluding $23 million from the European divestiture; full-year adjusted EBITDA guidance is $175-$215 million, with $195 million at midpoint; free cash flow for 2026 projected at $40-$60 million; capital expenditures expected at $55-$65 million; net debt leverage ratio targeted to decrease to ~1.5x by year-end 2026.

• 2028 outlook anticipates a return to net sales growth, improved adjusted EBITDA margin, and free cash flow conversion rising to 35%-40%.

• Management expects continued headwinds from postal rate increases, paper supply constraints, and digital substitution.

• Liquidity remains strong, with $275.9 million available as of June 30, 2026.