Quad/Graphics (QUAD) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $586.7M vs. $588.0M YoY; operating income and net earnings fell, while adjusted diluted EPS rose to $0.35 from $0.31.

• FY26 sales guidance improved to a 1%–3% decline, with narrower adjusted EBITDA and free cash flow ranges.

• Strategy centers on integrated marketing, direct marketing, in-store services and retail media amid print declines and macro uncertainty.

Financial highlights

• Q3 net sales were $586.7M vs. $588.0M; operating income was $13.9M vs. $26.4M, and net earnings were $5.5M vs. $10.2M.

• Q3 adjusted EBITDA was $51.1M vs. $52.6M, with an 8.7% margin vs. 8.9%; adjusted diluted EPS was $0.35 vs. $0.31.

• 9M net sales were $1,745.2M vs. $1,789.3M, down 1% excluding the 2025 European divestiture; adjusted EBITDA was $137.8M vs. $141.4M.

• 9M adjusted diluted EPS rose to $0.84 from $0.65; net earnings were $15.4M vs. $15.9M.

• 9M free cash flow was -$100.0M vs. -$86.5M; operating cash used was $62.4M vs. $50.0M.

Outlook and guidance

• FY26 adjusted annual net sales guidance improved to a 1%–3% decline from 1%–5%, excluding $23M of 2025 European operations sales.

• FY26 adjusted EBITDA guidance is $185M–$195M and free cash flow guidance is $45M–$55M; capex is expected to be ~$55M and year-end net debt leverage ~1.5x.

• 2028 targets include a net sales growth inflection, adjusted EBITDA margin expansion, 40% free cash flow conversion and long-term net debt leverage of 1.5x–2.0x.

• Most FY26 free cash flow generation is expected in Q4, consistent with historical seasonality.