Core Insights - Momentum investors focus on "buying high and selling higher" rather than traditional strategies of buying low and waiting for recovery [1] - Investing in fast-moving stocks can be risky if valuations exceed future growth potential, leading to potential losses [2] Group 1: Momentum Investing - The Zacks Momentum Style Score is effective in identifying strong momentum stocks, while the 'Fast-Paced Momentum at a Bargain' screen helps find attractively priced stocks [3] - Cimpress (CMPR) has shown a price increase of 0.5% over the past four weeks, indicating growing investor interest [4] - CMPR has gained 7.2% over the past 12 weeks, demonstrating its ability to deliver positive returns over a longer timeframe [5] Group 2: Stock Performance Metrics - CMPR has a Momentum Score of A, suggesting it is an opportune time to invest in the stock [6] - An upward trend in earnings estimate revisions has contributed to CMPR earning a Zacks Rank 2 (Buy), indicating strong investor interest [7] - CMPR is trading at a Price-to-Sales ratio of 0.48, meaning investors pay 48 cents for each dollar of sales, reflecting a reasonable valuation [7] Group 3: Investment Opportunities - CMPR has significant potential for growth, and there are other stocks that also meet the criteria of the 'Fast-Paced Momentum at a Bargain' screen [8] - Zacks offers over 45 Premium Screens tailored to different investing styles, providing various strategies to identify winning stocks [9]

Summary of Cimpress FY Conference Call Company Overview - **Company**: Cimpress (NasdaqGS: CMPR) - **Industry**: Custom print and promotional products - **Key Business**: Vistaprint, which accounts for approximately 50% of total revenue [4][5] Core Points and Arguments - **Long-term Growth**: Cimpress has a 21% compound annual growth rate (CAGR) since FY 2004, with Vistaprint achieving an 18% CAGR during the same period [4] - **Cash Flow Generation**: Over the past decade, Cimpress generated $2.3 billion in unlevered free cash flow and over $1.5 billion in adjusted free cash flow [5] - **Market Position**: The company operates in a fragmented market with a total addressable market (TAM) exceeding $100 billion across North America, Europe, and Australia [8] - **Web-to-Print Mass Customization**: Cimpress focuses on providing custom products in small quantities at competitive prices, breaking the traditional trade-off between high unit costs for low volumes and low unit costs for high volumes [6][7] - **Product Expansion**: The company has been investing in "elevated products" that command higher customer value, such as custom packaging, drinkware, and sophisticated signage [9][10] Financial Guidance - **FY 2026 Outlook**: Expected revenue growth of 5%-6%, with organic constant currency growth of 2%-3%. Projected net income of at least $72 million and adjusted EBITDA of at least $450 million [25][26] - **Long-term Projections**: By FY 2028, Cimpress anticipates constant currency revenue growth of 4%-6%, net income of at least $200 million, and adjusted EBITDA of at least $600 million [27][28] Technology and Operations - **Technology Investment**: Major technology replatforming has been completed, enabling better manufacturing, product introduction, and customer experience [13][15] - **Cost of Goods Sold (COGS) Reduction**: The company expects to drive more than $15 million in incremental gross profit through improved operational efficiencies [18] Risks and Challenges - **Market Disruption**: The rise of AI poses potential risks in customer engagement and design processes, although it may also present opportunities for Cimpress [40][41] - **Tariff Exposure**: Cimpress has managed tariff impacts through strategic sourcing and pricing adjustments, with about 90% of products sold to U.S. customers being exempt from tariffs [34][36] Additional Insights - **Acquisition Strategy**: Cimpress has successfully integrated acquired businesses, generating cash flow exceeding acquisition costs and maintaining a 15% cash-on-cash return [20] - **Capital Allocation**: The company balances organic growth investments with share repurchases and tuck-in M&A activities, maintaining a strong capital structure with no near-term debt maturities [22][23] This summary encapsulates the key points discussed during the Cimpress FY Conference Call, highlighting the company's growth trajectory, market position, financial outlook, operational strategies, and potential risks.

Group 1 - Cimpress plc is scheduled to present at multiple investor conferences, including the Annual Southwest IDEAS Investor Conference and the BofA Securities Leveraged Finance Conference [2] - The presentations will be led by Meredith Burns, Vice President of Investor Relations & Sustainability [2] - Cimpress is a global leader in web-to-print mass customization, providing high-quality custom products quickly and affordably [2] Group 2 - Cimpress has released its financial results for the first quarter of fiscal year 2026, available on its investor relations website [5] - A public Q&A call will be held following the Q1 FY2026 earnings announcement, allowing investors to ask questions live [6] - The company will host its annual Investor Day on September 16, 2025, featuring presentations from executives and discussions on strategic goals [7]

Financial Performance - For the three months ended September 30, 2025, consolidated revenue increased by 7% to $863.3 million, driven primarily by growth in the Vista and PrintBrothers segments [130]. - Organic constant-currency revenue growth was reported at 4%, indicating a solid performance excluding the impact of acquisitions and currency fluctuations [130]. - Operating income rose by $9.6 million to $49.0 million, attributed to increased gross profit from revenue growth and operational efficiencies [128]. - Net income increased by $18.9 million to $6.5 million, supported by higher operating income and improved other income from unrealized hedging gains [129]. - Adjusted EBITDA increased by $10.9 million to $98.7 million, reflecting strong operational performance and favorable currency impacts [130]. - Net income for Q3 2025 was $6,520,000, a significant improvement from a net loss of $12,384,000 in Q3 2024, representing a turnaround of approximately 152.7% [207]. - Adjusted EBITDA for Q3 2025 increased to $98,715,000, up 12.5% from $87,771,000 in Q3 2024 [207]. - Net cash provided by operating activities rose to $25,059,000 in Q3 2025, compared to $4,384,000 in Q3 2024, marking an increase of 471.5% [208]. - Adjusted free cash flow improved to $(17,759,000) in Q3 2025 from $(25,618,000) in Q3 2024, reflecting a reduction in negative cash flow by 30.7% [208]. Segment Performance - Revenue growth in the Vista segment was particularly strong in promotional products, apparel, and packaging, contributing significantly to overall revenue increases [127]. - Vista segment reported revenue grew by 6% to $454.909 million, with segment EBITDA increasing by 11% to $89.986 million [162][163]. - PrintBrothers segment revenue increased by 15% to $184.711 million, with segment EBITDA rising by 27% to $25.739 million [165][166]. - The Print Group's revenue grew by 15% to $96.710 million, while segment EBITDA increased by 3% to $18.671 million [169][171]. - National Pen's revenue increased by 10% to $103.209 million, with segment EBITDA improving by $2.2 million despite a negative EBITDA margin [172][174]. - Segment revenue growth for All Other Businesses was 8% for the three months ended September 30, 2025, driven by strong performance in the packaging product category [178]. - Segment EBITDA increased by $2.2 million compared to the prior year, largely due to cross-Cimpress revenue growth and lower variable long-term incentive compensation expenses of $1.9 million [179]. Cash Flow and Capital Expenditures - Cash provided by operating activities increased by $20.7 million to $25.1 million, driven by higher net income and favorable changes in net working capital [132]. - Adjusted free cash flow improved by $7.9 million to $(17.8) million, despite increased capital expenditures for new production equipment and technology enhancements [133]. - Net cash provided by operating activities was $25.1 million for the three months ended September 30, 2025, a significant increase from $4.4 million in the prior year [182]. Expenses and Costs - Cost of revenue for the three months ended September 30, 2025, increased by $37.7 million year over year, primarily due to higher third-party fulfillment costs and internal manufacturing expenses [144]. - Technology and development expenses increased by $3.0 million to $84.886 million for the three months ended September 30, 2025, representing a 4% increase year-over-year [145][147]. - Marketing and selling expenses rose by $6.6 million to $210.398 million, a 3% increase, driven by higher cash compensation costs and increased advertising spend [145][149]. - General and administrative expenses increased by $2.1 million to $53.996 million, primarily due to higher cash compensation costs and a sales tax reserve expense [145][151]. Debt and Financial Obligations - Cash and cash equivalents stood at $200.5 million, while total debt was $1,600.9 million as of September 30, 2025 [184]. - Total contractual obligations amounted to $2,616.4 million, with $318.9 million due within one year [189]. - The company had unrecorded purchase commitments of $429.2 million as of September 30, 2025, primarily for third-party cloud services and fulfillment [193]. - The 2032 Senior Notes bear interest at a rate of 7.375% per annum and have a total principal amount of $525.0 million [195]. Interest and Taxation - Interest expense decreased by $3.3 million, attributed to a lower weighted average interest rate on the senior secured Term Loan B [156]. - Income tax expense increased to $17.838 million with an effective tax rate of 73.2% for the three months ended September 30, 2025 [157]. Risk Management - The U.S. tariff environment remains fluid, with Cimpress managing tariff impacts through supply chain optimization and pricing adjustments [125]. - As of September 30, 2025, the company had $1,070.1 million in variable-rate debt, exposing it to interest rate risk [211]. - A hypothetical 100 basis point increase in interest rates would result in an $8.0 million increase in interest expense over the next 12 months [211]. - The company manages currency exchange rate risk through normal operations and derivative financial instruments, with significant exposures in the Euro and British Pound [213]. - The use of currency derivatives that do not qualify for hedge accounting may lead to volatility in consolidated financial statements due to unrealized gains and losses [214]. - The company executed interest rate swap contracts to mitigate exposure to interest rate changes related to its variable-rate debt [211].

Financial Data and Key Metrics Changes - The consolidated Q1 revenue grew 7% on a reported basis and 4% on an organic constant currency basis, with adjusted EBITDA increasing by $10.9 million year over year, marking the highest ever EBITDA for a Q1 period [14][16][17] - Gross profit dollars grew 5% on a consolidated basis, while gross margins contracted by 80 basis points due to a product mix shift [17][18] - Adjusted free cash flow showed an outflow of $17.8 million, driven by seasonal net working capital and planned higher capital expenditures [20] Business Line Data and Key Metrics Changes - Vista experienced strong growth in elevated products, particularly in promotional products, apparel, gifts, packaging, and labels, with double-digit growth rates year over year [5][15] - The Upload and Print segment reported a 15% increase in revenue, with constant currency growth of 8% [16] - National Pen and BuildASign also contributed to revenue growth, driven by their role as key fulfillment partners for Vista [16] Market Data and Key Metrics Changes - Elevated products are gaining traction in the web-to-print and mass customization market, indicating a long runway for future market share gains [5][6] - The impact of tariffs on gross profit was minimal, with the company able to offset almost all impacts through pricing adjustments [19][33] Company Strategy and Development Direction - The company is focusing on elevated products to improve customer lifetime value and is investing significantly in production operations to reduce costs and increase product introduction velocity [7][12] - Cross Cimpress Fulfillment is being leveraged to drive revenue and profits across different segments, enhancing synergies within the company [9][25] - The company aims for a path to FY2028 EBITDA of at least $600 million, with significant deleveraging on the balance sheet [11][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding fiscal 2026 financial objectives, citing a strong start to the fiscal year [14][21] - The company is optimistic about the upcoming holiday season, having addressed previous headwinds and improved organic search performance [36][38] - Management acknowledged the importance of risk mitigation regarding tariffs and emphasized a strong liquidity position with cash and cash equivalents over $200 million [20][33] Other Important Information - The company reiterated its fiscal year guidance, expecting revenue growth of 5 to 6% and adjusted EBITDA of at least $450 million [21][22] - The introduction of a new metric, variable gross profit per customer, aims to provide better insights into customer value growth [18] Q&A Session Summary Question: How was consolidated revenue "only" up 4% on an organic constant currency basis? - The discrepancy is due to Cross Cimpress Fulfillment, where inter-segment revenues are eliminated in consolidated results, impacting the overall revenue figures [25][26] Question: What is the current status of dealings with Spruce House? - The company has met with Spruce House and appreciates their feedback, focusing on executing plans to reflect intrinsic value [28][29] Question: Can you unpack how Q1 results position you for the remainder of the year? - Q1 results were ahead of the pace needed to meet full-year guidance, indicating a strong start for the fiscal year [30][31] Question: What was the impact of tariffs during the quarter? - The impact of tariffs was minimal, with less than $1 million net impact, and the company continues to focus on risk mitigation [33][34] Question: How is the company preparing for the holiday season? - The company has improved its position compared to last year, addressing previous headwinds and planning strategically for the holiday season [36][38] Question: Why was tax expense so high at $17.8 million? - The increase in tax expense is attributed to higher profitability year over year, with cash taxes expected to be higher due to the absence of prior year refunds [39][40]

Core Insights - Diamond Hill Capital's "Select Fund" underperformed the Russell 3000 Index in Q3 2025, returning 4.98% compared to the index's 8% gain [1] - Cimpress plc (NASDAQ:CMPR) was highlighted as a top contributor in the fund's performance, with a one-month return of 3.06% and a 52-week loss of 6.32% [2][3] Company Performance - Cimpress plc's stock closed at $66.75 on October 29, 2025, with a market capitalization of $1.647 billion [2] - The management team of Cimpress plc is noted for its ownership mindset and long-term focus, aiming for solid revenue and profit growth [3] Hedge Fund Interest - Cimpress plc is held by 15 hedge fund portfolios as of the end of Q2 2025, an increase from 13 in the previous quarter [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer better upside potential [4]

Core Insights - Cimpress reported revenue of $863.28 million for the quarter ended September 2025, reflecting a year-over-year increase of 7.2% and surpassing the Zacks Consensus Estimate of $841.63 million by 2.57% [1] - The company's EPS for the quarter was $0.30, a significant improvement from -$0.50 in the same quarter last year, and also exceeded the consensus EPS estimate of $0.29 by 3.45% [1] Revenue Breakdown - Revenue from Vista was $454.91 million, slightly above the estimated $449.9 million, marking a year-over-year increase of 5.9% [4] - Inter-segment eliminations reported revenue of -$38 million, which was worse than the average estimate of -$27.44 million, but showed a substantial year-over-year change of +94.3% [4] - Revenue from All Other Businesses was $61.74 million, exceeding the average estimate of $60.63 million, with a year-over-year increase of 8.1% [4] - National Pen generated revenue of $103.21 million, surpassing the average estimate of $99.76 million, representing a year-over-year growth of 10.5% [4] Stock Performance - Cimpress shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Core Insights - Cimpress (CMPR) reported quarterly earnings of $0.3 per share, exceeding the Zacks Consensus Estimate of $0.29 per share, and a significant improvement from a loss of $0.5 per share a year ago, resulting in an earnings surprise of +3.45% [1] - The company achieved revenues of $863.28 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.57% and showing an increase from $804.97 million in the same quarter last year [2] - Cimpress has underperformed the market, with shares down about 7% year-to-date compared to the S&P 500's gain of 17.2% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.53 on revenues of $993.44 million, and for the current fiscal year, it is $3.15 on revenues of $3.59 billion [7] - The estimate revisions trend for Cimpress was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Consumer Services - Miscellaneous industry, to which Cimpress belongs, is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - The Beachbody Company, Inc. (BODI), another company in the same industry, is expected to report a quarterly loss of $0.39 per share, reflecting a year-over-year change of +77.7%, with revenues projected at $55.8 million, down 45.4% from the previous year [9]

Financial Performance - Q1 FY2026 revenue increased by 7% year over year to $863.3 million, with organic constant-currency growth of 4%[22] - Adjusted EBITDA reached $98.7 million, marking a 12% increase compared to Q1 FY2025 and the highest-ever Q1 adjusted EBITDA[6] - Net income improved to $6.5 million, an increase of $18.9 million year over year, driven by operating income growth and unrealized gains on currency hedges[6] - Operating cash flow rose by $20.7 million to $25.1 million, primarily due to a reduction in net working capital outflows[6] - National Pen's revenue grew by 10% year over year, supported by cross-Cimpress fulfillment and tariff-related pricing increases[10] - The company expects FY2026 net income of at least $72 million and adjusted EBITDA of at least $450 million[17] - By FY2028, the company anticipates achieving $200 million in net income and $600 million in adjusted EBITDA, with a net leverage ratio of approximately 2.5x trailing-twelve-month EBITDA[14] Revenue Growth - Vista segment revenue grew 6% year over year, with a 5% increase on an organic constant-currency basis; promotional products and packaging grew at double-digit rates[3] - PrintBrothers and The Print Group each reported a 15% revenue growth year over year, with organic constant-currency growth of 8%[8] - Reported revenue for Q1 FY2026 was $185 million, reflecting a 15% growth compared to the previous quarter[82] - Organic constant-currency revenue growth for Q1 FY2026 was 10%[82] - National Pen reported revenue of $131 million for Q1 FY2026, with a 12% year-over-year growth[94] - All Other Businesses generated revenue of $62 million in Q1 FY2026, with a reported growth of 10%[107] - Revenue for the three months ended September 30, 2025, was $863,277, an increase of 7.2% compared to $804,969 for the same period in 2024[134] Profitability Metrics - Gross Profit for Q1 FY2024 was $458 million, with a gross margin of 50%[32] - Contribution Profit for Q1 FY2024 was $319 million, representing a contribution margin of 35%[38] - GAAP Net Income for Q1 FY2024 was $118 million, with a margin of 14%[43] - Gross profit for Q1 FY2026 was $53 million, with a gross margin of 39%[82] - Gross profit for National Pen was $71 million, achieving a gross margin of 53%[96] - Contribution margin for the total company was 31% in Q1 FY24, slightly fluctuating but projected to remain around 31% in Q1 FY26[148] Cash Flow and Liquidity - Cash and cash equivalents stood at $200.5 million as of September 30, 2025, with a $250 million revolving credit facility remaining undrawn[6] - Adjusted Free Cash Flow for Q1 FY2024 was $10.928 million, a decrease from $(25.618) million in Q1 FY2025 and $(17.759) million in Q1 FY2026[27] - Cash Flow from Operations for Q1 FY2024 was $175 million, showing a positive trend compared to previous quarters[53] - Net Debt as of Q1 FY2026 was $(1.371) billion, indicating a reduction in debt levels[65] - Adjusted free cash flow for FY2026 is projected to be $140.0 million, with net cash provided by operating activities at $310.0 million[180] Cost Management - Central and corporate costs for Q1 FY2026 totaled $41 million, consistent with the previous quarter[117] - The company incurred $84,886 in technology and development expenses for the three months ended September 30, 2025, compared to $81,861 for the same period in 2024[134] - Share-based compensation expense was $12.5 million in Q1 FY24, increasing to $17.6 million in Q2 FY24, and projected to be $14.8 million by Q1 FY26[156] - Interest expense, net was $29.2 million in Q1 FY24, with a slight increase to $30.6 million in Q2 FY24, and expected to be $28.1 million by Q1 FY26[156] Future Outlook - The company plans to continue focusing on organic growth strategies, excluding the impact of TTM acquisitions and divestitures, to stabilize revenue growth rates[146] - The company expects reported revenue growth of 5% - 6% for FY2026, with organic constant-currency revenue growth projected at 2% - 3%[174] - Adjusted EBITDA outlook for FY2026 is set at $450.0 million, increasing to at least $600.0 million by FY2028[176] - The company plans to continue focusing on market expansion and new product development in the upcoming quarters[162] Risks and Challenges - The company faces various risks including supply chain constraints, inflation fluctuations, and investment performance issues[185] - Key personnel loss and recruitment challenges are identified as potential risks to business performance[185] - Geopolitical events and changes in governmental policies may disrupt business operations and affect market conditions[185] - The company acknowledges competitive pressures and general economic conditions as significant factors impacting performance[185] Miscellaneous - The company revised its internal organizational structure in Q1 FY26 to drive efficiencies, impacting segment reporting[153] - Forward-looking projections are inherently uncertain and based on management's assumptions and judgments, which may lead to material differences in actual results[185] - There is a disclaimer regarding the obligation to update forward-looking statements based on subsequent events[186] - The company’s expectations and beliefs are subject to change, reflecting the dynamic nature of the market[186]

Core Insights - Cimpress is hosting its 2025 Investor Day to showcase progress across its various business segments [1] - The event will feature presentations from executives of Cimpress, Vista, Upload & Print, and BuildASign [1][2] - The agenda includes discussions on leveraging strengths across businesses, financial outlook, and advancements in technology and supply chain [2][3] Group 1 - The event will begin with Robert discussing the competitive advantages and synergies among Cimpress businesses [2] - Florian will present updates on the progress made in the Vista segment [2] - Paolo will explain the strategy for expanding the Upload & Print model into North America [2] Group 2 - Sean will review the company's financials, capital allocation strategies, and future outlook [2] - After a short break, there will be three panel discussions focusing on product elevation, manufacturing excellence, and technology integration [3] - The event will conclude with a Q&A session addressing both pre-submitted and live questions from attendees [4]