Financial Data and Key Metrics Changes - Consolidated Q4 revenue grew 4% on a reported basis and 2% on an organic constant currency basis, with full-year growth of 3% on both reported and constant currency bases [11] - Adjusted EBITDA increased by $3.1 million year over year but declined by $35.5 million for the full year [14] - Gross profit dollars grew year over year in Q4 despite a 110 basis points gross margin compression [15] Business Line Data and Key Metrics Changes - At Vista, organic constant currency revenue grew 4% for the quarter, driven by strength in promotional products, apparel, gifts, signage, packaging, and labels [12] - Revenue in the promotional products, apparel, and gifts category grew 18% for the full fiscal year, with variable gross profit in that category growing 27% [13] - Business cards declined 6% during Q4, reflecting a shift from legacy products to higher value elevated products [12][13] Market Data and Key Metrics Changes - Organic constant currency revenue growth in European markets was strong at 7% for Q4, while North America improved sequentially to 3% [12] - The total addressable market in Europe, North America, and Australia exceeds $100 billion annually, with over 60% still served by traditional suppliers [9] Company Strategy and Development Direction - The company is transitioning to product categories like packaging, promotional products, and apparel, which are expected to offset the maturation of legacy products [5][6] - Investments in manufacturing, new product introductions, and improved customer experience are aimed at capturing market opportunities [6][10] - The company aims to close the equity valuation gap through revenue and profit growth, rigorous capital allocation, and share repurchases [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the transition in product categories but remains optimistic about future growth in gross profit dollars and customer lifetime value [5][10] - Guidance for fiscal 2026 includes expected revenue growth of 5% to 6% and adjusted EBITDA of at least $450 million, factoring in startup costs and capital expenditures [19] Other Important Information - The company expects to achieve annualized savings of $14 million from cost reduction actions implemented in the latter half of fiscal 2025 [19] - Currency fluctuations had a $3.6 million benefit to adjusted EBITDA during the quarter, primarily due to the strengthening of the euro [15] Q&A Session Summary Question: FY '26 guidance implies free cash flow conversion of EBITDA at 31%. When should free cash flow conversion return to the 45% to 50% level? - Management expects the 45% to 50% conversion rate to be achievable in a normalized environment, but fiscal '26 will not reflect that due to higher CapEx and working capital fluctuations [21][26] Question: What is the go-forward revenue growth expectation for legacy and elevated products? - Management does not provide specific growth rates but anticipates continued decline in legacy products while expecting growth in elevated products [28][30] Question: Is the 2% to 3% FX adjusted growth rate expected for FY '26 the new steady state growth rate? - Management aspires to return to mid-single-digit growth rates over time, driven by execution in elevated products and high-value customers [36] Question: Has maintenance CapEx increased due to recent investments? - Maintenance CapEx has increased due to specific factors, but it is not solely a result of recent investments [39][42] Question: What is the risk that the informational product exemption ends? - There is some risk associated with the informational materials exclusion, but the company has a significant percentage of coverage under USMCA [50][52] Question: Do you think there was a pull forward in demand during Q4 due to tariffs? - Management has not seen indications of a pull forward in demand related to tariffs [54] Question: Can you explain the other income net line item and the impact of derivative contracts? - The company has an active currency hedging program that results in unrealized gains or losses, which can affect earnings but is expected to balance out over time [60][62]

Core Insights - Cimpress reported revenue of $869.48 million for the quarter ended June 2025, marking a year-over-year increase of 4.4% and a surprise of +2.96% over the Zacks Consensus Estimate of $844.46 million [1] - The company experienced an EPS of -$1.02, a significant decline compared to $4.33 a year ago, resulting in an EPS surprise of -205.15% against the consensus estimate of $0.97 [1] Revenue Breakdown - Revenue from Vista was $466.45 million, exceeding the average estimate of $454.02 million by two analysts, representing a year-over-year change of +5.6% [4] - Inter-segment eliminations reported a revenue of -$33.66 million, worse than the estimated -$27.04 million, but showing a +116.8% change compared to the year-ago quarter [4] - Revenue from All Other Businesses was $58.79 million, slightly above the estimated $55.91 million, reflecting a +7.6% year-over-year change [4] - National Pen generated revenue of $93.64 million, surpassing the average estimate of $83.49 million, with a year-over-year increase of +11.2% [4] Stock Performance - Cimpress shares have returned +5.5% over the past month, outperforming the Zacks S&P 500 composite's +3.6% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Company Performance - Cimpress reported a quarterly loss of $1.02 per share, missing the Zacks Consensus Estimate of $0.97, and a significant decline from earnings of $4.33 per share a year ago, representing an earnings surprise of -205.15% [1] - The company posted revenues of $869.48 million for the quarter ended June 2025, exceeding the Zacks Consensus Estimate by 2.96%, and showing an increase from year-ago revenues of $832.61 million [2] - Over the last four quarters, Cimpress has not surpassed consensus EPS estimates, and it has topped consensus revenue estimates twice during this period [2] Stock Outlook - Cimpress shares have declined approximately 30.9% since the beginning of the year, contrasting with the S&P 500's gain of 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The estimate revisions trend for Cimpress was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Future Earnings Expectations - The current consensus EPS estimate for the upcoming quarter is $0.69 on revenues of $847.56 million, and for the current fiscal year, it is $2.95 on revenues of $3.49 billion [7] - The outlook for the Consumer Services - Miscellaneous industry, where Cimpress operates, is currently in the bottom 22% of over 250 Zacks industries, which may negatively impact stock performance [8]

Revenue Growth - Revenue grew 4% on a reported basis and 2% on an organic constant-currency basis in Q4 FY2025[4] - Vista reported Q4 revenue growth of 6% year over year and 4% on an organic constant-currency basis, with significant growth in promotional products and packaging[5] - National Pen Q4 revenue grew 12% year over year on a reported basis, driven by increased fulfillment and growth in telesales and e-commerce[13] - For FY2025, combined Upload & Print revenue exceeded $1 billion for the first time, although EBITDA declined by $3.6 million to $154.3 million[12] - Total revenue for FY2025 is reported at $3,403.079 million, reflecting a year-over-year growth of 3%[28] - Revenue for Q1 FY2024 was reported at $498 million, reflecting an 11% growth compared to the previous quarter[75] - Annual revenue for FY2024 is projected to be $1,824 million, representing an 8% increase from FY2023[83] - Total company reported revenue growth for FY2023 was 7%, with a constant currency revenue growth of 11%[172] - Reported revenue growth for FY2023 was 7% compared to FY2022, with a total revenue of $921.4 million[174] - Total Upload and Print revenue for FY2023 reached $921.4 million, with a reported growth of 8%[174] Profitability and Income - Net income decreased by $146.5 million to a net loss of $28.4 million, primarily due to a $126.7 million increase in income tax expense[4] - Adjusted EBITDA increased by $3.1 million to $122.4 million, benefiting from year-over-year currency changes of approximately $3.6 million[4] - Adjusted EBITDA for FY2025 is projected at $433.167 million, with an adjusted EBITDA margin of 13%[29] - Net income is anticipated to be at least $72 million, with adjusted EBITDA expected to reach at least $450 million, factoring in start-up losses from the Pixartprinting U.S. facility[27] - Net income for FY2024 was $177.8 million, a significant recovery from a net loss of $185.7 million in FY2023[186] - Net income for FY2023 was $(185.7) million, with a projected net income of $177.8 million for FY2024[196] Cash Flow and Expenses - Operating cash flow decreased by $17.6 million to $107.5 million, driven by lower net working capital inflows[4] - Operating cash flow is forecasted at $310 million, and adjusted free cash flow is estimated to be approximately $140 million[27] - Cash taxes are projected to be between $55 million and $60 million, significantly higher than FY2025 due to non-repeating tax refunds[27] - Cash provided by operating activities for the year ended June 30, 2025, was $298.070 million, a decrease from $350.722 million in 2024, showing a decline of 15%[160] - Adjusted free cash flow for FY2025 is estimated at $148.033 million[33] - Adjusted free cash flow for the TTM was $118 million, with cash interest netting at $129 million[65] Capital Expenditures and Debt - Capital expenditures are expected to be roughly $100 million, with capitalized software expenses around $70 million[27] - The company reported a net debt of $1,481 million as of Q4 FY2023, with a consolidated net leverage ratio of 3.90[70][73] - The company’s long-term debt as of June 30, 2025, was reported at $1,576,178 thousand, a slight decrease from $1,591,807 thousand in 2024[156] Market Outlook and Guidance - Guidance for FY2026 incorporates continued risks from the trade and macroeconomic environment, with a strong liquidity position and no near-term debt maturities[21] - Revenue growth is projected at 5% - 6%, with organic constant-currency revenue growth expected to be 2% - 3%[27] - The company expects a revenue growth of 5% for FY2025, indicating a cautious outlook[174] Segment Performance - Segment EBITDA for Q1 FY2024 reached $108 million, corresponding to a segment EBITDA margin of 22%[78] - Total segment EBITDA for FY2024 was $546.0 million, an increase of 35.2% from FY2023's $404.0 million[185] - Adjusted EBITDA for FY2024 was $468.7 million, compared to $339.8 million in FY2023, reflecting a growth of 37.9%[186] - National Pen's segment EBITDA for FY2024 was $29.8 million, an increase from $23.2 million in FY2023, marking a growth of 28.3%[186] Currency Impact - The year-over-year impact of currency movements on adjusted EBITDA is expected to be slightly favorable relative to FY2025[27] - The impact of currency fluctuations on total company revenue was a negative 2% for FY2024[172] - The impact of currency fluctuations on revenue growth was noted, with a 3% positive impact in FY2023[174]

Core Insights - The industrials sector has been a top performer in 2025, with the Industrial Select Sector SPDR Fund (XLI) returning nearly 9% year-to-date, significantly outperforming the S&P 500 [1] - The Trump administration's focus on boosting domestic manufacturing is contributing to a positive outlook for industrial companies [1] Company Summaries Nordson Corporation (NASDAQ: NDSN) - Nordson's stock has a 12-month price forecast of $253.17, indicating a potential upside of 19.24% from the current price of $212.31 [3][6] - The company reported adjusted earnings per share of $2.42, exceeding analyst expectations by $0.06, with revenue increasing by 5% year-over-year to $683 million [4] - Nordson's strong performance is supported by a 5% growth in backlog and positive forecasts for the third quarter, with expected adjusted EPS between $2.55 and $2.75 [5] VSE Corporation (NASDAQ: VSEC) - VSE's stock forecast suggests a 12-month price target of $125.17, reflecting a downside of 4.72% from the current price of $131.37 [8] - The company has transitioned to focus solely on aviation, recently acquiring Turbine Weld Industries to enhance its maintenance, repair, and overhaul services [9][10] - VSE's shares have surged 40% year-to-date, driven by strategic repositioning in the high-demand aviation sector [8] Cimpress plc (NASDAQ: CMPR) - Cimpress has a 12-month stock price forecast of $62.50, indicating a potential upside of 40.29% from the current price of $44.55 [12] - The company is shifting towards "elevated products" such as apparel and packaging, which aligns with recent sales growth trends [13] - Despite a nearly 38% decline year-to-date, Cimpress has seen a 9% increase in the last month, suggesting potential recovery [12]

Core Viewpoint - Cimpress shares have increased by approximately 12.3% since the last earnings report, outperforming the S&P 500, but there are concerns about whether this positive trend will continue leading up to the next earnings release [1] Group 1: Earnings Report and Estimates - Fresh estimates for Cimpress have trended downward over the past month, with the consensus estimate shifting down by 22.75% [2] - The stock has received a Zacks Rank of 5, indicating a Strong Sell, suggesting expectations of below-average returns in the coming months [4] Group 2: VGM Scores - Cimpress has a Growth Score of B, but it is significantly lagging in Momentum Score with an F, while achieving an A grade in Value, placing it in the top 20% for this investment strategy [3] - The overall aggregate VGM Score for Cimpress is B, which is relevant for investors not focused on a single strategy [3]

Revenue Performance - Revenue increased by 1% to $789.5 million for the third quarter of fiscal year 2025, with organic constant-currency revenue growth of 3%[144] - Year-to-date revenue increased by 3% to $2,533.6 million, with organic constant-currency revenue growth of 4%[144] - Total revenue for the three months ended March 31, 2025, was $789,468,000, representing a 1% increase compared to $780,588,000 in the same period of 2024[153] - For the nine months ended March 31, 2025, total revenue reached $2,533,596,000, a 3% increase from $2,459,245,000 in the prior year[153] - Vista segment revenue for the three months ended March 31, 2025, was $430,651,000, a 3% increase year-over-year, with a constant-currency revenue growth of 4%[153] - PrintBrothers segment revenue increased by 4% to $155,981,000 for the three months ended March 31, 2025, with a constant-currency revenue growth of 6%[153] - Reported revenue for the segment "All Other Businesses" was $51.1 million for the three months ended March 31, 2025, representing a 5% increase compared to $48.5 million in the same period of 2024[201] Profitability and Income - Operating income for the third quarter increased by $1.3 million to $40.5 million, while year-to-date operating income decreased by $20.2 million to $160.8 million[144][147] - Net loss for the third quarter increased by $2.8 million to $8.0 million, and net income for the year-to-date decreased by $18.4 million to $41.2 million[144][148] - Adjusted EBITDA decreased by $3.5 million to $90.7 million for the third quarter, and by $38.6 million to $310.7 million year-to-date[144] - Segment EBITDA for Vista decreased by 6% to $247,370,000 for the nine months ended March 31, 2025, compared to $263,282,000 in the prior year[183] - PrintBrothers' segment EBITDA decreased by 8% to $61,218,000 for the nine months ended March 31, 2025, down from $66,237,000 in the previous year[187] - Adjusted EBITDA for the three months ended March 31, 2025, was $90.7 million, compared to $94.2 million for the same period in 2024, reflecting a decrease of approximately 5.0%[234] - Adjusted EBITDA for the nine months ended March 31, 2025, was $310.7 million, down from $349.3 million in 2024, reflecting a decrease of approximately 11.0%[234] Cash Flow and Financial Position - Cash provided by operating activities decreased by $35.0 million to $190.6 million year-to-date[144] - Adjusted free cash flow decreased by $67.1 million to $77.2 million for the nine months ended March 31, 2025[144] - Net cash provided by operating activities was $190.6 million for the nine months ended March 31, 2025, down from $225.6 million in the prior year[210] - The company had $183.0 million in cash and cash equivalents and $1.6 billion in debt as of March 31, 2025[214] - The company repurchased 714,667 ordinary shares for $56.9 million during the nine months ended March 31, 2025[215] - Total contractual obligations as of March 31, 2025, amounted to $2.6 billion, with significant commitments in operating leases and purchase commitments[220] Expenses and Costs - Cost of revenue for the three months ended March 31, 2025, was $416,960,000, which is 52.8% of total revenue, up from 51.8% in the prior year[161] - Marketing and selling expenses increased by $1.7 million for the three months ended March 31, 2025, driven by higher advertising spend[168] - General and administrative expenses decreased by $3.7 million for the three months ended March 31, 2025, primarily due to lower share-based compensation costs[171] - Central and corporate costs decreased by $4.6 million for the three months ended March 31, 2025, primarily due to lower share-based compensation expenses[207] - The company recognized a $2.6 million impairment charge during the current quarter related to the planned sale of a facility by the National Pen business[162] Tax and Interest - Income tax expense for the three months ended March 31, 2025, increased to $12,144,000, up from $10,610,000 in the prior year, with an effective tax rate of 294.5%[179] - Interest expense, net decreased by $3.2 million for the three months ended March 31, 2025, primarily due to a decrease in the weighted average interest rate on senior secured Term Loan B[177] Market and Economic Factors - The company expects to raise prices to offset tariff costs, particularly in the promotional products, apparel, and gifts industry[140][139] - The annual value of PPAG sourcing from China subject to tariffs is estimated to be less than $20 million after supply chain changes[139] - The company experienced a negative impact of $15.6 million from currency exchange rate fluctuations for the three months ended March 31, 2025[158] - Currency-related net gains and losses were significantly impacted by exchange rate volatility, with expectations of continued volatility in future periods[175] - A hypothetical 100 basis point increase in interest rates would result in an $8.4 million increase in interest expense over the next 12 months[238] - A hypothetical 10% decrease in currency exchange rates would have resulted in a $14.9 million change in income before income taxes for the three and nine months ended March 31, 2025[242] Other Financial Information - The company recognized a $2.9 million charge for a land duty tax in Australia during the nine months ended March 31, 2025, contributing to an increase in central and corporate costs[209] - The 2032 Senior Notes issued by the company amount to $525.0 million, bearing interest at 7.375% per annum, maturing on September 15, 2032[225] - The company executed interest rate swap contracts to mitigate exposure to interest rate changes related to its variable-rate debt[238] - The company’s adjusted free cash flow measure does not include cash payments for debt reduction or business acquisitions, which may limit its representation of available discretionary expenditures[233]

Core Insights - Cimpress plc (CMPR) reported an adjusted loss of 33 cents per share for Q3 fiscal 2025, missing the Zacks Consensus Estimate of earnings of 55 cents, and compared to an adjusted loss of 15 cents per share in the same quarter last year [1] - Total revenues for the quarter were $789.5 million, a 1% increase from $780.6 million year-over-year, but below the Zacks Consensus Estimate of $798 million [1] Revenue Breakdown - The National Pen segment generated revenues of $88.3 million, slightly down from $88.6 million in the year-ago quarter, and below the estimate of $91 million [2] - The Vista segment, the largest revenue generator, reported revenues of $430.7 million, up from $418.1 million year-over-year, but slightly below the estimate of $432 million [2] - The Upload and Print segment's revenues increased to $245.3 million from $237.8 million in the year-ago quarter, exceeding the estimate of $245 million [3] - Revenues from All Other Businesses were $51.1 million, compared to $48.8 million reported a year ago, and above the estimate of $49.8 million [4] Margin and Cost Analysis - Cimpress' cost of revenues was $417 million, reflecting a 3% year-over-year increase [5] - Gross profit decreased by 0.8% year-over-year to $373 million, with a margin of 47%, down 100 basis points from the previous year [6] - Adjusted EBITDA fell 3.7% year-over-year to $90.7 million [6] Balance Sheet and Cash Flow - As of March 31, 2024, Cimpress had $183 million in cash and cash equivalents, down from $203.8 million at the end of Q4 fiscal 2024 [7] - Long-term debt was $1.58 billion, slightly down from the previous quarter [7] - Net cash provided by operating activities was $9.7 million, an increase from $8.4 million in the year-ago quarter, with share repurchases totaling $3.9 million during the quarter [8] Outlook - The company has withdrawn its previously issued guidance for fiscal 2025 due to uncertainties in the tariff environment and its potential impact on costs and market demand [9]

Financial Data and Key Metrics Changes - Consolidated revenue grew 1% on a reported basis and 3% on an organic constant currency basis [11] - Adjusted EBITDA declined by $3,500,000 year over year, impacted by a $2,600,000 impairment charge and $1,100,000 in preproduction startup costs [13][14] - Gross profit would have increased modestly if not for the impairment charge and startup costs [14] Business Line Data and Key Metrics Changes - Vista experienced 3% organic constant currency growth, with key growth categories like promotional products, signage, packaging, and labels growing at double-digit rates [11][12] - Consumer products returned to 5% growth after a decline in the previous quarter [12] - The business cards and stationary product category declined 3% year over year, showing slight improvement from a 4% decline in the previous quarter [12] Market Data and Key Metrics Changes - Strong performance in Europe despite macro headwinds, while the US market faced challenges due to organic search algorithm changes [12] - The promotional products and apparel category, which represents over 20% of consolidated revenue, is most exposed to tariff impacts [21][22] Company Strategy and Development Direction - The company is focused on expanding into elevated products to serve higher lifetime value customers and increase market share [5][10] - Plans to balance capital deployment between organic growth investments, reducing leverage, and share repurchases [20] - The company aims to navigate tariff challenges by identifying alternative sourcing and implementing price increases where applicable [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering attractive growth in per share cash flow despite a noisy backdrop [4] - The company has withdrawn guidance for FY 2025 and beyond due to tariff uncertainty and potential impacts on demand [19][83] - Management believes that the current economic environment may lead to increased self-employment and demand for their products [46] Other Important Information - The company is investing in new production facilities and capabilities, particularly in the US [6][70] - The company is maintaining a high bar for growth investments while being cost-conscious in the current environment [41][74] Q&A Session Summary Question: Which customer verticals are most exposed to tariff impacts? - Management indicated that promotional products, apparel, and gifts are the most exposed, with PPAG representing over 20% of consolidated revenue [21][22] Question: What is the expected tariff expense on remaining China COGS? - The estimated tariff expense on the remaining $20,000,000 of China COGS is about $30,000,000, but pricing changes may offset some of this impact [27][29] Question: How is the company addressing potential demand drops due to tariffs? - Management stated they would reduce costs as needed and have constraints in place to manage operating expenses [40][41] Question: Can you provide an update on revenue growth in April? - Management noted that April's revenue trends were stable compared to March, complicated by holiday timing shifts [43][44] Question: What is driving the low growth at National Penn? - The low growth is attributed to reduced mail order advertising and stronger performance in e-commerce and cross fulfillment channels [45] Question: How does management view the long-term gross margin profile? - Management focuses on gross profit rather than gross margin percentages, emphasizing the importance of delivering value to customers [56][57] Question: What are the plans for capital allocation regarding share buybacks versus investments? - Management is actively considering trade-offs between share repurchases and internal investments, with a bias towards high-return growth investments [76][80]

Financial Data and Key Metrics Changes - Consolidated revenue grew 1% on a reported basis and 3% on an organic constant currency basis in Q3 [11] - Adjusted EBITDA declined by $3.5 million year over year, impacted by a $2.6 million impairment charge and $1.1 million in preproduction startup costs [13][14] - Gross profit was affected by the impairment charge related to the planned sale of a facility [14] Business Line Data and Key Metrics Changes - Vista experienced 3% organic constant currency growth, with double-digit growth in promotional products, signage, packaging, and labels [11][12] - Consumer products returned to 5% growth after a decline in Q2 [12] - The business cards and stationary product category declined 3% year over year, showing slight improvement from a 4% decline in the previous quarter [12] Market Data and Key Metrics Changes - Strong growth in elevated products, which include promotional products and packaging, indicating a shift towards higher lifetime value customers [5][12] - Business performance in Europe remained strong despite macro headwinds, while the US market faced challenges due to organic search algorithm changes [12] Company Strategy and Development Direction - The company is focused on expanding into elevated products to increase customer lifetime value and market share [5][10] - Plans to enhance cross SIMPRESS fulfillment to lower costs and accelerate new product introductions [6] - The company aims to balance capital deployment between organic growth investments, reducing leverage, and share repurchases [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in delivering attractive growth in per share cash flow despite a noisy backdrop [4] - The company is navigating tariff impacts and is confident in its plans to mitigate these challenges [8][17] - Future guidance was withdrawn due to uncertainties in the tariff and trade environment [83][84] Other Important Information - The company is preparing to launch a new website for PixArt printing in the US, marking its entry into the upload and print market [6] - The company expects to finish the year with increased liquidity despite near-term tariff impacts [18] Q&A Session Summary Question: Which customer verticals are most exposed to tariff impacts? - Management indicated that promotional products, apparel, and gifts (PPAG) represent over 20% of consolidated revenue, with the US portion being about 11% [20][21] Question: What is the expected tariff expense on remaining China COGS? - The estimated additional cost due to tariffs on the remaining $20 million of COGS from China is approximately $29 million, but pricing changes may offset some of this impact [26][28] Question: How is revenue growth in April compared to last year? - Management noted that April's revenue trends were stable compared to March, complicated by holiday timing shifts [42][43] Question: What is driving the lackluster growth at National Penn? - The growth is primarily occurring in e-commerce and cross fulfillment, while direct mail advertising has been reduced due to insufficient returns [44] Question: How does management view the long-term gross margin profile? - Management emphasized a focus on gross profit rather than gross margin percentage, indicating that lower margin products can still generate significant profit [51][58] Question: What is the rationale for withdrawing long-term guidance? - The withdrawal was primarily due to uncertainties in the tariff and trade environment, which complicates forecasting [83][84]