Core Insights - Quad/Graphics, Inc. has announced a strategic partnership with Vistar Media to enhance programmatic buying for consumer packaged goods (CPG) brands on its In-Store Connect platform, facilitating automated ad purchases and optimizations in retail environments [1][4][5] Group 1: Partnership and Technology Integration - The integration of Vistar's advanced ad server and supply-side platform into Quad's In-Store Connect allows advertisers to purchase in-store ad inventory with precision and flexibility, utilizing real-time programmatic bidding [2][5] - This partnership aims to transform brick-and-mortar stores into dynamic advertising channels, bridging online precision with in-store influence, thereby delivering measurable results for both advertisers and retailers [4][5] Group 2: Market Expansion and Reach - Since its launch in 2024, Quad's In-Store Connect has expanded its regional footprint to include various retail locations, providing access to millions of shoppers and planning further expansion across additional retail brands [5] - The In-Store Connect solution leverages strategically placed digital signage and kiosks to enhance brand awareness and engagement at critical retail moments, driving increased brand recall and conversion rates [4][5] Group 3: Company Overview - Quad is a marketing experience company that offers a comprehensive range of marketing and print services, integrating creative, production, and media solutions across online and offline channels [6][7] - The company employs approximately 11,000 people across 11 countries and serves around 2,100 clients, focusing on various industry verticals including retail and consumer packaged goods [7]

Core Insights - The article emphasizes the importance of efficiency ratios in evaluating a company's potential for profitability and stock performance [1] Efficiency Ratios - **Receivables Turnover**: This ratio measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices and quality customers [2] - **Asset Utilization**: This ratio assesses how well a company converts its assets into sales, with higher values suggesting greater efficiency [3] - **Inventory Turnover**: This ratio indicates a company's ability to manage inventory relative to its cost of goods sold, where a high value reflects efficient inventory management [4] - **Operating Margin**: This ratio measures the efficiency of a company in controlling operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process identified stocks with efficiency ratios above industry averages, narrowing down from over 7,906 stocks to eight candidates [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Stocks - **Quad Graphics (QUAD)**: Specializes in print and multichannel solutions, with an average four-quarter earnings surprise of 71.8% [7] - **ONESPAN (OSPN)**: Develops security software and e-signature solutions, achieving an average four-quarter earnings surprise of 38.6% [8] - **ChampionX (CHX)**: Provides chemistry solutions and technologies for oil and gas production, with an average four-quarter earnings surprise of 9% [9] - **BancFirst (BANF)**: A bank holding company offering commercial banking services, with an average four-quarter earnings surprise of 7% [10]

Core Insights - QuadMed, a subsidiary of Quad, Inc., has been recognized as the 2025 Best in KLAS in the Employer-Sponsored Health Care Services category, highlighting its commitment to enhancing health care experiences through improved outcomes and cost reduction [1][2][3] Company Overview - QuadMed is evolving from a provider of worksite health and wellness solutions to a comprehensive health care experience company, emphasizing whole-person care and relationship-driven services [2][4] - The company has over 30 years of experience in partnering with employers to provide direct access to health care for employees and their families, focusing on improving health, productivity, and cost efficiency [6] Brand Evolution - The new brand reflects QuadMed's commitment to removing barriers in health care access and delivering better outcomes for both members and employers [4][5] - The brand evolution is described as a reaffirmation of the company's identity and future direction, aiming to expand its reach to more employers nationwide [5] Recognition and Validation - The KLAS award serves as external validation of QuadMed's mission to innovate and deliver value in health care, emphasizing the importance of excellence in the evolving health care landscape [3][11] - KLAS recognizes organizations that excel in delivering value and innovation, underscoring the significance of QuadMed's achievement in this competitive field [3]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34806 Quad/Graphics, Inc. (Exact name of registrant as specified in its charter) Wisconsin 39-1152983 (State or other jur ...

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $629 million, a decrease of 2% compared to Q1 2024, excluding the divestiture of European operations [23] - Adjusted EBITDA was $46 million in Q1 2025, down from $51 million in Q1 2024, with the adjusted EBITDA margin declining from 7.7% to 7.2% [24] - Adjusted diluted earnings per share doubled to $0.20 in Q1 2025 from $0.10 in Q1 2024, primarily due to higher net earnings and lower interest expense [26] - Free cash flow was negative $100 million in Q1 2025, compared to negative $70 million in Q1 2024, mainly due to timing of working capital [26] Business Line Data and Key Metrics Changes - Organic net sales decline was primarily due to lower paper, logistics, and agency solution sales, including the loss of a large grocery client [23] - Revenue as a percentage of total sales increased by 3% in Latin America and 2% in targeted print offerings, offset by a 4% decrease in large scale print offerings [23] Market Data and Key Metrics Changes - The company is closely monitoring the impacts of tariffs and recessionary pressures on clients' businesses, with tariffs affecting less than 11% of procurement spend [6][7] - The U.S. Postal Service announced a 10% increase in postage costs expected to take effect on July 13, which may impact many mailing clients [8] Company Strategy and Development Direction - The company is focused on becoming a marketing experience (MX) company, integrating creative production and media across digital and physical channels [5] - Strategic investments are being made in innovative solutions and talent while managing economic uncertainties [5] - The acquisition of Enru's co-mail assets aims to enhance postal optimization solutions and increase co-mail volumes [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of dislocation in the market due to tariffs, there hasn't been a significant pullback in client marketing plans [40][41] - The company expects organic net sales to decline by 2% to 6% in 2025, with adjusted EBITDA anticipated to be between $180 million and $220 million [31][34] - Management is optimistic about the potential for new client acquisitions and the effectiveness of integrated marketing solutions [47][48] Other Important Information - The company completed the sale of its European operations for approximately $42 million [28] - The company has increased its dividend by 50% from 2024 and has repurchased 1.2 million shares of Class A common stock year-to-date in 2025 [29] Q&A Session Summary Question: How has the external environment impacted demand outlook? - Management indicated that while there are some adjustments in marketing plans due to tariffs, there hasn't been a significant pullback in demand [40][41] Question: What are the implications of the upcoming postal rate increase? - Management noted that clients have built the 10% increase into their plans, and there is potential for opportunities to offset this increase through testing of price elasticity [43][46] Question: Can you elaborate on the acquisition of Enru and its benefits? - The acquisition brings additional capabilities in high-density mailing and equipment upgrades, enhancing the company's co-mailing solutions [50][51] Question: What is the current status of in-store connect clients? - The company has expanded its in-store connect presence to over 45 stores, with plans for further growth in the mid-market grocery space [52][53] Question: How is the company leveraging AI in its marketing efforts? - The rollout of Audience Builder 2.0 is enhancing the ability to utilize the data stack for targeted marketing, showing strong performance in responsiveness [68][70]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $629 million, a decrease of 2% compared to Q1 2024, excluding the divestiture of European operations [23] - Adjusted EBITDA was $46 million in Q1 2025, down from $51 million in Q1 2024, with the adjusted EBITDA margin declining from 7.7% to 7.2% [24] - Adjusted diluted earnings per share doubled to $0.20 in Q1 2025 from $0.10 in Q1 2024, primarily due to higher net earnings and lower interest expense [26] - Free cash flow was negative $100 million in Q1 2025, compared to negative $70 million in Q1 2024, mainly due to timing of working capital [26] Business Line Data and Key Metrics Changes - Organic net sales decline was primarily due to lower paper, logistics, and agency solution sales, including the loss of a large grocery client [23] - Revenue as a percentage of total sales increased by 3% in Latin America and 2% in targeted print offerings, offset by a 4% decrease in large scale print offerings [23] Market Data and Key Metrics Changes - The company is closely monitoring the impacts of tariffs and recessionary pressures on clients' businesses, with tariffs affecting less than 11% of procurement spend [6][7] - The U.S. Postal Service announced a 10% increase in postage costs expected to take effect on July 13, which may impact many mailing clients [8] Company Strategy and Development Direction - The company is focused on becoming a marketing experience (MX) company, integrating creative production and media across digital and physical channels [5] - Strategic investments are being made in innovative solutions and talent while managing economic uncertainties [5] - The acquisition of Enru's co-mail assets aims to enhance postal optimization solutions and increase co-mail volumes [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are signs of dislocation in the market due to tariffs, there hasn't been a significant pullback in client demand [41] - The company expects organic net sales to decline by 2% to 6% in 2025, with adjusted EBITDA anticipated to be between $180 million and $220 million [31] - Management is optimistic about the potential for new client acquisitions and the effectiveness of integrated marketing solutions [47] Other Important Information - The company completed the sale of its European operations for approximately $42 million [28] - The company has increased its dividend by 50% from 2024 and has repurchased 1.2 million shares of Class A common stock year-to-date in 2025 [29] Q&A Session Summary Question: How has the external environment impacted demand outlook? - Management indicated that while there are some adjustments in marketing plans due to tariffs, overall demand has not significantly changed [41][42] Question: What are the implications of the upcoming postal rate increase? - Management noted that clients have built the 10% increase into their plans, and there is potential for promotional opportunities to offset this increase [46] Question: Can you elaborate on the acquisition of Enru's co-mail assets? - The acquisition brings additional capabilities in high-density mailing and equipment upgrades, enhancing the company's offerings [50][51] Question: What is the current status of in-store connect clients? - The company has expanded its in-store connect presence to over 45 stores, with plans for further growth [52] Question: How does the company utilize AI in its marketing strategies? - The company is rolling out Audience Builder 2.0, which leverages AI to enhance data accessibility and improve marketing performance [68][70]

Financial Data and Key Metrics Changes - In Q1 2025, net sales were $629 million, a decrease of 2% compared to Q1 2024, excluding the divestiture of European operations [23] - Adjusted EBITDA was $46 million in Q1 2025, down from $51 million in Q1 2024, with the adjusted EBITDA margin declining from 7.7% to 7.2% [24] - Adjusted diluted earnings per share doubled to $0.20 in Q1 2025 from $0.10 in Q1 2024, primarily due to higher net earnings and lower interest expenses [25] - Free cash flow was negative $100 million in Q1 2025, compared to negative $70 million in Q1 2024, mainly due to timing of working capital [25] Business Line Data and Key Metrics Changes - Organic net sales decline was primarily due to lower paper, logistics, and agency solution sales, including the loss of a large grocery client [23] - Revenue as a percentage of total sales increased by 3% in Latin America and 2% in targeted print offerings, offset by a 4% decrease in large scale print offerings [23] Market Data and Key Metrics Changes - The company is closely monitoring the impacts of tariffs and recessionary pressures on clients' businesses, with tariffs affecting less than 11% of procurement spend [6][7] - The U.S. Postal Service announced a 10% increase in postage costs expected to take effect on July 13, which may impact many mailing clients [8] Company Strategy and Development Direction - The company is committed to growing its offerings through strategic investments in innovative solutions and superior talent while managing economic uncertainties [5] - Quad's focus on generative AI and partnerships with Google Cloud aims to enhance marketing effectiveness and personalization at scale [12][34] - The acquisition of Enru's co-mail assets is intended to expand postal optimization solutions and increase co-mail volumes [11][49] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are indications of dislocation in demand due to tariffs, there has not been a significant pullback in client marketing plans [41] - The company expects organic net sales to decline by 2% to 6% in 2025, with adjusted EBITDA anticipated to be between $180 million and $220 million [31][32] - Management remains cautious about potential economic slowdowns and is prepared to adapt to changing demand environments [32] Other Important Information - The company completed the sale of its European operations for approximately $42 million and is progressing with the sale of additional properties [28] - The company increased its dividend by 50% from 2024 and has repurchased 1.2 million shares of Class A common stock year-to-date in 2025 [29] Q&A Session Summary Question: How has the external environment impacted demand outlook? - Management indicated that while there are some adjustments in marketing plans due to tariffs, there hasn't been a significant trend of pullback in demand [41][42] Question: What are the implications of the upcoming postal rate increase? - Management noted that clients have built the 10% increase into their plans, and there is potential for opportunities if the postal service adjusts its pricing strategy [46] Question: Can you elaborate on the acquisition of Enru and its benefits? - The acquisition brings additional capabilities in high-density mailing and equipment upgrades, enhancing the company's co-mailing solutions [49][50] Question: What is the current status of in-store connect clients? - The company has expanded its in-store connect offering to over 45 stores, with plans for further growth in the mid-market grocery space [52][53] Question: How is the company leveraging AI in its marketing efforts? - The rollout of Audience Builder 2.0 is enhancing the ability to utilize the data stack for targeted marketing, showing strong performance in responsiveness [68][69]

April 30, 2025 Chairman, President & Chief Executive Officer Chief Financial Officer This communication contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company's future results, financial condition, sales, earnings, free cash flow, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, proj ...

Group 1: Earnings Performance - Quad/Graphics reported quarterly earnings of $0.20 per share, exceeding the Zacks Consensus Estimate of $0.07 per share, and up from $0.10 per share a year ago, representing an earnings surprise of 185.71% [1] - The company posted revenues of $629.4 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 8.09%, although this is a decline from year-ago revenues of $654.8 million [2] - Over the last four quarters, Quad/Graphics has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - Quad/Graphics shares have declined approximately 26.8% since the beginning of the year, compared to a decline of 6% in the S&P 500 [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.09 for the coming quarter and $0.78 for the current fiscal year [4][7] - The current Zacks Rank for Quad/Graphics is 3 (Hold), indicating that shares are expected to perform in line with the market in the near future [6] Group 3: Industry Context - The Commercial Printing industry, to which Quad/Graphics belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact investor sentiment [5]

FOR IMMEDIATE RELEASE Quad Reports First Quarter 2025 Results Reaffirms Full-Year 2025 Financial Guidance Repurchased 1.2 Million Quad Shares Year-to-Date SUSSEX, WI, April 29, 2025 — Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a marketing experience company that solves complex marketing challenges for its clients, today reported results for the first quarter ended March 31, 2025. Recent Highlights Joel Quadracci, Chairman, President and Chief Executive Officer of Quad, said: "Our first quar ...