[PART I — FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [ITEM 1. Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=ITEM%201.%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited condensed consolidated financial statements for Quad/Graphics, Inc. include statements of operations, comprehensive income (loss), balance sheets, cash flows, and shareholders' equity, with detailed notes [Condensed Consolidated Statements of Operations (Unaudited)](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20(Unaudited)) Presents revenues, expenses, and net earnings (loss) for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net sales | | | | Products | $ 494.8 | $ 507.2 | | Services | 134.6 | 147.6 | | Total net sales | 629.4 | 654.8 | | Cost of sales | | | | Products | 414.4 | 426.5 | | Services | 85.6 | 94.8 | | Total cost of sales | 500.0 | 521.3 | | Operating expenses | | | | Selling, general and administrative expenses | 83.5 | 83.1 | | Depreciation and amortization | 19.7 | 28.6 | | Restructuring, impairment and transaction-related charges, net | 6.6 | 32.5 | | Total operating expenses | 609.8 | 665.5 | | Operating income (loss) | 19.6 | (10.7) | | Interest expense | 12.4 | 15.2 | | Net pension expense (income) | 0.4 | (0.2) | | Earnings (loss) before income taxes | 6.8 | (25.7) | | Income tax expense | 1.0 | 2.4 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Earnings (loss) per share | | | | Basic | $ 0.12 | $ (0.60) | | Diluted | $ 0.11 | $ (0.60) | | Weighted average number of common shares outstanding | | | | Basic | 48.0 | 47.2 | | Diluted | 50.7 | 47.2 | [Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)%20(Unaudited)) Details net earnings (loss) and other comprehensive income components for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) | | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Other comprehensive income | | | | Translation adjustments | 40.9 | (0.4) | | Interest rate derivatives adjustments | (0.4) | 1.1 | | Pension benefit plan adjustments | 0.3 | 0.3 | | Other comprehensive income, before tax | 40.8 | 1.0 | | Income tax impact related to items of other comprehensive income | — | (0.3) | | Other comprehensive income, net of tax | 40.8 | 0.7 | | Comprehensive income (loss) | $ 46.6 | $ (27.4) | [Condensed Consolidated Balance Sheets (Unaudited)](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(Unaudited)) Provides a snapshot of assets, liabilities, and shareholders' equity at March 31, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (Unaudited) | ASSETS | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $ 8.1 | $ 29.2 | | Receivables, less allowances for credit losses | 303.9 | 273.2 | | Inventories | 161.4 | 162.4 | | Prepaid expenses and other current assets | 37.7 | 69.5 | | Total current assets | 511.1 | 534.3 | | Property, plant and equipment—net | 492.0 | 499.7 | | Operating lease right-of-use assets—net | 75.0 | 78.9 | | Goodwill | 100.3 | 100.3 | | Other intangible assets—net | 6.2 | 7.2 | | Other long-term assets | 61.9 | 78.6 | | Total assets | $ 1,246.5 | $ 1,299.0 | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | Accounts payable | $ 329.6 | $ 356.7 | | Other current liabilities | 149.2 | 289.2 | | Short-term debt and current portion of long-term debt | 30.3 | 28.0 | | Current portion of finance lease obligations | 0.8 | 0.8 | | Current portion of operating lease obligations | 23.2 | 24.0 | | Total current liabilities | 533.1 | 698.7 | | Long-term debt | 438.8 | 349.1 | | Finance lease obligations | 1.1 | 1.3 | | Operating lease obligations | 57.8 | 61.4 | | Deferred income taxes | 3.7 | 3.2 | | Other long-term liabilities | 124.6 | 135.4 | | Total liabilities | 1,159.1 | 1,249.1 | | Shareholders' equity | | | | Common stock, Class A | 1.0 | 1.0 | | Common stock, Class B | 0.4 | 0.4 | | Additional paid-in capital | 840.9 | 842.8 | | Treasury stock, at cost | (31.4) | (28.0) | | Accumulated deficit | (633.1) | (635.1) | | Accumulated other comprehensive loss | (90.4) | (131.2) | | Total shareholders' equity | 87.4 | 49.9 | | Total liabilities and shareholders' equity | $ 1,246.5 | $ 1,299.0 | [Condensed Consolidated Statements of Cash Flows (Unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(Unaudited)) Outlines cash flows from operating, investing, and financing activities for the three months ended March 31, 2025 and 2024 Condensed Consolidated Statements of Cash Flows (Unaudited) | OPERATING ACTIVITIES | Three Months Ended March 31, | | :--- | :--- | :--- | | | 2025 | 2024 | | Net earnings (loss) | $ 5.8 | $ (28.1) | | Adjustments to reconcile net earnings (loss) to net cash used in operating activities: | | | | Depreciation and amortization | 19.7 | 28.6 | | Impairment charges | 0.3 | 12.6 | | Amortization of debt issuance costs and original issue discount | 0.4 | 0.3 | | Stock-based compensation | 1.6 | 1.8 | | Loss on the sale of a business | 0.5 | — | | Gain on the sale or disposal of property, plant and equipment, net | — | (0.9) | | Deferred income taxes | 0.1 | 0.3 | | Changes in operating assets and liabilities - net of divestitures | (117.4) | (66.8) | | Net cash used in operating activities | (89.0) | (52.2) | | INVESTING ACTIVITIES | | | | Purchases of property, plant and equipment | (11.3) | (17.9) | | Cost investment in unconsolidated entities | (0.2) | (0.2) | | Proceeds from the sale of property, plant and equipment | 0.1 | 1.7 | | Other investing activities | (2.7) | 0.5 | | Net cash used in investing activities | (14.1) | (15.9) | | FINANCING ACTIVITIES | | | | Payments of current and long-term debt | (6.3) | (101.0) | | Payments of finance lease obligations | (0.4) | (0.8) | | Borrowings on revolving credit facilities | 398.1 | 468.3 | | Payments on revolving credit facilities | (300.6) | (389.1) | | Proceeds from issuance of long-term debt | — | 52.8 | | Purchases of treasury stock | (3.3) | — | | Equity awards redeemed to pay employees' tax obligations | (3.6) | (2.1) | | Payment of cash dividends | (3.5) | (2.4) | | Other financing activities | — | (0.2) | | Net cash provided by financing activities | 80.4 | 25.5 | | Effect of exchange rates on cash and cash equivalents | (0.1) | (0.1) | | Net decrease in cash and cash equivalents, including cash classified as held for sale | (22.8) | (42.7) | | Less: net decrease in cash classified as held for sale | (1.7) | — | | Net decrease in cash and cash equivalents | (

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 ...

Core Insights - Quad/Graphics, Inc. reaffirmed its full-year 2025 financial guidance while reporting first-quarter results that met expectations [1][6][11] - The company continues to focus on strategic investments in innovative solutions and talent to navigate economic uncertainties [3][6] Recent Highlights - Quad reported net sales of $629 million in Q1 2025, a 4% decline from $655 million in Q1 2024, with a 2% decline on an organic basis excluding the divestiture of European operations [8][9] - Net earnings improved to $6 million or $0.11 diluted earnings per share in Q1 2025, compared to a net loss of $28 million or $0.60 diluted loss per share in Q1 2024 [8][9] - The company achieved non-GAAP adjusted EBITDA of $46 million in Q1 2025, down from $51 million in Q1 2024 [8][9] Financial Performance - The decline in net sales was attributed to lower paper, logistics, and agency solutions sales, including the loss of a significant grocery client [9] - The company repurchased 1.2 million shares year-to-date for $6.7 million, totaling 7.2 million shares repurchased since 2022, representing approximately 13% of outstanding shares as of March 31, 2022 [6][8] - Free cash flow was negative $100 million in Q1 2025, compared to negative $70 million in Q1 2024, primarily due to working capital timing [18][33] Strategic Initiatives - Quad's In-Store Connect retail media network is gaining traction, particularly among mid-market grocers, with two new grocery clients added [4][6] - The company is focused on optimizing print and marketing efficiencies, including expanding postage savings opportunities through the acquisition of Enru's co-mailing assets [6][8] 2025 Guidance - The full-year 2025 financial guidance remains unchanged, projecting an organic annual net sales change of a 2% to 6% decline, adjusted EBITDA of $180 million to $220 million, and free cash flow of $40 million to $60 million [11][12]

Core Points - Quad/Graphics, Inc. declared a quarterly dividend of $0.075 per share, payable on June 6, 2025, to shareholders of record as of May 22, 2025 [1] Company Overview - Quad is a marketing experience (MX) company that facilitates direct consumer connections across various channels, including household, in-store, and online [2] - The company offers an MX Solutions Suite, which integrates creative, production, and media solutions, supported by advanced technology and data-driven intelligence [2] - Quad aims to simplify marketing complexities, enhance cost efficiencies, improve speed-to-market, and strengthen marketing effectiveness for its clients [2] Workforce and Clientele - Quad employs over 12,000 people across 14 countries and serves approximately 2,500 clients, including leading blue-chip companies in various sectors [3] - The company focuses on industries such as commerce (retail, consumer packaged goods, direct-to-consumer), financial services, and health [3] - Quad is recognized as one of the largest agency companies in the U.S. and one of the largest commercial printers in North America [3]

Group 1 - Quad/Graphics, Inc. will release its first quarter 2025 financial results on April 29, 2025, after market close [1] - A conference call to discuss the financial results will be held on April 30, 2025, at 8:30 a.m. ET, hosted by the Chairman, President, and CEO Joel Quadracci, along with CFO Tony Staniak [2] - Participants can pre-register for the conference call and will receive a unique PIN for access [3] Group 2 - Quad is a marketing experience company that provides a comprehensive range of marketing and print services, integrating creative, production, and media solutions across various channels [4] - The company employs over 12,000 people across 14 countries and serves approximately 2,500 clients, focusing on industries such as retail, consumer packaged goods, financial services, and health [5] - Quad is recognized as one of the largest agency companies in the U.S. and one of the largest commercial printers in North America [5]