Quad Reports First Quarter 2025 Results

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]