Quad Reports Second Quarter and Year-to-Date 2025 Results

Core Insights - Quad/Graphics, Inc. reaffirmed its full-year 2025 financial guidance while continuing to invest in strategic growth areas such as data and audience intelligence, AI-enabled tools, and in-store retail media networks [1][3][11] Recent Highlights - The second quarter results met expectations, with ongoing investments aimed at differentiating the company as a marketing experience provider [3][4] - Quad launched Audience Builder 2.0, an AI-powered tool enhancing audience targeting capabilities [4][7] - A new partnership was established with Vallarta Supermarkets, expanding the In-Store Connect retail media network [5][7] Financial Performance - Net Sales for Q2 2025 were $572 million, a 10% decline from $634 million in Q2 2024, with a 4% decline when excluding the impact of the European operations divestiture [7][8] - The company reported a net loss of $0.1 million in Q2 2025, an improvement from a net loss of $3 million in Q2 2024 [8][15] - Adjusted EBITDA for Q2 2025 was $43 million, down from $52 million in Q2 2024 [8][15] Year-to-Date Financial Results - For the six months ended June 30, 2025, net sales were $1.2 billion, a 7% decrease compared to the same period in 2024 [15] - Net earnings for the first half of 2025 were $6 million, compared to a net loss of $31 million in the same period in 2024 [15][29] - Free Cash Flow improved to negative $66 million in the first half of 2025, compared to negative $82 million in the same period in 2024 [15][40] Guidance for 2025 - The company maintains its guidance for 2025, projecting a 2% to 6% decline in adjusted annual net sales, adjusted EBITDA between $180 million to $220 million, and free cash flow of $40 million to $60 million [11][15]