Financial Data and Key Metrics Changes - Cimpress achieved a milestone by exceeding $1 billion in quarterly revenue for the first time, with organic constant currency growth of 4% for the first half of the year, surpassing the previous guidance of 2%-3% [9][16] - Revenue for Q2 grew 11% on a reported basis and 4% on an organic constant currency basis, with growth across all segments [9][10] - Adjusted EBITDA increased by $6.6 million year-over-year, with profit dollars up 8% on a consolidated basis [11][12] - Adjusted free cash flow declined by $9.2 million to an inflow of $124 million, attributed to lower net working capital inflows [15][16] Business Line Data and Key Metrics Changes - In the Vista segment, organic constant currency growth was 5%, up from 3% in the prior year quarter, driven by double-digit growth in promotional products, apparel, gifts, and packaging [10][12] - The PrintBrothers segment reported a 26% revenue growth, with a contribution of $18 million from a tuck-in acquisition [11][12] - The Upload and Print segment saw a 6% organic constant currency revenue growth, with increased customer and order counts [11] Market Data and Key Metrics Changes - Strong performance in North America was the main driver of growth acceleration compared to the prior year quarter [11] - In Europe, consumer performance was weaker, with a decline year-over-year in Q2, attributed to tough comparisons from the previous year [21] Company Strategy and Development Direction - Cimpress is focusing on elevated products to improve customer lifetime value and wallet share, with variable gross profit per customer growing 9% year-over-year [4][10] - The company is investing in manufacturing efficiencies and new product introductions through Cross-Cimpress Fulfillment (XCF) [5][8] - Shared technology initiatives are aimed at reducing operating expenses and enhancing customer value [6][39] - The company remains confident in achieving fiscal 2028 targets, including an adjusted EBITDA of at least $600 million [7][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the financial future, highlighting a strong path to fiscal 2028 with significant deleveraging of the balance sheet [7][17] - The impact of tariffs is expected to lessen in future quarters as supply chain remediation continues [14] - Management noted that the hurricane in Jamaica posed challenges but was mitigated through operational adjustments [6][12] Other Important Information - The company completed a tuck-in acquisition for $10.4 million, expected to yield significant synergies [49][51] - Net leverage at the end of Q2 was 2.97 times trailing twelve months EBITDA, down from the previous quarter [15][16] Q&A Session Summary Question: How would you characterize the holiday season that just concluded for Vista? - Management reported a strong quarter for Vista, particularly in North America, with a balanced approach to holiday messaging [18] Question: Can you talk about the biggest areas of outperformance versus your initial FY 2026 guidance? - Management indicated solid execution across the board, with no significant areas of outperformance but some help from currency [24] Question: What are the underlying trends for customer cohorts in promotional products? - Strong growth in elevated products demonstrates increased wallet share among small business customers [30][31] Question: How has the North American business for the Print Group trended? - The Print Group is on track with revenues growing quarter-over-quarter, though still small in scale [34] Question: What is the company's view on Cross-Cimpress Fulfillment? - Management sees significant growth potential in Cross-Cimpress Fulfillment, which has doubled in revenue within a year [42][45] Question: Can you provide details on the tuck-in acquisition made this quarter? - The acquisition was for an Austrian printing group with significant synergy opportunities, expected to exceed a 15% hurdle rate [49][51]