Financial Data and Key Metrics Changes - The company generated total revenue of $1.7 billion in Q1 2025, reflecting a 9% decline compared to the same quarter last year, but showing improvement in year-over-year trends compared to prior quarters [19] - Adjusted EBITDA for the quarter was $76 million, down from $91 million in the previous year, while adjusted free cash flow increased significantly to $45 million from $17 million [22][24] - GAAP operating loss was $32 million compared to a GAAP operating income of $41 million in the prior year, with adjusted operating income at $54 million, down from $66 million [20] Business Line Data and Key Metrics Changes - The consumer division, Office Depot, reported sales of $838 million, down 11% year-over-year, but showed a 500 basis point improvement in same-store sales metrics [24][25] - ODP Business Solutions reported revenue of $852 million, down 8% year-over-year, impacted by cautious business conditions and a large customer loss from the previous year [27] - The supply chain business, VARE, achieved over 85% year-over-year revenue growth from third-party customers, with third-party revenue reaching $17 million, up 89% [12][32] Market Data and Key Metrics Changes - The company is expanding into the hospitality market, which is valued at $16 billion, and has established partnerships with major suppliers to support this initiative [13][14] - The onboarding of new business contracts, including a significant contract with CoreTrust, is ongoing, with expectations for these to contribute more meaningfully in the second half of the year [11][28] Company Strategy and Development Direction - The company is focused on a B2B pivot and expanding into higher growth segments such as hospitality and supply chain services, while reducing reliance on retail [7][16] - The "Optimize for Growth" restructuring plan aims to realign organizational structure and reduce fixed costs, with nine retail stores closed during the quarter [17][20] - The company is actively managing its balance sheet and liquidity, ending the quarter with total liquidity of $653 million [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in improving trends within the consumer business and anticipates better performance in the B2B segment as new customers are onboarded [37][39] - The company is closely monitoring the evolving tariff situation and has taken proactive measures to mitigate potential impacts [36][41] - Management expects significant improvements in adjusted free cash flow generation compared to the previous year, with a focus on driving cash and margin [37][39] Other Important Information - The company has made significant progress in cash management, achieving a cash conversion improvement that contributed to the increase in adjusted free cash flow [13] - The company is evaluating the pace of store closures in light of improved retail performance and ongoing strategic initiatives [51] Q&A Session Summary Question: Insights into retail momentum and sales strategies - Management highlighted four key strategies driving improved performance, including enhanced customer engagement, a revised merchandising strategy, daily performance management, and targeted sales promotions [44][48] Question: Future pace of store closures - Management indicated that the "Optimize for Growth" plan will evaluate store performance to maximize cash flow and margin, with ongoing assessments of store closures [51][52] Question: Onboarding delays for new contracts - Management noted that onboarding delays are due to longer lead times in the hospitality sector and the complexity of large contracts like CoreTrust [55][56] Question: Categories showing strength in retail - Management reported success in non-tariff categories and a shift to a more value-oriented merchandising strategy, which has improved sales performance [63][64] Question: Impact of tariffs on business - Management believes they have mitigated most tariff impacts through diversified sourcing strategies and proactive pricing adjustments [66][68] Question: Converting new business pipeline into revenue - Management is focusing on bringing in qualified leadership, rigorous management systems, and frequent high-level meetings with new partners to drive conversion [90][91] Question: Update on stock buyback - Management stated that they continually evaluate stock repurchase opportunities and have confidence in the company's future [96]

Financial Performance - Consolidated YOY comparable revenue trends improved in Q1 2025[9] - Adjusted free cash flow significantly increased YOY, reaching $45 million in Q1 2025, compared to $17 million in the same period last year[9, 19] - Adjusted EBITDA was $76 million[18, 23] - Adjusted operating income was $54 million[18, 23] Business Segments - Office Depot's same store sales improved by 500 basis points YOY[9] - Veyer's revenue from third-party customers grew strongly, up 89% to $17 million in Q1 2025[9, 34] - ODP Business Solutions' adjacency categories accounted for 44% of the division's total revenue[28] Strategic Initiatives - The company is executing the "Optimize for Growth" plan, expecting a $380 million uplift in EBITDA and $1.3 billion in total value creation[12] - The company closed 9 retail store locations in Q1 2025, incurring $48 million in restructuring costs[12] - The company is expanding into the hospitality market, a $16 billion addressable market[10, 11] Financial Position - The company has a strong liquidity position, with $653 million in total available liquidity, including $185 million in cash and cash equivalents[38]

Group 1: Earnings Performance - Acco Brands reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.04, and compared to earnings of $0.03 per share a year ago, indicating a 50% earnings surprise [1] - The company posted revenues of $317.4 million for the quarter ended March 2025, missing the Zacks Consensus Estimate by 0.43%, and down from year-ago revenues of $358.9 million [2] - Over the last four quarters, Acco has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] Group 2: Stock Performance and Outlook - Acco shares have declined approximately 26.5% since the beginning of the year, while the S&P 500 has decreased by 5.3% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $0.34 on revenues of $404.1 million, and for the current fiscal year, it is $1.02 on revenues of $1.56 billion [7] Group 3: Industry Context - The Office Supplies industry, to which Acco belongs, is currently ranked in the bottom 12% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that investors should monitor these revisions closely [5][6]

Core Viewpoint - Xerox Holdings Corporation reported a quarterly loss of $0.06 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.05, marking an earnings surprise of -20% [1] - The company has consistently missed consensus EPS estimates over the last four quarters [2] Financial Performance - Xerox posted revenues of $1.46 billion for the quarter ended March 2025, missing the Zacks Consensus Estimate by 3.19%, compared to $1.5 billion in revenues a year ago [2] - The company has only surpassed consensus revenue estimates once in the last four quarters [2] Stock Performance - Xerox shares have declined approximately 47.7% since the beginning of the year, in contrast to the S&P 500's decline of -5.3% [3] - The current Zacks Rank for Xerox is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $1.58 billion, and for the current fiscal year, it is $0.72 on revenues of $6.25 billion [7] - The trend for estimate revisions ahead of the earnings release has been unfavorable [6] Industry Context - The Office Supplies industry, to which Xerox belongs, is currently ranked in the bottom 13% of over 250 Zacks industries, suggesting a challenging environment [8]