Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [21] - Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with an adjusted EBITDA margin improving from 8.7% to 8.9% year-to-date [22] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024 [23] - Free cash flow improved by $5 million to -$87 million for the nine months ended September 30, 2025 [24] Business Line Data and Key Metrics Changes - Targeted print offerings increased by 2% as a percentage of total net sales, driven by growth in direct marketing, packaging, and in-store solutions [21] - Direct mail revenue increased by over 6%, packaging by over 9%, and in-store solutions by 11% year-to-date [38] Market Data and Key Metrics Changes - The company continues to monitor macroeconomic pressures such as inflation and high postage costs, which may impact clients' marketing plans [5][6] - The USPS announced no price increase for market-dominant mail in January, which is seen as favorable for marketers [7][39] Company Strategy and Development Direction - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus is on maximizing savings for clients while increasing marketing effectiveness through innovative solutions [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong sales lift results from campaigns [16][17] - The company anticipates a similar seasonal pattern for free cash flow and net debt, expecting significant positive cash flow in Q4 2025 [24][29] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases [26] - The adjusted EBITDA guidance for 2025 has been narrowed to between $190 million and $200 million [29] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [38] Question: Impact of USPS postponing price increase - Management indicated that the postponement is positive, but concerns remain about future postal rate increases [39][60] Question: Updated guidance ranges - Management discussed variability in direct mail and reaffirmed the midpoint of the sales outlook for Q4 [43][46] Question: In-Store Connect deployment updates - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback from recent industry events [49][50]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [20] - Adjusted EBITDA for Q3 2025 was $53 million, down from $59 million in Q3 2024, while the adjusted EBITDA margin improved from 8.7% to 8.9% year-to-date [21] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024, and year-to-date adjusted diluted earnings per share rose by 33% to $0.65 in 2025 from $0.49 in 2024 [22] Business Line Data and Key Metrics Changes - Targeted print offerings increased by 2% as a percentage of total net sales, driven by growth in direct marketing, packaging, and in-store solutions [21] - Direct mail revenue increased by over 6% year-to-date, packaging grew over 9%, and in-store solutions rose by 11% year-to-date [36] Market Data and Key Metrics Changes - The company continues to monitor macroeconomic pressures such as inflation and high postage costs, which may impact clients' marketing plans [5] - The USPS announced it would not issue a January price increase for market-dominant mail, which is seen as positive news for marketers [7] Company Strategy and Development Direction - The company is investing in AI-powered tools and systems, data and audience intelligence services, and its In-Store Connect retail media network to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus is on maximizing savings for clients while increasing marketing effectiveness through innovative solutions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong results from CPG campaigns and a growing pipeline of clients [17] - The company anticipates a seasonal pattern for free cash flow, expecting a significant positive cash flow in Q4 2025 [23] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases [25] - The adjusted EBITDA guidance for 2025 has been narrowed to between $190 million and $200 million, with free cash flow expected to be at the higher end of the original guidance range [29] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [36] Question: Impact of USPS postponing price increase - Management indicated that the postponement is favorable and could positively influence client spending for 2026 [38] Question: Updated guidance for net sales - Management explained that direct mail could see variability in the fourth quarter based on client budget adjustments [42] Question: Adjusted EBITDA and CapEx guidance - Management confirmed a slight decrease in the adjusted EBITDA midpoint and discussed a shift in CapEx focus towards technology and automation [46][47] Question: In-Store Connect deployment updates - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback from recent deployments [48]

Financial Data and Key Metrics Changes - Net sales for Q3 2025 were $588 million, a decrease of 7% compared to Q3 2024, excluding a 6% impact from the divestiture of European operations [20] - Adjusted EBITDA was $53 million in Q3 2025, down from $59 million in Q3 2024, with an adjusted EBITDA margin improving from 8.7% to 8.9% year-to-date [21] - Adjusted diluted earnings per share increased by 19% to $0.31 in Q3 2025 from $0.26 in Q3 2024, and year-to-date adjusted diluted earnings per share rose by 33% to $0.65 in 2025 from $0.49 in 2024 [22] Business Line Data and Key Metrics Changes - Revenue mix as a percentage of total net sales increased by 2% in targeted print offerings, driven by growth in direct marketing, packaging, and in-store solutions [20] - Direct mail revenue increased by over 6% year-to-date, packaging grew by over 9%, and in-store solutions rose by 11% year-to-date [36] Market Data and Key Metrics Changes - The USPS announced it would not issue a January price increase for market-dominant mail, which is expected to positively impact marketers as they finalize their 2026 media plans [6][39] - High postage rates continue to significantly impact the industry, but the lack of a January increase is seen as favorable for clients [39] Company Strategy and Development Direction - The company is making targeted investments in AI-powered tools, data intelligence services, and retail media networks to diversify revenue and return to net sales growth by 2028 [4] - The strategic focus includes maximizing savings for clients while increasing marketing effectiveness through innovative solutions like co-mailing and audience intelligence [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future growth of In-Store Connect, citing strong sales lift results from campaigns with major clients [16] - The company is closely monitoring macroeconomic pressures, including inflation and tariffs, which could affect client marketing spend [31] Other Important Information - The company returned $19 million of capital to shareholders year-to-date through dividends and share repurchases, with a 50% increase in the quarterly dividend [25] - The company expects free cash flow in Q4 2025 to be between $137 million and $147 million, following a seasonal pattern of negative cash flow in the first nine months of the year [23] Q&A Session Summary Question: Trends in targeted print categories - Management noted that catalog sales are muted due to postal increases, while direct mail, packaging, and in-store solutions are seeing growth [36][37] Question: Impact of USPS postponing price increase - Management indicated that the postponement is favorable and could positively influence client spending for 2026 [39][40] Question: Updated guidance for net sales - Management discussed variability in direct mail as a transactional area that could impact sales outlook for Q4 [42][44] Question: Adjusted EBITDA and CapEx guidance - The midpoint for adjusted EBITDA was slightly decreased, while capital expenditures are expected to shift towards technology and automation [46][48] Question: Updates on In-Store Connect deployment - Management reported increased interest from clients and a strong pipeline for In-Store Connect, with positive feedback on new digital signage solutions [49][50]

Financial Performance & Guidance - Net sales for the second quarter of 2025 were $571.9 million, compared to $634.2 million in the second quarter of 2024[33] - Adjusted EBITDA for the second quarter of 2025 was $43.3 million, with an Adjusted EBITDA Margin of 7.6%[33, 51] - The company anticipates a 2% to 6% decline in adjusted annual net sales for 2025, excluding the divested European operations[41, 44] - Full-year Adjusted EBITDA is projected to be between $180 million and $220 million for 2025[41] - Free cash flow is expected to be between $40 million and $60 million for the full year 2025[41] Debt & Leverage - Net debt as of June 30, 2025, was $448.2 million[54] - The debt leverage ratio as of June 30, 2025, was 2.13x[54] - The company aims for a long-term targeted debt leverage range of 1.5x to 2.0x[43] Strategic Initiatives & Market Trends - Quad's proprietary core dataset features 250 million consumers, mapped to their physical home address[9] - A survey indicates that 71% of consumers feel a deeper connection and loyalty to brands experienced in physical stores[21] - 71% of consumers find print catalogs and magazines more authentic than digital campaigns[21]