Core Viewpoint - Quad/Graphics, Inc. will participate in the 38th Annual ROTH Conference, showcasing its marketing experience solutions and engaging with investors [1] Group 1: Company Overview - Quad is a marketing experience company that addresses complex marketing challenges for clients through its MX Solutions Suite, which integrates creative, production, and media solutions across various channels [1] - The company employs approximately 10,000 people across 10 countries and serves around 2,100 clients, including leading blue-chip companies in sectors such as retail, consumer packaged goods, financial services, and health [1] - Quad is recognized as one of the largest agency companies in the U.S. and one of the largest commercial printers in North America [1] Group 2: Conference Participation - Dave Honan, President and COO, and Tony Staniak, CFO and Treasurer, will represent Quad at the ROTH Conference from March 22–24, 2026 [1] - The company will host one-on-one and small group meetings with investors during the conference, providing opportunities for direct engagement [1]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $631 million, a decrease of 5.7% compared to Q4 2024, excluding the divestiture of European operations [24] - For the full year 2025, net sales were $2.4 billion, a 4.8% decline compared to 2024, also excluding the European divestiture [24] - Adjusted EBITDA for Q4 2025 was $55 million, down from $63 million in Q4 2024, while full-year adjusted EBITDA was $196 million, compared to $224 million in 2024 [26] - Adjusted diluted earnings per share for Q4 2025 was $0.36, consistent with Q4 2024, while full-year adjusted diluted earnings per share increased by 19% to $1.01 [26] Business Line Data and Key Metrics Changes - Targeted print categories, including direct mail and packaging, experienced net sales growth, while traditional print product lines like magazines and catalogs saw declines [4][25] - The QuadMed employer-sponsored healthcare business also showed revenue increases, offsetting declines in logistics and agency sales [25] Market Data and Key Metrics Changes - The company reported a significant increase in co-mail volumes by over 50%, enhancing carrier route density levels and achieving postal savings [57] - The postal service is expected to implement a mid-year rate increase of 6%-8%, which could impact marketing spend [80] Company Strategy and Development Direction - The company is focused on revenue diversification and has made targeted investments in artificial intelligence to drive efficiency and effectiveness in marketing solutions [4][19] - Quad aims to return to net sales growth by 2028, with a strategic emphasis on integrated marketing solutions and targeted print offerings [4][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting increased confidence among clients and a potential for reinvestment [75] - The company is closely monitoring inflationary pressures and postal rate increases, which could affect marketing spend [40] Other Important Information - The company increased its quarterly dividend by 33% to $0.10 per share, reflecting a commitment to shareholder returns [5][31] - A significant transition in the manufacturing network was announced, with the closure of a plant in Thomaston, Georgia, expected to be completed by early March [22] Q&A Session Summary Question: Insights on direct mail performance and future trends - Management clarified the distinction between direct mail as a product and the direct marketing agency, emphasizing the importance of personalized, data-driven approaches to enhance response rates [47][48] Question: Impact of postal rate increases on catalogs - Management noted that while catalogs have been responsive, the significant increases in postal rates have led to further declines in catalog usage, particularly in prospecting mailings [56] Question: Updates on In-Store Connect and future deployments - Management indicated that there has been an acceleration in conversations and opportunities regarding In-Store Connect, with plans for further rollouts [60] Question: Factors influencing 2026 sales and Adjusted EBITDA guidance - Management highlighted that postal impacts and the momentum in targeted print categories will influence the sales trend, with expectations for improved margins as the revenue mix evolves [66][67] Question: Capital allocation strategy moving forward - Management confirmed a balanced approach to capital allocation, focusing on shareholder returns, potential tuck-in acquisitions, and growth investments [68][69]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $631 million, a decrease of 5.7% compared to Q4 2024, excluding the divestiture of European operations [24] - For the full year 2025, net sales were $2.4 billion, a 4.8% decline compared to 2024, excluding the European divestiture [24] - Adjusted EBITDA for Q4 2025 was $55 million, down from $63 million in Q4 2024, while full-year adjusted EBITDA was $196 million, compared to $224 million in 2024 [26] - Adjusted diluted earnings per share for Q4 2025 was $0.36, consistent with Q4 2024, while full-year adjusted diluted earnings per share was $1.01, an increase of 19% from 2024 [26][27] - Free cash flow was $51 million in 2025, down from $56 million in 2024 [28] Business Line Data and Key Metrics Changes - Targeted print categories, including direct mail, packaging, and in-store marketing, experienced net sales growth, while traditional print product lines like magazines and catalogs saw declines [4][25] - The QuadMed employer-sponsored healthcare business also showed revenue increases, offsetting declines in logistics and agency sales [25] Market Data and Key Metrics Changes - The company reported a significant increase in co-mail volumes by over 50%, enhancing carrier route density levels and achieving postal savings [57] - The postal service's rate increases have impacted catalog marketing, leading to further declines in that area, although the company has managed to offset some of the damage through its postal optimization efforts [56] Company Strategy and Development Direction - The company is focused on revenue diversification and has made targeted investments in artificial intelligence to drive cost efficiency and revenue generation [18][19] - Quad is expanding its integrated marketing platform and has opened new offices to support growth in creative and media capabilities [10][16] - The company aims to return to net sales growth by 2028, with a strategic focus on higher-margin targeted print offerings [4][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate the current operating environment, citing increased confidence among clients and a focus on personalized marketing strategies [75][76] - The company anticipates a continued decline in net sales for 2026, but expects improvements in sales trends as it moves towards its 2028 growth targets [35][41] Other Important Information - The company increased its quarterly dividend by 33% to $0.10 per share, reflecting its commitment to long-term shareholder value [5][31] - The company has reduced net debt by $42 million in 2025 and by $726 million since 2020, achieving a net debt leverage ratio of 1.57x [32] Q&A Session Summary Question: Can you provide insights on direct mail growth trends and expectations for 2026? - Management clarified the difference between direct mail as a product and the direct marketing agency, emphasizing the importance of personalized marketing to drive higher response rates [47][48] Question: Have you seen any impact from the delayed postal rate increase on catalogs? - Management noted that while there has been no growth in catalogs, they have managed to offset some declines through increased co-mail volumes and postal optimization [56][57] Question: What is the status of In-Store Connect and its rollout? - Management indicated that there has been an acceleration in conversations and opportunities related to In-Store Connect, with capital reserved for growth in this area [60][62] Question: What factors are influencing the guidance ranges for 2026? - Management highlighted the impact of postal rates and the momentum in targeted print categories as key factors influencing the guidance [66][67] Question: How will capital allocation be balanced moving forward? - Management stated that capital allocation will continue to be balanced, with a focus on growth investments, share repurchases, and maintaining low debt leverage [69][70]

Financial Data and Key Metrics Changes - In Q4 2025, net sales were $631 million, a decrease of 5.7% compared to Q4 2024, excluding the divestiture of European operations [22] - For the full year 2025, net sales were $2.4 billion, a 4.8% decline compared to 2024, also excluding the European divestiture [22] - Adjusted EBITDA for Q4 2025 was $55 million, down from $63 million in Q4 2024, while full-year adjusted EBITDA was $196 million, compared to $224 million in 2024 [23][24] - Adjusted diluted earnings per share for Q4 2025 was $0.36, consistent with Q4 2024, while full-year adjusted diluted earnings per share increased by 19% to $1.01 [24] - Free cash flow was $51 million in 2025, down from $56 million in 2024, primarily due to a decrease in net cash from operating activities [26] Business Line Data and Key Metrics Changes - Targeted print categories, including direct mail, packaging, and in-store marketing, experienced net sales growth, while traditional print product lines like magazines and catalogs saw declines [4][22] - The direct mail segment outperformed expectations in 2025, driven by higher volumes and operational efficiencies [4][45] - The QuadMed employer-sponsored healthcare business also saw an increase in revenue mix as a percentage of total net sales [22] Market Data and Key Metrics Changes - The company noted a significant impact from postal rate increases, which have affected the catalog segment, leading to further declines in volume [52][54] - The new Postmaster General's approach aims for growth rather than just revenue through price increases, which could positively influence the catalog market in the future [53] Company Strategy and Development Direction - The company is focused on revenue diversification and has made targeted investments in artificial intelligence to enhance marketing efficiency and effectiveness [5][18] - Quad is expanding its integrated marketing platform, which combines creative, production, and media solutions across physical and digital channels, creating a competitive advantage [5][6] - The company anticipates a return to net sales growth by 2028, with a focus on improving adjusted EBITDA margins and free cash flow conversion [4][40][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's ability to navigate the current operating environment, emphasizing the importance of maintaining a disciplined approach to cost management [38] - The company expects to see improved sales trends in 2026, with a focus on targeted print categories and continued investment in growth initiatives [33][34] - Management acknowledged potential challenges from tariffs and inflation but remains committed to adapting to changing market conditions [38] Other Important Information - The company increased its quarterly dividend by 33% to $0.10 per share, reflecting a commitment to shareholder returns [5][29] - Quad's net debt leverage ratio was 1.57x as of December 31, 2025, with a goal to maintain a low leverage ratio while pursuing growth investments [28][30] Q&A Session Summary Question: Can you provide insights on the growth trends in direct mail and its momentum into 2026? - Management clarified the difference between direct mail as a product and the direct marketing agency's role, emphasizing the importance of data-driven personalization to enhance response rates [45][46] Question: Have you seen any impact from the delayed postal rate increase on catalogs or other channels? - Management noted that while there has been no growth in catalogs, they have managed to offset some declines through increased co-mail volumes and postal savings [54][55] Question: What is the current status of In-Store Connect and its rollout? - Management indicated that there has been an acceleration in conversations and opportunities related to In-Store Connect, with capital reserved for growth in this area [57][59] Question: What factors are influencing the guidance ranges for sales and Adjusted EBITDA in 2026? - Management highlighted the impact of postal rates and the momentum in targeted print categories as key factors influencing the guidance ranges [63][64] Question: How will capital allocation be balanced moving forward? - Management stated that capital allocation will continue to be balanced, with a focus on growth investments, share repurchases, and maintaining low debt leverage [66][68]

February 18, 2026 The factors that could cause actual results to materially differ include, among others: the impact of increased business complexity as a result of the Company's transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets; the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creating downward pricing pressures and potential under-utilization of ass ...

Core Insights - Quad/Graphics, Inc. reported its fourth quarter and full-year 2025 results, highlighting significant operational progress and solid financial outcomes despite a planned decline in sales [1][2] Financial Performance - For the full year 2025, Quad achieved Net Sales of $2.4 billion, a decrease of 9.4% compared to 2024, or a 4.8% decline when excluding the impact of the divestiture of European operations [1][2] - Adjusted Diluted Earnings Per Share increased by 19% to $1.01 in 2025, compared to $0.85 in 2024 [1][2] - Net Earnings improved to $27 million, or $0.54 Diluted Earnings Per Share, in 2025, compared to a Net Loss of $51 million, or $1.07 Diluted Loss Per Share, in 2024 [1][2] - Adjusted EBITDA for 2025 was reported at $196 million, down from $224 million in 2024, primarily due to lower Net Sales and increased investments in innovative offerings [1][2] Cash Flow and Debt Management - The company generated $96 million of Net Cash provided by Operating Activities and $51 million of Free Cash Flow in 2025 [1][2] - Net Debt was reduced by $42 million during 2025 to $308 million, achieving a Net Debt Leverage of 1.57x at year-end [1][2] - The company returned $22 million to shareholders in 2025 through $14 million in cash dividends and $8 million in share repurchases [1][2] Dividend and Future Guidance - Quad announced a 33% increase in its quarterly dividend to $0.10 per share, payable on March 13, 2026 [1][2] - The company provided 2026 financial guidance, anticipating a further improvement in Net Sales decline to approximately 3% at the midpoint of the guidance range [1][2] Operational Highlights - Quad completed the integration of Enru's co-mail volume and high-density co-mailing capabilities, enhancing mail pool sizes and improving sortation levels [1][2] - The company continued to secure integrated creative and media work with notable brands, indicating a shift towards higher-value offerings [1][2]

Core Viewpoint - Quad/Graphics, Inc. announced a 33% increase in its quarterly dividend, reflecting confidence in its cash flow generation and capital allocation strategy [1] Group 1: Dividend Announcement - The Board of Directors approved an increase in the quarterly dividend from $0.075 per share to $0.10 per share, translating to an annualized increase from $0.30 to $0.40 per share [1] - The increased dividend is payable on March 13, 2026, to shareholders of record as of February 27, 2026 [1] Group 2: Company Strategy and Financial Position - The company aims to strengthen its financial position and create long-term shareholder value through disciplined capital allocation and growth investments [1] - Joel Quadracci, Chairman, President, and CEO, emphasized the company's confidence in its cash flow generation and low debt leverage [1] Group 3: Company Overview - Quad is a marketing experience company that provides integrated marketing and print services across various channels, serving approximately 2,100 clients [1] - The company employs around 10,000 people in 10 countries and is recognized as one of the largest commercial printers in North America [1]

Core Insights - Quad/Graphics, Inc. will release its fourth quarter and full-year 2025 financial results on February 17, 2026, after market close [1] - A conference call to discuss the results will be hosted by Quad's Chairman, President, and CEO Joel Quadracci, along with CFO Tony Staniak, on February 18, 2026, at 8:30 a.m. ET [2] Company Overview - Quad is a marketing experience company that addresses complex marketing challenges for clients through its MX Solutions Suite, which integrates creative, production, and media solutions across various channels [4] - The company employs approximately 11,000 people across 11 countries and serves around 2,100 clients, including leading blue-chip companies in sectors such as retail, consumer packaged goods, financial services, and health [5] - Quad is recognized as one of the largest agency companies in the U.S. and is also one of the largest commercial printers in North America [5]

Core Insights - Quad/Graphics, Inc. narrows its full-year 2025 financial guidance for sales, adjusted EBITDA, and cash flow, indicating a strategic focus on improving operational efficiencies and shareholder value [1][5][12] - The company reported a third-quarter net sales of $588 million, a 13% decline from the same period in 2024, primarily due to lower paper sales and print volumes [8][9] - Quad continues to invest in AI-powered tools and audience intelligence services to enhance marketing effectiveness and drive long-term growth [3][4] Financial Performance - Net sales for the third quarter of 2025 were $588 million, down from $675 million in Q3 2024, reflecting a 13% decline [8][9] - Net earnings improved to $10 million or $0.21 diluted earnings per share in Q3 2025, compared to a net loss of $25 million or $0.52 diluted loss per share in Q3 2024 [9][25] - Adjusted EBITDA for Q3 2025 was $53 million, down from $59 million in the same period last year [9][29] Year-to-Date Results - For the nine months ended September 30, 2025, net sales totaled $1.8 billion, a 9% decrease compared to the same period in 2024 [9][25] - Year-to-date net earnings were $16 million or $0.32 diluted earnings per share, compared to a net loss of $56 million or $1.17 diluted loss per share in 2024 [9][25] - Adjusted EBITDA for the nine months was $141 million, down from $161 million in 2024 [9][25] Shareholder Returns - The company returned $19 million of capital to shareholders year-to-date, consisting of $11 million in cash dividends and $8 million in share repurchases [5][9] - A quarterly dividend of $0.075 per share has been declared, payable on December 5, 2025 [11] Updated Financial Guidance - Quad has updated its full-year 2025 financial guidance, narrowing the adjusted annual net sales change to a 3% to 5% decline, improved from the previous guidance of a 2% to 6% decline [12] - Adjusted EBITDA guidance has been revised to a range of $190 million to $200 million, up from the original range of $180 million to $220 million [12] - The anticipated year-end net debt leverage ratio has been updated from approximately 1.5x to approximately 1.6x [12]

Core Insights - QuadMed has opened a new health center in West Bend, marking its fifth location in Wisconsin to support local employers and their employees [1][4] - The new facility aims to provide accessible and cost-effective health care solutions, enhancing the QuadMed Shared Health Center Network [2][3] Company Overview - QuadMed is a health care experience company that partners with employers to deliver whole-person care, focusing on improving health outcomes and reducing costs [6] - Founded in 1991, QuadMed has expanded its services across Wisconsin and beyond, maintaining a commitment to affordable health care [4][5] Services Offered - The West Bend Health Center provides a variety of services including primary care, occupational health, acute care, virtual care, lab, and pharmacy services [3] - The shared-site model allows employers to enhance employee health while controlling health care spending without the need for their own facilities [2] Commitment to Local Employers - QuadMed emphasizes its dedication to helping Wisconsin employers maximize their health care investments [5] - The company offers resources such as the QuadMed Shared Health Center Network Guidebook to assist employers in understanding available services and costs [5]