Cimpress 2025 Q3 Earnings Misses Targets as Net Income Widened by 54.8%

Cimpress (CMPR) reported its fiscal 2025 Q3 earnings on Apr 30th, 2025. The company experienced a mixed quarter with revenue increasing slightly by 1.1% to $789.47 million compared to the previous year. However, the earnings per share (EPS) missed analysts' expectations of $0.55, as Cimpress reported a loss of $0.33 per share. The guidance remained cautious with a focus on operational efficiency and entering new markets. Investors should monitor upcoming strategies and their potential impact on financial performance.

Revenue
Cimpress's total revenue for the third quarter of fiscal 2025 was $789.47 million, reflecting a modest 1.1% increase from $780.59 million in the same quarter last year. Vista contributed the largest share, generating $430.65 million in revenue. PrintBrothers added $155.98 million, while The Print Group earned $89.35 million. National Pen reported a revenue of $88.30 million. The segment labeled All Other Businesses brought in $51.10 million, while inter-segment eliminations amounted to negative $25.91 million, culminating in the total revenue figure.

Earnings/Net Income
Cimpress's net loss widened to $0.33 per share in 2025 Q3, a notable increase from the $0.15 per share loss in 2024 Q3, indicating a significant deterioration in financial performance. The company’s net loss increased by 54.8% to $8.02 million compared to the prior year. The EPS performance is concerning.

Price Action
The stock price of Cimpress has edged up 0.05% during the latest trading day, has edged up 1.03% during the most recent full trading week, and has dropped 7.01% month-to-date.

Post-Earnings Price Action Review
The impact of Cimpress's earnings report on its stock price has been varied across different periods. While positive earnings surprises, including revenue, net income, and EPS, can lead to short-term increases in stock price, this effect seems not to sustain in the long term. The backtest data suggests that positive surprises might be well-received initially, with a 57.14% win rate for both net income and EPS over a 3-day period after earnings releases. However, the overall performance tends to decline over extended periods like 10 and 30 days, indicating that short-term optimism may not translate into sustained stock appreciation. Investors should weigh these earnings metrics alongside other factors when making investment decisions.

CEO Commentary
In Q3 FY2025, Cimpress continued to enhance customer value and operational efficiency, which fuels confidence in achieving growth in per-share cash flow despite challenges in legacy products and tariff uncertainties. The CEO, Robert, highlighted strong performance in higher-growth product categories and ongoing preparations for entering the U.S. upload & print market. Revenue grew 1% year-over-year, with operating income slightly up at $40.5 million. However, net loss increased to $8.0 million, influenced by currency hedge losses and higher tax expenses, while adjusted EBITDA decreased to $90.7 million, reflecting increased operating expenses.

Guidance
Cimpress remains optimistic about delivering attractive growth in per-share cash flow over the coming years. The company anticipates continued progress in operational efficiency and customer value delivery while navigating near-term financial and operational volatility. Specific focus areas include entering the U.S. upload & print market and enhancing performance in high-growth product categories. The leadership underscores the importance of maintaining liquidity and managing capital expenditures, signaling a cautious yet confident approach to future growth amid ongoing challenges.

Additional News
In recent weeks, Cimpress has announced plans to expand its footprint in the U.S. upload & print market, aiming to leverage growth opportunities and diversify its product offerings. The company has also been actively managing its capital structure, successfully completing the repricing of its Term Loan B, which is expected to lower its cost of capital and improve financial flexibility. Additionally, Cimpress announced a public Q&A session following the release of its Q3 FY2025 financial results, allowing investors to engage directly with the company's leadership to gain insights into strategic decisions and future plans.