Cimpress 2025 Q4 Earnings Significant Net Income Downturn

Cimpress(CMPR) reported its fiscal 2025 Q4 earnings on Jul 29th, 2025. Cimpress experienced a notable net income downturn, leading to a loss of $28.36 million compared to the previous year's profit of $118.17 million. This result fell short of expectations, largely influenced by elevated tax expenses. Despite the loss, the company maintained strategic investments and offered guidance for fiscal 2026, anticipating cost reductions to offset operating expenses and focusing on the Upload & Print segment in North America.

Revenue

The total revenue of Cimpress increased by 4.4% to $869.48 million in 2025 Q4, up from $832.61 million in 2024 Q4.

Earnings/Net Income

Cimpress swung to a loss of $1.02 per share in 2025 Q4 from a profit of $4.55 per share in 2024 Q4 (122.4% negative change). Meanwhile, the company reported a net loss of $-28.36 million in 2025 Q4, reflecting a 124.0% deterioration from the net income of $118.17 million achieved in 2024 Q4. The earnings per share performance was unfavorable.

Price Action

The stock price of Cimpress has edged up 0.04% during the latest trading day, has climbed 5.09% during the most recent full trading week, and has climbed 6.31% month-to-date.

Post-Earnings Price Action Review

The investment strategy of purchasing Cimpress (CMPR) shares following a quarter-over-quarter revenue increase on the financial report release date and holding for 30 days yielded moderate returns but underperformed the benchmark significantly. While the strategy achieved a return of 23.11%, the benchmark delivered a return of 50.19%, resulting in an excess return of -27.08%. The strategy's compound annual growth rate (CAGR) was 7.25%, and it maintained a maximum drawdown of 0.00%, suggesting a low-risk approach with limited losses during market downturns. The Sharpe ratio of 0.12 further indicated a conservative strategy that struggled to outperform during periods of market volatility.

CEO Commentary

Cimpress experienced solid Q4 FY2025 results despite challenging tariff and trade conditions. Revenue grew by 4% on a reported basis, driven by strategic progress and a shift towards higher customer lifetime value products. However, gross margin decreased to 47.5%, influenced by product mix and approximately $3 million in tariff-related costs. Operating income fell to $65.4 million, partly due to $4.8 million in restructuring expenses aimed at offsetting future operating expense growth. Although net income decreased significantly to a loss of $28.4 million because of elevated tax expenses, adjusted EBITDA increased to $122.4 million, reflecting resilience in operational performance.

Guidance

Cimpress anticipates that the cost reductions implemented in FY2025 will yield a $10 million offset to operating expense growth in FY2026. The company expects to continue focusing on strategic investments, particularly in the Upload & Print segment in North America, while managing potential challenges related to tariffs and product mix shifts. Furthermore, Cimpress aims to maintain a strong liquidity position, with undrawn credit facilities, as it navigates these headwinds and seeks to enhance profitability moving forward.

Additional News

During the past three weeks, Cimpress has been active in strategic moves beyond its earnings report. The company announced a leadership change, appointing a new Chief Financial Officer to steer its financial strategy amid challenging market conditions. Additionally, Cimpress declared a share buyback program aimed at enhancing shareholder value, demonstrating its commitment to returning capital to investors despite recent earnings setbacks. The company also entered into a partnership to expand its presence in Asia, targeting emerging markets and leveraging local expertise to boost its global footprint. These strategic initiatives underscore Cimpress's focus on long-term growth and operational resilience.