Cimpress Breaks $1B Revenue Barrier, Raises Guidance

Date of Call: Jan 29, 2026

Financials Results

• Revenue: $1B+ for Q2, up 11% reported and 4% organic constant currency YOY
• Gross Margin: Declined 110 basis points YOY, primarily due to tariff impacts

Guidance:

• Revenue growth for FY26 expected to be 7% to 8% (3% to 4% organic constant currency).
• Adjusted EBITDA for FY26 expected to be at least $460 million (up from $450 million).
• Net income for FY26 expected to be at least $79 million.
• Adjusted free cash flow for FY26 expected to be approximately $145 million.
• Net leverage expected to decrease slightly by the end of FY26 from FY25 level of 3.1x.
• FY28 targets: $600 million adjusted EBITDA, ~45% free cash flow conversion, net leverage below 2.0x.

Business Commentary:

Revenue and EBITDA Growth:

• Cimpress plc reported revenue of over $1 billion for the first time in Q2, with organic constant currency growth of 4% through the first half of the year.
• The company raised its annual guidance for revenue, adjusted EBITDA, and free cash flow, with adjusted EBITDA growth in the first half equating to the full-year dollar growth in prior guidance.
• Growth was driven by increased wallet share with small business customers, manufacturing efficiencies, and currency benefits.

Elevated Products and Customer Value:

• Variable gross profit per customer grew 9% year-over-year, indicating a step function improvement in customer lifetime value.
• Elevated product categories such as promotional products, apparel, gifts, packaging, and labels contributed to this growth.
• This trend reflects strategic investments in elevated products and manufacturing capabilities, which have driven higher wallet share with profitable customers.

Cross-Cimpress Fulfillment (XCF) and Manufacturing Efficiencies:

• Cross-Cimpress fulfillment volumes increased, with XCF revenue doubling from over $40 million in the first half of fiscal '25 to over $80 million in the first half of this year.
• This growth is attributed to the optimization of production footprints and focused production hubs, which drive manufacturing efficiencies and accelerate new product introductions.

Strategic Collaborations and Technology Sharing:

• Cimpress deepened collaborations between Vista, National Pen, and BuildASign, sharing capabilities in product development, sourcing, and marketing.
• This collaboration is expected to drive meaningful efficiencies and customer value while maintaining separate brand identities.
• The move is part of a broader strategy to leverage shared technology and AI to constrain operating expenses and improve customer experience.

FY '28 Financial Targets and Cost Efficiencies:

• Cimpress is confident in achieving fiscal '28 EBITDA of at least $600 million and expects significant deleveraging of the balance sheet.
• The company anticipates cost efficiencies across the profit and loss statement, particularly in cost of goods, technology, and marketing.
• Investments in technology modernization, product expansion, and manufacturing have positioned Cimpress to pursue tuck-in M&A and partnerships to support these targets.

Sentiment Analysis:

Overall Tone: Positive

• "Q2 marked a milestone for Cimpress. We exceeded $1 billion in quarterly revenue for the first time ever... We are raising our annual guidance for revenue, for adjusted EBITDA and for free cash flow." "We remain confident in our ability to deliver on our fiscal '28 targets."

Q&A:

• Question from Meredith Burns (Cimpress): How would you characterize the holiday season that just concluded for Vista? Did it go as planned, better or worse? What worked and what did not? And what was the percentage change in cost per click in U.S. consumer this year?
  Response: Overall, it was a strong quarter for Vista, driven by North America. Holiday cards were flat in the U.S. and grew double digits in Canada; consumer in Europe was down due to a tough comp. Cost per click details not disclosed, but performance marketing channel mix is evolving.

• Question from Meredith Burns (Cimpress): Strong Q2 results represent a continuation of trends observed from Q1 and led you to raising your guidance. Can you talk about the biggest areas of outperformance versus your initial FY '26 guidance?
  Response: No single outperformance area; solid execution across the board. Revenue and EBITDA are on or above plan, with currency providing additional tailwind. The company now feels comfortable raising EBITDA guidance for the year.

• Question from Meredith Burns (Cimpress): At Vista, you called out that promotional products, apparel, gifts and packaging, along with labels, all grew at double-digit clips during the quarter. How are the underlying trends progressing for these customer cohorts?
  Response: Strong growth demonstrates increased wallet share with SMBs. Variable gross profit per customer grew 9% YOY in Q2, consistent with strategy. Significant opportunity remains in elevated categories, supported by cross-Cimpress collaboration.

• Question from Meredith Burns (Cimpress): Can you talk about the North American business for The Print Group? How have things trended versus your initial expectations? And how do you view the opportunity ahead for the business?
  Response: On track with plans; revenues small (~$3M H1) but growing fast. Near-term focus is on growing fulfillment volumes for VistaPrint via cross-Cimpress fulfillment. The bigger opportunity is scaling production for VistaPrint and the Pixartprinting brand.

• Question from Meredith Burns (Cimpress): It seems that in bringing National Pen and BuildASign closer together, there will be a lot of capability sharing. Product development sourcing, performance marketing, direct mail and manufacturing were all quoted in the January 13 release as part of the collaboration. What will remain separate and why?
  Response: Brands will remain separate to maintain market presence and varied value propositions. Back-end capabilities (tech, manufacturing, marketing) will be shared to drive growth and profitability, especially for VistaPrint in North America.

• Question from Meredith Burns (Cimpress): How do you view the opportunity ahead for cross-Cimpress fulfillment to continue to drive down COGS? And how much headroom do you think there is ahead?
  Response: Cross-Cimpress fulfillment is a big opportunity, part of the path to FY28 EBITDA targets. It doubled to over $80M in H1 FY26 from ~$40M in H1 FY25. Significant headroom remains for growth and cost reduction.

• Question from Meredith Burns (Cimpress): In the quarter, it looks like the company allocated $22.6 million for the purchase of noncontrolling interest. What position did the company buy? Any details you can share would be appreciated. What noncontrolling interests remain outstanding?
  Response: $22.6M consisted of $11M mandatory redemption and $12M put option exercise in PrintBrothers segment. $6M of redeemable noncontrolling interest remains outstanding; no mandatorily redeemable interests.

• Question from Meredith Burns (Cimpress): The company did a tuck-in acquisition for $10.4 million in the quarter, and you noted in your earnings document that the company has a healthy pipeline of potential tuck-in M&A opportunities. How much capital is the company willing to allocate here? Also, I believe in the past, the company used a 15% hurdle rate for any tuck-in M&A deals.
  Response: The deal clears the 15% hurdle comfortably, with significant synergy opportunities. Capital allocation for other tuck-ins depends on relative returns vs. share repurchases and internal investments. M&A is part of the strategy but not a top driver.

• Question from Meredith Burns (Cimpress): On capital allocation, share repurchases stepped up during the quarter and net leverage fell below 3x. How should investors be thinking about the magnitude of repurchases in the back half of the year?
  Response: Some room remains for repurchases in H2 within leverage guidance. Repurchases are price-dependent; the company views current levels as attractive and plans some buybacks in H2, likely less intense than Q2.

• Question from Meredith Burns (Cimpress): Could you please help us bridge or provide color around the difference between the all-time high trailing 12-month EBITDA of $469 million from Q4 of FY '24 to the trailing 12 months EBITDA today of $451 million.
  Response: Key drivers include nonrecurring benefits in Q2 FY24 that did not repeat, favorable input cost reductions in FY24, start-up costs for plant expansion in FY25/26, and higher technology OpEx. Currency is more favorable now.

• Question from Meredith Burns (Cimpress): Should we be thinking about the bridge to FY '28 a bit differently than what was communicated at the Investor Day? Is $40 million of organic incremental benefit still the target? And is $10 million from tuck-in M&A still a target?
  Response: The Investor Day bridge pillars remain valid. FY26 guidance has been raised by $10M. The $40M+ organic EBITDA needed over two years to reach $600M in FY28 is still the math, but confidence in other pillars may lessen its required magnitude over time.

• Question from Meredith Burns (Cimpress): We have one more live question that came in, just asking for a comment on the current state of our operations in Jamaica following the hurricane.
  Response: Operations are stable; teams are back at desks with some renovations ongoing. Capacity is supported by service centers in Tunisia and the Philippines. Financial impact is manageable with insurance recovery expected; no significant drag on H2 results.

Contradiction Point 1

Guidance and Execution Outlook for Q2 and the Holiday Season

Contradictory statements on performance and guidance confidence between Q1 and Q2.

Continued Q2 performance building on Q1 trends—what were the key areas of outperformance against FY '26 guidance? - Not specified

2026Q2: There were **no major outperformance areas**; results were a solid execution across the board, consistent with Q1. The company is **basically on track for revenue** and has increased confidence due to first-half delivery. - [Sean Quinn](CFO)

How do Q1 '26 results position the company for the remainder of the fiscal year and shape the year's trajectory? - Anonymous Participant

2026Q1: Q1 revenue growth (7% reported, 4% organic) **exceeded the annual guidance range**. The adjusted EBITDA pace was also ahead of what is needed to hit the full-year target... Therefore, Q1 provides a strong foundation to **achieve or exceed full-year fiscal 2026 guidance**. The company is **confident in execution through Q2 and the rest of the year.** - [Sean Quinn](CFO)

Contradiction Point 2

EBITDA Growth Trajectory and Achievement of FY28 Targets

Conflicting signals on progress toward and confidence in achieving long-term EBITDA targets.

Is the bridge to FY '28 being approached differently than outlined at Investor Day, and are the $40 million organic incremental benefit and $10 million tuck-in M&A targets still valid? - Not specified

2026Q2: The **pillars remain valid**... The **$78M to $80M of cost savings target is still good**... The **$10M+ from tuck-in M&A is still targeted**... as confidence grows in the other pillars, the **organic growth needed may lessen.** The company is laser-focused on these FY28 targets. - [Sean Quinn](CFO)

Can you provide a framework for thinking about the upcoming holiday season and how the business is positioned, especially regarding consumer behavior? - Anonymous Participant

2026Q1: The company is leaning into its strategic strengths and **feels confident in its plans for the holiday season.** - [Sean Quinn](CFO) *(Implies broader confidence in execution and achieving targets, with no mention of reduced organic growth requirement or specific pillars)*

Contradiction Point 3

Performance and Outlook for the North American Mail Order Channel

Contradiction on growth trends and challenges for National Pen's North American mail order business.

With the merger of National Pen and BuildASign and increased capability sharing, what aspects will remain separate and why? - Not specified

2026Q2: Growth is strong in e-commerce and cross-Cimpress fulfillment. The low growth is concentrated in the North American mail order channel, where returns have not justified past levels of direct mail advertising, leading to reduced ad spend and lower revenues. - [Robert Keane](CEO)

Could you provide an update on April revenue growth, specify if revenue softness is U.S.-specific, and compare each segment’s performance to last year? - Meredith Burns

2025Q3: Growth is strong in elevated products... Legacy products like business cards and holiday cards, along with channels like National Pen's mail order, are seeing slower growth or declines. - [Robert Keane](CEO)

Contradiction Point 4

Capital Allocation and Share Repurchase Strategy

Contradiction on the company's stance and readiness to resume share repurchases.

How should investors assess the magnitude of share repurchases in the back half of the year, considering the recent increase and net leverage below 3x? - Not specified

2026Q2: There is some room for share repurchases in the second half within the provided guidance... expects to continue repurchases, probably at a bit less intensity than Q2. - [Sean Quinn](CFO)

How does the company prioritize share buybacks versus internal investments and debt paydown at the current stock price range of $40–$45, and what is management's expected timeline for resuming share repurchases? - Meredith Burns

2025Q3: The halt in buybacks in February/March was due to needing a clearer handle on the evolving tariff situation. With increased liquidity expected in Q4... the company is prepared to seize opportunities, including share repurchases, and will resume considering them. - [Sean Quinn](CFO)

Contradiction Point 5

Net Leverage Target and Achievement Timeline

Contradiction on the timeline for achieving the stated net leverage target.

Given the increase in share repurchases and net leverage falling below 3x, what magnitude of share repurchases should investors expect in the back half of the year? - Not specified

2026Q2: Net leverage fell below 3x... There is some room for share repurchases in the second half... - [Sean Quinn](CFO)

Were your leverage targets reevaluated during the quarter, what factors support the 2.5x target, and is this target independent of current stock price levels? - Meredith Burns

2025Q3: The net leverage target of 2.5x remains unchanged... Achieving it will take longer than initially thought due to attractive opportunities. - [Robert Keane](CEO)