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- **Targeted Print Growth**: Direct mail (+6%), packaging (+9%), in-store media (+11%) YOY, driven by data personalization and postal optimization.
- **Postal Rate Relief**: USPS deferred 2026 rate hike; Quad's co-mailing discounts offset 2025 cost increases, reducing client postage expenses.
- **In-Store Connect Success**: 23% sales lift for DiGiorno, 25% for Rockstar Energy; new digital signage form factors filed for patent.
- **Financial Discipline**: Narrowed 2025 net sales decline to -3% to -5%, free cash flow guidance raised to $50-60M, maintaining 1.5x-2.0x leverage ratio.
- **Shareholder Returns**: $19M returned YTD (50% dividend increase, 13% share buybacks since 2022).

**【CEO Summary Section】**
- **Revenue Growth in Targeted Print**: Direct mail (+6%), packaging (+9%), and in-store media (+11%) year-over-year, driven by data-driven personalization and postal optimization.
- **Postal Rate Developments**: USPS deferred 2026 rate increase for market-dominant mail, while Quad implemented 2025 cost pass-through via January price hike. Co-mailing acquisition (Enru) reduced client postage costs through high-density presort discounts.
- **In-Store Connect Momentum**: 23% sales lift for DiGiorno pizza, 25% for Rockstar Energy, and 8% for P&G laundry products. New digital signage form factors (e.g., aisle 'wedge') filed for patent.
- **Client Partnerships**: Aldi's private-label packaging refresh using Quad's creative services, mailing 30M+ direct marketing pieces Q1-Q3 2025.

**【CFO Financial Commentary】**
- **Q3 2025 Results**: Net sales $588M (-7% YoY), adjusted EBITDA $53M (8.9% margin). Year-to-date: adjusted EBITDA $141M (-12%), free cash flow -$87M (vs -$92M prior year).
- **Updated Guidance**: Full-year 2025 net sales decline narrowed to -3% to -5% (midpoint -4%), adjusted EBITDA $190-200M, free cash flow $50-60M.
- **Capital Allocation**: $19M returned to shareholders (Q3 2025: $11M dividends, $8M buybacks). $6.5M from Effingham, IL asset sale; remaining assets (Greenville, MI; Waukee, IA) for sale.
- **Debt Management**: $166M liquidity, 7.1% blended interest rate. 2025 net debt leverage ratio expected 1.6x (vs 1.5x prior year).

**【Q&A Highlights】**
- **Postal Rate Impact**: Clients cautiously optimistic about deferred 2026 rate increase; Quad's co-mailing discounts offset 2025 rate hikes. Q4 2025 direct mail volume variability possible.
- **In-Store Connect Pipeline**: CPGs shifting from investigation to deployment; 2026 holiday season testing new form factors. Save Mart Companies expanding rollout.
- **Asset Sales Challenges**: Effingham, IL sale at $40/sqft (vs prior $400/sqft norm) due to location. Remaining assets (e.g., Sussex, WI 200K sqft) expected to meet historical pricing.
- **Tariff Environment**: No significant client pullback Q3 2025; monitoring macroeconomic impacts on 2026 marketing budgets.

Quad/Graphics, Inc. (QUAD) Q3 2025 Earnings Call Transcript

Revenue

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QUAD

QUAD fundamentals

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