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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

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

QUAD

QUAD fundamentals

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