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Dec 31, 2024
Cimpress Q2 2025 Earnings Report
Delivered disappointing financial results due to unplanned one-time headwinds and underperformance in U.S.
Key Takeaways
Cimpress' Q2 FY2025 results were lower than expected, impacted by a Canadian postal strike, a land duty tax in Australia, and underperformance in the U.S. for business cards and consumer-focused products. Despite this, revenue grew by 2%, and the company is taking actions to improve performance and optimize pricing.
Revenue grew 2% on both a reported and organic constant-currency basis.
Operating income decreased $26.7 million year over year to $80.9 million.
Adjusted EBITDA decreased $34.2 million year over year to $132.3 million.
Liquidity position is strong with cash and marketable securities of $224.4 million as of December 31, 2024.
Revenue by Segment
Forward Guidance
Cimpress expects at least 3% revenue growth for H2 FY2025 and FY2025, with organic constant-currency revenue growth of at least 4%. Operating income is projected to be at least $113.7 million for H2 FY2025 and at least $233.9 million for FY2025. Adjusted EBITDA is expected to be at least $220 million for H2 FY2025 and at least $440 million for FY2025.
Positive Outlook
- H2 FY2025: at least 3% on a reported basis (assuming recent currency rates) and 4% on an organic constant-currency basis.
- Year-over-year bookings growth in January 2025 month to date is consistent with this revised outlook, including Vista where bookings growth is higher than Q2.
- H2 FY2025: at least $113.7 million, an increase of at least 7% over H2 FY2024.
- H2 FY2025: at least $220 million, an increase of at least 3% over H2 FY2024.
- We expect to end FY2025 with net leverage that is approximately 3.0x given the above expectations for FY2025 profitability and free cash flow.
Challenges Ahead
- FY2025 results will be lower than originally expected.
- We had planned for adjusted EBITDA to decline slightly in Q2 FY2025 due to the non-recurrence of $12 million of one-time favorable items in the year-ago period as well as the shortened holiday buying season compared to last year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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