Loading...
•
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.
Cimpress
Cimpress
Cimpress Revenue by Segment
Revenue by Segment
PrintBrothers Revenue
CapyFin.comThe Print Group Revenue
CapyFin.comNational Pen Revenue
CapyFin.comAll Other Businesses Revenue
CapyFin.com 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.
- We also experienced additional unplanned one-time headwinds to profitability.
- We don't expect to achieve this for FY2025 in light of results through the first half of this year and the very strong EBITDA and cash flow we delivered in the FY2024 comparison period.
- The outlook commentary above does not consider potential changes to trade laws or tariffs that may be implemented by the new U.S. administration, if any.
Revenue & Expenses
Visualization of income flow from segment revenue to net income