Cimpress Q4 Earnings Call Highlights

Key Points

• Cimpress delivered fiscal 2026 revenue of $3.74 billion, up 10% reported and 4% organically, while adjusted EBITDA rose 6% to $458.5 million. Fourth-quarter results were pressured by startup costs, duty-drawback and inventory charges, though tariff refunds provided a partial offset.
• Management forecast fiscal 2027 revenue growth of at least 7%, adjusted EBITDA of at least $520 million, and adjusted free cash flow of approximately $200 million. Recent acquisitions, organic growth and cost efficiencies are expected to drive the improvement.
• Cimpress raised its fiscal 2028 adjusted EBITDA target to at least $615 million and expects stronger cash generation and lower leverage. Its Canva partnership and Saxoprint acquisition expand customer reach, product distribution and manufacturing capacity, although the Canva deal’s financial impact remains undisclosed.

Cimpress NASDAQ: CMPR reported fiscal 2026 revenue of $3.74 billion, up 10% on a reported basis and 4% on an organic constant-currency basis, as the company continued investments in higher-value customers, elevated product categories, manufacturing and supply-chain capabilities, and design tools.

Adjusted EBITDA for the full year rose 6% to $458.5 million. Fourth-quarter revenue increased 9% on a reported basis and 3% on an organic constant-currency basis, while adjusted EBITDA totaled $120.4 million. The company also raised its fiscal 2028 adjusted EBITDA target to at least $615 million, from a prior target of at least $600 million.

Fourth-Quarter Results Included Several Non-Core Costs

Sean Quinn, Cimpress’ executive vice president and chief financial officer, said fourth-quarter profitability was affected by several items outside core operations. These included $7.1 million in higher startup costs tied to the company’s North American manufacturing-network buildout, a $4.7 million write-off of Canadian duty-drawback receivables that Cimpress is contesting, and $1.8 million in inventory write-downs.

Those costs were partially offset by $6.9 million in IEEPA tariff refunds during the quarter. Quinn said the company also experienced a roughly $10 million negative impact from the duty drawback issue, inventory write-downs and adjustments to variable long-term incentives that emerged late in the quarter. Less favorable currency movements and transaction costs related to the Saxoprint acquisition added about $2 million of combined impact, he said.

Adjusted free cash flow was $70.5 million in the fourth quarter and $122.4 million for fiscal 2026. Quinn attributed the annual cash flow level in part to higher manufacturing capital expenditures intended to reduce unit costs and expand capacity for higher-end products. Net working capital represented an $11 million use of cash for the year, compared with an expectation for a small inflow, which Quinn characterized as a timing issue rather than a structural change.

The company ended the year with net leverage of 2.9 times trailing-12-month EBITDA under its credit agreement, down from 3.1 times at the end of fiscal 2025. Cimpress had $249 million in cash and cash equivalents, in addition to a $250 million revolving credit facility. During the quarter, it completed a new $1.1 billion term loan due in 2033, replacing a prior term loan due in 2028.

Fiscal 2027 Outlook Calls for Higher Profit and Cash Generation

For fiscal 2027, Cimpress forecast reported revenue growth of at least 7%, including organic constant-currency growth of at least 3%. The company expects net income of at least $125 million, adjusted EBITDA of at least $520 million, operating cash flow of approximately $370 million and adjusted free cash flow of approximately $200 million.

Quinn said recent tuck-in acquisitions are expected to contribute $18 million to $21 million of year-over-year adjusted EBITDA growth in fiscal 2027, with $165 million to $175 million of associated revenue. Currency is expected to add another $5 million to $10 million to profitability based on current exchange rates and contracted hedges.

The remaining expected adjusted EBITDA growth of $31 million to $39 million is expected to come from organic growth and cost efficiencies, including structural cost-of-goods-sold reductions from Cross-Cimpress Fulfillment, focused production hubs, manufacturing investments and operating-expense savings.

Capital expenditures and capitalized software are expected to remain at levels similar to fiscal 2026 in fiscal 2027. Quinn said maintenance capital expenditures should remain around 1.5% of revenue over time, while overall spending is expected to moderate in fiscal 2028 as recent facility buildouts are completed. He also said capitalized software is expected to be roughly flat in fiscal 2027, with artificial intelligence potentially creating future efficiency opportunities in software development.

Canva Partnership and Saxoprint Acquisition

Founder, Chairman and Chief Executive Officer Robert Keane highlighted Cimpress’ new strategic partnership with Canva, which has launched an initial lineup of Vistaprint-branded products in the U.S. and Canada. Cimpress expects to significantly expand the product range and enter more than 25 additional countries by the end of September.

Keane described the agreement as a deep technical integration that enables customers to move from a design prompt to a print-ready Vistaprint product without leaving Canva. He said Canva AI will connect directly to Cimpress systems. However, he declined to provide specific economic details or quantify the partnership’s expected contribution to fiscal 2027 or fiscal 2028 results, citing confidentiality provisions and the early stage of the arrangement.

“We do gain a major channel to reach customers that we haven’t had before,” Keane said, adding that Cimpress believes the opportunity can be economically attractive.

The company also closed its acquisition of Saxoprint, which Keane said will provide a production hub supporting its Cross-Cimpress Fulfillment strategy. He said the acquisition will strengthen the PrintBrothers business in the near term and could provide broader benefits across Cimpress’ European operations over time.

Raised 2028 Targets and Long-Term Strategy

Cimpress maintained its fiscal 2028 organic constant-currency revenue growth expectation of 4% to 6%, while raising its adjusted EBITDA target to at least $615 million. It now expects net income of at least $192 million and adjusted free cash flow conversion of about 45%, implying roughly $275 million in adjusted free cash flow on the higher EBITDA base.

Quinn said the increase in the 2028 target primarily reflects a higher anticipated contribution from acquisitions completed in recent quarters. The company expects net leverage to decline to about 2.5 times by the end of fiscal 2027 and to fall meaningfully below 2.0 times by the end of fiscal 2028, subject to capital allocation decisions such as share repurchases.

Keane said the company remains focused on customized physical marketing products and branded merchandise, rather than pursuing a major strategic shift. He cited higher-value customers, expanded product offerings, manufacturing efficiency and design enablement as the core elements of Cimpress’ strategy.

He also said Cimpress sees a long runway in a customized-printing and branded-merchandise market it estimates at roughly $100 billion. While certain legacy print products are declining gradually, Keane said categories such as promotional products, logo apparel and packaging are growing around the rate of gross domestic product and provide opportunities for the company to gain customer wallet share and market share.

About Cimpress (NASDAQ:CMPR)

Cimpress NV is a global leader in mass customization and web-to-print services, offering businesses and consumers an online platform to design, order and personalize printed marketing materials and promotional products. As the parent company of Vistaprint and a portfolio of regional print service providers, Cimpress leverages proprietary technology to connect millions of small- and medium-sized customers with a network of manufacturing facilities around the world. Its product range spans business cards, brochures, signage, labels, apparel, packaging and a variety of bespoke merchandise.

The company traces its roots to Vistaprint, founded in 1995 by Robert W.

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