Cimpress reports second-quarter revenue down 2%, will expand in United States

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VistaPrint parent company Cimpress reported second-quarter revenue increased 2% year-over-year (YoY) on both a reported and organic constant-currency basis, reaching $939 million. Operating income declined $26.7 million YoY to $80.9 million and adjusted EBITDA dropped $34.2 million YoY to $132.3 million.

Among the factors affecting performance were:

• A shortened holiday buying season and the non-recurrence of a prior year’s $12 million one-time benefit negatively impacted earnings.

• Unplanned headwinds, including:

• Canadian postal strike, reducing profits by $1.8 million.
• $2.9 million land duty tax in Australia related to the company’s 2019 redomiciliation to Ireland.
• Higher advertising and operating costs, impacting profitability.

• Lower-than-expected U.S. revenue in high-margin products like business cards and holiday cards, despite strong growth in complex product categories.

The company announced it will be expanding its U.S. presence by the fourth quarter:

“We are proud to announce today, based on that European experience, Pixartprinting will open for business in the U.S. in Q4 FY2025. Pixartprinting will leverage its modern, flexible technology stack (built on MCP) and its very strong production capabilities that it will bring to market via a new state-of-the art Upload & Print production facility in western Pennsylvania. This North American Upload & Print production facility is one of the drivers of our previously described expectation for increased capital expenditures in FY2025.

• “Pixartprinting’s U.S. expansion will also leverage cross-Cimpress fulfillment from BuildASign, National Pen and Vista North America to have a broader and deeper product line.

• Pixartprinting’s Pennsylvania facility will be another example of a focused production hub that fulfills not just for Pixartprinting, but also for Vista and other parts of Cimpress, providing access to new products.”

Segment Performance

Vista revenue grew 3%, but segment EBITDA declined 14% due to lower consumer products sales, a weaker North American market, and higher advertising costs. VRevenue was on plan in Europe, and on plan globally for focus categories like promotional products, apparel, signage, and packaging and labels that showed continued strength with year-over-year bookings growth rates that ranged from high-single-digit to high teens. This strength was offset by year-over-year declines in bookings from the seasonally important consumer products (-3%) and business cards and stationery (-4%) driven by the North American market. The Canadian postal strike had a $3 million impact to revenue in Q2, most notably in the consumer category.

PrintBrothers & The Print Group saw revenue growth of 5% and 7%, respectively, but combined EBITDA declined $4.3 million. The two segment grew Q2 revenue year over year by 5% and 7%, respectively (6% combined) and on an organic constant-currency basis by 6% and 7%, respectively (7% combined). Order growth and increased fulfillment for other Cimpress businesses drove revenue strength across the businesses. Lower per-order quantities partially offset those strengths. We continue to see the market shift to smaller orders as being a positive for us overall because we excel at serving very large numbers of customers for small individual orders whereas traditional printers struggle to compete for such orders

National Pen revenue grew 1%, with a $2.1 million EBITDA decline due to higher inbound freight costs.

All Other Businesses revenue grew 1%, with a $3.7 million EBITDA decline due to temporary production inefficiencies.

Strategic Actions & Outlook

•Implementing cost reductions and pricing optimizations to improve profitability.

•Expansion into higher-growth product categories (e.g., packaging, promotional products, signage).

•Increasing cross-Cimpress fulfillment to leverage production efficiencies.

•Bringing Upload & Print business to the U.S. via a new Pixartprinting production facility in Pennsylvania.

• Revised FY2025 expectations:

• Revenue: At least 3% YoY growth.

•Adjusted EBITDA: At least $440 million (a decline of no more than 6%).

• Adjusted free cash flow: At least $157 million.

Despite short-term financial setbacks, Cimpress remains optimistic about multi-year earnings growth through operational efficiencies, AI-driven process improvements, and strategic expansion in high-growth product categories.