Yahoo Finance

• Net Sales: $629 million, a decrease of 2% compared to Q1 2024, excluding the divestiture of European operations.

• Adjusted EBITDA: $46 million, down from $51 million in Q1 2024; margin declined from 7.7% to 7.2%.

• Adjusted Diluted Earnings Per Share: $0.20, up from $0.10 in Q1 2024.

• Free Cash Flow: Negative $100 million, compared to negative $70 million in Q1 2024.

• Net Debt Reduction: Decreased by $81 million from March 31, 2024, to March 31, 2025.

• Dividend Increase: 50% increase from 2024.

• Share Repurchases: 1.2 million shares repurchased for $6.7 million year-to-date in 2025.

• Debt Capital Structure: Blended interest rate of 7.1%; total available liquidity of $209 million.

• 2025 Guidance: Organic net sales decline of 2% to 6%; adjusted EBITDA between $180 million and $220 million; free cash flow between $40 million and $60 million.

• Warning! GuruFocus has detected 2 Warning Signs with QUAD.

Release Date: April 30, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Quad/Graphics Inc (NYSE:QUAD) is on track to achieve its 2025 guidance, demonstrating strong alignment with its strategic goals.

• The company is expanding its marketing experience (MX) offerings, including innovative solutions like Household Fusion and At-Home Connect, which are gaining traction.

• Quad/Graphics Inc (NYSE:QUAD) has made strategic acquisitions, such as the co-mail assets of Enru, enhancing its postal optimization solutions and increasing co-mail volumes.

• The company is leveraging AI and data analytics through partnerships with Google Cloud to enhance marketing effectiveness and personalization at scale.

• Quad/Graphics Inc (NYSE:QUAD) has successfully reduced its net debt by $81 million from March 2024 to March 2025, reflecting strong financial management.

Negative Points

• Net sales decreased by 2% in the first quarter of 2025 compared to the same period in 2024, primarily due to lower paper, logistics, and agency solutions sales.

• Adjusted EBITDA declined from $51 million in Q1 2024 to $46 million in Q1 2025, with a decrease in adjusted EBITDA margin from 7.7% to 7.2%.

• Free cash flow was negative $100 million in Q1 2025, a decline from negative $70 million in Q1 2024, due to timing of working capital and proactive inventory purchases.

• The company faces potential impacts from tariffs and recessionary pressures, which could affect client advertising and marketing spend.

• Quad/Graphics Inc (NYSE:QUAD) anticipates lower adjusted EBITDA in the second quarter of 2025 compared to the first quarter, reflecting seasonal impacts and ongoing economic uncertainties.