Latest news with #QuadGraphics
Globe and Mail
31-07-2025
- Business
- Globe and Mail
Quad (QUAD) Q2 Revenue Falls 10%
Key Points Revenue of $571.9 million exceeded estimates by $16.95 million but Revenue fell 10% from Q2 2024. Adjusted diluted EPS was $0.14 in Q2 2025, matching analyst expectations and up from $0.12 last year. 2025 guidance was reaffirmed, with management maintaining both sales and profitability targets. These 10 stocks could mint the next wave of millionaires › Quad/Graphics (NYSE:QUAD), a U.S.-based marketing services company known for its roots in commercial printing, released its second quarter 2025 results on July 29, 2025. The core news was that Adjusted diluted earnings per share (non-GAAP) equaled expectations at $0.14, while GAAP revenue exceeded consensus at $571.9 million, beating estimates by $16.95 million. Despite topping sales forecasts, revenue fell sharply from the prior year due in part to the sale of its European operations in February 2025 and softer paper and logistics business. Overall, the company's quarter showed profits and margins holding up better than its declining top line, with a small net loss improving from a larger one last year, and a reaffirmed outlook for FY2025. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change Adjusted Diluted EPS (Non-GAAP) $0.14 $0.14 $0.12 16.7% Revenue $571.9 million $555.05 million $634.2 million (9.8%) Adjusted EBITDA (Non-GAAP) $43.3 million $51.8 million (16.4%) Adjusted EBITDA Margin (Non-GAAP) 7.6% 8.2% (0.6 pp) Net Income $(0.1) million $(2.8) million n/m Source: Analyst estimates provided by FactSet. Management expectations based on management's guidance, as provided in Q1 2025 earnings report. Company Overview and Primary Focus Quad/Graphics provides a broad set of marketing services, with its legacy in printing but increasing focus on integrated, data-driven solutions for brands. It positions itself as a marketing experience (MX) company, offering creative, media, production, and analytics capabilities all under one roof. The company's key areas of focus include transforming traditional print services into comprehensive marketing solutions, building up proprietary data and analytics, and driving efficiencies through operational excellence. It uses its MX Solutions Suite to help brands connect with audiences, and highlights innovation in technology, such as personalized retail media networks and audience analytics. Maintaining long-standing client relationships—its top 10 customers represent about 20% of sales—is vital, as is managing cost and production efficiency through methods like lean manufacturing. Quarterly Highlights and Financial Results During the quarter, Quad/Graphics delivered adjusted diluted EPS (non-GAAP) of $0.14, matching estimates, while revenue surpassed expectations by more than $16 million. However, top-line sales dropped almost 10% from the prior year period, with the decline moderated to 4% after excluding revenues from divested European operations. The company attributes this to lower paper and logistics sales and a reduction in paper and logistics volumes. The company's profitability remained notable. Despite lower sales, sliding just below breakeven at a $(0.1) million GAAP net loss for Q2 2025 versus a $(2.8) million loss in the same period last year. Adjusted EBITDA (non-GAAP)—a measure of operating profit excluding some one-time or non-cash items—fell to $43.3 million, and the margin compressed to 7.6%. Management attributed this to lower sales combined with greater investment in innovation, but noted that reduced selling, general, and administrative costs, alongside improved manufacturing productivity, were partial offsets. Cash flow remained negative through the first half of the year, a pattern the company describes as seasonal. Free cash flow for the year to date was $(65.9) million, better than the prior year period but still not positive. Net debt rose to $448 million, up from the end of 2024, due to temporary cash outflows, capital returns, and the purchase of additional operational assets. Capital returns continued, with the company repurchasing 1.4 million shares so far in 2025, along with the maintenance of its quarterly dividend at $0.075 per share. Total shareholder returns reached $15 million year to date in 2025. This ongoing capital allocation comes despite a cash conversion cycle that is heavily weighted toward the year-end seasonal peak. Business Transformation, Innovation, and Segment Developments Quad/Graphics remains committed to a transformation strategy aimed at repositioning itself as a marketing partner rather than a pure-play printer. This quarter saw the launch of Audience Builder 2.0, an artificial intelligence-powered data tool that enables precise audience targeting using the company's large, proprietary household-level dataset, which covered 92% of U.S. households as of July 2025. Management describes this rollout as a step forward in activating the company's data for smarter marketing outcomes and personalization. The company is also expanding its suite of technology-driven marketing solutions. The In-Store Connect platform, a retail media network that places digital screens and content in brick-and-mortar grocery stores, expanded to more than 45 locations as of Q1 2025, with recent partnerships with regional grocers, such as Vallarta Supermarkets and the Save Mart Companies, securing further market penetration into targeted demographics. In agency solutions, however, there was mention of client loss from the prior year weighing on segment results. Meanwhile, the acquisition of Enru's co-mailing assets is designed to enhance the company's postal optimization services. These services use process improvements and data to reduce postage costs for mailers, and are now bolstered by expanded co-mail capabilities. While the direct dollar impact of this acquisition is small, the company describes it as part of its ongoing innovation pipeline, supporting efficiency both internally and across the industry. By segment, United States print and related services posted net sales of $524.5 million and operating income of $22.8 million, both lower than the prior year. This reflected tighter cost controls. The International segment, now much smaller following the sale of European operations earlier in 2025, brought in $47.4 million in sales (GAAP). Looking Ahead: Guidance and Risks Management reaffirmed its financial guidance for 2025. Leadership is maintaining its target for adjusted annual net sales to decline between 2% and 6% for 2025 (excluding Europe), and expects adjusted EBITDA to fall in a range of $180 million to $220 million for 2025. Free cash flow is projected to turn positive by year end, estimated at $40 million to $60 million for 2025. Capital expenditures for 2025 should land between $65 million and $75 million. The company expects its year-end debt leverage ratio—net debt to Adjusted EBITDA—to improve to approximately 1.5x for 2025. Quad/Graphics signaled that, despite ongoing market uncertainty related to tariffs, inflation, and a July postal rate hike, it is not revising its 2025 financial guidance. Management continues to highlight cost discipline, innovation efforts, and the ramp-up of data-driven offerings as key points of confidence but admits that a strong cash flow outcome hinges on the seasonally robust fourth quarter. Investors are advised to watch for the revenue lift or scale from newly-launched MX and analytics solutions, as well as the sustainability of capital returns given continued negative cash flows early in the year. The quarterly dividend was maintained at $0.075 per share. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
Yahoo
18-07-2025
- Business
- Yahoo
Vallarta to launch in-store retail media capabilities
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter. Dive Brief: Vallarta Supermarkets announced a retail media integration with Quad/Graphics' In-Store Media Connect system, according to a Tuesday announcement. The partnership between the Latino-owned grocer and the third-party retail media provider will kick off this summer with the installation of in-store digital signage at 15 Vallarta locations. Vallarta's tie-up with Quad comes as the California-based grocer continues to expand its reach, whether through its digital presence or e-commerce offerings. Dive Insight: Though the buzz of retail media has settled in 2025, Vallarta's latest advancement in the tech space underscores that keeping up with digital enhancements remains a priority for grocers. With Quad, Vallarta will add kiosks, shelf screens, freezer-aisle screens and vertical banners to its stores, with messaging on the screens in both English and Spanish, according to the announcement. 'In-Store Connect gives us an effective tool to communicate our unique products and potential savings to shoppers, while opening new opportunities for brands to engage with the communities we serve in meaningful, measurable ways,' said Steve Netherton, Vallarta's chief information officer and vice president of continuous improvement. Jay Sharrock, the grocer's chief merchandising and marketing officer, noted that the digital screens will bolster and complement Vallarta's specialty departments. For over a year now, Vallarta has been looking for ways to connect with consumers in modern, digitally centered ways. In June 2024, for example, the California grocer linked with fintech company Sezzle to offer a buy now, pay later program for its shoppers. That same year, Vallarta joined DoorDash's marketplace and then, earlier this month, partnered with Uber Eats. Vallarta currently runs 60 grocery stores throughout California, including in Los Angeles, San Diego, Santa Barbara and Santa Cruz. Recommended Reading Vallarta Supermarkets buys into the buy now, pay later trend
Yahoo
16-04-2025
- Business
- Yahoo
Milwaukee's Pride Parade will have more security and has lost some sponsorships this year
Milwaukee's Pride Parade is taking extra precautions this year and hiring a security group for its June 8 event in Walker's Point. A parade organizer also confirmed that some sponsors are not returning this year. "With the climate being the way that it is right now, there is a heightened sense of anxiety, and we want to make sure that people feel safe and confident to come out," said Heidi Dalibor, chair of the Pride Parade board. "There's been an exceptional amount of hate against the trans community, there's gay marriage that is trying to be taken away from people again ... there's a lot of negative energy out there, and we want to make sure people can show up in a big way." She said the security team they hired has worked at Bastille Days and other large events around Milwaukee. She said the parade also will work with the Milwaukee Police Department, like they have in years past. The parade committee also will have an information tent and posters around the route with information on where people can go if they need to report an incident. "I don't want to create fear around extra security measures, but we want people to understand that it could feel different," she said, noting that harassment of LGBTQ+ people is not new, "but we want to make sure that we are doing something to make sure everyone can feel safe, even if it means spending more money." While security costs are going up, Dalibor said some bigger sponsors have dropped out. She would not say which sponsors were not planning to return, but Pride Parade recently updated its website with its 2025 sponsor list so far. Sponsors have until May 10 to sign up. Gold sponsors that were on last year's list but not yet on the 2025 list include Beer Capitol Distributing, Quad Graphics, CBS 58, Telemundo, 102.1 FM and Planned Parenthood. Wantable is a new gold sponsor this year, along with returning Kohl's and OnMilwaukee. Gold sponsors make a $2,000 donation to the parade. Silver sponsors, which give a $1,000 donation, that have not yet returned include First Business Bank, Northern Ground, Goodwill, GE Health Care, IKEA, Kohler, Summit Credit Union, Bank of America, Vivent Health, AIDS Walk Wisconsin, Teladoc Health, Milliman and Legal Aid Society of Milwaukee. Rockwell Automation is the only silver sponsor that has been announced so far. Dalibor said she believed sponsors dropping out was a combination of both the economy and the increased scrutiny of diversity, equity and inclusion efforts. "Everything is very volatile right now," she said. "This is not something that's new, but it's a little more contentious this year than in recent years." Dalibor said it was too early to know how the number of parade participants would compare to previous years. In 2024, the parade had a record number of more than 200 entrants. "It's more important that ever to show visibility and support," she said. "We're also looking for volunteers if people want to be a part of something positive and exciting." This article originally appeared on Milwaukee Journal Sentinel: Milwaukee's Pride Parade will have more security in 2025
