Quad Reports First Quarter 2025 Results

Quad/Graphics, Inc. reported results for the first quarter ended March 31, 2025.

Net sales were $629 million in the first quarter of 2025, a decrease of 4% compared to the same period in 2024. Excluding the divestiture of the company’s European operations, net sales declined 2% on an organic basis. The decline in net sales was primarily due to lower paper, logistics and agency solutions sales, including the loss of a large grocery client.

• Recognized net earnings of $6 million or $0.11 diluted earnings per share in the first quarter of 2025, compared to a net loss of $28 million or $0.60 diluted loss per share in 2024.
• Achieved non-GAAP adjusted EBITDA of $46 million in the first quarter of 2025, compared to $51 million in 2024.
• Continued to innovate solutions for clients to maximize postal savings and increase consumer response rates, including the April 1, 2025, acquisition of the co-mailing assets of Enru, a third-party co-mail and logistics solutions provider.
• Expanded footprint of Quad’s In-Store Connect retail media network with two new regional grocery partners.
• Completed the sale of its European operations for a total potential value of €41 million (approximately $42 million) to Capmont.
• Repurchased 1.2 million shares of Quad Class A common stock in 2025, bringing total repurchases to 7.2 million shares since commencing buybacks in 2022, representing approximately 13% of Quad’s March 31, 2022, outstanding shares.
• Declared quarterly dividend of $0.075 per share.
• Reaffirms full-year 2025 financial guidance.

“Our first quarter results were in line with our expectations, and we remain on track to achieve our 2025 guidance. We continue to focus on growing our offerings, including strategic investments in innovative solutions and superior talent, while managing for economic uncertainties,” Joel Quadracci, chairman, president and CEO of Quad, said.

“Looking ahead, we remain confident in our vision and the Quad brand, and we will continue to leverage our integrated marketing platform to drive diversified growth; optimize print and marketing efficiencies, including expanding postage savings opportunities, such as the recent acquisition of Enru’s co-mailing assets; and create value for our clients, employees and shareholders,” Quadracci added.

“The current macroeconomic environment is marked by increased uncertainty due to global tariffs,” said Quad CFO Tony Staniak. “We are closely monitoring the potential impacts of tariffs and recessionary pressures on our clients, which could affect advertising and marketing spend, including print volumes. As we have demonstrated during previous times of macroeconomic disruption, we will remain nimble and adapt to the changing demand environment while maintaining our disciplined approach to how we manage all aspects of our business.

“We are reaffirming our 2025 guidance and are focused on driving long-term revenue growth by continuing to make strategic investments in innovative offerings,” Staniak added. “In addition, we remain committed to returning capital to shareholders through our quarterly dividend of $0.075 per share and share repurchases. Year-to-date, we repurchased 1.2 million shares for $6.7 million, and we expect to continue to be opportunistic in terms of future share repurchases.”

Net earnings were $6 million in the first quarter of 2025 compared to net loss of $28 million in the first quarter of 2024. The improvement was primarily due to lower restructuring, impairment and transaction-related charges, lower depreciation and amortization, lower interest expense, benefits from increased manufacturing productivity and savings from cost reduction initiatives, partially offset by the impact from lower net sales, increased investments in innovative offerings to drive future revenue growth, and the divestiture of the company’s European operations.

Adjusted EBITDA was $46 million in the first quarter of 2025 as compared to $51 million in the same period in 2024. The decrease was primarily due to the impact of lower sales, increased investments in innovative offerings to drive future revenue growth, and the divestiture of the company’s European operations, partially offset by benefits from improved manufacturing productivity and savings from cost reduction initiatives.

Free cash flow was negative $100 million in the first quarter of 2025 compared to negative $70 million in the first quarter of 2024. The decline in free cash flow was primarily due to the timing of working capital, including accelerated purchases of paper in advance of potential tariffs, partially offset by a $7 million decrease in capital expenditures. As a reminder, the company historically generates most of its free cash flow in the fourth quarter of the year.

Net debt was $463 million at March 31, 2025, as compared to $350 million at Dec. 31, 2024 and $544 million at March 31, 2024. Compared to Dec. 31, 2024, Net debt increased primarily due to the negative $100 million free cash flow in the first quarter of 2025.