Cimpress (CMPR) Q2 2026 earnings summary

Executive summary

• Achieved record Q2 FY2026 revenue of $1,042.2 million, up 11% year-over-year, with 4% organic constant-currency growth; all segments contributed to growth.

• Adjusted EBITDA grew by $6.6 million to $138.8 million, while net income declined to $49.5 million, mainly due to lower unrealized gains on currency hedges.

• Raised full-year FY2026 guidance for revenue, adjusted EBITDA, and free cash flow, and reaffirmed FY2028 targets of at least $600 million EBITDA, $200 million net income, and net leverage below 2.0x.

• Strategic focus on elevated products, manufacturing efficiencies, and technology-driven cost reductions is driving higher customer lifetime value and operational leverage.

• Cross-segment technology and fulfillment initiatives are accelerating new product introductions and cost efficiencies.

Financial highlights

• Q2 FY2026 revenue grew 11% to $1,042.2 million; gross profit increased 8% to $487.7 million.

• Adjusted EBITDA for Q2 was $138.8 million, up 5% year-over-year; adjusted free cash flow was $124 million, down year-over-year due to lower net working capital inflows and higher CapEx.

• Net leverage at quarter-end was just below 3.0x trailing twelve months EBITDA, down sequentially despite share repurchases.

• Gross margin declined 110 bps year-over-year, mainly due to tariff impacts at National Pen.

• Cash and cash equivalents stood at $258 million, with a $250 million undrawn credit facility.

Outlook and guidance

• FY2026 guidance raised: revenue growth 7%-8% reported, 3%-4% organic constant-currency, net income at least $79 million, adjusted EBITDA at least $460 million, and adjusted free cash flow about $145 million.

• FY2028 targets reaffirmed: at least $200 million net income, $600 million adjusted EBITDA, and ~45% EBITDA-to-free-cash-flow conversion.

• Net leverage expected to decrease slightly by end of FY2026 and to exit FY2028 below 2.0x.

• Management expects continued growth in revenue and adjusted EBITDA, supported by investments in technology and production capacity.

• Guidance incorporates ongoing macroeconomic and trade risks, including tariffs and supply chain volatility.