It has been about a month since the last earnings report for Cimpress (CMPR). Shares have lost about 7.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Cimpress due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important catalysts.
Cimpress Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Cimpress reported first-quarter fiscal 2026 (ended Sept. 30, 2025) adjusted earnings of 30 cents per share, beating the Zacks Consensus Estimate of earnings of 29 cents. The company had reported an adjusted loss of 50 cents per share in the year-ago quarter.
Top-Line Details
Total revenues were $863.3 million, reflecting an increase of 7.2% from the year-ago quarter. Organic constant-currency revenue growth was 4% year over year, driven by growth in each of its businesses. The top line missed the Zack Consensus Estimate of $993.4 million.
Segmental Information
The National Pen segment generated revenues of $103.2 million, up from $93.6 million in the year-ago quarter.
Vista — the largest revenue-generating segment — reported aggregate revenues of $454.9 million compared with $429.5 million in the year-ago quarter.
The Upload and Print segment’s revenues increased to $281.2 million from $244.5 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group.
PrintBrothers’ revenues increased to $184.7 million from $152.6 million in the year-ago period. The Print Group generated revenues of $96.7 million, up from $79.5 million reported in the year-ago quarter.
Revenues from All Other Businesses were $61.7 million compared with $51.2 million reported a year ago.
Margin Details
Cimpress' cost of revenues was $460.5 million, up 8.9% on a year-over-year basis. Marketing and selling expenses totaled $210.4 million, up 3.2% year over year. General & administrative expenses were $54 million, up from $51.9 million reported in the year-ago fiscal quarter.
Gross profit increased 5.4% year over year to $402.8 million. The margin was 48%, down 100 basis points year over year. Net interest expenses fell 10.7% year over year to $28.1 million. Adjusted EBITDA increased 12.5% year over year to $98.7 million.
Balance Sheet and Cash Flow
As of Sept. 30, 2025, Cimpress had $200.5 million of cash and cash equivalents compared with $234 million at the end of the fourth quarter of fiscal 2025.
Exiting the first quarter of fiscal 2026, its long-term debt was $1.57 billion, down 0.1% from the fourth quarter of fiscal 2025-end figure.
During the fiscal first quarter, net cash provided by operating activities was $25.1 million compared with $4.4 million in the year-ago quarter. It repurchased shares worth $2.7 million during the quarter.
Outlook
For fiscal 2026 (ending June 30, 2026), Cimpress expects revenues to increase in the range of 5-6% on a reported basis and 2-3% on an organic constant-currency basis. Net income is expected to be at least $72 million. Adjusted EBITDA is projected to be at least $450 million.
The company anticipates generating cash from operating activities of about $310 million and free cash flow (adjusted) of $140 million.
For fiscal 2026, Cimpress expects to reduce net leverage. The company hopes to reduce net leverage to 2.5x trailing-12-month EBITDA over time.
How Have Estimates Been Moving Since Then?
Since the earnings release, investors have witnessed a upward trend in estimates revision.
VGM Scores
At this time, Cimpress has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cimpress has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
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Cimpress plc (CMPR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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