Why Is Cimpress (CMPR) Down 6.8% Since Last Earnings Report?

A month has gone by since the last earnings report for Cimpress (CMPR). Shares have lost about 6.8% 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 Q2 Earnings Beat Estimates, Revenues Increase Y/Y

Cimpress reported second-quarter fiscal 2026 (ended Dec. 31, 2025) adjusted earnings of $1.95 per share, beating the Zacks Consensus Estimate of earnings of $1.61. The company had reported adjusted earnings of $2.36 per share in the year-ago quarter.

Top-Line Details

Total revenues were $1.04 billion, reflecting an increase of 11% 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 beat the Zack Consensus Estimate of $993.4 million.

Segmental Information

The National Pen segment generated revenues of $150.9 million, up from $131.5 million in the year-ago quarter. Our estimate was $141.0 million.

Vista — the largest revenue-generating segment — reported aggregate revenues of $532.8 million compared with $497.7 million in the year-ago quarter. Our estimate was $537.6 million.

The Upload and Print segment’s revenues increased to $334.8 million from $273.3 million in the year-ago quarter. The segment consists of two subgroups, namely PrintBrothers and The Print Group.

PrintBrothers’ revenues increased to $219.9 million from $174.5 million in the year-ago period. Our estimate was $183.2 million. The Print Group generated revenues of $115.1 million, up from $99 million reported in the year-ago quarter. Our estimate was $101.2 million.

Revenues from All Other Businesses were $67.2 million compared with $60.4 million reported a year ago. Our estimate was $63.3 million.

Margin Details

Cimpress' cost of revenues was $554.5 million, up 13.3% on a year-over-year basis. Marketing and selling expenses totaled $246.2 million, up 10% year over year. General & administrative expenses were $60.2 million, up from $56.9 million reported in the year-ago fiscal quarter.

Gross profit increased 8.4% year over year to $487.7 million. The margin was 46.8%, down 110 basis points year over year. Net interest expenses fell 7.4% year over year to $27.0 million. Adjusted EBITDA increased 5% year over year to $138.8 million.

Balance Sheet and Cash Flow

As of Dec. 31, 2025, Cimpress had $258.0 million of cash and cash equivalents compared with $234 million at the end of the fourth quarter of fiscal 2025.

Exiting the second quarter of fiscal 2026, its long-term debt was $1.58 billion, down 0.1% from the fourth quarter of fiscal 2025-end figure.

During the first six months of fiscal 2026, net cash provided by operating activities was $189.7 million compared with $180.9 million in the year-ago quarter. It repurchased shares worth $28.2 million during the quarter.

Outlook

For fiscal 2026 (ending June 30, 2026), Cimpress expects revenues to increase in the range of 7-8% on a reported basis compared with 5-6% expected earlier and 3-4% on an organic constant-currency basis compared with 2-3% expected earlier. Net income is expected to be at least $79 million. Adjusted EBITDA is projected to be at least $460 million.

The company anticipates generating cash from operating activities of about $313 million and free cash flow (adjusted) of $145 million.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a downward trend in estimates review.

The consensus estimate has shifted -52.34% due to these changes.

VGM Scores

Currently, Cimpress has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

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 downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Cimpress has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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This article originally published on Zacks Investment Research (zacks.com).

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