Cimpress plc, a mass customization printing and related products company, recently released its 10-Q report for the period ending December 31, 2024. The company operates through five segments: Vista, PrintBrothers, The Print Group, National Pen, and All Other Businesses. Cimpress offers a wide range of products and services, including printed and digital marketing materials, business signage, promotional products, logo apparel, packaging, books, and magazines. The company's strategic focus is on print mass customization, aiming to efficiently produce goods and services to meet individual customer needs.
In the Management’s Discussion and Analysis of Financial Condition and Results of Operations, Cimpress highlighted forward-looking statements that involved risks and uncertainties, including factors such as supply chain constraints, geopolitical events, changes in governmental policies, and general economic conditions. The company emphasized its focus on mass customization as a core element of its business model and reported on its five reportable segments: Vista, PrintBrothers, The Print Group, National Pen, and All Other Businesses.
Financially, for the second quarter of fiscal year 2025, Cimpress reported a 2% increase in revenue to $939.2 million, with organic constant-currency revenue growth also at 2%. Operating income decreased by $26.7 million to $80.9 million, and adjusted EBITDA decreased by $34.2 million to $132.3 million. Diluted net income per share attributable to Cimpress plc increased to $2.36 from $2.14 in the prior year period.
For the year-to-date fiscal year 2025, revenue increased by 4% to $1,744.1 million, with organic constant-currency revenue growth at 4%. Operating income decreased by $21.5 million to $120.3 million, and adjusted EBITDA decreased by $35.1 million to $220.0 million. However, diluted net income per share attributable to Cimpress plc decreased to $1.86 from $2.31 in the prior year period.
The increase in reported revenue was primarily driven by external revenue growth in the Vista, PrintBrothers, and The Print Group segments, with strong revenue performance in more complex products in the Vista business. However, revenue growth was dampened by lower revenue in the U.S. for business cards and lower revenue during the seasonally important second quarter for consumer-focused products, such as holiday cards.
Cimpress also provided a breakdown of its revenue growth by reportable segment for the three and six months ended December 31, 2024, indicating growth in various segments such as Vista, PrintBrothers, The Print Group, National Pen, and All Other Businesses.
The company also discussed its cost of revenue, which includes materials used, payroll expenses, shipping costs, and other related expenses. For the three and six months ended December 31, 2024, the cost of revenue increased by $25.8 million and $49.8 million year over year, driven by higher production and shipping costs due to volume growth and increases in third-party fulfillment costs.
Following these announcements, the company's shares moved -5.6%, and are now trading at a price of $66.24. For the full picture, make sure to review Cimpress's 10-Q report.
