Cimpress Beats Q4 Earnings Estimates On Revenue Growth, Issues Fy2027 View

Cimpress plc CMPR reported fourth-quarter fiscal 2026 (ended June 30, 2026) earnings of 97 cents per share (on a reported basis) against a loss of $1.02 in the year-ago quarter. The company’s adjusted earnings came in at $1.08 per share, which beat the Zacks Consensus Estimate of $1.00 by 8%.

CMPR's Top Line Reflects Broad-Based Growth

Total revenues increased 8.7% year over year to $945 million and topped the Zacks Consensus Estimate of $928 million by 1.8%. Organic constant-currency revenues grew 3%, driven by broad-based growth across businesses, while management highlighted continued momentum in high-value customers and elevated product categories. Favorable currency movements and recent tuck-in acquisitions provided an additional lift to reported growth.

Segmental Details

VistaPrint, the company's largest business, generated revenues of $486.4 million compared with $466.5 million in the year-ago quarter. Combined Upload & Print revenues increased to $341.8 million from $284.5 million a year ago, reflecting continued customer demand and acquisition contributions.

PrintBrothers revenues climbed to $215.5 million from $178.3 million in the prior-year quarter, while The Print Group reported revenues of $126.5 million compared with $106.4 million a year ago. National Pen revenues improved to $95.7 million from $93.8 million, and All Other Businesses revenues increased to $68.7 million from $59 million.

Cimpress Navigates Margin Pressures

Cost of revenues increased 12.8% year over year to $515 million. Gross profit grew 4.1% to $430 million despite higher manufacturing start-up costs associated with the North American production network.

Gross margin contracted 100 basis points year over year to 46%. During the quarter, profitability was affected by $7.9 million of higher manufacturing start-up costs, a $4.7 million write-off of Canadian duty draw-back receivables and inventory write-downs, partly offset by $6.9 million of tariff refunds.

Operating income slipped 1% year over year to $64.8 million. Adjusted EBITDA declined 1.7% to $120.4 million, while the adjusted EBITDA margin contracted to 12.7% from 14.1% a year ago.

CMPR Delivers Solid Segment Performance

VistaPrint's segment EBITDA increased 1% year over year to $106.8 million as strong growth in marketing materials, apparel, gifts, promotional products, packaging and labels offset continued investments in manufacturing capacity.

The combined Upload & Print businesses continued to deliver robust profitability. PrintBrothers segment EBITDA increased to $24.5 million from $22.2 million, while The Print Group's EBITDA improved to $24 million from $20 million, supported by revenue growth, operating efficiencies and cross-Cimpress fulfillment initiatives.

National Pen segment EBITDA increased to $10.7 million from $9.2 million, aided by tariff refunds. Meanwhile, EBITDA at All Other Businesses declined to $3.5 million from $6.5 million.

Cimpress Maintains Healthy Liquidity

As of June 30, 2026, Cimpress held cash and cash equivalents of $248.9 million compared with $234 million at the end of fiscal 2025.

During fiscal 2026, net cash provided by operating activities totaled $283.7 million compared with $298.1 million in fiscal 2025. Adjusted free cash flow declined to $122.4 million from $148.0 million primarily due to higher manufacturing-related capital expenditures.

The company repurchased 702,820 shares for $50.1 million during fiscal 2026, representing roughly 3% of shares outstanding at the beginning of the fiscal year. Net leverage stood at 2.9 times trailing 12-month EBITDA at quarter-end.

Cimpress Issues FY2027 Guidance

For fiscal 2027 (ending June 30, 2027), Cimpress expects reported revenue growth of at least 7%, including at least 3% organic constant-currency revenue growth.

The company projects net income of a minimum of $125 million and adjusted EBITDA of at least $520 million. It also expects operating cash flow of approximately $370 million and adjusted free cash flow of roughly $200 million.

Management also raised its fiscal 2028 (ending June 30, 2028) profitability target and now expects adjusted EBITDA of at least $615 million, up from its previous target, while reiterating expectations for 4-6% annual organic constant-currency revenue growth and approximately 45% adjusted free cash flow conversion.

Zacks Rank and Other Stocks to Consider

Cimpress currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the same space are discussed below:

Applied Industrial Technologies AIT carries a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Applied Industrial’s earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.0%.  In the past 60 days, the Zacks Consensus Estimate for Applied Industrial’s fiscal 2026 bottom line has inched up 0.1%.

RBC Bearings Incorporated RBC presently carries a Zacks Rank of 2. RBC Bearings’ earnings surpassed the consensus estimate in each of the trailing four quarters. The average earnings surprise was 6.2%. In the past 60 days, the Zacks Consensus Estimate for RBC’s fiscal 2027 earnings has increased 0.8%.

Generac Holdings GNRC currently carries a Zacks Rank of 2. Generac Holdings’ earnings topped the consensus estimate twice and missed on the other two occasions in the trailing four quarters. The average earnings surprise was 7.4%. In the past 60 days, the Zacks Consensus Estimate for GNRC’s 2026 earnings has been stable.

Beyond Nvidia: AI's Second Wave Is Here

The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.

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

Zacks Investment Research