Quad Graphics Inc【QUAD】株式ニュース

Quad Reports First Quarter 2026 ResultsApril 28, 2026 4:30 PM
PR Newswire (US)

Financial Results In-Line with Expectations and Reaffirms Full-Year 2026 Financial GuidanceSUSSEX, Wis., April 28, 2026 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a marketing experience company that solves complex marketing challenges for its clients, today reported results for the first quarter ended March 31, 2026.

Recent HighlightsRealized Net Sales of $581 million in the first quarter of 2026 compared to $629 million in the first quarter of 2025, representing a 7.7% decline in Net Sales or a 4.3% decline in Net Sales excluding the February 28, 2025, divestiture of the Company's European operations.Recognized Net Earnings of $6 million, or $0.13 Diluted Earnings Per Share, in the first quarter of 2026, compared to Net Earnings of $6 million, or $0.11 Diluted Earnings Per Share, in 2025.Reported Adjusted EBITDA of $45 million in the first quarter of 2026 compared to $46 million in 2025.Achieved $0.25 Adjusted Diluted Earnings Per Share in the first quarter of 2026, an increase of 25% from $0.20 per share in 2025.Recognized at the Gramercy Institute's Financial Service Strategy Awards, demonstrating impact of Quad's integrated direct marketing work.Repurchased 0.2 million shares of Quad Class A common stock in 2026, bringing total repurchases to 7.6 million shares since initiating the program in 2022, representing approximately 13.6% of shares outstanding as of March 31, 2022.Returned $7 million to shareholders through $6 million of regular cash dividends and $1 million of share repurchases.Declared quarterly dividend of $0.10 per share payable June 5, 2026.Reaffirms full-year 2026 financial guidance.Joel Quadracci, Chairman and Chief Executive Officer of Quad, said: "Our first quarter results were in-line with our expectations, and we remain on track to achieve our full-year 2026 guidance. We remain focused on achieving our long-term growth and margin objectives while maintaining disciplined cost management despite macroeconomic challenges, including continued postage rate increases and cost pressures in our supply chain stemming from the ongoing conflict in the Middle East."We are making strategic investments in innovative marketing solutions and high-caliber talent to expand our offering and strengthen client relationships. We are seeing strong momentum in Quad's audience strategy services, powered by our proprietary, household-based data stack. Our formalized Direct Marketing Agency combines audience services with pre-market testing and analysis to drive more effective mail prospecting. Similarly, our Rise media agency brings together data-driven intelligence with AI-powered insights to deliver customized omnichannel media strategies that help clients achieve measurable business outcomes."Operationally, we are providing clients with multiple optimization solutions, including advanced co-mailing capabilities, to generate significant savings that help reduce the impact of rising postage costs. We are further strengthening our cost structure by investing in automation and adopting AI-enabled tools, which are improving productivity, speed and agility across our platform. These efforts further differentiate Quad in a competitive marketplace."Added Tony Staniak, Chief Financial Officer and Treasurer of Quad: "We are reaffirming our 2026 full-year financial guidance with an improved sales decline rate and essentially flat Adjusted EBITDA and Free Cash Flow compared to 2025, representing a key step on our path to long-term growth. We are closely monitoring the current business climate which continues to present uncertainty, driven by factors including persistent inflationary pressures, evolving global trade dynamics, geopolitical tensions and cautious business spending. As we have demonstrated in prior periods of disruption, we remain agile and ready to adapt to shifting demand. While allocating capital to fuel long-term growth, we are also returning capital to shareholders through our quarterly dividend of $0.10 per share and we have repurchased $1 million of Quad shares year-to-date. We expect to remain opportunistic in terms of future share repurchases."First Quarter 2026 Financial ResultsNet Sales were $581 million in the first quarter of 2026, a decrease of 7.7% compared to the same period in 2025. Excluding the 3.4% impact of the divestiture of the Company's European operations, Net Sales declined 4.3%. The decline in Net Sales was primarily due to lower print volumes and lower agency solutions sales.Net Earnings were $6 million, or $0.13 Diluted Earnings Per Share, in the first quarter of 2026 compared to $6 million, or $0.11 Diluted Earnings Per Share, in the first quarter of 2025. The improvement was primarily due to lower selling, general and administrative expenses, lower interest expense, lower depreciation and amortization, and benefits from increased manufacturing productivity, partially offset by the impact from lower Net Sales, increased restructuring, impairment and transaction-related charges, net, and increased income tax expense. Diluted Earnings Per Share were also higher due to the impact of share repurchases and lower dilutive equity incentive instruments.Adjusted EBITDA was $45 million in the first quarter of 2026, compared to $46 million in the same period in 2025. The decrease was primarily due to the impact of lower Net Sales partially offset by lower selling, general and administrative expenses, and benefits from improved manufacturing productivity.Adjusted Diluted Earnings Per Share was $0.25 in the first quarter of 2026, as compared to $0.20 in the first quarter of 2025.Net Cash Used in Operating Activities was $94 million in the first quarter of 2026, compared to $89 million in the first quarter of 2025. Free Cash Flow was negative $107 million in the first quarter of 2026 compared to negative $100 million in the first quarter of 2025. The decline in Free Cash Flow was primarily due to the increase in Net Cash Used in Operating Activities mainly from higher inventories and a $2 million increase in capital expenditures. As a reminder, the Company historically generates most of its Free Cash Flow in the fourth quarter of the year.Net Debt was $427 million at March 31, 2026, as compared to $308 million at December 31, 2025, and $463 million at March 31, 2025. Compared to December 31, 2025, Net Debt increased primarily due to the negative $107 million Free Cash Flow in the first quarter of 2026.DividendQuad's next quarterly dividend of $0.10 per share will be payable on June 5, 2026, to shareholders of record as of May 21, 2026.2026 GuidanceThe Company's full-year 2026 financial guidance is unchanged and is as follows: Financial Metric2026 Guidance RangeAdjusted Annual Net Sales Change (1)1% to 5% declineFull-Year Adjusted EBITDA$175 million to $215 millionFree Cash Flow$40 million to $60 millionCapital Expenditures$55 million to $65 millionYear-End Net Debt Leverage Ratio (2)Approximately 1.5x(1) Adjusted Annual Net Sales Change excludes the 2025 Net Sales of $23 million from the Company's European operations, divested on February 28, 2025.(2) Net Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance.Conference Call and Webcast InformationQuad will hold a live webcast and conference call to discuss the results on Wednesday, April 29, 2026, at 8:30 a.m. ET. Those wishing to participate via the webcast should access the call through the investor relations section of Quad's website at quad.com/investor-relations. Those wishing to participate via telephone may dial in at 877-328-5508 (USA) or 412-317-5424 (International). Participants may pre-register for the conference call at https://dpregister.com/sreg/10207595/1039c288a66.The webcast replay will be available through the investor relations section of Quad's website.About QuadQuad (NYSE: QUAD) is a marketing experience, or MX, company that helps brands make direct consumer connections, from household to in-store to online. The company does this through its MX Solutions Suite, a comprehensive range of marketing and print services that seamlessly integrate creative, production and media solutions across online and offline channels. Supported by state-of-the-art technology and data-driven intelligence, Quad simplifies the complexities of marketing by removing friction wherever it occurs along the marketing journey. The company tailors its uniquely flexible, scalable and connected solutions to each client's objectives, driving cost efficiencies, improving speed-to-market, strengthening marketing effectiveness and delivering value on client investments.Quad employs approximately 10,000 people in 10 countries and serves approximately 2,100 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service media agency, Rise, and creative agency, Betty. Quad is also one of the largest commercial printers in North America, according to Printing Impressions.For more information about Quad, including its commitment to operating responsibly, intentional innovation and values-driven culture, visit quad.com.Forward-Looking StatementsThis press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company's future results, financial condition, sales, earnings, free cash flow, capital expenditures, leverage, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company, including information under the heading "2026 Guidance," and can generally be identified by the use of words or phrases such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "foresee," "project," "believe," or "continue" or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.The factors that could cause actual results to materially differ include, among others: the impact of increased business complexity as a result of the Company's transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets; the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creating downward pricing pressures and potential under-utilization of assets; the impact of changes in postal rates, service levels or regulations; the impact of rapid changes in technology, including artificial intelligence, and the risk the Company is unable to adapt its marketing offerings to compete in this technology-driven environment; the impact of increases in its operating costs, including the cost and availability of raw materials (such as paper, ink components and other materials), inventory, parts for equipment, labor, fuel and other energy costs and freight rates, and the risk the Company is unable to pass along such increases to clients; the impact macroeconomic conditions, including elevated interest rates, postal rate increases, tariffs, trade restrictions, cost pressures and the price and availability of paper, have had, and may continue to have, on the Company's business, financial condition, cash flows and results of operations (including future uncertain impacts); the risk the Company is unable to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of a data-breach of sensitive information, ransomware attack or other cyber incident on the Company; the fragility and decline in overall distribution channels; the failure to attract and retain qualified talent across the enterprise; the impact of digital media and similar technological changes, including digital substitution by consumers; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the impact negative publicity could have on our business and brand reputation; the impact of risks associated with the operations outside of the United States ("U.S."), including trade restrictions, currency fluctuations, the global economy, costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents, and geopolitical events like war and terrorism; the impact of significant capital expenditures and investments that may be needed to sustain and grow the Company's platforms, processes, systems, client and product technology, marketing and talent, to remain technologically and economically competitive, and to adapt to future changes, such as artificial intelligence; the impact of the various restrictive covenants in the Company's debt facilities on the Company's ability to operate its business, as well as the uncertain negative impacts macroeconomic conditions may have on the Company's ability to continue to be in compliance with these restrictive covenants; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment, goodwill and other intangible assets; the impact of regulatory matters and legislative developments or changes in laws, including changes in cybersecurity, consumer protection, safety, privacy and environmental laws; and the impact on the holders of Quad's class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company's most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Non-GAAP Financial Measures This press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as non-GAAP), specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense, depreciation and amortization (EBITDA), restructuring, impairment and transaction-related charges, net and the settlement charge from defined benefit pension plan annuitization. EBITDA Margin and Adjusted EBITDA Margin are defined as EBITDA or Adjusted EBITDA divided by Net Sales. Free Cash Flow is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. Net Debt Leverage Ratio is defined as total debt and finance lease obligations less cash and cash equivalents (Net Debt) divided by the trailing twelve months Adjusted EBITDA. Adjusted Diluted Earnings Per Share is defined as earnings (loss) before income taxes excluding restructuring, impairment and transaction-related charges, net, and adjusted for income tax expense at a normalized tax rate, divided by diluted weighted average number of common shares outstanding.The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies. Reconciliations to the GAAP equivalent of these non-GAAP measures are contained in tabular form on the attached unaudited financial statements.Investor Relations Contact
Julie Fraundorf
Executive Director, Corporate Development & Investor Relations
IR@quad.com Media Contact
Claire Ho
Director, Corporate Communications
414-566-2955
cho@quad.com QUAD/GRAPHICS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSFor the Three Months Ended March 31, 2026 and 2025(in millions, except per share data)(UNAUDITED)
Three Months Ended March 31,
2026
2025Net sales$                  581.0
$                  629.4Cost of sales458.1
500.0Selling, general and administrative expenses78.4
83.5Depreciation and amortization18.4
19.7Restructuring, impairment and transaction-related charges, net8.4
6.6Total operating expenses563.3
609.8Operating income17.7
19.6Interest expense10.0
12.4Net pension (income) expense(0.2)
0.4Earnings before income taxes7.9
6.8Income tax expense1.7
1.0Net earnings$                      6.2
$                      5.8

Earnings per share

Basic$                    0.13
$                    0.12Diluted$                    0.13
$                    0.11

Weighted average number of common shares outstanding

Basic47.7
48.0Diluted49.6
50.7
QUAD/GRAPHICS, INC.CONDENSED CONSOLIDATED BALANCE SHEETSAs of March 31, 2026 and December 31, 2025(in millions)
(UNAUDITED)
March 31, 2026
December 31,
2025ASSETS

Cash and cash equivalents$                      7.0
$                    63.3Receivables, less allowances for credit losses311.6
294.8Inventories164.7
143.5Prepaid expenses and other current assets39.3
36.8Total current assets522.6
538.4

Property, plant and equipment—net458.8
461.6Operating lease right-of-use assets—net64.6
68.0Goodwill107.6
107.6Other intangible assets—net12.5
13.7Other long-term assets64.8
63.6Total assets$               1,230.9
$               1,252.9

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable$                  317.5
$                  342.0Other current liabilities163.8
211.7Short-term debt and current portion of long-term debt48.7
47.0Current portion of finance lease obligations0.5
0.5Current portion of operating lease obligations23.8
23.0Total current liabilities554.3
624.2

Long-term debt384.5
322.9Finance lease obligations0.7
0.8Operating lease obligations45.2
49.8Deferred income taxes3.5
4.0Other long-term liabilities116.1
122.6Total liabilities1,104.3
1,124.3

Shareholders' equity

Preferred stock—
—Common stock1.4
1.4Additional paid-in capital840.8
846.2Treasury stock, at cost(34.5)
(36.3)Accumulated deficit(622.1)
(623.2)Accumulated other comprehensive loss(59.0)
(59.5)Total shareholders' equity126.6
128.6Total liabilities and shareholders' equity$               1,230.9
$               1,252.9
QUAD/GRAPHICS, INC.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSFor the Three Months Ended March 31, 2026 and 2025(in millions)(UNAUDITED)
Three Months Ended March 31,
2026
2025OPERATING ACTIVITIES

Net earnings$                      6.2
$                      5.8Adjustments to reconcile net earnings to net cash used in operating activities:

Depreciation and amortization18.4
19.7Impairment charges0.2
0.3Amortization of debt issuance costs and original issue discount0.4
0.4Stock-based compensation1.3
1.6Loss on the sale of a business—
0.5Deferred income taxes(0.5)
0.1Changes in operating assets and liabilities - net of divestiture(119.7)
(117.4)Net cash used in operating activities(93.7)
(89.0)

INVESTING ACTIVITIES

Purchases of property, plant and equipment(13.3)
(11.3)Cost investment in unconsolidated entities—
(0.2)Proceeds from the sale of property, plant and equipment—
0.1Other investing activities(1.7)
(2.7)Net cash used in investing activities(15.0)
(14.1)

FINANCING ACTIVITIES

Payments of current and long-term debt(9.0)
(6.3)Payments of finance lease obligations(0.1)
(0.4)Borrowings on revolving credit facilities354.3
398.1Payments on revolving credit facilities(282.4)
(300.6)Purchases of treasury stock(1.1)
(3.3)Equity awards redeemed to pay employees' tax obligations(3.8)
(3.6)Payment of cash dividends(5.5)
(3.5)Net cash provided by financing activities52.4
80.4

Effect of exchange rates on cash and cash equivalents—
(0.1)Net decrease in cash and cash equivalents, including cash classified as held for sale(56.3)
(22.8)Less: net decrease in cash classified as held for sale—
(1.7)Net decrease in cash and cash equivalents(56.3)
(21.1)Cash and cash equivalents at beginning of period63.3
29.2Cash and cash equivalents at end of period$                      7.0
$                      8.1
QUAD/GRAPHICS, INC.SEGMENT FINANCIAL INFORMATIONFor the Three Months Ended March 31, 2026 and 2025(in millions)(UNAUDITED)
Net Sales
OperatingIncome (Loss)
Restructuring,Impairment andTransaction-RelatedCharges, Net (1)Three months ended March 31, 2026

United States Print and Related Services$                      531.0
$                        26.1
$                            7.7International50.0
3.7
0.3Total operating segments581.0
29.8
8.0Corporate—
(12.1)
0.4Total$                      581.0
$                        17.7
$                            8.4

Three months ended March 31, 2025

United States Print and Related Services$                      553.8
$                        31.7
$                            3.5International75.6
0.6
2.8Total operating segments629.4
32.3
6.3Corporate—
(12.7)
0.3Total$                      629.4
$                        19.6
$                            6.6______________________________(1)Restructuring, impairment and transaction-related charges, net are included within operating income (loss).
QUAD/GRAPHICS, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURESEBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGINFor the Three Months Ended March 31, 2026 and 2025(in millions, except margin data)(UNAUDITED)
Three Months Ended March 31,
2026
2025Net earnings$                  6.2
$                  5.8Interest expense10.0
12.4Income tax expense1.7
1.0Depreciation and amortization18.4
19.7EBITDA (non-GAAP)$                36.3
$                38.9EBITDA Margin (non-GAAP)6.2 %
6.2 %

Restructuring, impairment and transaction-related charges, net (1)8.4
6.6Adjusted EBITDA (non-GAAP)$                44.7
$                45.5Adjusted EBITDA Margin (non-GAAP)7.7 %
7.2 %______________________________(1)Operating results for the three months ended March 31, 2026 and 2025, were affected by the following restructuring, impairment and transaction-related charges, net:
Three Months Ended March 31,
2026
2025Employee termination charges (a)$                      4.4
$                      0.7Impairment charges (b)0.2
0.3Transaction-related charges (c)0.2
2.6Integration costs (d)0.4
—Other restructuring charges, net (e)3.2
3.0Restructuring, impairment and transaction-related charges, net$                      8.4
$                      6.6______________________________(a)Employee termination charges were related to workforce reductions through facility consolidations and separation programs.(b)Impairment charges were primarily for certain machinery and equipment no longer being utilized in production as a result of facility consolidations, as well as other capacity reduction activities.(c)Transaction-related charges consisted of professional service fees related to business acquisition and divestiture activities, including charges related to the sale of the European operations in 2025.(d)Integration costs were primarily costs related to the integration of acquisitions.(e)Other restructuring charges, net primarily include costs to maintain and exit closed facilities, as well as lease exit charges.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURESFREE CASH FLOWFor the Three Months Ended March 31, 2026 and 2025(in millions)(UNAUDITED)
Three Months Ended March 31,
2026
2025Net cash used in operating activities$                  (93.7)
$                  (89.0)

Less: purchases of property, plant and equipment13.3
11.3

Free Cash Flow (non-GAAP)$                (107.0)
$                (100.3)In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURESNET DEBT AND NET DEBT LEVERAGE RATIOAs of March 31, 2026 and December 31, 2025(in millions, except ratio)(UNAUDITED)
March 31, 2026
December 31, 2025(2)Total debt and finance lease obligations on the condensed consolidated balance sheets$                434.4
$                371.2Less: Cash and cash equivalents7.0
63.3Net Debt (non-GAAP)$                427.4
$                307.9

Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1)$                195.4
$                196.2

Net Debt Leverage Ratio (non-GAAP)                    2.19 x
                    1.57 x______________________________(1)The calculation of Adjusted EBITDA for the trailing twelve months ended March 31, 2026, and December 31, 2025, was as follows:

Add
Subtract
Trailing Twelve
Months Ended
Year Ended
Three Months Ended

December 31, 2025(2)
March 31, 2026
March 31, 2025
March 31, 2026Net earnings$                   27.0
$                     6.2
$                     5.8
$                      27.4Interest expense50.5
10.0
12.4
48.1Income tax expense5.5
1.7
1.0
6.2Depreciation and amortization78.6
18.4
19.7
77.3EBITDA (non-GAAP)$                 161.6
$                   36.3
$                   38.9
$                    159.0Restructuring, impairment and transaction-related
charges, net21.8
8.4
6.6
23.6Settlement charge from defined benefit pension plan
annuitization12.8
—
—
12.8Adjusted EBITDA (non-GAAP)$                 196.2
$                   44.7
$                   45.5
$                    195.4

(2)Financial information for the year ended December 31, 2025, is included as reported in the Company's 2025 Annual Report on Form 10-K filed with the SEC on February 18, 2026.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.RECONCILIATION OF GAAP TO NON-GAAP MEASURESADJUSTED DILUTED EARNINGS PER SHAREFor the Three Months Ended March 31, 2026 and 2025(in millions, except per share data)(UNAUDITED)
Three Months Ended March 31,
2026
2025Earnings before income taxes$                      7.9
$                      6.8

Restructuring, impairment and transaction-related charges, net8.4
6.6Adjusted net earnings, before income taxes (non-GAAP)16.3
13.4

Income tax expense at 25% normalized tax rate4.1
3.4Adjusted net earnings (non-GAAP)$                    12.2
$                    10.0

Basic weighted average number of common shares outstanding47.7
48.0Plus: effect of dilutive equity incentive instruments1.9
2.7Diluted weighted average number of common shares outstanding49.6
50.7

Adjusted diluted earnings per share (non-GAAP) (1)$                    0.25
$                    0.20

Diluted earnings per share (GAAP)$                    0.13
$                    0.11Restructuring, impairment and transaction-related charges, net per share0.17
0.14Income tax expense from condensed consolidated statement of operations per share0.03
0.02Income tax expense at 25% normalized tax rate per share(0.08)
(0.07)Adjusted diluted earnings per share (non-GAAP) (1)$                    0.25
$                    0.20______________________________(1)Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net and (ii) discrete income tax items.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.

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Original: Quad Reports First Quarter 2026 Results

Quad Reports Fourth Quarter and Full-Year 2025 ResultsFebruary 17, 2026 4:30 PM
PR Newswire (US)

Achieved 2025 Financial GuidanceIntroduces 2026 Financial Guidance
Consistent with Progress Toward 2028 OutlookIncreased Quarterly Dividend
by 33% to $0.10 Per ShareSUSSEX, Wis., Feb. 17, 2026 /PRNewswire/ -- Quad/Graphics, Inc. (NYSE: QUAD) ("Quad" or the "Company"), a marketing experience company that solves complex marketing challenges for its clients, today reported results for the fourth quarter and fiscal year ended December 31, 2025.

Recent HighlightsRealized Net Sales of $2.4 billion in 2025 compared to $2.7 billion in 2024, representing a 9.4% decline in Net Sales, or a 4.8% decline in Net Sales when excluding the 4.6% impact of the divestiture of the Company's European operations, compared to 9.7% decline in 2024.Improved Net Earnings to $27 million or $0.54 Diluted Earnings Per Share in 2025 compared to Net Loss of $51 million or $1.07 Diluted Loss Per Share in 2024.Reported Adjusted EBITDA of $196 million in 2025 compared to $224 million in 2024.Increased Adjusted Diluted Earnings Per Share by 19% to $1.01 in 2025 compared to $0.85 per share in 2024.Delivered $96 million of Net Cash provided by Operating Activities and $51 million of Free Cash Flow in 2025, while also generating $37 million of cash from asset sales, including the sale of the Greenville, Mich., building and an ancillary building in Sussex, Wis., during the fourth quarter.Continued to win integrated creative and media work with premier brands, including Scandinavian Designs, Valvoline Instant Oil Change and The Gorilla Glue Company.Completed the integration of Enru's co-mail volume and high-density co-mailing capabilities, expanding mail pool sizes, improving sortation levels, and delivering higher postage savings for clients.Reduced Net Debt by $42 million during 2025 to $308 million and achieved Net Debt Leverage of 1.57x at December 31, 2025.De-risked pension plan by annuitizing approximately one-third of pension obligations. Provided $22 million of shareholder returns in 2025 through $14 million of cash dividends and $8 million of share repurchases.Declared quarterly dividend of $0.10 per share payable March 13, 2026, enabled by strong cash flow.Introduces 2026 guidance with continued progress toward 2028 financial outlook.Joel Quadracci, Chairman and Chief Executive Officer of Quad, said: "In 2025, we made significant operational progress and delivered solid financial results, achieving our full-year financial guidance. While reported sales declined as planned, we generated strong cash flow, reinforcing our ability to invest in long-term growth, reduce debt and provide strong shareholder returns."We are gaining momentum in shifting our revenue mix toward higher-value offerings, including Targeted Print—such as direct mail, packaging and in-store—and integrated marketing services, supported by our data and technology capabilities. Strong demand for these solutions is driving larger, more strategic engagements with leading brands, which we believe will support sustainable long-term growth."Operationally, we advanced key initiatives to strengthen our cost structure and scale, including automation, AI-enabled tools and the integration of Enru's co-mailing capabilities. These improvements are driving greater cost efficiency and allow us to deliver meaningful value to our clients, including helping offset escalating postage costs. In 2026, we remain focused on executing our strategy and advancing toward our long-term growth and margin objectives."Added Tony Staniak, Chief Financial Officer and Treasurer of Quad: "The 2025 financial results and our 2026 financial guidance demonstrate meaningful progress toward achieving an inflection to Net Sales growth in 2028. Our Net Sales decline improved from 9.7% in 2024 to 4.8% in 2025 excluding the European divestiture, and in 2026 we anticipate further improvement to a decline of 3% at the midpoint of our guidance range. With continued strong cash generation in 2025, we further strengthened our balance sheet by reducing Net Debt during 2025 by $42 million, or 12%, to $308 million at the end of the year, and achieved 1.57x Net Debt Leverage, which is near the low end of our targeted long-term leverage range of 1.5x to 2.0x. Additionally, we provided $22 million of shareholder returns, including $14 million of cash dividends and $8 million of share repurchases. Looking forward to 2026, we recently announced a 33% increase in our dividend to $0.10 per share quarterly, or $0.40 per share annually. We also expect to remain opportunistic in terms of future share repurchases."Fourth Quarter 2025 Financial ResultsNet Sales were $631 million in the fourth quarter of 2025, a decrease of 11.0% compared to the same period in 2024. Excluding the 5.3% impact of the divestiture of the Company's European operations, Net Sales declined 5.7%. The decline in Net Sales was primarily due to lower paper sales, lower print volumes, and lower logistics sales.Net Earnings were $11 million, or $0.22 Diluted Earnings Per Share, in the fourth quarter of 2025 compared to $5 million, or $0.09 Diluted Earnings Per Share, in the fourth quarter of 2024. The improvement was primarily due to the following: (1) lower restructuring, impairment and transaction-related charges, net; (2) lower selling, general and administrative expenses; (3) lower depreciation and amortization; (4) lower interest expense; and (5) benefits from increased manufacturing productivity, partially offset by the following: (1) the impact from lower Net Sales; (2) a non-cash settlement charge from defined benefit pension plan annuitization; (3) increased investments in innovative offerings to drive future revenue growth; and (4) the divestiture of the Company's European operations.Adjusted EBITDA was $55 million in the fourth quarter of 2025, compared to $63 million in the same period in 2024. The decrease was primarily due to the impact of lower Net Sales, increased investments in innovative offerings to drive future revenue growth, and the divestiture of the Company's European operations, partially offset by lower selling, general and administrative expenses and benefits from improved manufacturing productivity.Adjusted Diluted Earnings Per Share was $0.36 in the fourth quarter of 2025 and 2024.Full-Year 2025 Financial ResultsNet Sales were $2.4 billion in 2025, a decrease of 9.4% compared to 2024, or a 4.8% decline in Net Sales excluding the divestiture of the Company's European operations. This decrease was primarily due to lower paper sales, lower print volumes, and lower logistics and agency sales, including the loss of a large grocery client in 2024, which annualized at the beginning of March 2025.Net Earnings were $27 million in 2025 compared to a Net Loss of $51 million in 2024. The improvement was primarily due to the following: (1) lower restructuring, impairment and transaction-related charges, net; (2) lower selling, general and administrative expenses; (3) lower depreciation and amortization; (4) lower interest expense; and (5) benefits from increased manufacturing productivity, partially offset by the following: (1) impact from lower Net Sales; (2) a non-cash settlement charge from defined benefit pension plan annuitization; (3) increased investments in innovative offerings to drive future revenue growth; and (4) the divestiture of the Company's European operations.Adjusted EBITDA was $196 million in 2025, a decrease of $28 million compared to 2024. The decrease was primarily due to the impact of lower Net Sales, increased investments in innovative offerings to drive future revenue growth, and the divestiture of the Company's European operations, partially offset by lower selling, general and administrative expenses, and benefits from increased manufacturing productivity.Adjusted Diluted Earnings Per Share was $1.01 in 2025, increased 19% from $0.85 in 2024.Net Cash Provided by Operating Activities was $96 million in 2025 compared to $113 million in 2024. Free Cash Flow was $51 million compared to $56 million in 2024. The decline in Free Cash Flow was primarily due to a $17 million decrease in Net Cash Provided by Operating Activities mainly driven by timing of working capital, partially offset by a $12 million decrease in capital expenditures.Net Debt was $308 million at December 31, 2025, reduced from $350 million at December 31, 2024. The Debt Leverage Ratio was essentially flat at 1.57x at December 31, 2025, compared to 1.56x at December 31, 2024.DividendQuad's next quarterly dividend of $0.10 per share will be payable on March 13, 2026, to shareholders of record as of February 27, 2026.2026 GuidanceThe Company's full-year 2026 financial guidance is as follows: Financial Metric2025 Actuals2026 Guidance RangeAdjusted Annual Net Sales Change (1)4.8% decline1% to 5% declineFull-Year Adjusted EBITDA $196 million$175 million to $215 millionFree Cash Flow $51 million$40 million to $60 millionCapital Expenditures $45 million$55 million to $65 millionYear-End Net Debt Leverage Ratio (2) 1.57xApproximately 1.5x(1) Adjusted Annual Net Sales Change excludes the 2025 Net Sales of $23 million and the 2024 Net Sales of $153 million from the Company's European operations, divested on February 28, 2025.(2) Net Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance.Conference Call and Webcast InformationQuad will hold a conference call at 8:30 a.m. ET on Wednesday, February 18, 2026, hosted by Joel Quadracci, Chairman and Chief Executive Officer of Quad, and Tony Staniak, Chief Financial Officer and Treasurer of Quad. The full earnings release and slide presentation will be concurrently available on the Investors section of Quad's website at http://www.quad.com/investor-relations. As part of the conference call, Quad will conduct a question-and-answer session.Participants can pre-register for the webcast by navigating to https://dpregister.com/sreg/10206262/1033051e32a. Participants will be given a unique PIN to access the call on February 18. Participants may pre-register at any time, including up to and after the call start time.Alternatively, participants may dial in on the day of the call as follows:U.S. Toll-Free: 1-877-328-5508International Toll: 1-412-317-5424The replay will be available via webcast on the Investors section of Quad's website.About QuadQuad (NYSE: QUAD) is a marketing experience, or MX, company that helps brands make direct consumer connections, from household to in-store to online. The company does this through its MX Solutions Suite, a comprehensive range of marketing and print services that seamlessly integrate creative, production and media solutions across online and offline channels. Supported by state-of-the-art technology and data-driven intelligence, Quad simplifies the complexities of marketing by removing friction wherever it occurs along the marketing journey. The company tailors its uniquely flexible, scalable and connected solutions to each client's objectives, driving cost efficiencies, improving speed-to-market, strengthening marketing effectiveness and delivering value on client investments.Quad employs approximately 10,000 people in 10 countries and serves approximately 2,100 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service media agency, Rise, and creative agency, Betty. Quad is also one of the largest commercial printers in North America, according to Printing Impressions.For more information about Quad, including its commitment to operating responsibly, intentional innovation and values-driven culture, visit quad.com.Forward-Looking StatementsThis press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company's future results, financial condition, sales, earnings, free cash flow, capital expenditures, leverage, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company, including information under the heading "2026 Guidance," and can generally be identified by the use of words or phrases such as "may," "will," "expect," "intend," "estimate," "anticipate," "plan," "foresee," "project," "believe," "continue" or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company's expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.The factors that could cause actual results to materially differ include, among others: the impact of increased business complexity as a result of the Company's transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets; the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creating downward pricing pressures and potential under-utilization of assets; the impact of changes in postal rates, service levels or regulations; the impact of rapid changes in technology, including artificial intelligence, and the risk the Company is unable to adapt its marketing offerings to compete in this technology-driven environment; the impact of increases in its operating costs, including the cost and availability of raw materials (such as paper, ink components and other materials), inventory, parts for equipment, labor, fuel and other energy costs and freight rates, and the risk the Company is unable to pass along such increases to clients; the impact macroeconomic conditions, including elevated interest rates, postal rate increases, tariffs, trade restrictions, cost pressures and the price and availability of paper, have had, and may continue to have, on the Company's business, financial condition, cash flows and results of operations (including future uncertain impacts); the risk the Company is unable to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of a data-breach of sensitive information, ransomware attack or other cyber incident on the Company; the fragility and decline in overall distribution channels; the failure to attract and retain qualified talent across the enterprise; the impact of digital media and similar technological changes, including digital substitution by consumers; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the impact negative publicity could have on our business and brand reputation; the impact of risks associated with the operations outside of the United States ("U.S."), including trade restrictions, currency fluctuations, the global economy, costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents, and geopolitical events like war and terrorism; the impact of significant capital expenditures and investments that may be needed to sustain and grow the Company's platforms, processes, systems, client and product technology, marketing and talent, to remain technologically and economically competitive, and to adapt to future changes, such as artificial intelligence; the impact of the various restrictive covenants in the Company's debt facilities on the Company's ability to operate its business, as well as the uncertain negative impacts macroeconomic conditions may have on the Company's ability to continue to be in compliance with these restrictive covenants; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment, goodwill and other intangible assets; the impact of regulatory matters and legislative developments or changes in laws, including changes in cyber-security, consumer protection, safety, privacy and environmental laws; and the impact on the holders of Quad's class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company's most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.Non-GAAP Financial MeasuresThis press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as non-GAAP), specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense, depreciation and amortization (EBITDA), restructuring, impairment and transaction-related charges, net and the settlement charge from defined benefit pension plan annuitization. EBITDA Margin and Adjusted EBITDA Margin are defined as EBITDA or Adjusted EBITDA divided by Net Sales. Free Cash Flow is defined as net cash provided by operating activities less purchases of property, plant and equipment. Net Debt Leverage Ratio is defined as total debt and finance lease obligations less cash and cash equivalents (Net Debt) divided by the last twelve months of Adjusted EBITDA. Adjusted Diluted Earnings Per Share is defined as earnings (loss) before income taxes excluding restructuring, impairment and transaction-related charges, net and the settlement charge from defined benefit pension plan annuitization, and adjusted for income tax expense at a normalized tax rate, divided by diluted weighted average number of common shares outstanding.The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies. Reconciliations to the GAAP equivalent of these non-GAAP measures are contained in tabular form on the attached unaudited financial statements.Investor Relations ContactJulie Fraundorf
Executive Director, Corporate Development & Investor Relations
IR@quad.comMedia ContactClaire Ho
Director, Corporate Communications
414-566-2955
cho@quad.comQUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended December 31, 2025 and 2024
(in millions, except per share data)
(UNAUDITED)

Three Months Ended December 31,
2025
2024Net sales$                 630.6
$                 708.4Cost of sales494.4
549.4Selling, general and administrative expenses81.3
96.6Depreciation and amortization18.9
23.1Restructuring, impairment and transaction-related charges, net(1.3)
19.6Total operating expenses593.3
688.7Operating income37.3
19.7Interest expense12.1
15.1Net pension expense (income)12.9
(0.2)Earnings before income taxes12.3
4.8Income tax expense 1.2
0.1Net earnings$                   11.1
$                     4.7

Earnings per share

Basic$                   0.23
$                   0.10Diluted$                   0.22
$                   0.09

Weighted average number of common shares outstanding

Basic47.5
47.8Diluted49.9
51.2 QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2025 and 2024
(in millions, except per share data)

Year Ended December 31,
(UNAUDITED)

2025
2024Net sales$              2,419.9
$              2,672.2Cost of sales1,896.6
2,092.2Selling, general and administrative expenses325.9
356.8Depreciation and amortization78.6
102.5Restructuring, impairment and transaction-related charges, net21.8
101.5Total operating expenses2,322.9
2,653.0Operating income97.0
19.2Interest expense50.5
64.5Net pension expense (income)14.0
(0.8)Earnings (loss) before income taxes32.5
(44.5)Income tax expense5.5
6.4Net earnings (loss)$                   27.0
$                 (50.9)

Earnings (loss) per share

Basic$                   0.57
$                 (1.07)Diluted$                   0.54
$                 (1.07)

Weighted average number of common shares outstanding

Basic47.6
47.6Diluted49.9
47.6 QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of December 31, 2025 and 2024
(in millions)

(UNAUDITED)

December 31,
2025
December 31,
2024ASSETS

Cash and cash equivalents$                   63.3
$                   29.2Receivables, less allowances for credit losses294.8
273.2Inventories143.5
162.4Prepaid expenses and other current assets36.8
69.5Total current assets538.4
534.3

Property, plant and equipment—net461.6
499.7Operating lease right-of-use assets—net68.0
78.9Goodwill107.6
100.3Other intangible assets—net13.7
7.2Other long-term assets63.6
78.6Total assets$              1,252.9
$              1,299.0

LIABILITIES AND SHAREHOLDERS' EQUITY

Accounts payable$                 342.0
$                 356.7Other current liabilities211.7
289.2Short-term debt and current portion of long-term debt47.0
28.0Current portion of finance lease obligations0.5
0.8Current portion of operating lease obligations23.0
24.0Total current liabilities624.2
698.7

Long-term debt322.9
349.1Finance lease obligations0.8
1.3Operating lease obligations49.8
61.4Deferred income taxes4.0
3.2Other long-term liabilities122.6
135.4Total liabilities1,124.3
1,249.1

Shareholders' Equity

Preferred stock—
—Common stock1.4
1.4Additional paid-in capital846.2
842.8Treasury stock, at cost(36.3)
(28.0)Accumulated deficit(623.2)
(635.1)Accumulated other comprehensive loss(59.5)
(131.2)Total shareholders' equity128.6
49.9Total liabilities and shareholders' equity$              1,252.9
$              1,299.0 QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Years Ended December 31, 2025 and 2024
(in millions)

Year Ended December 31,
(UNAUDITED)

2025
2024OPERATING ACTIVITIES

Net earnings (loss)$                   27.0
$                 (50.9)Adjustments to reconcile net earnings (loss) to net cash provided by operating activities:

Depreciation and amortization78.6
102.5Impairment charges7.5
74.9Settlement charge from defined benefit pension plan annuitization12.8
—Amortization of debt issuance costs and original issue discount1.6
1.6Stock-based compensation6.6
7.3Gain on the sale of an investment—
(4.1)Gains on the sale or disposal of property, plant and equipment, net(20.7)
(22.5)Loss on the sale of a business0.5
—Deferred income taxes0.6
(2.0)Changes in operating assets and liabilities - net of acquisitions and divestitures(18.6)
6.1Net cash provided by operating activities95.9
112.9

INVESTING ACTIVITIES

Purchases of property, plant and equipment(45.2)
(57.2)Cost investment in unconsolidated entities(0.3)
(0.2)Proceeds from the sale of property, plant and equipment36.8
49.1Proceeds from the sale of an investment—
22.2Acquisition of a business(16.3)
—Other investing activities (2.7)
(1.2)Net cash (used in) provided by investing activities(27.7)
12.7

FINANCING ACTIVITIES

Payments of current and long-term debt(28.6)
(183.7)Payments of finance lease obligations(1.0)
(2.7)Borrowings on revolving credit facilities1,260.0
1,458.1Payments on revolving credit facilities(1,260.4)
(1,457.8)Proceeds from issuance of long-term debt20.0
53.1Payments of debt issuance costs and financing fees(0.1)
(4.4)Purchases of treasury stock(8.0)
—Equity awards redeemed to pay employees' tax obligations(3.6)
(2.1)Payment of cash dividends(14.4)
(9.4)Other financing activities—
(0.2)Net cash used in financing activities(36.1)
(149.1)

Effect of exchange rates on cash and cash equivalents0.3
(0.2)Net increase (decrease) in cash and cash equivalents, including cash classified as held for sale32.4
(23.7)Less: net decrease in cash classified as held for sale(1.7)
—Net increase (decrease) in cash and cash equivalents34.1
(23.7)Cash and cash equivalents at beginning of year29.2
52.9Cash and cash equivalents at end of year$                   63.3
$                   29.2 QUAD/GRAPHICS, INC.
SEGMENT FINANCIAL INFORMATION
For the Three Months and Years Ended December 31, 2025 and 2024
(in millions)

Net Sales
OperatingIncome (Loss)
Restructuring,Impairment andTransaction-RelatedCharges, Net (1)Three months ended December 31, 2025 (UNAUDITED)

United States Print and Related Services$                      591.3
$                        40.7
$                            6.4International39.3
0.9
0.6Total operating segments630.6
41.6
7.0Corporate—
(4.3)
(8.3)Total$                      630.6
$                        37.3
$                          (1.3)

Three months ended December 31, 2024 (UNAUDITED)

United States Print and Related Services$                      627.2
$                        37.5
$                          14.6International81.2
(4.9)
8.4Total operating segments708.4
32.6
23.0Corporate—
(12.9)
(3.4)Total$                      708.4
$                        19.7
$                          19.6

Year ended December 31, 2025 (UNAUDITED)

United States Print and Related Services$                   2,214.4
$                      131.7
$                          25.1International205.5
7.9
3.9Total operating segments2,419.9
139.6
29.0Corporate—
(42.6)
(7.2)Total$                   2,419.9
$                        97.0
$                          21.8

Year ended December 31, 2024

United States Print and Related Services$                   2,329.5
$                      112.8
$                          42.8International342.7
(45.7)
61.9Total operating segments2,672.2
67.1
104.7Corporate—
(47.9)
(3.2)Total$                   2,672.2
$                        19.2
$                        101.5______________________________(1) Restructuring, impairment and transaction-related charges, net are included within operating income (loss). QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Three Months Ended December 31, 2025 and 2024
(in millions, except margin data)
(UNAUDITED)

Three Months Ended December 31,
2025
2024Net earnings$               11.1
$                 4.7Interest expense12.1
15.1Income tax expense 1.2
0.1Depreciation and amortization18.9
23.1EBITDA (non-GAAP)$               43.3
$               43.0EBITDA Margin (non-GAAP)6.9 %
6.1 %

Restructuring, impairment and transaction-related charges, net (1)(1.3)
19.6Settlement charge from defined benefit pension plan annuitization12.8
—Adjusted EBITDA (non-GAAP)$               54.8
$               62.6Adjusted EBITDA Margin (non-GAAP)8.7 %
8.8 %______________________________(1) Operating results for the three months ended December 31, 2025 and 2024, were affected by the following restructuring, impairment and transaction-related charges, net:
Three Months Ended December 31,
2025
2024Employee termination charges (a)$                   17.3
$                   11.4Impairment charges (b)2.4
9.0Acquisition adjustments and transaction-related charges, net (c)(8.3)
(2.4)Integration costs (d)1.1
0.1Other restructuring charges (income) (e)(13.8)
1.5Restructuring, impairment and transaction-related charges, net$                   (1.3)
$                   19.6______________________________(a)Employee termination charges were related to workforce reductions through facility consolidations and separation programs.(b)Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction and strategic divestiture activities.(c)Acquisition adjustments and transaction-related charges, net consisted of adjustments to estimated acquisition consideration, partially offset by professional service fees related to business acquisition and divestiture activities.(d)Integration costs were primarily costs related to the integration of acquired companies.(e) Other restructuring charges (income) are presented net of a $11.6 million gain on the sale of an ancillary building in Sussex, Wisconsin, and a $3.6 million gain on the sale of the Greenville, Michigan facility during the three months ended December 31, 2025, partially offset by costs to maintain and exit closed facilities, as well as lease exit charges.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Years Ended December 31, 2025 and 2024
(in millions, except margin data)
(UNAUDITED)

Year Ended December 31,
2025
2024Net earnings (loss)$               27.0
$             (50.9)Interest expense50.5
64.5Income tax expense5.5
6.4Depreciation and amortization78.6
102.5EBITDA (non-GAAP)$             161.6
$             122.5EBITDA Margin (non-GAAP)6.7 %
4.6 %

Restructuring, impairment and transaction-related charges, net (1)21.8
101.5Settlement charge from defined benefit pension plan annuitization12.8
—Adjusted EBITDA (non-GAAP)$             196.2
$             224.0Adjusted EBITDA Margin (non-GAAP)8.1 %
8.4 %_________________________________(1) Operating results for the years ended December 31, 2025 and 2024, were affected by the following restructuring, impairment and transaction-related charges, net:
Year Ended December 31,
2025
2024Employee termination charges (a)$                   26.1
$                   30.5Impairment charges (b)7.5
74.9Acquisition adjustments and transaction-related charges, net (c)(4.9)
(0.6)Integration costs (d)2.9
0.4Other restructuring income, net (e)(9.8)
(3.7)Restructuring, impairment and transaction-related charges, net$                   21.8
$                 101.5________________________________________________(a)Employee termination charges were related to workforce reductions through facility consolidations and separation programs.(b)Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction and strategic divestiture activities, including $57.6 million related to the expected sale of the European operations to reduce the carrying value to its estimated fair value during the year ended December 31, 2024, as well as charges for operating lease right-of-use assets.(c)Acquisition adjustments and transaction-related charges, net consisted of adjustments to estimated acquisition consideration, partially offset by professional service fees related to business acquisition and divestiture activities, including charges related to the sale of the European operations.(d)Integration costs were primarily related to the integration of acquired companies.(e)Other restructuring income, net is presented net of the following: a $11.6 million gain on the sale of an ancillary building in Sussex, Wisconsin, a $4.3 million gain on the sale of the West Sacramento, California facility, and a $3.6 million gain on the sale of the Greenville, Michigan facility during the year ended December 31, 2025, and a $20.5 million gain on the sale of the Saratoga Springs, New York facility during the year ended December 31, 2024, partially offset by costs to maintain and exit closed facilities, as well as lease exit charges.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
FREE CASH FLOW
For the Years Ended December 31, 2025 and 2024
(in millions)
(UNAUDITED)

Year Ended December 31,
2025
2024Net cash provided by operating activities$                   95.9
$                 112.9

Less: purchases of property, plant and equipment45.2
57.2

Free Cash Flow (non-GAAP)$                   50.7
$                   55.7In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
NET DEBT AND NET DEBT LEVERAGE RATIO
As of December 31, 2025 and 2024
(in millions, except ratio)
(UNAUDITED)

December 31,
2025
December 31,
2024Total debt and finance lease obligations on the condensed consolidated balance sheets$              371.2
$              379.2Less: Cash and cash equivalents63.3
29.2Net Debt (non-GAAP)$              307.9
$              350.0

Divided by: Adjusted EBITDA for the year ended (non-GAAP)$              196.2
$              224.0

Net Debt Leverage Ratio (non-GAAP)                  1.57 x
                  1.56 xIn addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Three Months Ended December 31, 2025 and 2024
(in millions, except per share data)
(UNAUDITED)

Three Months Ended December 31,
2025
2024Earnings before income taxes$                   12.3
$                     4.8

Restructuring, impairment and transaction-related charges, net(1.3)
19.6Settlement charge from defined benefit pension plan annuitization12.8
—Adjusted net earnings, before income taxes (non-GAAP)23.8
24.4

Income tax expense at 25% normalized tax rate6.0
6.1Adjusted net earnings (non-GAAP)$                   17.8
$                   18.3

Basic weighted average number of common shares outstanding47.5
47.8Plus: effect of dilutive equity incentive instruments2.4
3.4Diluted weighted average number of common shares outstanding49.9
51.2

Adjusted diluted earnings per share (non-GAAP) (1)$                   0.36
$                   0.36

Diluted earnings per share (GAAP)$                   0.22
$                   0.09Restructuring, impairment and transaction-related charges, net per share(0.02)
0.38Settlement charge from defined benefit pension plan annuitization per share0.26
—Income tax expense from condensed consolidated statement of operations per share0.02
—Income tax expense at 25% normalized tax rate per share(0.12)
(0.12)Effect of dilutive equity incentive instruments—
0.01Adjusted diluted earnings per share (non-GAAP) (1)$                   0.36
$                   0.36______________________________(1)Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net; (ii) settlement charge from defined benefit pension plan annuitization; and (iii) discrete income tax items.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Years Ended December 31, 2025 and 2024
(in millions, except per share data)
(UNAUDITED)

Year Ended December 31,
2025
2024Earnings (loss) before income taxes$                   32.5
$                 (44.5)

Restructuring, impairment and transaction-related charges, net21.8
101.5Settlement charge from defined benefit pension plan annuitization12.8
—Adjusted net earnings, before income taxes (non-GAAP)67.1
57.0

Income tax expense at 25% normalized tax rate16.8
14.3Adjusted net earnings (non-GAAP)$                   50.3
$                   42.7

Basic weighted average number of common shares outstanding47.6
47.6Plus: effect of dilutive equity incentive instruments (1)2.3
2.8Diluted weighted average number of common shares outstanding (1)49.9
50.4

Adjusted diluted earnings per share (non-GAAP) (2)$                   1.01
$                   0.85

Diluted earnings (loss) per share (GAAP)$                   0.54
$                 (1.07)Restructuring, impairment and transaction-related charges, net per share0.44
2.01Settlement charge from defined benefit pension plan annuitization per share0.26
—Income tax expense from condensed consolidated statement of operations per share0.11
0.13Income tax expense at 25% normalized tax rate per share(0.34)
(0.28)Effect of dilutive equity incentive instruments—
0.06Adjusted diluted earnings per share (non-GAAP) (2)$                   1.01
$                   0.85______________________________(1)   Effect of dilutive equity incentive instruments and diluted weighted average number of common shares outstanding for the year ended December 31, 2024 are non-GAAP.(2) Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net; (ii) settlement charge from defined benefit pension plan annuitization; and (iii) discrete income tax items.In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad's performance and are important measures by which Quad's management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.

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Original: Quad Reports Fourth Quarter and Full-Year 2025 Results