Quad Reports Second Quarter and Year-to-Date 2026 Results
Rhea-AI Summary
Quad (NYSE: QUAD) reported second-quarter 2026 net sales of $578 million, up 1% year over year, with net earnings of $4 million or $0.07 diluted EPS, versus a small loss in 2025. Adjusted EBITDA was $42 million (slightly below $43 million) and adjusted diluted EPS rose to $0.24 from $0.14.
For the first half of 2026, net sales were $1.16 billion, down 4% (2% excluding the European divestiture), with net earnings of $9.9 million and adjusted EBITDA of $87 million. Free cash flow was negative $66 million, and net debt rose to $394 million from $308 million at year-end, though it declined $54 million year over year after adjusting for seasonality. The company announced a new 100,000-square-foot packaging facility in Salt Lake City, extended its relationship with Wakefern, repurchased 0.4 million shares year-to-date, declared a $0.10 quarterly dividend, and reaffirmed full-year 2026 guidance, including adjusted EBITDA of $175–$215 million and free cash flow of $40–$60 million.
Positive
- Q2 2026 net sales up 1% to $578 million
- Q2 2026 net earnings improved to $4 million from a $0.1 million loss
- Q2 adjusted diluted EPS rose 71% to $0.24
- YTD 2026 net earnings increased to $9.9 million from $5.7 million
- Net debt down $54 million year over year on a seasonality-adjusted basis
- Reaffirmed 2026 guidance including $175–$215 million adjusted EBITDA and $40–$60 million free cash flow
Negative
- YTD 2026 net sales declined 4% to $1.16 billion
- YTD adjusted EBITDA fell to $87 million from $89 million
- Free cash flow negative $66 million year-to-date 2026, unchanged from 2025
- Net debt increased to $394 million from $308 million at December 31, 2025
- 2026 guidance implies 1% to 5% adjusted annual net sales decline
News Explained
Quad has reported its second-quarter and year-to-date results; the supplied comparison with first-quarter operating cash use equals
Sources and calculations
- Quad reports second-quarter and year-to-date 2026 results (2026-07-28)
- Dilution definition (2026-07-17)
- Quad first-quarter 2026 fundamentals (2026Q1)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $7,000,000 / ($93,700,000 / 90) = [object Object]
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 21 | Dividend declaration | Neutral | +0.0% | Quarterly dividend declared with September payment and August record dates |
| Jul 16 | Packaging expansion | Positive | +4.4% | New Salt Lake City packaging facility scheduled for fourth-quarter operations |
| Jul 08 | Earnings scheduling | Neutral | -0.1% | Second-quarter results release and conference call dates were announced |
| Jun 23 | Leadership appointment | Positive | +5.5% | Michelle Bowers appointed Vice President of Growth at QuadMed |
| Jun 17 | Industry recognition | Positive | +0.7% | Quad received recognition in Ad Age and MM+M agency rankings |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Quad's recent positive operating and corporate announcements were generally followed by aligned or modestly positive reactions, while the earnings-date notice diverged slightly.
Key Terms
non-gaap adjusted ebitda financial
free cash flow financial
net debt leverage ratio financial
divestiture financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Realizes Net Sales Increase in the Second Quarter and
Reaffirms Full-Year 2026 Financial Guidance
Recent Highlights
- Realized Net Sales of
$578 million $572 million 1% increase in Net Sales. - Recognized Net Earnings of
$4 million $0.07 $0.1 million $0.00 - Reported Non-GAAP Adjusted EBITDA of
$42 million $43 million - Achieved
$0.24 71% from$0.14 - Earned industry recognition for Rise media agency through inclusion in Forrester's report, "The Media Management Services Landscape, Q2 2026."*
- Named strategic marketing partner to Wakefern Food Corp., with Rise serving as client's media AOR and In-Store Connect by Quad to deploy across 30 ShopRite locations later this year.
- Enhancing the national footprint of Quad's Packaging business with the addition of a new 100,000 square-foot facility in
Salt Lake City, Utah . - Repurchased 0.4 million shares of Quad Class A common stock in 2026, bringing total repurchases to 7.9 million shares since commencing buybacks in 2022, representing
14.1% of Quad's March 31, 2022, outstanding shares. - Declared quarterly dividend of
$0.10 - Reaffirms full-year 2026 financial guidance.
Joel Quadracci, Chairman and Chief Executive Officer of Quad, said: "We continue to execute our long-term strategy by investing in growth-oriented offerings across our agency solutions and targeted print businesses. We announced the westward expansion of our Packaging division with a new facility in
"We also continue to deepen existing account relationships and expand opportunities as clients adopt more of our integrated creative, media and marketing solutions. For example, we have broadened our work with long-time print client Wakefern, the nation's largest retailer-owned grocery cooperative, to include Rise's media services; content creation; and In-Store Connect, our in-store retail media network solution, in 30 of its ShopRite stores.
"As we continue to invest in long-term growth, we remain equally focused on driving productivity and operational excellence. Through automation, AI-enabled tools and disciplined cost management, we continue to strengthen our operating model and drive strong productivity in our print business lines. Supported by these efforts, we remain on track to achieve our full-year guidance despite ongoing macroeconomic and geopolitical uncertainty."
Added Tony Staniak, Chief Financial Officer and Treasurer of Quad: "Net Sales grew year-over-year in the second quarter of 2026, driven by higher paper sales and logistics sales, representing progress toward our 2028 projected full-year revenue growth. Adjusted EBITDA and Free Cash Flow were essentially flat compared to 2025 and consistent with our full-year financial guidance. We continue to monitor inflation, economic and global trade dynamics, and geopolitical tensions, and are adjusting as necessary to mitigate their impact on our business and our clients. While continuing to invest to drive long-term growth, we returned
Second Quarter 2026 Financial Results
- Net Sales were
$578 million 1% compared to the same period in 2025. The increase in Net Sales was primarily due to higher paper sales and higher logistics sales.
- Net Earnings were
$4 million $0.07 $0.1 million $0.00
- Adjusted EBITDA was
$42 million $43 million
- Adjusted Diluted Earnings Per Share was
$0.24 $0.14
Year-to-Date 2026 Financial Results
- Net Sales were
$1.2 billion 4% compared to the same period in 2025. Excluding the2% impact of the divestiture of the Company's European operations, Net Sales declined2% . The decline in Net Sales was primarily due to lower print volumes and lower agency solutions sales, partially offset by higher paper sales.
- Net Earnings were
$10 million $0.20 $6 million $0.11
- Adjusted EBITDA was
$87 million $89 million
- Adjusted Diluted Earnings Per Share was
$0.48 $0.34 41% .
- Net Cash Used in Operating Activities was
$41 million $42 million $66 million
- Net Debt was
$394 million $308 million $448 million $66 million $54 million 12% .
Dividend
Quad's next quarterly dividend of
2026 Guidance
The Company's full-year 2026 financial guidance is unchanged and is as follows:
Financial Metric | 2026 Guidance Range |
Adjusted Annual Net Sales Change (1) | |
Full-Year Adjusted EBITDA | |
Free Cash Flow | |
Capital Expenditures | |
Year-End Net Debt Leverage Ratio (2) | Approximately 1.5x |
(1) Adjusted Annual Net Sales Change excludes the 2025 Net Sales of |
(2) Net Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance. |
Conference Call and Webcast Information
Quad will hold a live webcast and conference call to discuss the results on Wednesday, July 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 (
The webcast replay will be available through the investor relations section of Quad's website.
*Forrester Objectivity Statement
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester's objectivity here.
About Quad
Quad (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 Statements
This 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 OPERATIONS For the Three Months Ended June 30, 2026 and 2025 (in millions, except per share data) (UNAUDITED) | |||
Three Months Ended June 30, | |||
2026 | 2025 | ||
Net sales | $ 577.5 | $ 571.9 | |
Cost of sales | 456.1 | 448.1 | |
Selling, general and administrative expenses | 79.6 | 80.2 | |
Depreciation and amortization | 17.2 | 20.7 | |
Restructuring, impairment and transaction-related charges, net | 9.7 | 9.2 | |
Total operating expenses | 562.6 | 558.2 | |
Operating income | 14.9 | 13.7 | |
Interest expense | 8.9 | 13.2 | |
Net pension (income) expense | (0.2) | 0.3 | |
Earnings before income taxes | 6.2 | 0.2 | |
Income tax expense | 2.5 | 0.3 | |
Net earnings (loss) | $ 3.7 | $ (0.1) | |
Earnings (loss) per share | |||
Basic | $ 0.08 | $ 0.00 | |
Diluted | $ 0.07 | $ 0.00 | |
Weighted average number of common shares outstanding | |||
Basic | 48.0 | 47.6 | |
Diluted | 50.0 | 47.6 | |
QUAD/GRAPHICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ended June 30, 2026 and 2025 (in millions, except per share data) (UNAUDITED) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Net sales | $ 1,158.5 | $ 1,201.3 | |
Cost of sales | 914.2 | 948.1 | |
Selling, general and administrative expenses | 158.0 | 163.7 | |
Depreciation and amortization | 35.6 | 40.4 | |
Restructuring, impairment and transaction-related charges, net | 18.1 | 15.8 | |
Total operating expenses | 1,125.9 | 1,168.0 | |
Operating income | 32.6 | 33.3 | |
Interest expense | 18.9 | 25.6 | |
Net pension (income) expense | (0.4) | 0.7 | |
Earnings before income taxes | 14.1 | 7.0 | |
Income tax expense | 4.2 | 1.3 | |
Net earnings | $ 9.9 | $ 5.7 | |
Earnings per share | |||
Basic | $ 0.21 | $ 0.12 | |
Diluted | $ 0.20 | $ 0.11 | |
Weighted average number of common shares outstanding | |||
Basic | 47.9 | 47.8 | |
Diluted | 49.8 | 50.1 | |
QUAD/GRAPHICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS As of June 30, 2026 and December 31, 2025 (in millions) | |||
(UNAUDITED) | December 31, | ||
ASSETS | |||
Cash and cash equivalents | $ 7.4 | $ 63.3 | |
Receivables, less allowances for credit losses | 298.2 | 294.8 | |
Inventories | 156.1 | 143.5 | |
Prepaid expenses and other current assets | 39.8 | 36.8 | |
Total current assets | 501.5 | 538.4 | |
Property, plant and equipment—net | 454.0 | 461.6 | |
Operating lease right-of-use assets—net | 63.6 | 68.0 | |
Goodwill | 107.6 | 107.6 | |
Other intangible assets—net | 11.7 | 13.7 | |
Other long-term assets | 59.4 | 63.6 | |
Total assets | $ 1,197.8 | $ 1,252.9 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Accounts payable | $ 315.3 | $ 342.0 | |
Other current liabilities | 184.2 | 211.7 | |
Short-term debt and current portion of long-term debt | 50.2 | 47.0 | |
Current portion of finance lease obligations | 0.6 | 0.5 | |
Current portion of operating lease obligations | 23.4 | 23.0 | |
Total current liabilities | 573.7 | 624.2 | |
Long-term debt | 349.8 | 322.9 | |
Finance lease obligations | 0.9 | 0.8 | |
Operating lease obligations | 44.3 | 49.8 | |
Deferred income taxes | 4.1 | 4.0 | |
Other long-term liabilities | 100.3 | 122.6 | |
Total liabilities | 1,073.1 | 1,124.3 | |
Shareholders' equity | |||
Preferred stock | — | — | |
Common stock | 1.4 | 1.4 | |
Additional paid-in capital | 842.7 | 846.2 | |
Treasury stock, at cost | (35.6) | (36.3) | |
Accumulated deficit | (623.4) | (623.2) | |
Accumulated other comprehensive loss | (60.4) | (59.5) | |
Total shareholders' equity | 124.7 | 128.6 | |
Total liabilities and shareholders' equity | $ 1,197.8 | $ 1,252.9 | |
QUAD/GRAPHICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2026 and 2025 (in millions) (UNAUDITED) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
OPERATING ACTIVITIES | |||
Net earnings | $ 9.9 | $ 5.7 | |
Adjustments to reconcile net earnings to net cash used in operating activities: | |||
Depreciation and amortization | 35.6 | 40.4 | |
Impairment charges | 1.0 | 4.5 | |
Amortization of debt issuance costs and original issue discount | 0.8 | 0.8 | |
Stock-based compensation | 4.2 | 3.8 | |
Loss on the sale of a business | — | 0.5 | |
Loss (gain) on the sale or disposal of property, plant and equipment, net | 0.1 | (4.5) | |
Deferred income taxes | (0.1) | 0.6 | |
Changes in operating assets and liabilities - net of acquisitions and divestitures | (92.4) | (93.4) | |
Net cash used in operating activities | (40.9) | (41.6) | |
INVESTING ACTIVITIES | |||
Purchases of property, plant and equipment | (25.3) | (24.3) | |
Cost investment in unconsolidated entities | — | (0.2) | |
Proceeds from the sale of property, plant and equipment | 0.2 | 5.3 | |
Acquisition of a business | (1.9) | (16.3) | |
Other investing activities | 0.2 | (2.7) | |
Net cash used in investing activities | (26.8) | (38.2) | |
FINANCING ACTIVITIES | |||
Payments of current and long-term debt | (18.3) | (13.0) | |
Payments of finance lease obligations | (0.3) | (0.7) | |
Borrowings on revolving credit facilities | 618.9 | 678.4 | |
Payments on revolving credit facilities | (571.4) | (590.7) | |
Purchases of treasury stock | (3.2) | (7.6) | |
Equity awards redeemed to pay employees' tax obligations | (3.8) | (3.6) | |
Payment of cash dividends | (10.2) | (7.4) | |
Net cash provided by financing activities | 11.7 | 55.4 | |
Effect of exchange rates on cash and cash equivalents | 0.1 | 0.2 | |
Net decrease in cash and cash equivalents, including cash classified as held for sale | (55.9) | (24.2) | |
Less: net decrease in cash classified as held for sale | — | (1.7) | |
Net decrease in cash and cash equivalents | (55.9) | (22.5) | |
Cash and cash equivalents at beginning of period | 63.3 | 29.2 | |
Cash and cash equivalents at end of period | $ 7.4 | $ 6.7 | |
QUAD/GRAPHICS, INC. SEGMENT FINANCIAL INFORMATION For the Three and Six Months Ended June 30, 2026 and 2025 (in millions) (UNAUDITED) | |||||
Net Sales | Operating Income (Loss) | Restructuring, Impairment and Transaction-Related Charges, Net (1) | |||
Three months ended June 30, 2026 | |||||
United States Print and Related Services | $ 526.0 | $ 26.7 | $ 5.8 | ||
International | 51.5 | 1.9 | 3.3 | ||
Total operating segments | 577.5 | 28.6 | 9.1 | ||
Corporate | — | (13.7) | 0.6 | ||
Total | $ 577.5 | $ 14.9 | $ 9.7 | ||
Three months ended June 30, 2025 | |||||
United States Print and Related Services | $ 524.5 | $ 22.8 | $ 8.6 | ||
International | 47.4 | 3.9 | 0.2 | ||
Total operating segments | 571.9 | 26.7 | 8.8 | ||
Corporate | — | (13.0) | 0.4 | ||
Total | $ 571.9 | $ 13.7 | $ 9.2 | ||
Six months ended June 30, 2026 | |||||
United States Print and Related Services | $ 1,057.0 | $ 52.8 | $ 13.5 | ||
International | 101.5 | 5.6 | 3.6 | ||
Total operating segments | 1,158.5 | 58.4 | 17.1 | ||
Corporate | — | (25.8) | 1.0 | ||
Total | $ 1,158.5 | $ 32.6 | $ 18.1 | ||
Six months ended June 30, 2025 | |||||
United States Print and Related Services | $ 1,078.3 | $ 54.5 | $ 12.1 | ||
International | 123.0 | 4.5 | 3.0 | ||
Total operating segments | 1,201.3 | 59.0 | 15.1 | ||
Corporate | — | (25.7) | 0.7 | ||
Total | $ 1,201.3 | $ 33.3 | $ 15.8 | ||
(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 June 30, 2026 and 2025 (in millions, except margin data) (UNAUDITED) | |||
Three Months Ended June 30, | |||
2026 | 2025 | ||
Net earnings (loss) | $ 3.7 | $ (0.1) | |
Interest expense | 8.9 | 13.2 | |
Income tax expense | 2.5 | 0.3 | |
Depreciation and amortization | 17.2 | 20.7 | |
EBITDA (non-GAAP) | $ 32.3 | $ 34.1 | |
EBITDA Margin (non-GAAP) | 5.6 % | 6.0 % | |
Restructuring, impairment and transaction-related charges, net (1) | 9.7 | 9.2 | |
Adjusted EBITDA (non-GAAP) | $ 42.0 | $ 43.3 | |
Adjusted EBITDA Margin (non-GAAP) | 7.3 % | 7.6 % | |
(1) | Operating results for the three months ended June 30, 2026 and 2025, were affected by the following restructuring, impairment and transaction-related charges, net: | |||||||||||
Three Months Ended June 30, | |||
2026 | 2025 | ||
Employee termination charges (a) | $ 6.7 | $ 5.8 | |
Impairment charges (b) | 0.8 | 4.2 | |
Transaction-related charges (c) | 0.4 | 0.4 | |
Integration costs (d) | 0.3 | 0.2 | |
Other restructuring charges (income) (e) | 1.5 | (1.4) | |
Restructuring, impairment and transaction-related charges, net | $ 9.7 | $ 9.2 | |
(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 activities, as well as software licensing and related implementation costs from a terminated project and charges for operating lease right-of-use assets during the three months ended June 30, 2025. | |||||||||||
(c) | Transaction-related charges consisted of 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) primarily include costs to maintain and exit closed facilities, as well as lease exit charges, and are presented net of a | |||||||||||
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN For the Six Months Ended June 30, 2026 and 2025 (in millions, except margin data) (UNAUDITED) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Net earnings | $ 9.9 | $ 5.7 | |
Interest expense | 18.9 | 25.6 | |
Income tax expense | 4.2 | 1.3 | |
Depreciation and amortization | 35.6 | 40.4 | |
EBITDA (non-GAAP) | $ 68.6 | $ 73.0 | |
EBITDA Margin (non-GAAP) | 5.9 % | 6.1 % | |
Restructuring, impairment and transaction-related charges, net (1) | 18.1 | 15.8 | |
Adjusted EBITDA (non-GAAP) | $ 86.7 | $ 88.8 | |
Adjusted EBITDA Margin (non-GAAP) | 7.5 % | 7.4 % | |
(1) | Operating results for the six months ended June 30, 2026 and 2025, were affected by the following restructuring, impairment and transaction-related charges, net: | |||||||||||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Employee termination charges (a) | $ 11.1 | $ 6.5 | |
Impairment charges (b) | 1.0 | 4.5 | |
Transaction-related charges (c) | 0.6 | 3.0 | |
Integration costs (d) | 0.7 | 0.2 | |
Other restructuring charges, net (e) | 4.7 | 1.6 | |
Restructuring, impairment and transaction-related charges, net | $ 18.1 | $ 15.8 | |
(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 activities, as well as software licensing and related implementation costs from a terminated project and charges for operating lease right-of-use assets during the six months ended June 30, 2025. | |||||||||||
(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, and are presented net of a | |||||||||||
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES FREE CASH FLOW For the Six Months Ended June 30, 2026 and 2025 (in millions) (UNAUDITED) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Net cash used in operating activities | $ (40.9) | $ (41.6) | |
Less: purchases of property, plant and equipment | 25.3 | 24.3 | |
Free Cash Flow (non-GAAP) | $ (66.2) | $ (65.9) | |
In addition to financial measures prepared in accordance with accounting principles generally accepted in
QUAD/GRAPHICS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES NET DEBT AND NET DEBT LEVERAGE RATIO As of June 30, 2026 and December 31, 2025 (in millions, except ratio) (UNAUDITED) | |||
June 30, 2026 | December 31, 2025(2) | ||
Total debt and finance lease obligations on the condensed consolidated balance sheets | $ 401.5 | $ 371.2 | |
Less: Cash and cash equivalents | 7.4 | 63.3 | |
Net Debt (non-GAAP) | $ 394.1 | $ 307.9 | |
Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1) | $ 194.1 | $ 196.2 | |
Net Debt Leverage Ratio (non-GAAP) | 2.03 x | 1.57 x | |
(1) | The calculation of Adjusted EBITDA for the trailing twelve months ended June 30, 2026, and December 31, 2025, was as follows: | ||||||||||||||||||||||
Add | Subtract | Trailing Twelve | |||||
Year Ended | Six Months Ended | ||||||
December 31, 2025(2) | June 30, 2026 | June 30, 2025 | June 30, 2026 | ||||
Net earnings | $ 27.0 | $ 9.9 | $ 5.7 | $ 31.2 | |||
Interest expense | 50.5 | 18.9 | 25.6 | 43.8 | |||
Income tax expense | 5.5 | 4.2 | 1.3 | 8.4 | |||
Depreciation and amortization | 78.6 | 35.6 | 40.4 | 73.8 | |||
EBITDA (non-GAAP) | $ 161.6 | $ 68.6 | $ 73.0 | $ 157.2 | |||
Restructuring, impairment and transaction-related charges, net | 21.8 | 18.1 | 15.8 | 24.1 | |||
Settlement charge from defined benefit pension plan annuitization | 12.8 | — | — | 12.8 | |||
Adjusted EBITDA (non-GAAP) | $ 196.2 | $ 86.7 | $ 88.8 | $ 194.1 | |||
(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
QUAD/GRAPHICS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED DILUTED EARNINGS PER SHARE For the Three Months Ended June 30, 2026 and 2025 (in millions, except per share data) (UNAUDITED) | |||
Three Months Ended June 30, | |||
2026 | 2025 | ||
Earnings before income taxes | $ 6.2 | $ 0.2 | |
Restructuring, impairment and transaction-related charges, net | 9.7 | 9.2 | |
Adjusted net earnings, before income taxes (non-GAAP) | 15.9 | 9.4 | |
Income tax expense at | 4.0 | 2.4 | |
Adjusted net earnings (non-GAAP) | $ 11.9 | $ 7.0 | |
Basic weighted average number of common shares outstanding | 48.0 | 47.6 | |
Plus: effect of dilutive equity incentive instruments (1) | 2.0 | 1.9 | |
Diluted weighted average number of common shares outstanding (1) | 50.0 | 49.5 | |
Adjusted diluted earnings per share (non-GAAP) (2) | $ 0.24 | $ 0.14 | |
Diluted earnings (loss) per share (GAAP) | $ 0.07 | $ 0.00 | |
Restructuring, impairment and transaction-related charges, net per share | 0.20 | 0.19 | |
Income tax expense from condensed consolidated statement of operations per share | 0.05 | 0.01 | |
Income tax expense at | (0.08) | (0.05) | |
Effect of dilutive equity incentive instruments | — | (0.01) | |
Adjusted diluted earnings per share (non-GAAP) (2) | $ 0.24 | $ 0.14 | |
(1) | Effect of dilutive equity incentive instruments and diluted weighted average number of common shares outstanding for the three months ended June 30, 2025 are non-GAAP. | |||||||||||
(2) | 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
QUAD/GRAPHICS, INC. RECONCILIATION OF GAAP TO NON-GAAP MEASURES ADJUSTED DILUTED EARNINGS PER SHARE For the Six Months Ended June 30, 2026 and 2025 (in millions, except per share data) (UNAUDITED) | |||
Six Months Ended June 30, | |||
2026 | 2025 | ||
Earnings before income taxes | $ 14.1 | $ 7.0 | |
Restructuring, impairment and transaction-related charges, net | 18.1 | 15.8 | |
Adjusted net earnings, before income taxes (non-GAAP) | 32.2 | 22.8 | |
Income tax expense at | 8.1 | 5.7 | |
Adjusted net earnings (non-GAAP) | $ 24.1 | $ 17.1 | |
Basic weighted average number of common shares outstanding | 47.9 | 47.8 | |
Plus: effect of dilutive equity incentive instruments | 1.9 | 2.3 | |
Diluted weighted average number of common shares outstanding | 49.8 | 50.1 | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.48 | $ 0.34 | |
Diluted earnings per share (GAAP) | $ 0.20 | $ 0.11 | |
Restructuring, impairment and transaction-related charges, net per share | 0.36 | 0.32 | |
Income tax expense from condensed consolidated statement of operations per share | 0.08 | 0.02 | |
Income tax expense at | (0.16) | (0.11) | |
Adjusted diluted earnings per share (non-GAAP) (1) | $ 0.48 | $ 0.34 | |
(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
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SOURCE Quad