Quad Graphics (NYSE:QUAD) executives told investors the company met its full-year 2025 financial guidance and continued to advance its strategy to diversify revenue beyond traditional print, while generating cash to fund investment, reduce debt, and return capital to shareholders.
Strategic focus: integrated marketing and targeted print
Chairman and CEO Joel Quadracci said Quad’s integrated marketing platform is designed to help brands “strategize, plan, create, deploy, measure, and optimize” campaigns across physical and digital channels through its MX Solutions Suite. He described the integration of creative, production, and media capabilities as a competitive advantage intended to reduce friction across the marketing journey.
Quad also formalized a direct marketing agency in 2025 to bring together services that are often separate—strategy, audience identification, creative, production, and measurement—supported by the company’s proprietary data stack and pre-market testing services. Management said the model is intended to improve response rates and help customers scale personalized mail programs.
Client wins and expansion in agencies and in-store capabilities
Management pointed to several customer examples and agency wins during the call. Quadracci discussed Heartland Dental as an example of Quad’s effort to modernize direct mail by shifting from geography-based mailings to more targeted outreach aligned with higher-value patient segments. Since winning the business in the fourth quarter of 2025, Quad said it has focused on postal optimization, structured testing, creative optimization, and personalization, with plans to introduce more advanced household-level targeting over time. Quad also said it expects to deliver “seven-figure” postal savings for the client in the first year by leveraging USPS promotions and its optimization services.
Quadracci said Quad continues investing in its Betty Creative and Rise Media agencies and recently announced new offices in Austin, Texas, and Mexico City, Mexico. He said the company’s growing agency footprint has supported larger integrated assignments, citing wins with Scandinavian Designs and Valvoline Instant Oil Change.
Quad also highlighted an integrated agency relationship with The Gorilla Glue Company. Quadracci said Betty developed a new creative platform that blends live-action and product demonstrations with a brand character created using generative AI and CGI, while Rise was named media agency of record for Gorilla Glue and O’Keeffe’s to lead integrated media strategy, planning, buying, and measurement.
In addition, Quadracci discussed Quad’s work supporting emerging consumer packaged goods brands entering big-box retail. As an example, he described Quad’s support for Pura, including concept development, structural engineering, print production, and distribution for a major in-store promotion featuring a custom end cap with a diffuser element designed to let shoppers experience fragrances while maintaining product security. Quad said it has since deployed similar displays across multiple retailers.
Leadership changes and AI investments
Quadracci announced an expanded role for Dave Honan, promoted to President while continuing as Chief Operating Officer. He said the structure allows Honan to drive day-to-day execution while Quadracci focuses on long-term strategy, innovation, partnerships, and stakeholder relationships.
Quad also reorganized marketing and sales under Executive Vice President and Chief Revenue Officer Julie Currie. Quadracci thanked former Chief Marketing Officer Josh Golden, who is leaving for a new career opportunity, and credited him with elevating Quad’s brand identity and building a marketing organization.
On technology, management said Quad is making targeted investments in artificial intelligence to drive internal efficiency and client-facing capabilities. Examples cited included AI automation for workflows such as scheduling and job ticket creation, AI-enabled audience building supported by its data stack, and AI-powered tools for reporting and measurement within Rise’s operating system. Quadracci also said Betty Studios is blending synthetic and traditional photography to produce creative assets faster and more cost-effectively.
2025 results: sales down, cash generation and EPS improvement
Chief Financial Officer Tony Staniak reported fourth-quarter 2025 net sales of $631 million, down 5.7% from the prior-year quarter excluding the divestiture of European operations. Full-year 2025 net sales were $2.4 billion, down 4.8% year over year on the same basis. Staniak attributed the annual decline to lower paper sales, lower print volumes, and lower logistics and agency sales, including the loss of a large grocery client in 2024 that annualized in early March 2025.
Adjusted EBITDA was $55 million in the fourth quarter, down from $63 million a year earlier, and $196 million for full-year 2025, down from $224 million in 2024. Staniak said the decrease reflected lower net sales, increased investments in growth offerings, and the European divestiture, partially offset by lower SG&A and improved manufacturing productivity.
Adjusted diluted EPS was $0.36 in the fourth quarter, consistent with the prior-year quarter, while full-year adjusted diluted EPS rose to $1.01 from 2024, which Staniak said reflected higher adjusted net earnings and a lower share count from buybacks. He said Quad has repurchased 7.4 million shares since 2022 at an average price of $4.11, including 1.5 million shares for $8 million during 2025, and had $69.5 million remaining under its authorization as of Dec. 31, 2025.
Free cash flow was $51 million in 2025 versus $56 million in 2024, which Staniak said was primarily due to lower operating cash flow driven mainly by working-capital timing, partially offset by lower capital expenditures. He also noted that Quad generated more than $870 million of free cash flow and asset-sale proceeds from 2020 to 2025, including $88 million in 2025, aided by the European sale to CapMan and real estate sales.
Staniak said net debt declined by $42 million during 2025 and that the company reduced debt by $726 million from 2020 to 2025. Quad ended 2025 with net debt leverage of 1.57x and total available liquidity of $299 million under its most restrictive covenant, with the next significant maturity of $205 million due in October 2029. He also described a fourth-quarter pension annuitization of $96 million in liability, which resulted in a $13 million non-cash settlement charge and left $42 million of net pension liability as of Dec. 31, 2025.
Guidance, capital returns, and key themes from Q&A
Quad issued 2026 guidance that calls for net sales to decline 1% to 5% versus 2025 (excluding $23 million of 2025 sales from the European divestiture), with management expecting the first half to be weaker than the second half due to seasonality. Adjusted EBITDA is expected to range from $175 million to $215 million, with the midpoint essentially flat with 2025. The company projected adjusted EBITDA margin of 8.4% in 2026, up 30 basis points from 2025, and free cash flow of $40 million to $60 million. Capital expenditures are expected to increase to $55 million to $65 million, which management said includes investment in growth and automation, including In-Store Connect by Quad.
Quadracci said Quad’s board increased the quarterly dividend by 33% to $0.10 per share ($0.40 annualized). Staniak said the higher dividend implies a sustainable $5 million increase in expected cash dividend payments in 2026 compared with 2025.
In the question-and-answer session, management emphasized direct mail as a responsive channel when combined with data-driven targeting and personalization. Quadracci also discussed postal dynamics, noting that postage can represent up to 70% of a direct mailer’s costs. He said Quad’s acquisition of Andrews increased co-mail volumes and improved discount opportunities, while acknowledging continued declines in catalogs and uncertainty around the longer-term direction of USPS pricing, even as the industry expects a midyear increase.
On In-Store Connect, Quadracci said Quad has learned implementation can take time across retailer organizations, but described an acceleration in conversations and opportunities. Staniak added that CapEx guidance includes reserved capital for growth in In-Store Connect, and both executives said Quad intends to maintain a balanced capital allocation approach, including investment, shareholder returns, and maintaining low leverage.
Management also confirmed that the company’s plant outside Thomaston, Georgia, is wrapping up production and is expected to close in early March, following an earlier announcement of the closure in the fourth quarter.
About Quad Graphics (NYSE:QUAD)
Quad Graphics, Inc (NYSE: QUAD) is a global provider of print and related marketing services, serving a diverse range of clients in the publishing, retail, e-commerce and consumer packaged goods sectors. The company offers end-to-end solutions that span traditional print production, supply chain management and digital marketing support. Quad Graphics leverages a network of production facilities and distribution centers to deliver high-quality printed materials and integrated marketing programs that help clients reach their target audiences across multiple channels.
The company’s core offerings include magazine and catalog printing, direct mail, retail inserts, shopper marketing materials, custom packaging and point-of-sale displays.
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