Quad/Graphics, Inc. reports results for the third quarter ended Sept. 30, 2025.

Net sales were $588 million in the third quarter of 2025, a decrease of 13% compared to the same period in 2024. Excluding the 6% impact of the divestiture of the company’s European operations, net sales declined 7%. The decline was primarily due to lower paper sales, lower print volumes, and lower logistics and agency solutions sales.

Net earnings were $10 million, or $0.21 diluted earnings per share, in the third quarter of 2025 compared to net loss of $25 million, or $0.52 diluted loss per share, in the third quarter of 2024. Adjusted EBITDA was $53 million in the third quarter of 2025, compared to $59 million in the same period in 2024.

“Quad continues to sharpen our competitive edge as a marketing experience company by simplifying the complexities of omnichannel marketing,” says Joel Quadracci, chairman, president and CEO of Quad, “Through targeted investments in AI-powered tools and systems, data and audience intelligence services, and our In-Store Connect retail media network, combined with our creative marketing services and premier print platform, we are building differentiated strengths in the marketplace.

“These innovations not only enhance client outcomes but also position Quad to drive long-term diversified growth, continue to improve operational efficiencies, and deliver sustained value to shareholders,” Quadracci adds.

“We also continue to build momentum for our In-Store Connect retail media network among mid-market grocers and CPG brands seeking deeper engagement with high-value shopper audiences,” Quadracci concludes. “Campaigns leveraging In-Store Connect have been shown to drive greater brand awareness and product sales—especially when promotional offers are included—as evidenced by results from 2025 campaigns, including Procter & Gamble, PepsiCo’s Rockstar Energy drink, and Nestlé USA’s DiGiorno frozen pizza. We look forward to building on this momentum, which includes the introduction of new digital signage formats for increased visibility and engagement.”

“We are narrowing our full-year 2025 adjusted annual net sales change guidance and reaffirming a 4% decline at the midpoint, improved from the 9.7% net sales decline we reported for full-year 2024,” adds Tony Staniak, CFO of Quad. “Our adjusted annual net sales guidance represents meaningful progress toward achieving an inflection to net sales growth in 2028.

“We are also narrowing full year adjusted EBITDA and free cash flow within our original guidance ranges,” Staniak continues. “We continue to closely monitor uncertainties in the macroeconomic environment and will follow our disciplined approach to how we manage all aspects of our business, including treating all costs as variable, optimizing capacity utilization and maintaining strong labor management.”

Year-to-Date 2025 Financial Results

• Net sales were $1.8 billion in the nine months ended Sept, 30, 2025, a decrease of 9% compared to the same period in 2024. Excluding the 5% impact of the divestiture of the company’s European operations, net sales declined 4%.

The decline in net sales was primarily due to lower paper sales, lower print volumes, and lower logistics and agency solutions sales, including the loss of a large grocery client which annualized at the beginning of March 2025.

Adjusted EBITDA was $141 million in the nine months ended September 30, 2025, compared to $161 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.

Free cash flow was negative $87 million in the nine months ended Sept. 30, 2025, compared to negative $92 million in the same period in 2024. The improvement in free cash flow was primarily due to a $9 million decrease in capital expenditures, partially offset by a $4 million increase in net cash used in operating activities. As a reminder, the company historically generates most of its free cash flow in the fourth quarter of the year and expects fourth quarter 2025 free cash flow to be $137 million to $147 million.

Net debt was $465 million at Sept. 30, 2025, compared to $350 million at Dec. 31, 2024 and $490 million at Sept. 30, 2024. Compared to December 31, 2024, Net debt increased primarily due to seasonally negative $87 million of free cash flow in the nine months ended Sept. 30, 2025, $19 million return of capital to shareholders through share repurchases and dividends and a $16 million payment for the Enru co-mailing asset acquisition.