Quad/Graphics, Inc. reported results for the fourth quarter and fiscal year ended Dec. 31, 2025.

Net 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.

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.

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.

Net debt was $308 million at Dec. 31, 2025, reduced from $350 million at Dec. 31, 2024. The debt leverage ratio was essentially flat at 1.57x at Dec. 31, 2025, compared to 1.56x at Dec. 31, 2024.

Fourth Quarter 2025 Financial Results

Net sales were $631 million in the fourth quarter of 2025, a decrease of 11% 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.

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.

“In 2025, we made significant operational progress and delivered solid financial results, achieving our full-year financial guidance,” Joel Quadracci, chairman and CEO of Quad, says. “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.

“The 2025 financial results and our 2026 financial guidance demonstrate meaningful progress toward achieving an inflection to net sales growth in 2028,” adds Tony Staniak, CFO and treasurer of Quad. “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,” Staniak concludes.