Q4 2026 Cimpress PLC Earnings Call

Speaker #1: Vice President of Investor Relations and Sustainability.

Speaker #2: Thank you, Ari, and thank you, everyone, for joining us. With us today are Robert Keane, our Founder, Chairman, and Chief Executive Officer; and Sean Quinn, our EVP and Chief Financial Officer.

Speaker #2: We appreciate the time that you've dedicated to understand our results, the commentary, and the outlook—particularly at year-end. this live Q&A session will last about 45 minutes or so, and we'll answer both pre-submitted and live questions.

Speaker #2: You can submit questions via the questions-and-answers box at the bottom left of the screen. Before we start, I'll note that in this session we will make statements about the future.

Speaker #2: Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and the earnings document, we publish yesterday on our website.

Speaker #2: We also have published non-GAAP reconciliations for our financial results on our IR website, and we invite you to read all of those. So now I'll turn things over to Robert.

Speaker #1: Welcome to the CIMPRESS Q4 fiscal year 2026 earnings call. I will now introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Speaker #3: Hi everyone, thank you very much for joining us today. and it's great to be here—Meredith, thank you. I want to start with my perspective on the strong progress that we've made against the Strategic and the Operational themes that we've been pursuing for a while now.

Speaker #2: Thank you, Ari, and thank you, everyone, for joining us. With us today are Robert Keane, our founder-chairman and chief executive officer, and Sean Quinn, our EVP and chief financial officer.

Speaker #3: Then Sean is going to take you through our Q4 results, and our updated guidance. We made great progress in fiscal 2026. Right along the path that we've been describing for the past few years.

Speaker #2: We appreciate the time that you've dedicated to understand our results, commentary, and outlook—particularly at year-end. This live Q&A session will last about 45 minutes or so and will answer both pre-submitted and live questions.

Speaker #3: That's true of our Strategic objectives, manufacturing and supply chain excellence, elevated products, and design enablement. And it's true of our ways of working. The handful of shared capabilities, like our mass customization platform, our velocity, and our efficiency.

Speaker #2: You can submit questions via the Questions and Answers box at the bottom left of the screen. Before we start, I'll note that in this session, we will make statements about the future.

Speaker #2: Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and the earnings document we published yesterday on our website.

Speaker #3: I gave a lot of examples in my annual letter, so I won't go through them again here, but I'd really encourage you to read it.

Speaker #2: We also have published non-GAAP reconciliations for our financial results on our IR website, and we invite you to read all of those. So now, I'll turn things over to Robert.

Speaker #3: It lays out these themes, and where we're investing to grow revenue, and take out cost. For those of you who have not yet read the letter—excuse me—there's one thing I want to call out: our new Strategic Partnership with Canva.

Speaker #3: Hi, everyone. Thank you very much for joining us today, and it's great to be here—Meredith, thank you. I want to start with my perspective on the strong progress that we've made against the strategic and operational themes that we've been pursuing for a while now.

Speaker #3: Canva is one of the largest design platforms in the world. Hundreds of millions of people use it every month. We've launched a first set of VistaPrint branded products in Canada and the U.S., and by the end of September we'll have expanded that range significantly.

Speaker #3: Then Sean is going to take you through our Q4 results and our updated guidance. We made great progress in fiscal 2026, right along the path that we've been describing for the past few years.

Speaker #3: And we'll have gone live in more than 25 additional countries. Canva is a real leader in artificial intelligence, and Canva AI will plug directly into SIMPRESS systems.

Speaker #3: That's true of our strategic objectives: manufacturing and supply chain excellence, elevated products, and design enablement. And it's true of our ways of working—the handful of shared capabilities like our mass customization platform, our velocity, and our efficiency.

Speaker #3: There's a deep technical integration. So a customer can go from a design prompt to a professionally produced print-ready VistaPrint product without ever leaving Canva.

Speaker #3: I gave a lot of examples in my annual letter, so I won't go through them again here, but I'd really encourage you to read it.

Speaker #3: That gives us a meaningful new on-ramp to customers at scale, and it gives Canva a production partner it can trust for its print shop strategy.

Speaker #3: It lays out these themes. And where we're investing to grow revenue and take out cost. For those of you who have not yet read the letter—excuse me—there's one thing I want to call out: our new strategic partnership with Canva.

Speaker #3: It's a real growth opportunity for both companies. The Strategic Partnership is in its early days, and we're excited about where this can go. I'm sure you'll have questions, but I'll tell you up front: we can't share much more today because of the confidentiality terms of the partnership.

Speaker #3: Canva is one of the largest design platforms in the world. Hundreds of millions of people use it every month. We've launched a first set of Vistaprint branded products in Canada and the U.S.

Speaker #3: One more piece of progress that's worth speaking about today is, since our last call, we did close on the acquisition of SaxoPrint. The logic here is simple: SaxoPrint gives us a high capability, focused production hub.

Speaker #3: And by the end of September, we'll have expanded that range significantly. And we'll have gone live in more than 25 additional countries. Canva is a real leader in artificial intelligence.

Speaker #3: Exactly the kind of asset our cross-SIMPRESS fulfillment strategy is built on. It will strengthen print brothers directly in the near term and over the, longer—I'd say mid-term—the value will extend beyond print brothers across our European businesses.

Speaker #3: And Canva AI will plug directly into Cimpress systems. There's a deep technical integration. So a customer can go from a design prompt to a professionally produced, print-ready Vistaprint product without ever leaving Canva.

Speaker #3: It's another deliberate step in building the shared production capabilities and capacity that makes the whole of SIMPRESS network stronger. We're excited to have SaxoPrint on our team.

Speaker #3: That gives us a meaningful new on-ramp to customers at scale, and it gives Canva a production partner it can trust for its print shop strategy.

Speaker #3: It's a real growth opportunity for both companies. The strategic partnership is in its early days, and we're excited about where this can go. I'm sure you'll have questions, but I'll tell you upfront: we can't share much more today because of the confidentiality terms of the partnership.

Speaker #3: So let's step back to the big picture of where SIMPRESS is overall. First, the momentum we built this past year puts us in a strong position to deliver our profitability and free cash flow commitments through fiscal 2028.

Speaker #3: And the investments we're making will keep those metrics growing well beyond 2028. Second, our competitive advantages are significant. We have thousands of talented, dedicated people, all pulling in the same direction on strategy, on operations, on our financial goals.

Speaker #3: One more piece of progress that's worth speaking about today is that, since our last call, we did close on the acquisition of SaxoPrint. The logic here is simple: SaxoPrint gives us a high-capability, focused production hub.

Speaker #3: Exactly the kind of asset our cross-Cimpress fulfillment strategy is built on. It will strengthen Print Brothers directly in the near term, and over the longer term—I'd say mid-term—the value will extend beyond Print Brothers across our European businesses.

Speaker #3: And every year we give our customers more value. No competitor matches our scale. And none matches our ability or our willingness to keep investing in new product categories and in world-class manufacturing and supply chain.

Speaker #3: It's another deliberate step in building the shared production capabilities and capacity that make the whole of CIMPRESS network stronger. We're excited to have SaxoPrint on our team.

Speaker #3: Third, ever since our startup days, we've harnessed digital technologies and software to create real value for customers while driving down costs. And AI is going to be a very exciting next chapter in that long history.

Speaker #3: So let's step back to the big picture of where Cimpress is overall. First, the momentum we built this past year puts us in a strong position to deliver our profitability and free cash flow commitments through fiscal 2028.

Speaker #3: But here's the thing: we've always made our money by producing customized physical products better than anyone else. These are real tangible things. So even as AI speeds up the velocity, with which we can create value and take out costs, it does not threaten our core economic engine.

Speaker #3: And the investments we're making will keep those metrics growing well beyond 2028. Second, our competitive advantages are significant. We have thousands of talented, dedicated people, all pulling in the same direction—on strategy, on operations, on our financial goals.

Speaker #3: That engine is the huge growing range of customized physical products that we produce every day, with high quality, low cost, and fast turnaround. So to sum it up, SIMPRESS is executing well against the plans I laid out in my investor letter a year ago, and which our executive team walked you through in more detail at our investor day last September.

Speaker #3: And every year we give our customers more value. No competitor matches our scale. And none matches our ability. Or our willingness to keep investing in new product categories and in world-class manufacturing and supply chain.

Speaker #3: And those plans build on years of work and the investment before that. We're building real capabilities and real advantages—ones that let us serve customers better, and keep up our multi-decade disruption of a very large, very fragmented market for customized marketing products and branded merchandise.

Speaker #3: Third, ever since our startup days, we've harnessed digital technologies and software to create real value for customers while driving down costs. And AI is going to be a very exciting next chapter in that long history.

Speaker #3: Better profitability will show the intrinsic value that we're building per share. And we'll deliver it without ever losing sight of the long term. Our path ahead is clear.

Speaker #3: But here's the thing: we've always made our money by producing customized physical products better than anyone else. These are real, tangible things. So even as AI speeds up the velocity, with which we can create value and take out cost, it does not threaten our core economic engine.

Speaker #3: On the numbers, this progress has let us raise our at least target for 2028, fiscal 2028, to $615 million, of adjusted EBITDA, with free cash flow conversion of around $45%.

Speaker #3: That engine is the huge, growing range of customized physical products that we produce every day with high quality, low cost, and fast turnaround. So to sum it up, CIMPRESS is executing well against the plans I laid out in my investor letter a year ago.

Speaker #3: Now, let me be clear about why we share target. It is not because EBITDA is our top objective; it isn't. Our top objective is and has always been intrinsic value per share.

Speaker #3: And which our executive team walked you through in more detail at our Investor Day last September. And those plans build on years of work and the investment before that.

Speaker #3: We share EBITDA as a target because it's public, it's measurable, it's a milestone on the path to much higher cash flow per share, and it holds us accountable.

Speaker #3: We're building real capabilities and real advantages—ones that let us serve customers better and continue our multi-decade disruption of a very large, very fragmented market for customized marketing products and branded merchandise.

Speaker #3: And it gives you a concrete—concrete way to track our progress. And I want to be direct about this: we would not chase this target through decisions we thought sacrificed intrinsic value per share for the near term.

Speaker #3: Better profitability will show the intrinsic value that we're building per share, and we'll deliver it without ever losing sight of the long term. Our path ahead is clear.

Speaker #3: We just wouldn't do that. But we strongly believe that we can see multiple years of EBITDA expansion compatible with our intrinsic value per share objectives.

Speaker #3: With that, I'll hand it over to Sean to walk through the quarter and our financial outlook for the next 2 years.

Speaker #3: On the numbers, this progress has let us raise our at least target for fiscal 2028 to $615 million of adjusted EBITDA, with free cash flow conversion of around 45%.

Speaker #1: Sean?

Speaker #2: Great. Thanks, Robert. And thanks, everyone, for joining us today. As Robert said, fiscal year 2026 was a strong year for SIMPRESS. We're on the right path operationally, and importantly, we have cohesive plans for delivering on what we've laid out for the next 2 years in our fiscal 2027 guidance, and also our increased fiscal 2028 targets.

Speaker #3: Now, let me be clear about why we share a multi-year EBITDA target. It is not because EBITDA is our top objective. It isn't. Our top objective is and has always been intrinsic value per share.

Speaker #2: The full-year revenue in fiscal 2026 reached $3.74 billion, up 10% on a reported basis. And 4% on an organic concurrency basis. Adjusted EBITDA grew 6% for the year.

Speaker #3: We share EBITDA as a target because it's public, it's measurable, it's a milestone on the path to much higher cash flow per share. And it holds us accountable.

Speaker #3: And it gives you a concrete way to track our progress. And I want to be direct about this: we would not chase this target through decisions we thought sacrificed intrinsic value per share for the near term.

Speaker #2: And that was getting us to $458.5 million, in total. For Q4, consolidated revenue grew 9% on a reported basis and 3% on an organic concurrency basis, we continue to see good progress in our ability to better serve high-value customers—one of the best indications of that is the continued variable gross profit per customer growth and Vistaprint, which we've been reporting throughout this year—and that increased 9% year-over-year, continuing that multi-year trend.

Speaker #3: We just wouldn't do that. But we strongly believe that we can see multiple years of EBITDA expansion, compatible with our intrinsic value per share objectives.

Speaker #3: With that, I'll hand it over to Sean to walk through the quarter and our financial outlook for the next two years.

Speaker #2: For the quarter, adjusted EBITDA was $120.4 million. As noted in yesterday's release, Q4 profitability was impacted by a few items outside of our core operations, we had $7.1 million in higher startup costs for our North American manufacturing network build-out.

Speaker #2: Sean?

Speaker #1: Great. Thanks, Robert. And thanks, everyone, for joining us today. As Robert said, fiscal year 2026 was a strong year for CIMPRESS. We're on the right path operationally.

Speaker #1: And importantly, we have cohesive plans for delivering on what we've laid out for the next two years in our fiscal 2027 guidance, and also our increased fiscal 2028 targets.

Speaker #2: We had $4.7 million write-off of Canadian duty drawback receivables that were actively contesting after a long-standing ruling was revoked, and that happened right at the end of the quarter.

Speaker #1: Full-year revenue in fiscal 2026 reached $3.74 billion, up 10% on a reported basis and 4% on an organic constant currency basis. Adjusted EBITDA grew 6% for the year.

Speaker #2: And we had $1.8 million of inventory write-downs, and all that was partially offset by the IEPA tariff refunds that we had in the quarter of $6.9 million.

Speaker #1: And that was getting us to $458.5 million in total. For Q4, consolidated revenue grew 9% on a reported basis and 3% on an organic constant currency basis.

Speaker #2: Relative to guidance, we came in below where we expected, the duty drawback topic, the inventory write-downs, and also an adjustment that was necessary for variable long-term incentives all came up at the very end of the quarter.

Speaker #1: We continue to see good progress in our ability to better serve high-value customers. One of the best indications of that is the continued variable gross profit per customer growth and Vistaprint, which we've been reporting throughout this year.

Speaker #2: That was about $10 million of negative impact on adjusted EBITDA. We also had two other smaller items: the impact of currency was less favorable than we had expected just based on changes in rates from the end of April, when we had updated guidance.

Speaker #1: And that increased 9% year-over-year, continuing that multi-year trend. For the quarter, adjusted EBITDA was $120.4 million. As noted in yesterday's release, Q4 profitability was impacted by a few items outside of our core operations.

Speaker #2: And then we had transaction costs for the Saxo print acquisition as well. The two of those combined are about $2 million. Candidly, that's a lot of noise there.

Speaker #2: As demonstrated from our go-forward guidance that I'll review in a moment, these topics don't change our charted profitability and cash flow growth path. Adjusted free cash flow was $70.5 million, for Q4, and it was $122.4 million for the year.

Speaker #1: We had $7.1 million in higher startup costs for our North American manufacturing network build-out. We had a $4.7 million write-off of Canadian duty drawback receivables that we are actively contesting after a longstanding ruling was revoked.

Speaker #2: As we've discussed throughout the year, this reflects our higher manufacturing capitalized—or capital expenditures—all those to drive unit cost reductions and also expand elevated product capacity and capabilities.

Speaker #1: And that happened right at the end of the quarter. We had $1.8 million of inventory write-downs, and all of that was partially offset by the IEPA tariff refunds that we had in the quarter of $6.9 million.

Speaker #2: Networking capital was a significant inflow in Q4 as it normally is, but for the full year, the impact of networking capital was $11 million use of cash, which we expected to be a small inflow for the year.

Speaker #1: Relative to guidance, we came in below where we expected. The duty drawback topic, the inventory write-downs, and also an adjustment that was necessary for variable long-term incentives all came up at the very end of the quarter.

Speaker #2: That's just timing, nothing structural there, but that was the other impact relative to our full-year guidance. We ended fiscal 2026 in a strong balance sheet position.

Speaker #1: That was about $10 million of negative impact on adjusted EBITDA. We also had two other, smaller items. The impact of currency was less favorable than we had expected, just based on changes in rates.

Speaker #2: Net leverage was 2.9 times trailing 12-month EBITDA as calculated based on our credit agreement. That was consistent with what we guided to throughout the year.

Speaker #1: From the end of April, when we had updated guidance, and then we had transaction costs for the SaxoPrint acquisition as well. The two of those combined were about $2 million.

Speaker #2: And that's down from 3.1 times at the end of fiscal 2025. Our liquidity remains robust. We had $249 million in cash and cash equivalents.

Speaker #1: Candidly, that's a lot of noise there. As demonstrated from our go-forward guidance that I'll review in a moment, these topics don't change our charted profitability and cash flow growth path.

Speaker #2: At the end of the year, we also have our $250 million revolving credit facility. And I should note that we—during the quarter—closed on a new $1.1 billion term loan B that's now due 2033 and replaces our prior term loan B that was due in 2028.

Speaker #1: Adjusted free cash flow was $70.5 million for Q4, and it was $122.4 million for the year. As we've discussed throughout the year, this reflects our higher manufacturing capitalized capital expenditures.

Speaker #2: So turning to our outlook now, our fiscal 2027 guidance reflects strong continued financial momentum and also significant growth in profitability and cash generation. Specifically, we expect reported revenue growth of at least 7% on an organic concurrency basis that's 3%.

Speaker #1: All those to drive unit cost reductions and also expand elevated product capacity and capabilities. Networking capital was a significant inflow in Q4 as it normally is.

Speaker #1: But for the full year, the impact of net working capital was $11 million—use of cash—which we expected to be a small inflow for the year.

Speaker #1: That's just timing—nothing structural there. But that was the other impact relative to our full-year guidance. We ended fiscal 2026 in a strong balance sheet position.

Speaker #2: Net income of at least $125 million; adjusted EBITDA of at least $520 million; that represents over a 13% growth year-over-year. And then operating cash flow of approximately $370 million and adjusted free cash flow of approximately $200 million.

Speaker #1: Net leverage was $2.9 times. Trailing 12 months EBITDA is calculated based on our credit agreement. That was consistent with what we guided to throughout the year.

Speaker #2: That's also significant growth year-over-year. In the earnings document, we provided some additional commentary that you might find helpful, just as, you know, the assumptions and context for our fiscal 2027 guidance.

Speaker #1: And that's down from $3.1 times at the end of fiscal 2025. Our liquidity remains robust. We had $249 million in cash and cash equivalents.

Speaker #2: I'm not going to go through all that here, but I thought it might be useful to just provide a high-level bridge from where we ended up fiscal 2026 at $458.5 million of adjusted EBITDA to the guidance of at least $520 million for next year.

Speaker #1: At the end of the year, we also have our $250 million revolving credit facility. And I should note that during the quarter, we closed on a new $1.1 billion term loan B.

Speaker #1: That's now due 2033. And replaces our prior term loan B that was due in 2028. So turning to our outlook now, our fiscal 2027 guidance reflects strong continued financial momentum.

Speaker #2: And the first one is, as we noted in our release yesterday, the contribution from M&A. So we had a number of recent tuck-in acquisitions.

Speaker #2: We expect those to contribute $18 million to $21 million in incremental adjusted EBITDA growth. So that is the growth year-over-year. The revenue attached to those is $165 million to $175 million in fiscal 2027.

Speaker #1: And also significant growth in profitability and cash generation. Specifically, we expect reported revenue growth of at least 7% on an organic, constant currency basis.

Speaker #1: That's 3%. Net income of at least $125 million, adjusted EBITDA of at least $520 million—that represents over 13% growth year over year—and then operating cash flow of approximately $370 million.

Speaker #2: And all that incremental EBITDA is both the full-year run-rate earnings from the standalone businesses, but also the initial synergy realization as well, which we'll be ramping throughout the year.

Speaker #1: And adjusted free cash flow of approximately $200 million. That's also significant growth year-over-year. In the earnings document, we provided some additional commentary that you might find helpful, just as the assumptions and context for our fiscal 2027 guidance.

Speaker #2: From a currency standpoint, we do expect currency to be favorable in fiscal 2027. Based on current exchange rates and also our contracted hedges, currency is expected to provide a 5 to 10 million positive year-over-year impact on profitability.

Speaker #1: I'm not going to go through all that here, but I thought it might be useful to just provide a high-level bridge from where we ended up in fiscal 2026 at $458.5 million of adjusted EBITDA to the guidance of at least $520 million.

Speaker #2: Which—that is contracted, so we have visibility to that. And then the remaining $31 to $39 million of adjusted EBITDA growth comes from a combination of the contribution from organic growth, but also all the cost efficiencies that we're executing on as we've been outlining over the last year.

Speaker #1: For next year. And the first one is, as we noted in our release yesterday, the contribution from M&A. So, we had a number of recent tuck-in acquisitions.

Speaker #2: And those cost efficiencies include both the structural cost of goods sold reductions that are driven by cost impress fulfillment and focused production hubs, and also the investments that we've been making in—throughout our production network, but also operating expense savings including the full-year impact of actions that have already been taken in fiscal 2026.

Speaker #1: We expect those to contribute $18 million to $21 million in incremental adjusted EBITDA growth. So that is the growth year-over-year. The revenue attached to those is $165 million to $175 million in fiscal 2027.

Speaker #1: And all that incremental EBITDA is both the full-year run-rate earnings from the standalone businesses, but also the initial synergy realization as well, which we'll be ramping throughout the year.

Speaker #2: On the cash flow side, in fiscal 2027, we expect CapEx and capitalized software will remain at similar levels to fiscal 2026, while lower cash taxes and the adjusted EBITDA growth that I just outlined will drive the significant growth in adjusted free cash flow to the $200 million.

Speaker #1: From a currency standpoint, we do expect currency to be favorable in fiscal 2027. Based on current exchange rates and also our contracted hedges, currency is expected to provide a $5 to $10 million positive year-over-year impact on profitability, which is contracted.

Speaker #2: Just quickly on the topic of tariffs as it relates to fiscal 2027, the trade environment remains dynamic. There were two new U.S. tariff measures announced last week.

Speaker #2: The first one is the broad-based Section 301 tariffs of 10% to 12.5%. Those have already taken effect. And those replace the 10% global tariff rate that had expired that same day that these went into effect.

Speaker #1: So, we have visibility to that. And then the remaining $31 to $39 million of adjusted EBITDA growth comes from a combination of the contribution from organic growth, but also all the cost efficiencies that we're executing on, as we've been outlining over the last year.

Speaker #2: Our outlook had already assumed the 10% continuation of the Section 301 duties previously, and so this one is, in essence, built into our guidance.

Speaker #1: And those cost efficiencies include both the structural cost of goods sold reductions that are driven by cost-impressed fulfillment and focus production hubs, and also the investments that we've been making in, throughout our production network.

Speaker #2: The second one is the 50% tariff on certain Canadian goods under Section 338. And those were announced to take effect on August 19. Given the implementation on certainties, we haven't included those Section 338 tariffs in our guidance, but of course, we've been doing plenty of work on this.

Speaker #1: But also operating expense savings, including the full-year impact of actions that have already been taken in fiscal 2026. On the cash flow side, in fiscal 2027, we expect CapEx and capitalized software will remain at similar levels to fiscal 2026, while lower cash taxes and the adjusted EBITDA growth that I just outlined will drive the significant growth in adjusted free cash flow to $200 million.

Speaker #2: Our preliminary review shows that these duties would affect a small portion of products fulfilled in Canada for U.S. customers, and we're actively operationalizing supply chain and fulfillment adjustments to mitigate a substantial portion of any prospective cost impact as hopefully it has been clear over the last year and a half.

Speaker #1: Just quickly on the topic of tariffs as it relates to fiscal 2027, the trade environment remains dynamic. There were two new US tariff measures announced last week.

Speaker #2: I think our team has done a great job being dynamic and when they come up. Turning to our fiscal 2028 targets, we remain confident, as Robert said, in our organic concurrency revenue growth expectation of for the 6%, but importantly, in yesterday's release, we raised our fiscal 2028 profitability and cash flow targets to net income of at least $192 million; adjusted EBITDA raised to at least $615 million; up from our prior target of at least $600 million.

Speaker #1: The first one is the broad-based Section 301 tariffs of 10% to 12.5%. Those have already taken effect. And those replace the 10% global tariff rate that had expired that same day that these went into effect.

Speaker #1: Our outlook had already assumed the 10% continuation of the Section 301 duties previously, and so this one is, in essence, built into our guidance.

Speaker #1: The second one is the 50% tariff on certain Canadian goods under Section 338, and those were announced to take effect on August 19th. Given the implementation uncertainties, we haven't included those Section 338 tariffs in our guidance.

Speaker #2: And then adjusted free cash flow conversion of approximately 45%, which is consistent with our prior guidance, but on the higher EBITDA base implies roughly $275 million in adjusted free cash flow.

Speaker #1: But of course, we've been doing plenty of work on this. Our preliminary review shows that these duties would affect a small portion of products fulfilled in Canada for US customers.

Speaker #2: The primary driver of this target increase is a higher expected contribution from M&A compared to our prior remarks, and that's based on the transactions that have closed over the last few quarters.

Speaker #1: And we're actively operationalizing supply chain and fulfillment adjustments to mitigate a substantial portion of any prospective cost impact as hopefully has been clear over the last year and a half.

Speaker #2: Otherwise, I'd say every—we remain on track for the other components required to deliver against this at least, and that's important, at least target. Namely, the cost savings previously outlined; the runoff of plant startup costs, which, as noted for fiscal 2026, were sizable; the favorable currency impact; and then the contribution from organic growth that's required to bridge the remainder.

Speaker #1: I think our team has done a great job being dynamic and addressing these changes as needed when they come up. Turning to our fiscal 2028 targets, we remain confident, as Robert said, in our organic constant currency revenue growth expectation of for the 6%.

Speaker #2: Achieving these targets will drive a meaningful reduction in our debt leverage as well. We continue to expect net leverage to decrease to approximately 2.5 times exiting fiscal 2027.

Speaker #1: But importantly, in yesterday's release, we raised our fiscal 2028 profitability and cash flow targets to net income of at least $192 million. Adjusted EBITDA raised to at least $615 million.

Speaker #2: On the way to be meaningfully below 2.0 times by the end of fiscal 2028, all subject to capital allocation choices such as share repurchases.

Speaker #1: Up from our prior target of at least $600 million. And then adjusted free cash flow conversion of approximately 45%, which is consistent with our prior guidance, but on the higher EBITDA base implies roughly $275 million.

Speaker #2: With that, Meredith, why don't we open it up for questions?

Speaker #1: Thanks, Sean. As a reminder, you can submit questions during this webcast via the questions and answers box at the bottom left of the screen.

Speaker #1: And adjusted free cash flow. The primary driver of this target increase is a higher expected contribution from M&A compared to our prior remarks. And that's based on the transactions that have closed over the last few quarters.

Speaker #1: We've also had pre-submitted questions and then we'll, you know, mix some live questions in as well. We've had some overlapping questions so let's jump to our first one.

Speaker #1: Robert, this one's going to be for you. Actually, there's a couple questions on Canva. Unsurprisingly, Robert, can you expand more on the economics and nature of the partnership with Canva?

Speaker #1: Otherwise, I'd say we remain on track for the other components required to deliver against this, at least. And that's important—at least to target.

Speaker #1: Namely, the cost savings previously outlined to run off of plant startup costs, which, as noted for fiscal 2026, were sizable. The favorable currency impact and then the contribution from organic growth that's required to bridge the remainder achieving these targets will drive a meaningful reduction in our debt leverage as well.

Speaker #1: Why was now the time to enter this strategic partnership, and how big could the Canva strategic partnership be? How much does Canva benefit your FY2027 and FY2028 guidance?

Speaker #3: Okay, well, thank you. Let me start with the nature of the partnership. This is a deep technical integration. Both Canva and CIMPRESS, first and foremost, we worry about the value we bring to customers, empowering our customers to do great things that make them really proud of what they've designed and printed, in our case, printed.

Speaker #1: We continue to expect net leverage to decrease to approximately 2.5 times exiting fiscal 2027, on the way to being meaningfully below 2.0 times by the end of fiscal 2028, all subject to capital allocation choices such as share repurchases.

Speaker #3: But right underneath that, supporting that commitment is incredibly high-quality software talent at both companies. And a key aspect of this partnership is that we have the technology chops, the technology talent to work as an equal partner with Canva.

Speaker #1: With that, Meredith, why don't we open it up for questions?

Speaker #2: Thanks, Sean. As a reminder, you can submit questions during this webcast via the Questions and Answers box at the bottom left of the screen.

Speaker #2: We've also had pre-submitted questions and then we'll mix some live questions in as well. We've had some overlapping questions. So let's jump to our first one.

Speaker #3: And our engineers are working together every day. We've actually built a dedicated team in Australia that includes great engineers who've been part of our tech team since we acquired 99 Designs five years ago, and that's really valuable to both parties given that Sydney is the headquarters of Canva and we are able to work very closely with them.

Speaker #2: Robert, this one's going to be for you. Actually, there's a couple of questions on Canva unsurprisingly. Robert, can you expand more on the economics and nature of the partnership with Canva?

Speaker #2: Why was now the time to enter this strategic partnership, and how significant could the Canva strategic partnership be? How much does Canva benefit your FY2027 and FY2028 guidance?

Speaker #3: Okay. Well, thank you. Let me start with the nature of the partnership. This is a deep technical integration. Both Canva and CIMPRESS, first and foremost, we worry about the value we bring to customers, empowering our customers to do great things that make them really proud of what they've designed and print, in our case, printed.

Speaker #3: So our ability to work at high speed as a tech talent equal differentiates us. I'd say that's the overwhelming nature of the partnership. You don't see from the surface.

Speaker #3: Second, the nature of the partnership is this huge breadth of depth in products in markets and geographies across the world, including our brands, you know, Vistaprint, in the future, you know, Princy in Brazil, a very near future, that customers know and trust.

Speaker #3: But right underneath that, supporting that commitment is incredibly high-quality software talent at both companies. And a key aspect of this partnership is that we have the technology chops, the technology talent to work as an equal partner with Canva.

Speaker #3: And that's important for Canva, I believe. I can't speak for them. And having brands that customers recognize and trust. So in summary, all of the organic investment and the acquisitions, as well that we've done over the last 12 years, have gotten us to a place where we've been in a very good position to work with Canva.

Speaker #3: And our engineers are working together every day. We've actually built a dedicated team in Australia that includes great engineers who've been part of our tech team since we acquired 99 Designs five years ago.

Speaker #3: And that includes our technology and our product and our service operations investments. As to why is this a good time now, and I'll say why is it good for both parties, again, I can't speak for Canva, but I can say some things that are, for us, certainly, and then what they've spoken about publicly.

Speaker #3: And that's really valuable to both parties given that Sydney is the headquarters of Canva and we are able to work very closely with them.

Speaker #3: So our ability to work at high speed as a tech talent equal differentiates us. I'd say that's the overwhelming nature of the partnership. You don't see from the surface.

Speaker #3: Both companies have in the past two years or so evolved how we think about this intersection of design and print. I wrote in the letter last night, we spoke last year at our investor day in September about design enablement, and we see that design is being democratized, that customers have a wide choice of design tools.

Speaker #3: Second, the nature of the partnership is this huge breadth of depth and products in markets and geographies across the world, including our brands, Vistaprint, in the future, Princy in Brazil, a very near future, that customers know and trust.

Speaker #3: They're certainly our own excellent print-focused tools, but they include third-party tools, and increasingly generative AI, and they bring capability or choice to customers to design any way they want, and they can move fluidly.

Speaker #3: And that's important for Canva, I believe. I can't speak for them. And having brands that customers recognize and trust. So, in summary, all of the organic investment and the acquisitions as well that we've done over the last 12 years have gotten us to a place where we've been in a very good position to work with Canva.

Speaker #3: They want to move fluidly between these and we recognize and embrace that kind of cross-tool fluidity. So our aim is customer happiness rather than trying to lock anyone into our own proprietary tools.

Speaker #3: And that includes our technology and our product and our service operations investments. As to why is this a good time now, and I'll say why is it good for both parties, again, I can't speak for Canva, but I can say some things that are for us certainly and then what they've spoken about publicly.

Speaker #3: And hundreds of millions of customers per month design a Canva primarily for digital applications like social media and presentations, but clearly many of them also want to produce physical manifestations of their designs.

Speaker #3: And Canva is, therefore, very important for us in our design democratization understanding. And I would add that Canva really is at a leading edge of bringing artificial intelligence capabilities into design.

Speaker #3: Both companies have, in the past two years or so, evolved how we think about this intersection of design and print. I wrote in the letter last night—we spoke last year at our Investor Day in September—about design enablement.

Speaker #3: And we see that design is being democratized, that customers have a wide choice of design tools. They're certainly our own excellent print-focused tools, but they include third-party tools.

Speaker #3: So again, sticking to the words, you can see Canva say for themselves, they have at Canva Create, their annual launch event, spoken about a launch print shop where they recognize print as an increasingly key aspect of their full suite of the types of products that they want to empower their customers to design on, from presentations and social media to many other digital media but including the physical world.

Speaker #3: And increasingly, generative AI. And they bring capability or choice to customers to design any way they want and they can move fluidly. They want to move fluidly between these and we recognize and embrace that kind of cross-tool fluidity so our aim is customer happiness rather than trying to lock anyone into our own proprietary tools.

Speaker #3: And only CIMPRESS has the breadth, the depth, the quality, the cost-effective-ness or the cost-competitiveness and the geographic custom coverage of customized printed products. So again, I think from a why is this a good time for both parties, we both had slight evolutions in our respective strategies at that intersection of print and design.

Speaker #3: And hundreds of millions of customers per month design at Canva, primarily for digital applications like social media and presentations, but clearly, many of them also want to produce physical manifestations of their designs.

Speaker #3: And Canva is therefore very important for us in our design democratization understanding. And I would add that Canva really is at a leading edge of bringing artificial intelligence capabilities into design.

Speaker #3: As to economics, I noted in my comments, we can't share more today because of the confidentiality terms of the partnership and because it's in its early days.

Speaker #3: Just let me say that we think, and I believe Canva very much thinks, this is an opportunity to provide great value to our customers and in doing so to be very economically attractive to our shareholders.

Speaker #3: So again, sticking to the words, you can see Canva say for themselves, they have at Canva Create, their annual launch event, spoken about a launch print shop where they recognize print as an increasingly key aspect of their full suite of the types of products that they want to empower their customers to design on, from presentations and social media to many other digital media but including the physical world.

Speaker #3: One thing which is obvious, so it's not confidential, but just to be clear, we do gain a major channel to reach customers that we haven't had before, and we think that is economically attractive.

Speaker #3: So I'll close by saying our past 10 or 12 years, we've been making huge investments in technology, modernization, in the mass customization platform, in new product introductions, in production, efficiency, and competitiveness, and geographic expansion.

Speaker #3: And only Cimpress has the breadth, the depth, the quality, the cost competitiveness, and the geographic custom coverage of customized printed products.

Speaker #3: And moving towards higher value customers. And I think that those investments are very healthy for CIMPRESS overall, but this Canva partnership is a kind of third-party specialist expert evaluation of how valuable those investments have been.

Speaker #3: So again, I think from a why is this a good time for both parties, we both had slight evolutions in our respective strategies at that intersection of print and design.

Speaker #3: As to economics, I noted in my comments, we can't share more today because of the confidentiality terms of the partnership and because it's in its early days.

Speaker #3: And so we think it, in many ways, reinforces our belief that we've been on the right path making these investments over the past years.

Speaker #3: Just let me say that we think—and I believe Canva very much thinks—this is an opportunity to provide great value to our customers and, in doing so, to be very economically attractive to our shareholders.

Speaker #1: Thank you, Robert. Great. Next question that we had come in, Sean, what are the drivers of growth acceleration between FY27 and 28, organic constant currency revenue growth of at least 3% in FY27 and 4 to 6 in FY28?

Speaker #3: One thing which is obvious, so it's not confidential, but just to be clear—we do gain a major channel to reach customers that we haven’t had before.

Speaker #3: And we think that is economically attractive. So I'll close by saying our past 10 or 12 years, we've been making huge investments in technology, modernization, in the mass customization platform, in new product introductions, in production efficiency and competitiveness and geographic expansion.

Speaker #1: Also, what accounts for the lowered net income guide for FY28 to at least 192 it had been 200 million before? Many thanks.

Speaker #2: Yeah. Okay. Yeah, on the growth side, I mean, I think, you know, first of all, like when we set our guidance for fiscal 27, we want to set that at a level that we feel very comfortable with.

Speaker #3: And moving towards higher value customers. And I think that those investments are very healthy for Cimpress overall, but this Canva partnership is a kind of third-party, specialist, expert evaluation of how valuable those investments have been.

Speaker #2: And I think, you know, despite some of the noise at the end of Q4 there from adjusted EBITDA perspective, you see this in terms of how we establish guidance in fiscal 26.

Speaker #2: And then performed against that, you know, for recall, we started out fiscal 26 with revenue guidance growth of, you know, 2 to 3% organic.

Speaker #3: And so we think it in many ways reinforces our belief that we've been on the right path making these investments over the past years.

Speaker #2: And, you know, we ended up at 4%. So as we enter fiscal 27, you know, we want to take a similar approach. So for the, you know, the growth rate at least 3%, that is, that does imply a slight deceleration from what we did for the full year, fiscal 26.

Speaker #2: Thank you, Robert. Great. Next question that we had come in: Sean, what are the drivers of growth acceleration between FY27 and FY28—organic, constant currency revenue growth of at least 3% in FY27, and 4 to 6% in FY28?

Speaker #2: It is consistent with what we did for Q4. Again, we want to set that, you know, at the appropriate level. As we turn to fiscal 28, and we've been talking about 4 to 6%, you know, what can drive that acceleration?

Speaker #2: Also, what accounts for the lowered net income guide for FY28 to at least 192 it had been 200 million before? Many thanks.

Speaker #2: I think there are a number of things. You know, this isn't where I would naturally start, but given Robert was just talking about the relationship with Canva, of course, new channels like that would be one driver.

Speaker #1: Yeah. Okay. Yeah. On the growth side, I mean, I think first of all, when we set our guidance for fiscal 27, we want to set that at a level that we feel very comfortable with.

Speaker #2: But from an organic perspective, you know, we've been making a lot of investments as a big capex year in fiscal 26. It will be another big capex year in fiscal 27.

Speaker #1: And I think despite some of the noise at the end of Q4 there, from an adjusted EBITDA perspective, you see this in terms of how we establish guidance in fiscal '26.

Speaker #2: A lot of that is for efficiency drivers, but there's a big part of it that is also for growth drivers in terms of expanding our elevated products, capabilities, and capacity, things like pushing further into packaging, for example, you know, is a great example of a new growth driver.

Speaker #1: And then performed against that for recall, we started out fiscal 26 with revenue guidance growth of 2 to 3 percent organic. And we ended up at 4%.

Speaker #1: So as we enter fiscal 27, we want to take a similar approach. So for the growth rate at least 3%, that is that does imply a slight deceleration from what we did for the full year fiscal 26.

Speaker #2: So that is really what drives the organic acceleration. It is the continued push into further and further into elevated products as we do that.

Speaker #2: We're almost sort of entering into new markets within the context of our total adjustable market. And then the new channels like I said, like Canva as an example.

Speaker #1: It is consistent with what we did for Q4. Again, we want to set that at the appropriate level. As we turn to fiscal '28, and we've been talking about 4 to 6 percent, what can drive that acceleration?

Speaker #2: On the net income front, to be honest, there's not much to read into that. The net income even though we increased our fiscal 28 adjusted EBITDA target, the net income as a starting point went down a little bit.

Speaker #1: I think there are a number of things. This isn't where I would naturally start, but given Robert was just talking about the relationship with Canva, of course, new channels like that would be one driver.

Speaker #2: There's a few pieces to that, just in terms of our gap results. There's a little bit of higher depreciation, but there's amortization from the recent M&A that we've done.

Speaker #1: But from an organic perspective, we've been making a lot of investments as a big capex year in fiscal 26. It will be another big capex year in fiscal 27.

Speaker #2: There's some small changes to our gap tax expense, but that doesn't flow through to changes in our cash taxes. So I really wouldn't read too much into that, just some small tweaks from a gap perspective.

Speaker #1: A lot of that is for efficiency drivers, but there's a big part of it that is also for growth drivers, in terms of expanding our elevated products.

Speaker #1: Thank you, Sean. All right, Robert, a couple of questions for you on the topic of mergers and acquisitions. First, what have been the main lessons from past M&A successes and failures?

Speaker #1: Capabilities and capacity—things like pushing further into packaging, for example—are a great example of a new growth driver. So, that is really what drives the organic acceleration.

Speaker #1: And how does that relate to why the M&A that we did in FY26 made sense? And how should we think about the shift to more M&A in FY26 compared to '24 and '25?

Speaker #1: It is the continued push further and further into elevated products as we do that. We're almost sort of entering into new markets within the context of our total addressable market.

Speaker #1: Is there now an opportunity set that is opened up that didn't exist before? Or was it simply that there were other capital allocation opportunities that were more compelling in FY24 and '25, for example, share repurchases?

Speaker #1: And then the new channels like I said, like Canva as an example. On the net income front, to be honest, there's not much to read into that.

Speaker #1: The net income, even though we increased our fiscal 28 adjusted EBITDA target, the net income as a starting point went down a little bit.

Speaker #3: Okay, let me start with the lessons. And start with the lessons of our mistakes, which are we don't have time on a call to go through all my mistakes in my life, but let's talk about M&A.

Speaker #1: There's a few pieces to that. Just in terms of our gap results, there's a little bit of higher depreciation, but there's amortization from the recent M&A that we've done.

Speaker #3: I think one, don't stray into digital. Or into new geographies where both of those really didn't match what we were excellent at. Let me talk about digital.

Speaker #1: There are some small changes to our GAAP tax expense, but that doesn't flow through to changes in our cash taxes. So I really wouldn't read too much into that.

Speaker #3: Over the multiple decades, as you followed us, we've been attracted to webs, getting to websites, ourselves, deposit photos, and Crello, which is now Vista Create.

Speaker #1: Just some small tweaks from a gap perspective.

Speaker #2: Thank you, Sean. All right. Robert, a couple of questions for you on the topic of mergers and acquisitions. First, what have been the main lessons from past M&A successes and failures?

Speaker #3: Because it was obvious to us from a customer need that customers wanted to design and project their brand and their image in digital spaces as well as in physical spaces.

Speaker #2: And how does that relate to why the M&A that we did in FY26 made sense? And how should we think about the shift to more M&A in FY26 compared to '24 and '25?

Speaker #3: And we just found, in retrospect, the competition there, the focus needed there, just we did not have the capabilities to really lead. And frankly, the valuations of those markets for acquisitions are very elevated.

Speaker #2: Is there now an opportunity set that has opened up that didn’t exist before? Or was it simply that there were other capital allocation opportunities that were more compelling in FY24 and FY25—for example, share repurchases?

Speaker #3: And so we found that those didn't work. And then I'd say geographically, although today we're very optimistic about what we're doing in Brazil, in India, especially with the partnerships with people like Canva, the economics there have been very tough for us.

Speaker #3: Okay, let me start with the lessons. And I'll start with lessons from our mistakes—which are many. We don't have time on this call to go through all the mistakes I've made in my life, but let's talk about M&A.

Speaker #3: I think, one, don't stray into digital or into new geographies, where both of those really didn't match what we were excellent at. Let me talk about digital.

Speaker #3: And I'd say that we also for those again who followed us for multiple decades, our early attempts to go into China and Japan just really made it, I think, we're not successes.

Speaker #3: Over the multiple decades as you've followed us, we've been attracted to web—getting to websites ourselves, Depositphotos, and Crello, which is now VistaCreate.

Speaker #3: So stick to our knitting of print in geographic markets where we already are there. So where have we been really successful? I think it's been a great way to bring in capabilities of just product and talent that we don't have, or to strengthen talent and product ranges we have.

Speaker #3: Because it was obvious to us, from a customer need, that customers wanted to design and project their brand and their image in digital spaces as well as in physical spaces.

Speaker #3: Examples of that are certainly getting into upload and print, which today is really a critical part of our business and a very important part in growing part of SIMPRESS overall, getting into packaging, promotional product areas where we've just seen although we've talked about national PEN not being the type of ROI we really would have wanted to have, when you actually look at the non-quantifiable benefits of getting into a very strong supply chain for promotional products, it's been very helpful.

Speaker #3: And we just found in retrospect that competition there, the focus needed there, we did not have the capabilities to really lead. And frankly, the valuations of those markets for acquisitions are very elevated.

Speaker #3: And so we found that those didn't work. And then I'd say geographically, although today we're very optimistic about what we're doing in Brazil and India, especially with the partnerships with people at Canva, the economics there have been very tough for us.

Speaker #3: So I think it's capability building and an important lesson is avoid paying anything other than very reasonable multiples of cash flow and EBITDA. And I think that maybe is a lesson that applies to anyone in any M&A world.

Speaker #3: And I'd say that we also for those again who followed us for multiple decades, our early attempts to go into China and Japan just really made it I think we're not successes.

Speaker #3: So stick to our knitting of print in geographic markets where we already are there. So where we've been really successful, I think it's been a great way to bring in capabilities of just product and talent that we don't have or to strengthen talent and product ranges we have.

Speaker #3: So you know, how do we think about the shift towards this, I wouldn't call it a shift. I think that there are many different opportunities in the spectrum of capital allocation.

Speaker #3: Examples of that are certainly getting into upload and print, which today is really a critical part of our business and a very important part in growing part of CIMPRESS overall.

Speaker #3: We have ranging from just keeping dry powder for future to share buybacks to organic investment. We do think about those all as fungible. The types of acquisitions we've been doing right now, and I think that very much represent what we'd be doing in the future, are tuck-in acquisitions, where we're buying relatively small businesses directly related to what we do as a business in the areas I just mentioned.

Speaker #3: Getting into packaging, promotional product areas where we've just seen although we've talked about national PEN not being the type of ROI we really would have wanted to have.

Speaker #3: When you actually look at the non-quantifiable benefits of getting into a very strong supply chain for promotional products, it's been very helpful. So I think it's capability building up.

Speaker #3: And I think our future acquisitions to the extent we do them will follow that pattern.

Speaker #3: An important lesson is to avoid paying anything other than very reasonable multiples of cash flow and EBITDA. I think that maybe is a lesson that applies to anyone in any M&A world.

Speaker #1: Thank you, Robert. All right, moving on to a question for Sean. Sean, can you clarify or expand on expectations for incremental returns on invested capital organically and via M&A?

Speaker #3: So how do we think about the shift towards this? I wouldn't call it a shift. I think that there are many different opportunities in the spectrum of capital allocation we have, ranging from just keeping dry powder for the future, to share buybacks, to organic investment.

Speaker #1: Especially as CapEx normalizes working capital as a source of funds. In the coming years.

Speaker #2: Sure. And I think the reference to working capital and CapEx normalization is just I think that speaks to the kind of access to capital that we'll have beyond fiscal '28.

Speaker #3: We do think about those all as fungible. The types of acquisitions we've been doing right now, and I think that very much represent what we'd be doing in the future, are tuck-in acquisitions, where we're buying relatively small businesses, directly related to what we do as a business in the areas I just mentioned.

Speaker #2: So the I think in terms of organic incremental returns, one, I mean, we've been very happy with what we've been seeing including in the fiscal '26 organic investments that we've been making, you know, CapEx and manufacturing and supply chain being probably the main domain where those investments are being made.

Speaker #3: And I think our future acquisitions to the extent we do them will follow that pattern.

Speaker #2: But of course, not exclusive. To that, you know, when you look at the results, you know, the our aggregate results get weighed down by things like the startup costs that are attached to that, that, you know, that have a near-term impact on earnings.

Speaker #2: Thank you, Robert. All right. Moving on to a question for Sean. Sean, can you clarify or expand on expectations for incremental returns on invested capital organically and via M&A?

Speaker #2: But as we deliver on both the cost reductions that we've outlined as some of those startup costs come off, as we make more progress pushing into elevated products, growing with high-value customers, I think those strong returns on the organic investments that we've been making recently will start to shine through a bit more.

Speaker #2: Especially as CapEx normalizes working capital as a source of funds. In the coming years.

Speaker #2: And that's actually, you know, a big part of the fiscal '28 targets that we have, starting to really see that come through. And also see that come through in the form of higher EBITDA margins, because the incremental returns on organic investment, you know, have more impact.

Speaker #1: Sure. And I think the reference to working capital and CapEx normalization is just—I think that speaks to the kind of access to capital that we'll have beyond fiscal '28.

Speaker #1: So the I think in terms of organic incremental returns, one, I mean, we've been very happy with what we've been seeing including in the fiscal 26 organic investments that we've been making, CapEx and manufacturing and supply chain being probably the main domain where those investments are being made.

Speaker #2: And I think, you know, at a consolidated level, like I said, that's sometimes gets that, well, that gets blended in also with parts of the business that have less growth.

Speaker #2: We talk about legacy products in some places declining. And we'll see more impact from the incremental returns on invested capital organically that we've been doing, but also from an M&A perspective.

Speaker #1: But of course, not exclusive to that. When you look at the results, the aggregate results get weighed down by things like the startup costs that are attached to that, which have a near-term impact on earnings.

Speaker #2: You know, at our last investor day, we shared on the CapEx side, which is a big part of those investments, some specific examples of the return on invested capital for those investments and you can see if you look back to those you know, they're generally 20% plus type returns.

Speaker #1: But as we deliver on both the cost reductions that we've outlined as some of those startup costs come off, as we make more progress pushing into elevated products, growing with high-value customers, I think those strong returns on the organic investments that we've been making recently will start to shine through a bit more.

Speaker #2: Many of them, you know, also quite fast paybacks. And so these are pretty obvious investments that we would want to continue to make. And we think we'll have continued opportunities to make, you know, well beyond fiscal '28.

Speaker #1: And that's actually a big part of the fiscal 28 targets that we have, starting to really see that come through. And also see that come through in the form of higher EBITDA margins, because the incremental returns on organic investment have more impact.

Speaker #2: From a CapEx perspective. On the M&A side of things, you know, we've said that for the recent M&A that we've done, I think we said this for each of the four that we've announced over the last, you know, six to eight months or so, that we expect to generate base case returns on capital that are well in excess of 20%.

Speaker #1: And I think at a consolidated level, like I said, that sometimes gets—well, that gets blended in also with parts of the business that have less growth.

Speaker #2: And I think that for the type that those types of tuck-in acquisitions and Robert just talked about some of the learnings that we've had on the M&A front, I think that's a pretty fair benchmark for what we would expect.

Speaker #1: We talk about legacy products in some places declining. And we'll see more impact from the incremental returns on invested capital organically that we've been doing, but also from an M&A perspective.

Speaker #2: As we think about both the standalone businesses, but also the synergies we can bring, and we do plan to go through this in a bit more detail in our September investor day.

Speaker #1: At our last investor day, we shared on the CapEx side, which is a big part of those investments, some specific examples of the return on invested capital for those investments and you can see if you look back to those there are generally 20% plus type returns many of them also quite fast paybacks.

Speaker #2: Just explaining kind of the economics of these tuck-in acquisitions and giving you some of the kind of archetypes of what we think makes sense, but also going through some of the numbers of recent ones that we've done so you can see what the returns have been there.

Speaker #1: And so, these are pretty obvious investments that we would want to continue to make. We think we'll have continued opportunities to make them well beyond fiscal 2028.

Speaker #2: And then, you know, I think as we get out to fiscal '28 and free cash flow increases, I think this maybe is the point of the question.

Speaker #2: You combine that with lower net leverage, you know, we'll have ample capital to reinvest. Whether it be in organic investments, whether it be in, you know, some tuck-in M&A, share repurchases, you know, we can pay down debt and like, you know, we'll be patient on that.

Speaker #1: From a CapEx perspective. On the M&A side of things, we've said that for the recent M&A that we've done, I think we said this for each of the four that we've announced over the last six to eight months or so, that we expect to generate base case returns on capital that are well in excess of 20%.

Speaker #2: And we'll evaluate all those opportunities on a relative basis. But we think that there's a, you know, there are we kind of like these layers of possible avenues to reinvest capital at high rates after fiscal '28 when we'll have a lot more available capital to do so.

Speaker #1: And I think that for the type that those types of tuck-in acquisitions and Robert just talked about some of the learnings that we've had on the M&A front, I think that's a pretty fair benchmark for what we would expect.

Speaker #1: Thank you, Sean. All right, we've had some questions on our market opportunity. And our future opportunity. So I've got a representative one that covers all the basis here for you, Robert.

Speaker #1: As we think about both the standalone businesses, but also the synergies we can bring, and we do plan to go through this in a bit more detail in our September investor day.

Speaker #1: Just explaining kind of the economics of these tuck-in acquisitions and giving you some of the kind of archetypes of what we think makes sense, but also going through some of the numbers of recent ones that we've done so you can see what the returns have been there.

Speaker #1: Can you provide some color on the runway and length of time you see beyond FY 2028 in terms of continued growth and cash flow per share, as you address the TAM that you've outlined in past investor days?

Speaker #1: Conceptually, is this TAM growing or declining over time? And does it even matter given the degree of white space?

Speaker #1: And then I think as we get out to fiscal '28 and free cash flow increases, I think this maybe is the point of the question.

Speaker #1: You combine that with lower net leverage, we'll have ample capital to reinvest. Whether it be in organic investments, whether it be in some tuck-in M&A, share repurchases, we could pay down debt and we'll be patient on that.

Speaker #3: Well, thank you. We see a long runway for continued cash flow growth well beyond 2028. And we're going to be leveraging our competitive scale across this huge market.

Speaker #1: And we'll evaluate all those opportunities on a relative basis. But we think that there's a there are we kind of like these layers of possible avenues to reinvest capital at high rates after fiscal 28 when we'll have a lot more available capital to do so.

Speaker #3: I'll come back to the TAM in one moment. But the investments we've made over the past several years, over the past decade, in modernizing our technology, in repositioning investor print, moving into elevated product categories, really position us to sustain growth past our fiscal '28 targets.

Speaker #2: Thank you, Sean. All right. We've had some questions on our market opportunity and our future opportunity. So I've got a representative one that covers all the bases here for you, Robert.

Speaker #3: In terms of EBITDA, but also cash flow. And the direction of cash flow will clearly be up into the right. The, as far as we believe, and it will probably be annual fluctuations, especially in cash flow.

Speaker #2: Can you provide some color on the runway and length of time you see beyond FY 2028 in terms of continued growth and cash flow per share, as you address the TAM that you've outlined in past investor days?

Speaker #3: But we definitely also believe that we are going to be able to avoid the major cash flow swings that we've seen in the past five to seven years, which we had as we navigated the pandemic, the subsequent supply chain inflation, and while doing so, said we were going to continue on our commitment to invest in tech migration and the repositioning of investor print during that, those tough times.

Speaker #2: Conceptually, is this TAM growing or declining over time? And does it even matter given the degree of white space?

Speaker #3: Well, thank you. We see a long runway for continued cash flow growth well beyond 2028. And we're going to be leveraging our competitive scale across this huge market.

Speaker #3: So I think looking forward to that continued growth and cash flow per share definitely up into the right with much less volatility than we've seen in the past.

Speaker #3: I'll come back to the TAM in one moment. But the investments we've made over the past several years, over the past decade, in modernizing our technology, in repositioning investor print, moving into elevated product categories, really position us to sustain growth past our fiscal 28 targets.

Speaker #3: Although some annual fluctuations in cash flow, I think are probably part of that. But we're very optimistic. As to our TAM, you're right, it's about what we've seen it is what we've think it's been for quite some time, roughly $100 billion.

Speaker #3: In terms of EBITDA, but also cash flow, the direction of cash flow will clearly be up and to the right. As far as we believe, there will probably be annual fluctuations, especially in cash flow.

Speaker #3: But there are underlying product categories that are shifting. So products like promotional products, logo apparel, packaging, are pretty much growing with GDP at the market level.

Speaker #3: But we definitely also believe that we are going to be able to avoid the major cash flow swings that we've seen in the past five to seven years, which we had as we navigated the pandemic and the subsequent supply chain inflation. While doing so, we said we were going to continue our commitment to invest in tech migration and the repositioning of investor print during those tough times.

Speaker #3: We're growing much faster than that. Whereas legacy print categories like business cards or flyers are slowly declining. But when you put all that together, the market is steady to slightly growing.

Speaker #3: And our investments in moving into elevated products are really getting us into a lot of those markets that are not facing the headwinds we see in some of our legacy products.

Speaker #3: So I think, looking forward to that continued growth, and cash flow per share definitely up and to the right, with much less volatility than we've seen in the past.

Speaker #3: We're also getting into markets that are much less penetrated from an online perspective. So that's why we really believe that wallet share of our existing customers is a big driver of how we can drive into that TAM.

Speaker #3: Although some annual fluctuations in cash flow I think are probably part of that. But we're very optimistic. As to our TAM, you're right. It's about what we've seen it is what we've think it's been for quite some time, roughly $100 billion.

Speaker #3: As well as, of course, getting to new customers, including our own customer acquisitions channels and partnerships like we are doing with Canvas. So I agree with your question, which said something to the effect of given the size of this white space being, does it really matter?

Speaker #3: But there are underlying product categories that are shifting. So products like promotional products, logo apparel, and packaging are pretty much growing with GDP at the market level.

Speaker #3: It doesn't really matter. We're roughly $4 billion company over the coming 12 months and $100 billion market. So what's most critical is continuing our low-cost producer status through manufacturing efficiencies and scale.

Speaker #3: We're growing much faster than that, whereas legacy print categories like business cards or flyers are slowly declining. But when you put all that together, the market is steady to slightly growing.

Speaker #3: And having incredible customer value across the user experience.

Speaker #3: And our investments in moving into elevated products are really getting us into a lot of those markets that are not facing the headwinds we see in some of our legacy products.

Speaker #1: Thanks, Robert. I'm going to follow up quickly while we're talking about TAM. Because we've got another question that I think is related. What do you think about the TAM of high-value customers and how much share you currently have with those customers?

Speaker #3: We're also getting into markets that are much less penetrated from an online perspective. So that's why we really believe that wallet share of our existing customers is a big driver of how we can drive into that TAM.

Speaker #3: So I would respectfully disagree with what I think is the premise of the question. High-value customers are already in our the most we have huge numbers of customers who are not high-value customers for us, who are buying a lot of print products elsewhere.

Speaker #3: As well as, of course, getting to new customers, including our own customer acquisition channels and partnerships like we are doing with Canvas. So I agree with your question which said something to the effect of given the size of this white space being does it really matter?

Speaker #3: And so wallet share is a key part of our growth into this TAM. And so HVCs are part of our TAM of $100 billion.

Speaker #3: It doesn't really matter where roughly $4 billion company over the coming 12 months and $100 billion market. So what's most critical is continuing our low-cost producer status through manufacturing efficiencies and scale.

Speaker #3: And in the past, because we didn't have the broad product line, because we didn't have the focus on that, especially at Vistaprint and I would say even at some of the build design properties, we focused more on these lower-value relationships, I should call them instead of customers, where we were selling 50, 100, $150 a year to customers.

Speaker #3: And having incredible customer value across the user experience.

Speaker #2: Thanks, Robert. I'm going to follow up quickly while we're talking about TAM. Because we got to another question that I think is related. What do you think about the TAM of high-value customers and how much share you currently have with those customers?

Speaker #3: And we're shifting to selling customers thousands of dollars per year. But they are part they're one and the same of the same TAM.

Speaker #3: So I would respectfully disagree with what I think is the premise of the question. High-value customers are already in our the most we have huge numbers of customers us who are buying a lot of print products elsewhere.

Speaker #1: Thanks, Robert. Helpful clarification there. All right. Sean, another question for you. How should we think about the level of run rate maintenance capex after this growth period is completed as compared to where it is currently?

Speaker #1: Is there a percentage of growth capex that is almost certain to get converted to ongoing maintenance going forward post-2027, 2028?

Speaker #3: And so wallet share is a key part of our growth into this TAM. And so HVCs are part of our TAM of $100 billion.

Speaker #2: Yeah, I'll start with the latter part of the question. And I think yeah, a part of that will, but also yeah, it's revenue growth.

Speaker #3: And in the past, because we didn't have the broad product line, because we didn't have the focus on that, especially at Vista Print and I would say even at some of the build design properties, we focused more on these lower-value relationships, I should call them instead of customers, where we were selling 50, 100, $150 a year to customers.

Speaker #2: So I think the right way to think about it is that maintenance capex should still stay around 1.5% of revenue. And that's been on average the case for a bit.

Speaker #2: I think what we're going through now, we've in fiscal '20 yeah, actually starting in fiscal '25, but certainly in fiscal '26 and again in fiscal '27, we've had some pretty significant build-out of new facilities and if you go back into our history, for obvious reasons, you see these kind of elevated levels or spikes in our capex when we are building out new facilities again for obvious reasons.

Speaker #3: And we're shifting to selling customers thousands of dollars per year. But they are part they're one and the same of the same TAM.

Speaker #2: Thanks, Robert. Helpful clarification there. All right, Sean, another question for you. How should we think about the level of run-rate maintenance capex after this growth period is completed, as compared to where it is currently?

Speaker #2: And then that kind of settles back down. And that's what we're going through now and in fiscal '28, we do, as I said, earlier, we do expect our capex levels to decrease in absolute dollars from fiscal '26 and '27 levels.

Speaker #2: Is there a percentage of growth capex that is almost certain to get converted to ongoing maintenance going forward post-2027, 2028?

Speaker #4: Yeah. I'll start with the latter part of the question. And I think yeah, a part of that will, but also yeah, it's revenue growth.

Speaker #2: But then also as a percentage of revenue, of course, be down even further. Yeah, I think the other thing that plays into this is M&A and you can also see this in our historical trends.

Speaker #4: So, I think the right way to think about it is that maintenance capex should still stay around 1.5% of revenue. And that's been, on average, the case for a bit.

Speaker #2: When we for example, started to buy into what is now our upload and print portfolio, because of the capacity that offered and as we started to in more recent years, get more capacity utilization because of our initiatives and with SIMPRESS cross SIMPRESS fulfillment, that's enabled maintenance capex to come down some because we're getting better capacity utilization and I expect that will only improve but also with some of the more recent M&A that we've done and could do in the future in terms of talking acquisitions that also serves to somewhat lower maintenance capex as well.

Speaker #4: I think what we're going through now in fiscal 20 yeah, actually starting in fiscal 25, but certainly in fiscal 26 and again in fiscal 27, we've had some pretty significant build-out of new facilities and if you go back into our history, for obvious reasons, you see these kind of elevated levels or spikes in our capex when we are building out new facilities again for obvious reasons.

Speaker #2: So anyway, so that's kind of the story, but I think as we get to fiscal '28, we'll see that moderation and then we'll get back to levels that are pretty consistent with where we've been in our recent past.

Speaker #4: And then that kind of settles back down. And that's what we're going through now. In fiscal '28, as I said earlier, we do expect our capex levels to decrease in absolute dollars from fiscal '26 and '27 levels.

Speaker #1: Thanks, Sean. And of course, that was all capex from a physical capex perspective. I'm going to follow up just so that you can hit on capitalized software as well as our investors tend to want to understand what the trends are there too.

Speaker #4: But then also as a percentage of revenue, of course, be down even further. Yeah, I think the other thing that plays into this is M&A.

Speaker #4: And you can also see this in our historical trends. When we for example, started to buy into what is now our upload and print portfolio, because of the capacity that offered and as we started to in more recent years, get more capacity utilization because of our initiatives and with CIMPRESS across CIMPRESS fulfillment, that's enabled maintenance capex to come down some because we're getting better capacity utilization.

Speaker #1: So if you could just make a couple of comments on that from the same perspective.

Speaker #2: Yes. We expect that to be basically flat year over year in '27. And I think as we look forward, that's another in that kind of walk from our profitability to free cash flow, that's another area I expect us to continue to get leverage.

Speaker #4: And I expect that will only improve but also with some of the more recent M&A that we've done and could do in the future in terms of tucking acquisitions that also serves to somewhat lower maintenance capex as well.

Speaker #2: And I think all of our efforts from an AI perspective are part of that as well. But I expect us to be able to get leverage out of that line either not seeing much growth or maybe even opportunity to actually lower that given all the benefits of AI in terms of how development's done.

Speaker #4: So anyway, so that's kind of the story. But I think as we get to fiscal 28, we'll see that moderation and then we'll get back to levels that are pretty consistent with where we've been in our recent past.

Speaker #2: So that would be the path there.

Speaker #1: Thank you so much, Sean. Robert, we've got one more question in the queue here. Just going to ask you if there have been any changes in the competitive landscape recently.

Speaker #2: Thanks, Sean. And of course, that was all capex from a physical capex perspective. I'm going to follow up just so that you can hit on capitalized software as well as our investors tend to want to understand what the trends are there too.

Speaker #3: No, really has not been at all. It's been very consistent. I'd certainly say post-pandemic, we did see I'd have to think back when it was a time long ago where we were seeing what we felt was pretty irrational pricing in the European upgrade in print space.

Speaker #2: So if you could just make a couple of comments on that from the same perspective.

Speaker #4: Yes. We expect that to be basically flat year over year in 27. And I think as we look forward, that's another in that kind of walk from our profitability to free cash flow, that's another area I expect us to continue to get leverage.

Speaker #3: That has very much dissipated. We live in a very, very competitive world, but I think that's healthy. It makes us better it keeps us hyper-focused on just improving our customer value.

Speaker #3: But there's no macro change. If I try to quantify or describe that a little more detail, we live in a world where the vast majority of printers and sign shops and promotional product distributors are less than 10 employees and 90% of them plus less than 100 employees.

Speaker #4: And I think all of our efforts from an AI perspective are part of that as well. But I expect us to be able to get leverage out of that line either not seeing much growth or maybe even opportunity to actually lower that given all the benefits of AI in terms of how development's done.

Speaker #4: So, that would be the path there.

Speaker #3: And if you look at the big companies in printing and packaging, promotional products, they don't serve small customers well. They don't even really want to serve them.

Speaker #2: Thank you so much, Sean. Robert, we've got one more question in the queue here. I'm just going to ask you if there's been any changes in the competitive landscape recently.

Speaker #3: Even what we consider high-value customers, again, someone who might order several thousand dollars a year from us on average, those are tiny customers for what the big prints and packaging and promotional product companies target where they're going after enterprise.

Speaker #3: No, really has not been at all. It's been very consistent. I'd certainly say post-pandemic, we did see I'd have to think back when it was a time long ago where we were seeing what we felt was pretty irrational pricing in the European upgrade in print space.

Speaker #3: So I would say that there's no change to that broad description of the competitive landscape and we're still very optimistic about our opportunity to continue to take market share.

Speaker #3: That has very much dissipated. We live in a very, very competitive world. But I think that's healthy. It makes us better; it keeps us hyper-focused on just improving our customer value.

Speaker #1: Great. And just as a point of clarification, that intense that more intense competitive irrational behavior in the European market was pre-pandemic in around 2019 time frame.

Speaker #3: But there's no macro change. If I try to quantify or describe that in a little more detail, we live in a world where the vast majority of printers, sign shops, and promotional product distributors have fewer than 10 employees, and more than 90% of them have fewer than 100 employees.

Speaker #1: And the pandemic actually helped to quiet that down quite a bit.

Speaker #3: Yeah. Thank you for that for having that date.

Speaker #1: All right, Robert, I'm going to turn it back over to you for closing remarks.

Speaker #3: And if you look at the big companies in printing and packaging promotional products, they don't serve small customers well. They don't even really want to serve them.

Speaker #3: Thank you, Meredith. And let me leave you all with the few things that I think matter the most. First, the strategy we're winning with is the same one we've been pursuing for years.

Speaker #3: Even what we consider high-value customers, again, someone who might order several thousand dollars a year from us on average, those are tiny customers for what the big prints and packaging and promotional product companies target where they're going after enterprise.

Speaker #3: In describing to you all along, higher value customers, elevated products, manufacturing excellence, and design enablement, we're not changing course. It's working. Second, in fiscal '26, we kept strengthening the value.

Speaker #3: So I would say that there's no change to that broad description of the competitive landscape, and we're still very optimistic about our opportunity to continue to take market share.

Speaker #3: We delivered to customers driving up efficiency and picking up the velocity with which we make improvements. Third, our path is clear. We're building leading capabilities and real competitive advantages the kind that let us serve customers better and keep our multi-decade disruption of a very large very fragmented market for customized marketing products and branded merchandise.

Speaker #2: Great. And just as a point of clarification, that more intense competitive irrational behavior in the European market was pre-pandemic, in around the 2019 timeframe.

Speaker #2: And the pandemic actually helped to quiet that down quite a bit.

Speaker #3: Fourth, the investments we've made over the past in technology modernization and in product expansion and in many other areas are paying off on more than one front.

Speaker #3: Yeah. Thank you for that. For having that date.

Speaker #2: All right. Robert, I'm going to turn it back over to you for closing remarks.

Speaker #3: Thank you, Meredith. And let me leave you all with the few things that I think matter the most. First, the strategy we're winning with is the same one we've been pursuing for years.

Speaker #3: They've positioned us to win organically. They've created clear synergy opportunities for tuck-in M&A. And now they've attracted a major strategic partner in Canva, a company that is better than any one in the world to evaluate just how unique SIMPRESS is given our combination of our technology, our product range, our manufacturing capabilities, our geographic reach, and very importantly, a culture and capability to combine entrepreneurial speed with massive scale.

Speaker #3: In describing to you all along, higher value customers, elevated products, manufacturing excellence, and design enablement. We're not changing course. It's working. Second, in fiscal 26, we kept strengthening the value.

Speaker #3: We delivered to customers driving up efficiency and picking up the velocity with which we make improvements. Third, our path is clear. We're building leading capabilities and real competitive advantages the kind that let us serve customers better and keep our multi-decade disruption of a very large very fragmented market for customized marketing products and branded merchandise.

Speaker #3: And fifth, on the financials, we're confident we'll hit our newly raised fiscal '28 at least profitability target along with the cash flow conversion and leverage reduction we've laid out for you before.

Speaker #3: One housekeeping item that I want to touch on before I close please do save the date. On your calendar for our annual investor day.

Speaker #3: Fourth, the investments we've made over the past in technology modernization and in product expansion and in many other areas are paying off on more than one front.

Speaker #3: That's September 30th, 2026, from 8:00 AM to 11:00 AM Eastern. And with that, thank you for joining our call and thank you for continuing to entrust your capital with us.

Speaker #3: They've positioned us to win organically. They've created clear synergy opportunities for tuck-in M&A and now they've attracted a major strategic partner in Canva a company that is better than any one in the world to evaluate just how unique CIMPRESS is given our combination of our technology, our product range, our manufacturing capabilities, our geographic reach, and very importantly, a culture and capability to combine entrepreneurial speed with massive scale.

Speaker #3: And fifth, on the financials, we're confident we'll hit our newly raised fiscal 28 at least profitability target along with the cash flow conversion and leverage reduction we've laid out for you before.

Speaker #3: One housekeeping item that I want to touch on before I close: please do save the date on your calendar for our annual Investor Day.

Speaker #3: That's September 30th, 2026 from 8:00 AM to 11:00 AM Eastern. And with that, thank you for joining our call and thank you for continuing to entrust your capital with us.

Speaker #1: disconnect. Welcome to the CIMPRESS Q4 fiscal year 2026 earnings call. I will now introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Operator: Welcome to the Cimpress Q4 fiscal year 2026 earnings call. I will now introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Operator: Welcome to the Cimpress Q4 Fiscal Year 2026 Earnings Call. I will now introduce Meredith Burns, Vice President of Investor Relations and Sustainability.

Meredith Burns: Thank you, Ari, and thank you everyone for joining us. With us today are Robert Keane, our Founder, Chairman, and Chief Executive Officer, and Sean Quinn, our EVP and Chief Financial Officer. We appreciate the time that you've dedicated to understand our results, the commentary, and the outlook, particularly at year-end. This live Q&A session will last about 45 minutes or so, and we'll answer both pre-submitted and live questions. You can submit questions via the questions and answers box at the bottom left of the screen. Before we start, I'll note that in this session we will make statements about the future. Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and the earnings document we published yesterday on our website.

Meredith Burns: Thank you, Ari, and thank you everyone for joining us. With us today are Robert Keane, our Founder, Chairman, and Chief Executive Officer, and Sean Quinn, our EVP and Chief Financial Officer. We appreciate the time that you've dedicated to understand our results, the commentary, and the outlook, particularly at year-end. This live Q&A session will last about 45 minutes or so, and we'll answer both pre-submitted and live questions. You can submit questions via the questions and answers box at the bottom left of the screen.

Meredith Burns: Before we start, I'll note that in this session we will make statements about the future. Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and the earnings document we published yesterday on our website. We also have published non-GAAP reconciliations for our financial results on our IR website, and we invite you to read all of those. Now I'll turn things over to Robert.

Meredith Burns: We also have published non-GAAP reconciliations for our financial results on our IR website, and we invite you to read all of those. Now I'll turn things over to Robert.

Robert Keane: Hi, everyone. Thank you very much for joining us today. It's great to be here. Meredith, thank you. I want to start with my perspective on the strong progress that we've made against the strategic and the operational themes that we've been pursuing for a while now. Sean is going to take you through our Q4 results and our updated guidance. We made great progress in fiscal 2026, right along the path that we've been describing for the past few years. That's true of our strategic objectives, manufacturing and supply chain excellence, elevated products, and design enablement. It's true of our ways of working. The handful of shared capabilities like our mass customization platform, our velocity, and our efficiency. I gave a lot of examples in my annual letter, I won't go through them again here, but I'd really encourage you to read it.

Robert Keane: Hi, everyone. Thank you very much for joining us today. It's great to be here. Meredith, thank you. I want to start with my perspective on the strong progress that we've made against the strategic and the operational themes that we've been pursuing for a while now. Sean is going to take you through our Q4 results and our updated guidance. We made great progress in fiscal 2026, right along the path that we've been describing for the past few years.

Speaker #3: That's true of our strategic objectives, manufacturing and supply chain excellence, elevated products, and design enablement. And it's true of our ways of working. The handful of shared capabilities, like our mass customization platform, our velocity, and our efficiency.

Robert Keane: That's true of our strategic objectives, manufacturing and supply chain excellence, elevated products, and design enablement. It's true of our ways of working. The handful of shared capabilities like our mass customization platform, our velocity, and our efficiency. I gave a lot of examples in my annual letter, I won't go through them again here, but I'd really encourage you to read it.

Speaker #3: I gave a lot of examples through them again here, but I'd really encourage you to read it. It lays out these themes. And where we're investing to grow revenue and take out cost.

Robert Keane: It lays out these themes and where we are investing to grow revenue and take out cost. For those of you who have not yet read the letter, there is one thing I want to call out, our new strategic partnership with Canva. Canva is one of the largest design platforms in the world. Hundreds of millions of people use it every month. We have launched a first set of Vistaprint branded products in Canada and the US, and by the end of September, we will have expanded that range significantly and will have gone live in more than 25 additional countries. Canva is a real leader in artificial intelligence, and Canva AI will plug directly into Cimpress systems through the deep technical integration. A customer can go from a design prompt to a professionally produced, print-ready Vistaprint product without ever leaving Canva.

Robert Keane: It lays out these themes and where we are investing to grow revenue and take out cost. For those of you who have not yet read the letter, there is one thing I want to call out, our new strategic partnership with Canva. Canva is one of the largest design platforms in the world. Hundreds of millions of people use it every month.

Speaker #3: For those of you who have not yet read the letter—excuse me—there's one thing I want to call out: our new strategic partnership with Canva.

Speaker #3: Canva is one of the largest design platforms in the world. Hundreds of millions of people use it every month. We've launched a first set of VistaPrint branded products in Canada and the U.S.

Robert Keane: We have launched a first set of Vistaprint branded products in Canada and the US, and by the end of September, we will have expanded that range significantly and will have gone live in more than 25 additional countries. Canva is a real leader in artificial intelligence, and Canva AI will plug directly into Cimpress systems through the deep technical integration. A customer can go from a design prompt to a professionally produced, print-ready Vistaprint product without ever leaving Canva.

Speaker #3: And by the end of September, we'll have expanded that range significantly. And we'll have gone live in more than 25 additional countries. Canva is a real leader in artificial intelligence.

Speaker #3: And Canva AI will plug directly into CIMPRESS systems. There's a deep technical integration. So a customer can go from a design prompt to a professionally produced print-ready VistaPrint product without ever leaving Canva.

Speaker #3: That gives us a meaningful new on-ramp to customers at scale, and it gives Canva a production partner it can trust for its print shop strategy.

Robert Keane: That gives us a meaningful new on-ramp to customers at scale, and it gives Canva a production partner it can trust for its print shop strategy. It is a real growth opportunity for both companies. The strategic partnership is in its early days, and we are excited about where this can go. I am sure you will have questions, but I will tell you upfront, we cannot share much more today because of the confidentiality terms of the partnership. One more piece of progress that is worth speaking about today is since our last call, we did close on the acquisition of Saxoprint. The logic here is simple. Saxoprint gives us a high capability, focused production hub, exactly the kind of asset our cross-Cimpress fulfillment strategy is built on.

Robert Keane: That gives us a meaningful new on-ramp to customers at scale, and it gives Canva a production partner it can trust for its print shop strategy. It is a real growth opportunity for both companies. The strategic partnership is in its early days, and we are excited about where this can go. I am sure you will have questions, but I will tell you upfront, we cannot share much more today because of the confidentiality terms of the partnership. One more piece of progress that is worth speaking about today is since our last call, we did close on the acquisition of Saxoprint. The logic here is simple. Saxoprint gives us a high capability, focused production hub, exactly the kind of asset our cross-Cimpress fulfillment strategy is built on.

Speaker #3: It's a real growth opportunity for both companies. The strategic partnership is in its early days, and we're excited about where this can go. I'm sure you'll have questions, but I'll tell you upfront: we can't share much more today because of the confidentiality terms of the partnership.

Speaker #3: One more piece of progress that's worth speaking about today is, since our last call, we did close on the acquisition of SaxoPrint. The logic here is simple: SaxoPrint gives us a high capability-focused production hub.

Speaker #3: Exactly the kind of asset our cross-CIMPRESS fulfillment strategy is built on. It will strengthen print brothers directly in the near term and over the longer—I'd say mid-term—the value will extend beyond print brothers across our European businesses.

Robert Keane: It will strengthen PrintBrothers directly in the near term and over the longer, I would say midterm, the value will extend beyond PrintBrothers across our European businesses. It is another deliberate step in building the shared production capabilities and capacity that make the whole of Cimpress network stronger. We are excited to have Saxoprint on our team. Let us step back to the big picture of where Cimpress is overall. First, the momentum we built this past year puts us in a strong position to deliver our profitability and free cash flow commitments through fiscal 2028. The investments we are making will keep those metrics growing well beyond 2028. Second, our competitive advantages are significant. We have thousands of talented, dedicated people all pulling in the same direction on strategy, on operations, on our financial goals. Every year, we give our customers more value.

Robert Keane: It will strengthen PrintBrothers directly in the near term and over the longer, I would say midterm, the value will extend beyond PrintBrothers across our European businesses. It is another deliberate step in building the shared production capabilities and capacity that make the whole of Cimpress network stronger. We are excited to have Saxoprint on our team. Let us step back to the big picture of where Cimpress is overall. First, the momentum we built this past year puts us in a strong position to deliver our profitability and free cash flow commitments through fiscal 2028. The investments we are making will keep those metrics growing well beyond 2028. Second, our competitive advantages are significant. We have thousands of talented, dedicated people all pulling in the same direction on strategy, on operations, on our financial goals. Every year, we give our customers more value.

Speaker #3: It's another deliberate step in building the shared production capabilities and capacity that make the whole of CIMPRESS network stronger. We're excited to have SaxoPrint on our team.

Speaker #3: So let's step back to the big picture of where CIMPRESS is overall. First, the momentum we built this past year puts us in a strong position to deliver our profitability and free cash flow commitments through fiscal 2028.

Speaker #3: And the investments we're making will keep those metrics growing well beyond 2028. Second, our competitive advantages are significant. We have thousands of talented, dedicated people, all pulling in the same direction on strategy, on operations, on our financial goals.

Speaker #3: And every year we give our customers more value. No competitor matches our scale. And none matches our ability or our willingness to keep investing in new product categories and in world-class manufacturing and supply chain.

Robert Keane: No competitor matches our scale, and none matches our ability or our willingness to keep investing in new product categories and in world-class manufacturing and supply chain. Third, ever since our startup days, we have harnessed digital technologies and software to create real value for customers while driving down costs. AI is going to be a very exciting next chapter in that long history. Here is the thing, we have always made our money by producing customized physical products better than anyone else. These are real, tangible things. Even as AI speeds up the velocity with which we can create value and take out cost, it does not threaten our core economic engine. That engine is a huge, growing range of customized physical products that we produce every day with high quality, low cost, and fast turnaround.

Robert Keane: No competitor matches our scale, and none matches our ability or our willingness to keep investing in new product categories and in world-class manufacturing and supply chain. Third, ever since our startup days, we have harnessed digital technologies and software to create real value for customers while driving down costs. AI is going to be a very exciting next chapter in that long history. Here is the thing, we have always made our money by producing customized physical products better than anyone else. These are real, tangible things. Even as AI speeds up the velocity with which we can create value and take out cost, it does not threaten our core economic engine. That engine is a huge, growing range of customized physical products that we produce every day with high quality, low cost, and fast turnaround.

Speaker #3: Third, ever since our startup days, we've harnessed digital technologies and software to create real value for customers while driving down costs. And AI is going to be a very exciting next chapter in that long history.

Speaker #3: But here's the thing: we've always made our money by producing customized physical products better than anyone else. These are real, tangible things. So even as AI speeds up the velocity, with which we can create value and take out cost, it does not threaten our core economic engine.

Speaker #3: That engine is the huge, growing range of customized physical products that we produce every day with high quality, low cost, and fast turnaround. So to sum it up, CIMPRESS is executing well against the plans I laid out in my investor letter a year ago.

Robert Keane: To sum it up, Cimpress is executing well against the plans I laid out in my investor letter a year ago in which our executive team walked you through in more detail at our investor day last September. Those plans build on years of work and the investments before that. We are building real capabilities and real advantages, ones that let us serve customers better and keep up our multi-decade disruption of a very large, very fragmented market for customized marketing products and branded merchandise. Better profitability will show the intrinsic value that we are building per share, and we are deliberate without ever losing sight of the long term. Our path ahead is clear. On the numbers, this progress has let us raise our at least target for fiscal 2028 to $615 million of adjusted EBITDA with free cash flow conversion of around 45%.

Robert Keane: To sum it up, Cimpress is executing well against the plans I laid out in my investor letter a year ago in which our executive team walked you through in more detail at our investor day last September. Those plans build on years of work and the investments before that. We are building real capabilities and real advantages, ones that let us serve customers better and keep up our multi-decade disruption of a very large, very fragmented market for customized marketing products and branded merchandise. Better profitability will show the intrinsic value that we are building per share, and we are deliberate without ever losing sight of the long term. Our path ahead is clear. On the numbers, this progress has let us raise our at least target for fiscal 2028 to $615 million of adjusted EBITDA with free cash flow conversion of around 45%.

Speaker #3: And which our executive team walked you through in more detail at our investor day last September. And those plans build on years of work and the investment before that.

Speaker #3: We're building real capabilities and real advantages—ones that let us serve customers better, and keep up our multi-decade disruption of a very large, very fragmented market for customized marketing products and branded merchandise.

Speaker #3: Better profitability will show the intrinsic value that we're building per share. And we'll deliver it without ever losing sight of the long term. Our path ahead is clear.

Speaker #3: On the numbers, this progress has let us raise our at-least-target-for-2028 fiscal 2028 to $615 million of adjusted EBITDA with free cash flow conversion of around $45%.

Speaker #3: Now, let me be clear about why we share a multi-year EBITDA target. It is not because EBITDA is our top objective. It isn't. Our top objective is and has always been intrinsic value per share.

Robert Keane: Now, let me be clear about why we share a multi-year EBITDA target. It is not because EBITDA is our top objective. It isn't. Our top objective is, and has always been, intrinsic value per share. We share EBITDA as a target because it's public, it's measurable, it's a milestone on the path to much higher cash flow per share, and it holds us accountable. It gives you a concrete way to track our progress. I want to be direct about this. We would not chase this target through decisions we thought sacrificed intrinsic value per share for the near term. We just wouldn't do that. We strongly believe that we can see multiple years of EBITDA expansion compatible with our intrinsic value per share objectives.

Robert Keane: Now, let me be clear about why we share a multi-year EBITDA target. It is not because EBITDA is our top objective. It isn't. Our top objective is, and has always been, intrinsic value per share. We share EBITDA as a target because it's public, it's measurable, it's a milestone on the path to much higher cash flow per share, and it holds us accountable. It gives you a concrete way to track our progress. I want to be direct about this. We would not chase this target through decisions we thought sacrificed intrinsic value per share for the near term. We just wouldn't do that. We strongly believe that we can see multiple years of EBITDA expansion compatible with our intrinsic value per share objectives. With that, I will hand it over to Sean to walk through the quarter and our financial outlook for the next two years. Sean?

Speaker #3: We share EBITDA as a target because it's public, it's measurable, it's a milestone on the path to much higher cash flow per share. And it holds us accountable.

Speaker #3: And it gives you a concrete way to track our progress. And I want to be direct about this: we would not chase this target through decisions we thought sacrificed intrinsic value per share for the near term.

Speaker #3: We just wouldn't do that. But we strongly believe that we can see multiple years of EBITDA expansion compatible with our intrinsic value per share objectives.

Speaker #3: With that, I'll hand it over to Sean to walk through the quarter and our financial outlook for the next two years.

Robert Keane: With that, I will hand it over to Sean Quinn to walk through the quarter and our financial outlook for the next two years. Sean?

Speaker #2: Sean?

Speaker #1: Great. Thanks, Robert. And thanks, everyone, for joining us today. As Robert said, fiscal year 2026 was a strong year for CIMPRESS. We're on the right path operationally.

Sean Quinn: Great. Thanks, Robert Keane, and thanks everyone for joining us today. As Robert Keane said, fiscal year 2026 was a strong year for Cimpress. We are on the right path operationally, and importantly, we have cohesive plans for delivering on what we have laid out for the next two years in our fiscal 2027 guidance and also our increased fiscal 2028 targets. The full year revenue in fiscal 2026 reached EUR 3.74 billion, up 10% on a reported basis and 4% on an organic constant currency basis. Adjusted EBITDA grew 6% for the year. That was getting us to EUR 458.5 million in total. For Q4, consolidated revenue grew 9% on a reported basis and 3% on an organic constant currency basis. We continue to see good progress in our ability to better serve high-value customers.

Sean Quinn: Great. Thanks, Robert, and thanks everyone for joining us today. As Robert Keane said, fiscal year 2026 was a strong year for Cimpress. We are on the right path operationally, and importantly, we have cohesive plans for delivering on what we have laid out for the next two years in our fiscal 2027 guidance and also our increased fiscal 2028 targets. The full year revenue in fiscal 2026 reached EUR 3.74 billion, up 10% on a reported basis and 4% on an organic constant currency basis. Adjusted EBITDA grew 6% for the year. That was getting us to EUR 458.5 million in total. For Q4, consolidated revenue grew 9% on a reported basis and 3% on an organic constant currency basis. We continue to see good progress in our ability to better serve high-value customers.

Speaker #1: And importantly, we have cohesive plans for delivering on what we've laid out for the next two years in our fiscal 2027 guidance. And also, our increased fiscal 2028 targets.

Speaker #1: The full-year revenue in fiscal 2026 reached $3.74 billion, up 10% on a reported basis. And 4% on an organic constant currency basis. Adjusted EBITDA grew 6% for the year.

Speaker #1: And that was getting us to $458.5 million in total. For Q4, consolidated revenue grew 9% on a reported basis and 3% on an organic constant currency basis.

Speaker #1: We continue to see good progress in our ability to better serve high-value customers—one of the best indications of that is the continued variable gross profit per customer growth and Vistaprint, which we've been reporting throughout this year—and that increased 9% year over year, continuing that multi-year trend.

Sean Quinn: One of the best indications of that is the continued variable gross profit per customer growth in Vistaprint, which we've been reporting throughout this year, that increased 9% year over year, continuing that multi-year trend. For the quarter, adjusted EBITDA was EUR 120.4 million. As noted in yesterday's release, Q4 profitability was impacted by a few items outside of our core operations. We had EUR 7.1 million in higher startup costs for our North American manufacturing network build-out. We had EUR 4.7 million write-off of Canadian duty drawback receivables that we're actively contesting after a long-standing ruling was revoked, that happened right at the end of the quarter. We had EUR 1.8 million of inventory write-downs, all that was partially offset by the IEEPA tariff refunds that we had in the quarter of EUR 6.9 million. Relative to guidance, we came in below where we expected.

Sean Quinn: One of the best indications of that is the continued variable gross profit per customer growth in Vistaprint, which we've been reporting throughout this year, that increased 9% year over year, continuing that multi-year trend. For the quarter, adjusted EBITDA was EUR 120.4 million. As noted in yesterday's release, Q4 profitability was impacted by a few items outside of our core operations. We had EUR 7.1 million in higher startup costs for our North American manufacturing network build-out. We had EUR 4.7 million write-off of Canadian duty drawback receivables that we're actively contesting after a long-standing ruling was revoked, that happened right at the end of the quarter. We had EUR 1.8 million of inventory write-downs, all that was partially offset by the IEEPA tariff refunds that we had in the quarter of EUR 6.9 million. Relative to guidance, we came in below where we expected.

Speaker #1: For the quarter, adjusted EBITDA was $120.4 million. As noted in yesterday's release, Q4 profitability was impacted by a few items outside of our core operations.

Speaker #1: We had $7.1 million in higher startup costs for our North American manufacturing network build-out. We had $4.7 million write-off of Canadian duty drawback receivables that were actively contesting after a longstanding ruling was revoked.

Speaker #1: And that happened right at the end of the quarter. And we had $1.8 million of inventory write-downs. And all that was partially offset by the IEPA tariff refunds that we had in the quarter of $6.9 million.

Speaker #1: Relative to guidance, we came in below where we expected. The duty drawback topic, the inventory write-downs, and also an adjustment that was necessary for variable long-term incentives, all came up at the very end of the quarter.

Sean Quinn: The duty drawback topic, the inventory write-downs, and also an adjustment that was necessary for variable long-term incentives all came up at the very end of the quarter. That was about EUR 10 million of negative impact on adjusted EBITDA. We also had two other smaller items. The impact of currency was less favorable than we had expected, just based on changes in rates from the end of April, when we had updated guidance, we had transaction costs for the SAXOPRINT acquisition as well. The two of those combined are about EUR 2 million. Candidly, that's a lot of noise there. As demonstrated from our go-forward guidance that I'll review in a moment, these topics don't change our charted profitability and cash flow growth path. Adjusted free cash flow was EUR 70.5 million for Q4, it was EUR 122.4 million for the year.

Sean Quinn: The duty drawback topic, the inventory write-downs, and also an adjustment that was necessary for variable long-term incentives all came up at the very end of the quarter. That was about EUR 10 million of negative impact on adjusted EBITDA. We also had two other smaller items. The impact of currency was less favorable than we had expected, just based on changes in rates from the end of April, when we had updated guidance, we had transaction costs for the SAXOPRINT acquisition as well. The two of those combined are about EUR 2 million. Candidly, that's a lot of noise there. As demonstrated from our go-forward guidance that I'll review in a moment, these topics don't change our charted profitability and cash flow growth path. Adjusted free cash flow was EUR 70.5 million for Q4, it was EUR 122.4 million for the year.

Speaker #1: That was about $10 million of negative impact on adjusted EBITDA. We also had two other smaller items: the impact of currency was less favorable than we had expected just based on changes in rates.

Speaker #1: From the end of April, when we had updated guidance. And then we had transaction costs for the SaxoPrint acquisition as well. The two of those combined are about $2 million.

Speaker #1: Candidly, that's a lot of noise there. As demonstrated from our go-forward guidance that I'll review in a moment, these topics don't change our charted profitability and cash flow growth path.

Speaker #1: Adjusted free cash flow was $70.5 million. For Q4, and it was $122.4 million for the year. As we've discussed throughout the year, this reflects our higher manufacturing capitalized capital expenditures.

Sean Quinn: As we've discussed throughout the year, this reflects our higher manufacturing capital expenditures, all those to drive unit cost reductions and also expand elevated product capacity and capabilities. Networking capital was a significant inflow in Q4, as it normally is. For the full year, the impact of networking capital was a EUR 11 million use of cash, which we expected to be a small inflow for the year. That's just timing, nothing structural there, that was the other impact relative to our full year guidance. We ended fiscal 2026 in a strong balance sheet position. Net leverage was 2.9x trailing 12 months EBITDA, as calculated based on our credit agreement. That was consistent with what we guided to throughout the year. That's down from 3.1x at the end of fiscal 2025. Our liquidity remains robust.

Sean Quinn: As we've discussed throughout the year, this reflects our higher manufacturing capital expenditures, all those to drive unit cost reductions and also expand elevated product capacity and capabilities. Networking capital was a significant inflow in Q4, as it normally is. For the full year, the impact of networking capital was a EUR 11 million use of cash, which we expected to be a small inflow for the year. That's just timing, nothing structural there, that was the other impact relative to our full year guidance. We ended fiscal 2026 in a strong balance sheet position. Net leverage was 2.9x trailing 12 months EBITDA, as calculated based on our credit agreement. That was consistent with what we guided to throughout the year. That's down from 3.1x at the end of fiscal 2025. Our liquidity remains robust.

Speaker #1: All those to drive unit cost reductions and also expand elevated product capacity and capabilities. Networking capital was a significant inflow in Q4 as it normally is.

Speaker #1: But for the full year, the impact of networking capital was $11 million use of cash, which we expected to be a small inflow for the year.

Speaker #1: That's just timing, nothing structural there. But that was the other impact relative to our full-year guidance. We ended fiscal 2026 in a strong balance sheet position.

Speaker #1: Net leverage was $2.9 times. Trailing 12 months EBITDA is calculated based on our credit agreement. That was consistent with what we guided to throughout the year.

Speaker #1: And that's down from $3.1 times at the end of fiscal 2025. Our liquidity remains robust. We had $249 million in cash and cash equivalents.

Sean Quinn: We had EUR 249 million in cash and cash equivalents at the end of the year. We also have our EUR 250 million revolving credit facility. I should note that we, during the quarter, closed on a new EUR 1.1 billion term loan B that's now due 2033 and replaces our prior term loan B that was due in 2028. Turning to our outlook now, our fiscal 2027 guidance reflects strong continued financial momentum and also significant growth in profitability and cash generation. Specifically, we expect reported revenue growth of at least 7%. On an organic constant currency basis, that's 3%. Net income of at least EUR 125 million. Adjusted EBITDA of at least EUR 520 million. That represents over 13% growth year over year. Operating cash flow of approximately EUR 370 million, and adjusted free cash flow of approximately EUR 200 million. That's also significant growth year over year.

Sean Quinn: We had EUR 249 million in cash and cash equivalents at the end of the year. We also have our EUR 250 million revolving credit facility. I should note that we, during the quarter, closed on a new EUR 1.1 billion term loan B that's now due 2033 and replaces our prior term loan B that was due in 2028. Turning to our outlook now, our fiscal 2027 guidance reflects strong continued financial momentum and also significant growth in profitability and cash generation. Specifically, we expect reported revenue growth of at least 7%. On an organic constant currency basis, that's 3%. Net income of at least EUR 125 million. Adjusted EBITDA of at least EUR 520 million. That represents over 13% growth year over year. Operating cash flow of approximately EUR 370 million, and adjusted free cash flow of approximately EUR 200 million. That's also significant growth year over year.

Speaker #1: At the end of the year, we also have our $250 million revolving credit facility. And I should note that we during the quarter closed on a new $1.1 billion term loan B.

Speaker #1: That's now due 2033. And replaces our prior term loan B that was due in 2028. So turning to our outlook now, our fiscal 2027 guidance reflects strong continued financial momentum.

Speaker #1: And also significant growth in profitability and cash generation. Specifically, we expect reported revenue growth of at least 7% on an organic constant currency basis.

Speaker #1: That's 3%. Net income of at least $125 million. Adjusted EBITDA of at least $520 million. That represents over a 13% growth year over year.

Speaker #1: And then operating cash flow of approximately $370 million. And adjusted free cash flow of approximately $200 million. That's also significant growth year over year.

Speaker #1: In the earnings document, we provided some additional commentary that you might find helpful, just as the assumptions and context for our fiscal 2027 guidance.

Sean Quinn: In the earnings document, we provided some additional commentary that you might find helpful, just as the assumptions and context for our fiscal 2027 guidance. I'm not going to go through all that here, but I thought it might be useful to just provide a high-level bridge from where we ended up fiscal 2026 at $458.5 million of adjusted EBITDA to the guidance of at least $520 million for next year. The first one is, as we noted in our release yesterday, the contribution from M&A. We had a number of recent tuck-in acquisitions. We expect those to contribute $18 million to $21 million in incremental adjusted EBITDA growth. That is the growth year over year. The revenue attached to those is $165 million to $175 million in fiscal 2027.

Sean Quinn: In the earnings document, we provided some additional commentary that you might find helpful, just as the assumptions and context for our fiscal 2027 guidance. I'm not going to go through all that here, but I thought it might be useful to just provide a high-level bridge from where we ended up fiscal 2026 at $458.5 million of adjusted EBITDA to the guidance of at least $520 million for next year. The first one is, as we noted in our release yesterday, the contribution from M&A. We had a number of recent tuck-in acquisitions. We expect those to contribute $18 million to $21 million in incremental adjusted EBITDA growth. That is the growth year over year. The revenue attached to those is $165 million to $175 million in fiscal 2027.

Speaker #1: I'm not going to go through all that here. But I thought it might be useful to just provide a high-level bridge from where we ended up fiscal 2026 at $458.5 million of adjusted EBITDA to the guidance of at least $520 million for next year.

Speaker #1: And the first one is, as we noted in our release yesterday, the contribution from M&A. So we had a number of recent tuck-in acquisitions.

Speaker #1: We expect those to contribute $18 million to $21 million in incremental adjusted EBITDA growth. So that is the growth year over year. The revenue attached to those is $165 million to $175 million in fiscal 2027.

Speaker #1: And all that incremental EBITDA is both the full-year run-rate earnings from the standalone businesses, but also the initial synergy realization as well, which we'll be ramping throughout the year.

Sean Quinn: All that incremental EBITDA is both the full-year run rate earnings from the standalone businesses, but also the initial synergy realization as well, which we'll be ramping throughout the year. From a currency standpoint, we do expect currency to be favorable in fiscal 2027. Based on current exchange rates and also our contracted hedges, currency is expected to provide a +$5 to $10 million year over year impact on profitability, which that is contracted, so we have visibility to that. The remaining $31 million to $39 million of adjusted EBITDA growth comes from a combination of the contribution from organic growth, but also all the cost efficiencies that we're executing on as we've been outlining over the last year.

Sean Quinn: All that incremental EBITDA is both the full-year run rate earnings from the standalone businesses, but also the initial synergy realization as well, which we'll be ramping throughout the year. From a currency standpoint, we do expect currency to be favorable in fiscal 2027. Based on current exchange rates and also our contracted hedges, currency is expected to provide a +$5 to $10 million year over year impact on profitability, which that is contracted, so we have visibility to that. The remaining $31 million to $39 million of adjusted EBITDA growth comes from a combination of the contribution from organic growth, but also all the cost efficiencies that we're executing on as we've been outlining over the last year.

Speaker #1: From a currency standpoint, we do expect currency to be favorable in fiscal 2027. Based on current exchange rates and also our contracted hedges, currency is expected to provide a 5 to 10 million positive year over year impact on profitability.

Speaker #1: That is contracted. So we have visibility to that. And then the remaining $31 to $39 million of adjusted EBITDA growth comes from a combination of the contribution from organic growth, but also all the cost efficiencies that we're executing on as we've been outlining over the last year.

Speaker #1: And those cost efficiencies include both the structural cost of goods sold reductions that are driven by cost impress fulfillment and focused production hubs, and also the investments that we've been making in throughout our production network.

Sean Quinn: Those cost efficiencies include both the structural cost of goods sold reductions that are driven by cross-Cimpress fulfillment and focused production hubs, and also the investments that we've been making throughout our production network. Operating expense savings, including the full year impact of actions that have already been taken in fiscal 2026. On the cash flow side, in fiscal 2027, we expect CapEx and capitalized software will remain at similar levels to fiscal 2026, while lower cash taxes and the adjusted EBITDA growth that I just outlined will drive the significant growth in adjusted free cash flow to the $200 million. Just quickly on the topic of tariffs as it relates to fiscal 2027, the trade environment remains dynamic. There were 2 new US tariff measures announced last week. The first one is the broad-based Section 301 tariffs of 10% to 12.5%.

Sean Quinn: Those cost efficiencies include both the structural cost of goods sold reductions that are driven by cross-Cimpress fulfillment and focused production hubs, and also the investments that we've been making throughout our production network. Operating expense savings, including the full year impact of actions that have already been taken in fiscal 2026. On the cash flow side, in fiscal 2027, we expect CapEx and capitalized software will remain at similar levels to fiscal 2026, while lower cash taxes and the adjusted EBITDA growth that I just outlined will drive the significant growth in adjusted free cash flow to the $200 million. Just quickly on the topic of tariffs as it relates to fiscal 2027, the trade environment remains dynamic. There were 2 new US tariff measures announced last week. The first one is the broad-based Section 301 tariffs of 10% to 12.5%.

Speaker #1: But also operating expense savings including the full-year impact of actions that have already been taken in fiscal 2026. On the cash flow side, in fiscal 2027, we expect CapEx and capitalized software will remain at similar levels to fiscal 2026.

Speaker #1: While lower cash taxes and the adjusted EBITDA growth that I just outlined will drive the significant growth in adjusted free cash flow to the $200 million.

Speaker #1: Just quickly on the topic of tariffs as it relates to fiscal 2027, the trade environment remains dynamic. There were two new US tariff measures announced last week.

Speaker #1: The first one is the broad-based Section 301 tariffs of 10% to 12.5%. Those have already taken effect. And those replace the 10% global tariff rate that had expired that same day that these went into effect.

Sean Quinn: Those have already taken effect, and those replace the 10% global tariff rate that had expired that same day that these went into effect. Our outlook had already assumed the 10% continuation of the Section 301 duties previously, this one is, in essence, built into our guidance. The second one is the 50% tariff on certain Canadian goods under Section 338, and those were announced to take effect on 19 August. Given the implementation uncertainties, we haven't included those Section 338 tariffs in our guidance. Of course, we've been doing plenty of work on this. Our preliminary review shows that these duties would affect a small portion of products fulfilled in Canada for US customers, and we're actively operationalizing supply chain and fulfillment adjustments to mitigate a substantial portion of any prospective cost impact.

Sean Quinn: Those have already taken effect, and those replace the 10% global tariff rate that had expired that same day that these went into effect. Our outlook had already assumed the 10% continuation of the Section 301 duties previously, this one is, in essence, built into our guidance. The second one is the 50% tariff on certain Canadian goods under Section 338, and those were announced to take effect on 19 August. Given the implementation uncertainties, we haven't included those Section 338 tariffs in our guidance. Of course, we've been doing plenty of work on this. Our preliminary review shows that these duties would affect a small portion of products fulfilled in Canada for US customers, and we're actively operationalizing supply chain and fulfillment adjustments to mitigate a substantial portion of any prospective cost impact.

Speaker #1: Our outlook had already assumed the 10% continuation of the Section 301 duties previously. And so this one is, in essence, built into our guidance.

Speaker #1: The second one is the 50% tariff on certain Canadian goods under Section 338. And those were announced to take effect on August 19th. Given the implementation on certainties, we haven't included those Section 338 tariffs in our guidance.

Speaker #1: But of course, we've been doing plenty of work on this. Our preliminary review shows that these duties would affect a small portion of products fulfilled in Canada for US customers.

Speaker #1: And we're actively operationalizing supply chain and fulfillment adjustments to mitigate a substantial portion of any prospective cost impact as hopefully has been clear over the last year and a half.

Sean Quinn: As hopefully has been clear over the last year and a half, I think our team has done a great job being dynamic and addressing these changes as needed when they come up. Turning to our fiscal 2028 targets, we remain confident, as Robert said, in our organic constant currency revenue growth expectation of 4% to 6%. Importantly, in yesterday's release, we raised our fiscal 2028 profitability and cash flow targets to net income of at least $192 million. Adjusted EBITDA raised to at least $615 million, up from our prior target of at least $600 million. Adjusted free cash flow conversion of approximately 45%, which is consistent with our prior guidance, but on the higher EBITDA base implies roughly $275 million in adjusted free cash flow.

Sean Quinn: As hopefully has been clear over the last year and a half, I think our team has done a great job being dynamic and addressing these changes as needed when they come up. Turning to our fiscal 2028 targets, we remain confident, as Robert said, in our organic constant currency revenue growth expectation of 4% to 6%. Importantly, in yesterday's release, we raised our fiscal 2028 profitability and cash flow targets to net income of at least $192 million. Adjusted EBITDA raised to at least $615 million, up from our prior target of at least $600 million. Adjusted free cash flow conversion of approximately 45%, which is consistent with our prior guidance, but on the higher EBITDA base implies roughly $275 million in adjusted free cash flow.

Speaker #1: I think our team has done a great job being dynamic and addressing these changes as needed when they come up. Turning to our fiscal 2028 targets, we remain confident, as Robert said, in our organic constant currency revenue growth expectation of 4 to 6%.

Speaker #1: But importantly, in yesterday's release, we raised our fiscal 2028 profitability and cash flow targets to net income of at least $192 million. Adjusted EBITDA raised to at least $615 million.

Speaker #1: Up from our prior target of at least $600 million. And then adjusted free cash flow conversion of approximately $45%, which is consistent with our prior guidance.

Speaker #1: But on the higher EBITDA base, implies roughly $275 million in adjusted free cash flow. The primary driver of this target increase is a higher expected contribution from M&A compared to our prior remarks.

Sean Quinn: The primary driver of this target increase is a higher expected contribution from M&A compared to our prior remarks, and that's based on the transactions that have closed over the last few quarters. Otherwise, as every

Sean Quinn: The primary driver of this target increase is a higher expected contribution from M&A compared to our prior remarks, and that's based on the transactions that have closed over the last few quarters. Otherwise, as every