Cimpress plc announced its financial results for the third quarter of fiscal year 2025, reporting consolidated revenue of $789.468 million, an increase of 1% reported and 3% organic constant-currency year-over-year. Despite a slight increase in operating income to $40.541 million, the company posted a net loss of $8.020 million, an increase of $2.8 million from the prior year. Adjusted EBITDA decreased by $3.5 million, or 4%, to $90.700 million.
The company's gross margin contracted by 100 basis points year-over-year to 47.2%, influenced by product mix shifts towards higher per-customer gross profit categories with lower gross margin percentages. Results were also impacted by a $2.6 million impairment charge related to a planned National Pen facility sale and $1.1 million in pre-production startup costs for the new Pixartprinting U.S. facility. Net leverage increased to 3.3 times trailing-twelve month EBITDA.
Cimpress withdrew its financial guidance for FY2025 and beyond, citing uncertainty in the U.S. tariff and trade environment, particularly concerning China-sourced raw materials. The company is implementing mitigation actions, including identifying alternate sourcing and supply chain changes, aiming to reduce direct China COGS exposure to less than $20 million annually after several months. Price increases are also planned to partially offset increased costs.
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