Cimpress plc reported its fourth-quarter fiscal year 2025 revenue of $869.5 million, a 4% GAAP increase year-over-year, surpassing analyst estimates by $25.26 million. However, the company recorded a GAAP net loss of $28.4 million for the quarter, a significant reversal from the $118.2 million net income in the same period last year. Adjusted EBITDA for Q4 climbed modestly to $122.4 million, a 3% increase.
For the full fiscal year 2025, consolidated revenue grew 3.4% to $3.40 billion, with GAAP net income at $12.9 million. Gross margin contracted by 1.1 percentage points from the prior year, reflecting product mix shifts towards categories with lower gross margin percentages but higher per-customer profit. The net loss was primarily driven by a $126.7 million swing in income tax expense and unrealized currency hedging losses.
Cimpress provided its outlook for fiscal year 2026, projecting revenue growth of 5% to 6% on a reported basis and 2% to 3% on an organic constant-currency basis. GAAP net income is expected to reach at least $72 million, a notable improvement from FY2025. Adjusted EBITDA is forecast to grow to at least $450 million, with adjusted free cash flow anticipated to be approximately $140 million.
The company continued its share repurchase program, buying back 478,688 ordinary shares for $20.8 million during the nine months ended March 31, 2025. Capital expenditures are planned at approximately $100 million for FY2026, with $70 million allocated for software development. Net leverage stood at 3.1 times, above the long-term goal of 2.5 times.
Tariff-related costs, primarily impacting the National Pen segment, amounted to about $3 million in net tariff expense during Q4 FY2025. Management is implementing price increases on affected products to help offset these headwinds. The company's exposure to U.S.-China tariffs is expected to continue until at least mid-2027.
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