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Quad's Q3 2025 Results: Navigating Challenges and Innovations Ahead

Quad/Graphics, Inc. (NYSE: QUAD), widely recognized as a marketing experience company, reported its third quarter and year-to-date results for 2025 on October 28, 2025. This earnings release sheds light on the financial performance of Quad amid facing complex marketing challenges, shifting market dynamics, and the impact of strategic changes within the organization.

Recent Highlights

In the third quarter of 2025, Quad reported net sales of $588 million, a 13% decline compared to the previous year. Adjusting for the effect of divesting its European operations (which contributed a 6% impact), net sales showed a 7% decrease. This decline can largely be attributed to reduced paper sales, lower print volumes, and diminished sales in logistics and agency solutions. Despite this downturn, the company recognized net earnings of $10 million or $0.21 diluted earnings per share—an impressive recovery from a net loss of $25 million or $0.52 diluted loss per share in 2024.

Financial Performance Breakdown

1. Earnings Analysis

• - Net Sales: Decreased to $588 million from $675 million in Q3 2024.
• - Net Earnings: Improved from a loss to a profit of $10 million in Q3 compared to previous year.
• - Adjusted EBITDA: Reported at $53 million down from $59 million in Q3 2024, reflecting pressures from lower net sales.
• - Adjusted Diluted EPS: Increased 19% to $0.31 compared to $0.26 in Q3 2024.

2. Operational Efficiencies and Innovations

Joel Quadracci, Chairman and CEO, stated that Quad is committed to sharpening its competitive edge in the marketing space by easing the complexities inherent in omnichannel marketing. Significant investments in AI-driven tools, particularly with their enhanced Audience Builder platform powered by Snowflake’s natural language AI, have been pivotal. This advancement allows for quicker and more accurate audience creation, substantially improving client campaign outcomes.

3. Capital Management

The company has also made strides in capital management, returning $19 million to shareholders year-to-date through dividends and share repurchases, with $11 million in cash dividends and $8 million in share buybacks. A quarterly dividend of $0.075 per share was declared, pending for payment on December 5, 2025.

Year-to-Date Insights

Over the first nine months of 2025, Quad reported total net sales of $1.8 billion, a 9% decline year over year. Excluding the impact of European divestiture, this decline was about 4%. Despite experienced challenges, net earnings significantly improved to $16 million or $0.32 diluted earnings per share, compared to a harsh loss of $56 million or $1.17 per share during the same period of 2024.

Moving Forward

As 2025 progresses, Quad is narrowing its full-year guidance and remains focused on maintaining operational efficiency, as well as expanding its market presence through innovative marketing solutions. The confidence in their approach is reflected in the updated guidelines, aiming for a 4% net sales decline midpoint—an improvement from nearly 10% decline in the last year.

Tony Staniak, CFO of Quad, recognized that while challenges persist, their efforts in investment towards AI capabilities and comprehensive marketing solutions are expected to yield benefits moving into 2026 and beyond. The firm aims to develop its In-Store Connect retail media network and believes that continued engagement with high-value shopper audiences will also drive growth.

Conclusion

In a rapidly evolving market landscape, Quad/Graphics, Inc. is demonstrating resilience, innovation, and strategic foresight. The company's unique blend of marketing services, bolstered by technological advancements, positions it well to face future challenges while supporting its clients and enhancing shareholder value.