Q1 Fiscal Year 2027 Quarterly Earnings Document

Quarterly Earnings Document

October 28, 2026

Dear Investor,

Cimpress' first quarter FY2027 financial results were below our expectations. We are not satisfied with the quarter and are accelerating our previously communicated cost reduction plans for which the impact will build in Q2 and grow significantly in the second half of the year. Therefore we remain confident in our fiscal 2027 guidance.

We are encouraged by our progress on the key themes we discussed at our September 30 investor day that underpin our financial plans for the next two years and beyond. We are growing high-value customer wallet share through elevated products, sharing platforms and capabilities to reduce costs, applying AI to drive growth and efficiency including through LLM discoverability and agentic commerce efforts, developing new channels like our recent strategic partnership with Canva, and executing with discipline on tuck-in acquisitions. Also, as discussed at investor day, we are widening our manufacturing and supply chain advantage through product innovation and by investing in new facilities in Mexico and elsewhere that, while increasing costs in the near term, will drive new revenue streams and significantly lower our COGS starting in FY2028 as we ramp volume and remove duplicate overhead.

Summary financial results for Q1 FY2027 compared to Q1 FY2026:

• Revenue grew 8% on a reported basis and 2% on an organic constant-currency basisa. Recent tuck-in acquisitions in our Upload and Print segments positively contributed to our reported growth rates.

• Consolidated gross profit grew 1%, supported by a $7.5 million benefit from IEEPA tariff refunds related to costs incurred in prior periods. This benefit was more than offset by several cost headwinds:

  • $5.9 million in increased net start-up costs for our North American manufacturing network (the year-over-year impact of these costs will start to reduce in the second half of the fiscal year);

  • $5.8 million in increased depreciation and amortization, primarily tied to recent manufacturing equipment investments;

  • $4.2 million net impact of duties and new Section 338 and 301 tariffs on certain goods sold to U.S. customers; and

  • $1.8 million in higher energy-related input costs, net of price increases.

• Consolidated advertising as a percent of revenue was 13.1%, a decrease of 31 basis points.

• Operating income decreased $23.0 million to $26.0 million, down 47%, including the $10.2 million of combined gross profit impacts above, as well as the following items: $3.7 million of increased restructuring charges related to cost reductions that will benefit future periods; $1.4 million from the non-recurrence of a compensation benefit in the year-ago period; and $0.7 million of increased amortization related to recent acquisitions.

• Net income decreased $7.5 million to a loss of $1.0 million driven by the operating results above, partially offset by increases in unrealized gains on currency hedges and lower income tax expense.

• Adjusted EBITDAa decreased $8.9 million to $89.8 million, down 9%. This includes a $1.7 million year-over-year net currency benefit.

• Operating cash flow increased $3.9 million to $28.9 million, primarily driven by $10.0 million of lower net working capital outflows and lower cash interest expense.

• Adjusted free cash flowa improved $8.5 million to an outflow of $9.3 million, driven by the increase in operating cash flow, as well as lower capital expenditures and capitalized software.

• We did not repurchase shares this quarter. Payments for withholding taxes in connection with vesting of equity awards were $13.8 million, representing 145,853 shares at an average of $94.33 per share.

• Net leveragea at September 30, 2026 was 3.2 times trailing-twelve month EBITDA as calculated per our credit agreement. The quarter-over-quarter increase is due to the Saxoprint acquisition, which closed in July, and does not reflect expected proceeds from the sale-leaseback of the acquired manufacturing facility.

• Our liquidity position as of September 30, 2026 remained strong with cash and cash equivalents of $120.1 million and $35.0 million of our $250.0 million revolving credit facility drawn to fund the Saxoprint acquisition.

  Segment Commentary

  VistaPrint Q1 revenue grew 2% year over year, both on a reported and organic constant-currency basisa. By product category, growth was strongest in promotional products, apparel and gifts, marketing materials, and packaging. Backlog increased during the quarter partially due to a U.S. customs software interruption at the end of the quarter, and we expect this to benefit revenue in Q2. Additionally, we amended the terms of our Wix partnership, requiring a change of the revenue recognition from a gross to net basis, which weighed on VistaPrint's Q1 revenue growth by 50 basis points, but has no impact on profit. Variable gross profit per customer (at reported currency rates) grew 7% year over year to $90.98 in Q1.

  VistaPrint Q1 segment EBITDA declined 10% year over year to $80.7 million, a decrease of $9.3 million from the prior-year period. The largest drivers of this year-over-year decline were: an increase in North American production network start-up costs of approximately $5.1 million; Canadian duty and tariff costs totaling approximately $3.0 million; $0.7 million in energy-related cost increases net of pricing changes; and a negative currency impact of $0.5 million. We expect the net costs associated with the new manufacturing facility and the impact of tariffs to begin to decrease in the second half of FY2027.

  PrintBrothers and The Print Group (our combined Upload & Print businesses) Q1 revenue grew year over year by 28% and 13% on a reported basis, respectively (23% combineda); 5% and 2% on an organic constant-currency basis, respectively (4% combineda). Reported revenue growth benefitted from the contribution of recent acquisitions. Organic revenue growth at PrintBrothers was driven by increased external order volume, while The Print Group growth was largely driven by volume increases in cross-Cimpress fulfillment.

  Q1 segment EBITDA decreased year over year by $1.4 million for PrintBrothers and by $0.6 million for The Print Group. Revenue growth and contribution from recent M&A was in line with our expectations. During the quarter, PrintBrothers incurred a $2 million expense catch-up for a long-term incentive program based on a change in probability of achievement. Additionally, energy-related input and shipping cost increases weighed on The Print Group segment EBITDA by $0.5 million. Currency movements drove a negative impact of $0.7 million on combined Upload & Print segment EBITDA.

  National Pen Q1 revenue grew 1% year over year on a reported basis and 2% on an organic constant-currency basis as cross-Cimpress fulfillment volume and e-commerce sales channel growth offset the decline associated with planned pullback in marketing spend in the mail order channel.

  Segment EBITDA improved $7.8 million over the same quarter last year, due to $7.3 million of tariff-related refunds, cross-Cimpress fulfillment growth, marketing spend pullback, and other cost savings initiatives. Part of this segment EBITDA improvement was offset by increased energy-related input costs, tariff costs, and a $0.3 million negative currency impact.

  All Other Businesses Q1 revenue grew 17% year over year on a reported and organic constant-currency basis, driven by BuildASign's external and cross-Cimpress fulfillment revenue growth, and growth from our new partnership with Canva, which is included in this segment. Segment EBITDA declined $3.7 million year over year, due to a $1.4 million impact from the non-recurrence of an LTI benefit in the prior-year period, as well as approximately $0.7 million of net increased start-up costs in a new North American production facility.

  Central and Corporate Costs, excluding unallocated share-based compensation, decreased $1.8 million year over year in Q1, largely due to efficiencies driven by technology simplification.

  Outlook

  Our revenue, adjusted EBITDA and adjusted free cash flow guidance for FY2027 remains unchanged since we initiated it with our Q4 FY2026 results. We walked through the details of this guidance at our September 30, 2026 investor day. Our guidance is:

• Revenue growth of at least 7% assuming recent currency rates and incorporating our recent tuck-in acquisitions; organic constant-currency revenue growtha of at least 3%.

• Net income of at least $116 million and adjusted EBITDAa of at least $520 million.

• Operating cash flow of approximately $370 million, and adjusted free cash flowa of approximately $200 million.

For FY2028, we remain confident in our ability to deliver 4% to 6% organic constant-currency revenue growtha and at least $192 million in net income and $615 million in adjusted EBITDAa, with approximately 45% conversion to adjusted free cash flow.

Achieving our FY2028 outlook will significantly reduce our net leverage ratio. We continue to expect that we will reduce net leveragea to approximately 2.5x trailing-twelve-month EBITDA as calculated under our credit agreement exiting FY2027 on the way to being able to be meaningfully below 2.0x net leverage ending FY2028, subject to capital allocation choices.

We have clear plans and strong alignment across our teams to achieve our FY2027 and FY2028 strategic, operational and financial goals. We are confident in our prospects for growing per-share cash flow over that horizon and beyond. We expect profit and cash flow growth to build from Q2 as multiple in-flight cost savings initiatives take hold and the impact of manufacturing start-up costs starts to diminish in the second half of the year. AI is becoming a tailwind for Cimpress. It is making us faster and lower cost and, by democratizing design, it is expanding the online opportunity for customized physical marketing products and branded merchandise, where our manufacturing and supply chain capabilities are a durable, scale-based and innovation-forward advantage.

As always, I thank our long-term investors for continuing to entrust your capital with Cimpress. Sincerely,

Robert S. Keane

Founder, Chairman & CEO

$ in thousands, except percentages

1 SBC expense listed above excludes the portion included in restructuring-related charges to avoid double counting.

2 Values may not sum due to rounding.