Record Quarterly Revenue
Company exceeded $1,000,000,000 in quarterly revenue for the first time ever; Q2 revenue grew 11% on a reported basis and 4% on an organic constant-currency basis.
Raised Full-Year Guidance
Management raised FY26 guidance: revenue growth now expected 7%–8% (3%–4% organic constant currency); adjusted EBITDA at least $460,000,000 (up from $450,000,000); adjusted free cash flow ~ $145,000,000 (from $140,000,000); net income of at least $79,000,000.
Strong First-Half Organic Growth
Organic constant-currency growth through the half was 4%, ahead of prior annual guidance (2%–3%); year-to-date adjusted EBITDA dollar growth equals the prior full-year guidance dollar amount.
Elevated Product Strength and Customer Value
Elevated categories drove double-digit growth in promotional products, apparel & gifts, and packaging & labels; Vista organic constant-currency growth 5% (up from 3% prior year quarter); variable gross profit per customer grew 9% year-over-year, indicating improved wallet share with higher-value SMB customers.
Profitability and EBITDA Progress
Adjusted EBITDA increased by $6,000,000 year-over-year in Q2; consolidated profit dollars increased ~8% in Q2; Vista segment EBITDA improved ~10% (~$10,000,000).
Cross-Enterprise Fulfillment (XCF) Acceleration
XCF volume roughly doubled year-over-year in the first half (from ~ $40,000,000 to > $80,000,000), previously delivering ~ $15,000,000 of gross profit benefit annually; management expects continued meaningful COGS and utilization benefits from focused production hubs.
Tuck-in M&A and Strategic Acquisitions
Completed a tuck-in in Q2 (Austrian printing group) where equity paid was $10.4M; target company annual revenues ~ $70,000,000 and pre-synergy EBITDA ~ $5,000,000; enterprise value including debt was comfortably below 5x pre-synergy EBITDA and expected to deliver returns well above the firm's 15% hurdle.
Balance Sheet and Liquidity Improvement
Net leverage declined to 2.97x trailing twelve months EBITDA (down from ~3.1x prior); cash balance $258,000,000; $250,000,000 undrawn on credit facility; allocated > $25,000,000 to share repurchases in Q2 at an average price below $70.
Reaffirmed FY28 Targets
Management reiterated confidence in FY28 targets: 4%–6% organic growth, adjusted EBITDA of at least $600,000,000, ~45% adjusted EBITDA-to-free-cash-flow conversion, and significant deleveraging (target net leverage ~2.5x end FY27 and <2.0x end FY28).
Operational Resilience and Technology Investments
Company demonstrated operational resiliency after a hurricane in Jamaica by shifting volumes across care centers; management is investing in shared technology and AI to drive operating efficiencies and customer experience improvements.