Growth in Elevated Product Categories
Cimpress saw significant growth in promotional products, apparel, and gifts, with an 18% increase in revenue for these categories, now exceeding $300 million, and a 27% growth in variable gross profit.
Improved Advertising Efficiency
The company reported a 120 basis-point reduction in advertising as a percentage of revenue to 11.3%, leading to a 5% growth in contribution profit.
Positive Currency Impact
Currency fluctuations had a $3.6 million benefit to adjusted EBITDA during the quarter, notably due to the strengthening of the euro.
Commitment to Long-term Investments
Investments in manufacturing and new product introductions are expected to deliver $70 million to $80 million of incremental annualized adjusted EBITDA improvements by fiscal '27.
Free Cash Flow and Share Repurchase Strategy
Cimpress plans to use share repurchases to take advantage of the price-to-value gap, supported by a focus on delivering revenue and profit growth.