Top-Line Growth
Q1 revenue of $74.8M, up 6.6% year-over-year (from $70.2M) and showing sequential improvement versus Q4 2025.
Adjusted EBITDA and Margin Expansion
Adjusted EBITDA of $9.9M (13.2% of revenue), up from $8.8M (12.6%) in prior-year Q1 and up sequentially from $9.1M (12.5%), demonstrating improving profitability and operating leverage.
Packaging Segment Strength
Packaging & Specialty revenue of $24.0M, up 10% year-over-year, with adjusted EBITDA margin at 15.4% — the highest quarterly margin in three years — driven by folding carton share gains, e-commerce momentum and the Trans-Graphique acquisition.
Envelope Volume Recovery and Operational Execution
Envelope revenue $50.9M, up 5% year-over-year; envelope volume grew 6% YoY aided by two acquisitions and new customer wins. Higher volumes improved fixed-cost absorption and drove sequential margin expansion.
Cost Savings and Network Optimization
Planned actions expected to deliver meaningful run-rate savings: Indianapolis facility consolidation to deliver >$1.5M annualized savings; label footprint consolidation (including iFlex) expected to deliver >$500K annualized savings.
Strategic M&A and Scale in Labels
Completed four tuck-in acquisitions over ~10 months including iFlex (approx. $3M annual revenue). Label consolidation brings flexoweb and digital capabilities and cross-sell opportunities into packaging.
Prudent Capital Allocation and Shareholder Returns
Net debt remained low at $4.1M (net debt/adjusted EBITDA 0.13x), the company repurchased >57,000 shares for ~$0.2M during the quarter, and the Board declared a $0.05 quarterly dividend — preserving flexibility for investments/M&A.