Cimpress plc

Good morning, and thank you for standing by. Welcome to SEMPRA's first quarter fiscal year 2026 earnings follow-up call. I would like to introduce Meredith Burns, Vice President of Investor Relations and Sustainability. Please go ahead.

Thanks, Michelle, and thank you, everyone, for joining us. With us today are Robert Keene, our Founder, Chairman, and Chief Executive Officer, and Sean Quinn, EVP and Chief Financial Officer. We appreciate the time that you've dedicated to understand our results, commentary, and outlook. This live Q&A session will last about 45 minutes or so and will answer both pre-submitted and live questions. You can submit questions live via the questions and answers box at the bottom left of the screen. Before we start, I'll note that in this session we will make statements about the future. Our actual results may differ materially from these statements due to risk factors that are outlined in detail in our SEC filings and the earnings document we published yesterday on our website. We also have published non-GAAP reconciliations for our financial results on our IR website. We invite you to read them. And now I'll turn things over to Robert.

Thanks, Meredith, and thank you to our investors for joining today. Before Sean goes into a review of the Q1 financial results, I'm going to recap several of the strategic and operational themes that we covered in detail in our annual letter of July 29th and at our September Investor Day. And I'll provide a few examples from the first quarter of progress we've made in these areas. First, elevated products are driving a step function improvement in SEMPRESS's per customer lifetime value, especially at Vistaprint. By elevated products, we mean products that customers value more highly than our legacy products for building their brands and growing their businesses. Note as well that elevated products are typically still in the early stages of the web to print and the mass customization market disruption curve. And that means there's still a long runway for future market share gains by Sympress. Elevated products make up a high percentage of product categories like signage, logo apparel, promotional products, packaging, labels, and multi-page small format products like books, catalogs, magazines, and booklets. With these products, we are earning customer trust for a much larger portion of their needs, which means they become higher lifetime value customers, customers with higher lifetime value. And we're achieving this both with businesses who are already SEMPRESS customers, as well as with newly acquired customers. In the first quarter, Vistaprint grew revenues from promotional products, apparel and gifts, as well as packaging and labels at double-digit rates year over year. In our September Investor Day, I gave an example of custom paper cups and the impact that those products had to take one customer's lifetime value and multiply it fivefold in terms of gross profits. In the first quarter, Vistaprint started to optimize that new product offering, and that optimization drove an increase of more than 50% to the average item quantity. Another example is that we are capitalizing and executing on our past and ongoing investments in our mass customization platform and our growing scale in elevated product categories in order to reduce our cost of goods sold and to increase the velocity of new product introductions. Doing so expands upon our already significant scale-based competitive advantages, which we have in manufacturing, and it explains why we're investing significant CapEx in our production operations this year. At the same time, we are consolidating volumes of similar products from multiple Sympress businesses into focused production hubs, which further reduces costs and increases the returns on our capital expenditures. A key enabler of this is MCP-enabled cross-Sympress fulfillment, XCF, connects the fulfillment operations of each of our businesses to the customer facing operations of each of our other businesses. And it drove an incremental $15 million of gross profit in our last fiscal year. And we remain in the early stages of a multi-year layering of cross-interest fulfillment driven gross profits on top of last year's results. So here are a few examples from this last quarter, Q1 FY26, of how manufacturing excellence is driving both cost reductions and benefits to our customers. First, all segments grew their cross-SIM press fulfillment revenue by double-digit or triple-digit growth rates this quarter. And that's now a material part of the volume growth for upload and print, national pen, and bill design segments, and it shows up in their revenues. And XCF is also very importantly, a material driver of how Vistaprint is rapidly expanding into elevated products, which, as I just mentioned, help us expand our wallet share of the Vistaprint customer base. In terms of improved value for our customers, MCP's newest fulfillment software has enabled Vistaprint to launch next day delivery of business cards in the US in the last quarter. And National Pen migrated to the MCP shipping and logistics platform for National Penn's largest production facility, which immediately improved its ability to predict delivery dates and improved the accuracy of all the related customer communication around delivery. It also supports network-wide optimization and smarter decision-making across SEMPRESS, since National Penn is a very important fulfiller to other SEMPRESS businesses. Third, shared technology, organizational de-layering, and artificial intelligence are helping us constrain operating expenses while improving customer value. For example, in Q1, Exaprint migrated its Spanish site to MCP e-commerce infrastructure. And that is paving the way to migrate all of Exaprint's geographies in the coming year, which will lower technology costs and improve the Exaprint site functionality. In another Q1 example, Vistaprint rolled out generative AI chatbot, agent assist, and customer self-service features that have collectively improved customer care efficiency by 6% year over year. And fourth, we have a strong financial future with a path to FY28 EBITDA of at least $600 million. coupled with very significant de-levering on our balance sheet. The cost reductions, which we took in the second half of fiscal 25, are already supporting operating expense leverage in both Vistaprint and National PEN. We see many more opportunities, big and small, that will allow us to deliver on the $70 to $80 million of annualized adjusted EBITDA improvements that we expect to have exiting fiscal 27 as part of our bridge to FY28 targets. A portion of these savings will come from improvements in our cost of goods as we continue to progress in manufacturing and supply chain excellence via our CapEx investments across simple fulfillment and focused production hubs. Another portion will come from opportunities to further reduce operating expense via organizational simplification and generative AI. Our tech modernization and the operating model, which it enables, has continued to mature, and this has made the capabilities and the strengths of each of Sympress's businesses more and more extensible to other Sympress businesses, thanks to more standardized and shared software services. Cross-Sympress Fulfillment has been an early example of shared product catalogs. Cross-Sympress Fulfillment, with its examples of shared product catalogs and supply chains, has been the first instance of this. But over time, this approach will also allow us to consider new approaches to how we allocate our resources in areas like advertising and operating expense in support of both revenue growth and efficiency. So we're excited about the opportunities ahead to fulfill our multi-year financial objectives, and we're actively working to chart an even stronger financial course over this time period. Now I'll turn things over to Sean, who can discuss the financial results for the quarter as well as our outlook.