Cimpress plc

Welcome to the SEMPRESS Third Quarter Fiscal Year 2026 Earnings Call. I will now introduce Ms. Burns, Vice President of Advanced Relations and Sustainability. Please go ahead.

Thank you, Lisa, 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 on the screen. Before we start, I will note that in this session we'll 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, and we invite you to read all of those. Now, I will turn things over to Robert Keene.

Thanks, Meredith, and thank you to our investors for joining us today. Before Sean reviews our Q3 financial results and our guidance updates, I'll share my thoughts on the recent progress we've made on the strategic and the operational themes of that we've covered in detail in our annual letter of July 29th and in our September investor day. Our Q3 earnings document highlights recent examples in a number of categories. First, elevated products are fueling a step function improvement in our per customer lifetime value and our wallet share. Every quarter, we're improving our ability to help millions of businesses build their brands stand out and grow thanks to our customized physical marketing products and branded merchandise. One metric which demonstrates our progress is that Vistaprint's variable gross profit per customer grew 13% year-over-year in Q3, and that's also our 13th consecutive quarter of growth in this metric. We see similar themes in our upload and print businesses as well. Second, investments in the Sympress MCP in our manufacturing operations, in cross-Sympress fulfillment, and in artificial intelligence are reducing COGS and operating expenses while increasing the velocity of new product introductions and user experience improvements. In the earnings document, we provide multiple examples of where we are leveraging our deep expertise and scale advantages in manufacturing where we're using AI to improve customer experiences and to drive operating leverage. Also, where we're using our shared software services to reduce costs and improve performance, and where we are growing the collaboration between our businesses, for example, deploying shared marketing capabilities. And third, we continue to march along a clear path to fiscal 2028 adjusted EBITDA of at least $600 million and significantly lower leverage. Progress in the areas I just spoke about has allowed us to start driving down the cost of goods sold and drive up the operating efficiencies that support our previously communicated plan to achieve these financial results. Our gross profit is growing in part due to the scale advantages we have in manufacturing new product introductions, and many production optimizations within our plants and between SimPress businesses. We expect more financial benefits in fiscal 27 and fiscal 28 as larger COGS efficiencies from ongoing manufacturing network optimizations kick in, and our new production facility startup costs, which are currently burdening our P&L, shift to incremental profitability thanks to volume growth. Additionally, we drove advertising efficiency in Q3 while continuing to grow revenue and gross profit. We expect more here in the coming years as we launch more elevated products that grow our wallet share with higher value of customers. We also implemented several OpEx reductions this quarter that will generate annualized savings of less of, excuse me, of $11 million between Vistaprint and National Pen. In last year's earnings, I'm sorry, in last night's earnings release, we announced two tuck-in acquisitions that we made in April. The first is Print Brothers' acquisition of 85% of Truall. They're the Spanish leader for elevated brand building print, packaging, and signage products. This acquisition allows us to expand our product offering into higher-end products while capturing immediate cost synergies through materials and shipping savings, which we bring due to our much larger purchasing power. Second, we've taken a 50% stake with operating control in Mixum, and that will marry Mixum's market-leading customer experience for books, catalogs, and magazines with the print group's manufacturing strength and their experience for these products. Both of these are in our upload and print segment, and we see them as great examples of where we can allocate capital to token acquisitions. We expect each of these acquisitions to generate base case returns on our capital well in excess of 20%. They continue a string of about a half dozen acquisitions within our upload and print segments over the past three years, and they are positioning us to bring our mass customization capabilities into the core of the very large markets, which still remain offline with traditional and less competitive production techniques. We always horse-raise the capital we allocate to acquisitions against share repurchases, against debt reduction, and against organic capabilities development. We generally have a higher hurdle rate for acquisitions, given their typically higher risk. However, our experience in these particular types of tuck-ins is that they are proving to be relatively low risk because of the attractive prices we're paying relative to the post synergy cash flow. In other words, we are proving to be relatively low risk, high return capital outlays. So to sum it up, we're executing well and we remain confident in our multi-year plan to significantly grow profits and to significantly reduce our net leverage. We are strengthening the value we deliver to customers, increasing operational efficiency, and accelerating the velocity with which we drive these improvements. We still have more work to do to deliver the shareholder returns we expect, but we are on the right path, and our path is clear. Now I'll turn things over to Sean to discuss the financial results of the quarter and our outlook.