Cimpress (CMPR) Stock Forecast & Price Target

Cimpress PLC reports a positive financial outlook, driven by a notable 8% year-over-year increase in ad spending for the Vista segment, which contributed significantly to overall revenues. The Vista segment exhibited a 3% year-over-year revenue increase on an organic constant-currency basis during Q2/25, with various product categories, including promotional products and apparel, achieving growth rates in the high-single to high-teens. Additionally, the company anticipates at least 3% revenue growth for FY/25, underpinned by strong contributions from new product categories and improvements in previously declining sectors.

Cimpress PLC has reported a substantial decline in Q2/25 adjusted EBITDA, which fell by 20.5% year-over-year to $132.3 million, significantly below both analyst estimates and consensus expectations. The company is projecting an overall adjusted EBITDA of at least $440 million for FY/25, indicating a projected decrease of no more than 6% compared to the previous fiscal year, with a concerning AEBITDA to free cash flow conversion rate of only 36%, falling short of management's target of 45-50%. Additionally, the anticipated increase in net leverage to 3.0x for FY25 raises concerns about financial stability, particularly in light of disappointing revenue growth, especially within the Vista segment, which has been adversely affected by weaknesses in its business card and seasonal consumer products.