Quad/Graphics Reports 9.8% Decline in Q2 2025 Net Sales, Net Loss Improves

Quad/Graphics, Inc. reported a decline in financial performance for the second quarter of 2025, with total net sales of $571.9 million, down 9.8% from $634.2 million in the same period last year. The company's product sales decreased by 10.0% to $448.0 million, while service sales fell by 9.3% to $123.9 million. The decrease in sales was attributed to a significant drop in paper sales, particularly following the divestiture of its European operations, which was completed on February 28, 2025. The company recorded a net loss of $0.1 million for the quarter, a notable improvement from a loss of $2.8 million in the prior year.

In terms of operational efficiency, Quad/Graphics managed to reduce its total operating expenses by 9.8% to $558.2 million, compared to $619.1 million in the previous year. This reduction was driven by lower selling, general, and administrative expenses, which decreased by 9.6% to $80.2 million. The company also reported a decrease in depreciation and amortization expenses, which fell by 21.6% to $20.7 million. Despite these cost reductions, the company’s operating income decreased slightly to $13.7 million from $15.1 million year-over-year.

Strategically, Quad/Graphics made significant moves in its operational structure, including the acquisition of the co-mailing assets of Enru on April 1, 2025, for $27 million. This acquisition is expected to enhance the company's existing co-mail platform. The company also reported a pre-tax loss of $0.5 million related to the sale of its European operations, which had historically contributed to its international segment. The divestiture and acquisition reflect Quad's ongoing efforts to streamline operations and focus on its core U.S. print and related services.

As of June 30, 2025, Quad/Graphics employed approximately 11,000 people and served around 2,100 clients. The company’s total assets decreased to $1.24 billion from $1.30 billion at the end of 2024, while total liabilities also decreased to $1.15 billion. The company’s liquidity stood at $217.6 million, consisting of $210.9 million in unused capacity under its revolving credit agreement and $6.7 million in cash. The Debt Leverage Ratio increased to 2.13x, above the management's target range of 1.50x to 2.00x, primarily due to increased net debt and a reduction in trailing twelve months Adjusted EBITDA.

Looking ahead, Quad/Graphics anticipates continued challenges in the commercial printing industry, including rising operational costs and shifts in consumer behavior towards digital channels. The company remains focused on improving its cost structure and operational efficiency while investing in growth opportunities. Management expects to navigate these challenges through strategic investments and ongoing restructuring efforts aimed at aligning its operations with market demands.