Cimpress (CMPR) Stock Forecast & Price Target

Cimpress PLC's investment in mass-customization businesses is supported by a 3% year-over-year revenue increase in its Vista segment during Q2/25, reflecting organic growth despite challenges in certain categories. The company's advertising expenditure increased by 8% year-over-year to $86.3 million, indicating a commitment to driving further revenue growth, as this spending represented 17.3% of total revenues. Additionally, significant year-over-year growth in various product categories, including promotional products and apparel, along with the return to modest growth in consumer products, underscores Cimpress's positive revenue trajectory and its ability to adapt and innovate in a competitive marketplace.

Cimpress PLC reported a significant decline in Q2/25 adjusted EBITDA, falling 20.5% year-over-year to $132.3 million, which was below both company estimates and consensus expectations. The company is also projecting an annual adjusted EBITDA of at least $440 million for FY/25, representing a potential decrease of no more than 6% compared to FY/24, but with a concerning AEBITDA to FCF conversion expected to fall short of management's target. Furthermore, Cimpress anticipates ending FY25 with a higher net leverage ratio of 3.0x, an increase from the prior expectation of 2.75x, alongside disappointing revenue growth in key segments, especially in the U.S. business card and consumer products categories.