Quad/Graphics, Inc.

What they do

Quad operates an MX Solutions Suite spanning creative (Betty agency), media (Rise agency), print manufacturing and distribution, logistics, paper sourcing and packaging. It runs 71 global facilities, including 33 manufacturing and distribution facilities, across 10 countries, serving roughly 2,100 clients in commerce (retail, CPG, DTC), financial services and health. Its 10 largest clients were about 21% of 2025 consolidated sales, with none above 5% individually.

Revenue drivers

• Print and marketing solutions — The legacy commercial printing base and adjacent production/execution services remain the core of consolidated sales; the segment includes targeted print work for retail, CPG and financial services clients.
• Paper sales — Q2 2026 net sales of $578 million rose 1% year over year, which management attributed primarily to higher paper sales and higher logistics sales.
• Logistics and distribution — Mail and distribution services, including the Enru co-mail assets acquired April 1, 2025, contributed to the year-over-year sales increase cited for Q2 2026.
• Agency and in-store retail media — Rise media and Betty creative support Quad's agency positioning, and In-Store Connect is being deployed in 30 ShopRite locations under the Wakefern partnership.

Recent performance

For the second quarter of 2026, Quad reported net sales of $578 million versus $572 million in Q2 2025, a 1% increase. Net earnings were $4 million, or $0.07 diluted EPS, compared with a net loss of $0.1 million, or $0.00 diluted loss per share, a year earlier. Non-GAAP Adjusted EBITDA was $42 million versus $43 million, while adjusted diluted EPS rose 71% to $0.24 from $0.14. Management cited lower interest expense, lower depreciation and amortization, and lower SG&A, partly offset by higher income tax and restructuring, impairment and related charges.

Strategy

Quad is continuing its shift from a print-focused printer to an MX company by investing in agency, media and in-store retail media capabilities. It is expanding Packaging with a new 100,000 square-foot Salt Lake City facility expected to be operational in Q4 2026, which management says completes a national packaging footprint. The company is deepening existing accounts, as with long-time print client Wakefern, now using Rise for media AOR and content creation plus In-Store Connect in 30 ShopRite stores. It also emphasizes automation, AI-enabled tools and cost discipline in print operations, and returned $13 million to shareholders in the first half of 2026 via dividends and repurchases.

Risks

• Print demand decline — Quad cites decreasing demand for printing services, digital substitution by marketers and advertisers, and significant industry overcapacity creating downward pricing pressure and potential asset under-utilization.
• Postage and input cost inflation — Changes in postal rates, service levels or regulations and higher costs for paper, ink components, labor, fuel and freight can pressure results if Quad cannot pass them to clients.
• Transformation execution — Quad states its shift to a marketing experience company increases business complexity and exposes it to different demand, seasonality and client concentration dynamics than its print-focused past.
• Macroeconomic and trade uncertainty — Quad flags elevated interest rates, tariffs, trade restrictions and geopolitical tensions as factors affecting its business, financial condition and cash flows.

Outlook

Management reaffirmed full-year 2026 financial guidance, saying results remain on track despite ongoing macroeconomic and geopolitical uncertainty. Quad describes the Q2 sales growth as progress toward its 2028 projected full-year revenue growth, and expects the new Salt Lake City packaging facility to be operational in Q4 2026. It says it will keep monitoring inflation, global trade and geopolitical tensions and adjust as needed, while remaining opportunistic on future share repurchases.