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DATE

Thursday, April 30, 2026 at 8 a.m. ET

CALL PARTICIPANTS

  • Chairman and Chief Executive Officer — Robert Keane
  • Executive Vice President and Chief Financial Officer — Sean Quinn

TAKEAWAYS

  • Adjusted EBITDA -- $100.5 million, representing 11% growth year over year, and the first time exceeding $100 million in a Q3 period.
  • Consolidated Revenue -- Increased 12% on a reported basis and 4% on an organic constant currency basis, reflecting both operational momentum and currency tailwinds.
  • Vistaprint Revenue -- Grew 7% reported and 3% organic constant currency, with "elevator products" offsetting declines in business cards and stationery.
  • Upload & Print Segment Revenue -- Organic constant currency growth of 8% and reported growth of 26%, including $15 million contribution from a Q2 acquisition and election-driven volume.
  • Vistaprint Variable Gross Profit Per Customer -- Up 13% year over year, marking thirteen consecutive quarters of growth for this metric.
  • Cost Reductions -- Recently implemented operational expense (OpEx) reductions will generate $11 million annualized savings between Vistaprint and National Pen.
  • Acquisitions -- Two tuck-in acquisitions (85% of Truyol by PrintBrothers and a 50% stake with control in Mixim) were completed in April; each expected to generate base case capital returns "well in excess of 20%."
  • Adjusted Free Cash Flow -- Outflow of $54.6 million in Q3, declining $23.9 million over the prior year period due to higher working capital outflows and cash taxes.
  • Net Leverage -- Ended Q3 at 3.0x trailing twelve months EBITDA, unchanged from last quarter despite $21.9 million in share repurchases; guidance updated for leverage at or below 3.0x by fiscal year-end.
  • 2026 Full-Year Guidance Raised -- Now projects revenue growth of 9%-10% reported (4%-5% organic constant currency), net income of at least $87 million, adjusted EBITDA of at least $465 million, and net leverage at or below 3.0x.
  • 2027 Preliminary Outlook -- Adjusted EBITDA growth expected to exceed 10% with "significant free cash flow growth" and more favorable capital expenditure and working capital trends.
  • 2028 Targets Affirmed -- Management reiterated targets of $600 million adjusted EBITDA, net income of at least $200 million, organic constant currency revenue growth of 4%-6%, about 45% free cash flow conversion, and net leverage below 2.0x.

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RISKS

  • Quinn stated, "we do expect to experience cost increases associated with recent increases in energy and oil prices, and that is factored into this updated guidance."
  • Adjusted free cash flow declined $23.9 million to a $54.6 million outflow in Q3, attributed to "working capital outflow" and increased cash taxes.
  • Keane acknowledged ongoing "new production facility start-up costs, which are currently burdening our P&L shift to," though management expects these to shift to profitability with volume gains.

SUMMARY

Management executed two tuck-in acquisitions in April that are projected to deliver outsized capital returns and immediate cost synergies, advancing strategic product expansion in higher-end print and branded merchandise. Share repurchases of 288,000 shares at an average price of $76 occurred in Q3, while the Board authorized a new $200 million buyback. Management highlighted visible progress on operational efficiency, including implementation of annualized OpEx savings and enhancements in cost of goods sold through manufacturing optimizations, AI, and cross-business collaboration. Year-end net leverage is forecasted to improve slightly versus prior guidance, as the team integrates acquisition contributions and factors ongoing working capital seasonality. No material change in SMB or consumer demand was observed in April, supporting a second raised guidance for fiscal 2026.

  • Quinn detailed that "currency has benefited adjusted EBITDA" but contributed to "negative impact on free cash flow" due to timing and hedging effects specific to working capital cycles.
  • Keane clarified acquisition math: $35 million spent for three recent deals with a forecast of $13 million in adjusted EBITDA next year reflects attractive multiples, but noted minority interests mean implied enterprise valuations would be higher on a 100% ownership basis.
  • Election-related demand provided a noticeable but unquantified boost to Upload & Print volumes, particularly in European countries such as France.
  • Severe weather in North America during January and February curtailed Vistaprint growth, though results rebounded in March leading to an overall strong performance for the segment.
  • The company expects to pass through much of the anticipated logistics and material cost inflation via pricing actions, with plans to adjust as input prices normalize.
  • Despite exceeding interim milestones, management maintained its "at least" framework for 2028 long-term targets, with emphasis on proven progress yet caution not to preemptively raise objectives before delivery.

INDUSTRY GLOSSARY

  • Upload & Print: Cimpress segment offering online printing solutions where customers upload custom artwork for printed products, including signage, packaging, and marketing materials.
  • Elevator Products: Higher-value, customized physical products within the Vistaprint segment, positioned to drive per-customer gross profit and wallet share expansion.
  • OpEx: Operational expenditures, referring to the company's ongoing cost structure outside of cost of goods sold and capital investments.
  • Tuck-in Acquisition: The targeted purchase of a smaller company that fits strategically within a business unit, typically enabling synergies and swift integration.
  • MCP: Cimpress Mass Customization Platform; proprietary operating and manufacturing platform supporting automation, rapid product introduction, and operational efficiency.

Full Conference Call Transcript

Robert Keane: 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 that we've covered in detail in our annual letter of July 29 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 & Print businesses as well. Second, investments in the Cimpress MCP in our manufacturing operations in cross-Cimpress 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 Cimpress 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 start-up 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 customers.

We also implemented several OpEx reductions this quarter that will generate annualized savings 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 PrintBrothers acquisition of 85% of Truyol. 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 Mixim, and that will marry Mixim'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 & Print segments, and we see them as great examples of where we can allocate capital to tuck-in 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 & Print segments over the past 3 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 race 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 they're 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 multiyear 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 for the quarter and our outlook.

Sean Quinn: Great. Thanks a lot, Robert, and thanks, everyone, for joining us today. Cimpress delivered a strong third quarter. Our adjusted EBITDA surpassed $100 million for the first time in the Q3 period, growing 11% year-over-year. And with strong year-to-date execution, we're again raising our fiscal '26 revenue and profit guidance, which I'll go through in a moment. Consolidated Q3 revenue grew 12% on a reported basis and 4% on an organic constant currency basis. Reported revenue was again aided by currency tailwinds and also the acquisition in our PrintBrothers segment that we completed during the second quarter. Vistaprint revenue grew 7% on a reported basis and 3% on an organic constant currency basis.

The expected decline in business cards and stationery was more than offset by growth in our elevator products. As we noted in last night's release, severe weather in North America dampened results during January and February, and then we saw an acceleration in growth in March. Our Upload & Print businesses combined organic constant currency revenue grew 8%, driven by order count growth and Cimpress fulfillment with support also from regional elections. Reported revenue for these businesses grew 26%, combined with currency benefits and again, the tuck-in acquisition that we made in Q2, which contributed $15 million to reported revenue during the quarter. Turning to profitability. Adjusted EBITDA was $100.5 million in Q3, an increase of $9.8 million year-over-year.

Q3 consolidated gross profit grew 10%, the result of revenue growth, cost improvements, benefits from currency and again, the tuck-in acquisition. And we did have $3.3 million of production start-up costs for the expansion of our North American production network, which weighed on EBITDA, although that was mostly offset by currency benefits of $2.7 million in the quarter. Adjusted free cash flow declined $23.9 million to an outflow of $54.6 million. As I think most of you know, Q3 for us is typically a seasonal working capital outflow. That working capital outflow was higher this year, mostly due to timing, but also unfavorable currency movements on working capital. Cash taxes were also about $5 million higher compared to last year.

From a balance sheet perspective, net leverage at the end of Q3 was 3.0x our trailing 12 months EBITDA. That's as calculated under our credit agreement, and that's consistent with last quarter despite the fact that we repurchased approximately 288,000 shares at an average price of $76 per share in Q3. Maybe just as a point of reference, we have not purchased any shares in April. Turning now to our guidance. We again raised our revenue and profit expectations for fiscal 2026 based on the strong Q3 results, but also our expectations for the remainder of the year.

It's worth noting that we do expect to experience cost increases associated with recent increases in energy and oil prices, and that is factored into this updated guidance. For the full year, we now expect revenue growth of 9% to 10% after incorporating the recent acquisitions and currency benefits, and that translates to 4% to 5% growth on an organic constant currency basis. We expect net income of at least $87 million and adjusted EBITDA of at least $465 million. We expect operating cash flow of approximately $298 million to $303 million and adjusted free cash flow of approximately $130 million to $135 million.

And we expect net leverage to be at or below 3.0x by the end of fiscal 2026. That is also a slight improvement from our prior guidance. As we start to look now ahead to fiscal '27, we're going to provide more specifics with our year-end release in July, but we thought it was appropriate to start to share a little bit more as we expect to take another significant step towards our fiscal '28 targets next year in terms of adjusted EBITDA growth. We're still finalizing our plans for fiscal '27, but we do expect adjusted EBITDA growth next year to be in excess of 10%. And we also expect to have meaningful growth in adjusted free cash flow.

And I think it's worth spending a few minutes here. Our free cash flow conversion this year was lower, and that was expected based on the guidance that we have had in place throughout the year. Capital expenditures and cash taxes were both higher this year. And then there's also some timing in working capital, and I just mentioned that was unfavorable for Q3. From a working capital perspective, there's nothing structural to that. It's really -- for us, it's not unusual to have some variability there. In fiscal '27, we expect the growth that we'll have in adjusted EBITDA that I just referenced greater than 10% to have much more flow-through to free cash flow.

And I'll just go through a couple of components there to set expectations. Capital expenditures, we expect to still be at similar levels to this year as we complete the ongoing projects that we have in place. But we do expect capitalized software to be relatively flat. We expect cash taxes to be lower next year, and we expect working capital inflows to be more favorable. And so when you put that all together, we expect to have significant free cash flow growth in fiscal '27.

And as Robert noted earlier, we do remain confident in our ability to deliver our fiscal '28 targets. which I'll again reiterate as 4% to 6% organic constant currency revenue growth, at least $200 million in net income, adjusted EBITDA of at least $600 million, adjusted EBITDA to free cash flow conversion of approximately 45%. Just doing the math, that implies at least $270 million of free cash flow. And from a leverage perspective, we expect to exit fiscal '27 with net leverage of approximately 2.5x and exit fiscal '28 with net leverage below 2.0x, subject to capital allocation choices. Each quarter this year, we've provided increased visibility to the pillars of how we'll meet those fiscal '28 targets.

And of course, we still have more to go. If you go back to our September Investor Day, I went through a session that walked from fiscal '25 adjusted EBITDA to be at least $600 million in fiscal '28. And in each of those pillars, we've made good progress. I just wanted to run through them each quickly now. Starting with the growth in fiscal '26, our latest guidance that I just went through is now $15 million higher than the guidance that we started the year with. We still feel good about the $70 million to $80 million in efficiency gains. We had in that bridge, the midpoint there, $75 million that we expect to have exiting fiscal '27.

And we touched on some tangible examples of these initiatives in last night's earnings and throughout the call so far today. But just to reiterate, we have meaningful COGS efficiencies from manufacturing projects, from our work with focused production hubs and cross Cimpress fulfillment. From an AI standpoint, we're seeing productivity improvements, and that extends well beyond the examples that we provided in the letter.

Increased collaboration between Vistaprint, National Pen and BuildASign, including shared software services and marketing capabilities is starting to take hold and other operating cost efficiencies, including the $11 million of annualized cost reductions that we've already actioned between Vistaprint and National Pen late in Q3, as we talked about as well in the release last night. Our work on this one is not done in terms of the overall cost savings, but we remain confident in our ability to deliver this pillar, and these are clear examples of our progress. The next pillar is the plant start-up cost, which we expect to roll off as planned. That one is just math.

On the M&A front, we touched on this in the letter as well, but with the three tuck-in acquisitions this year, we expect contribution in fiscal 2027 to be approximately $125 million of revenue and $13 million of adjusted EBITDA. That's well above the $10 million of adjusted EBITDA over a 2-year period that was in that bridge. And so we're ahead of plan there. Currency contribution is also tracking ahead of plan as well. The original contribution of which was set at $10 million total for fiscal '27 and '28 combined in that bridge. We're tracking ahead of that.

And then the last pillar was just mathematically, what do you have to believe from organic growth contribution to get to at least $600 million of adjusted EBITDA. And when you update for everything I just stepped through, that leaves a minimal contribution needed from organic growth over the next few years to get to at least $600 million of adjusted EBITDA. Our results for this year and the momentum that we're building based on the progress that Robert outlined earlier, leaves us confident here as well. Achieving these fiscal '28 targets will generate very meaningful per share free cash flow growth and also significantly reduce our net leverage. From the Board down through our teams, we're laser-focused on this.

And so with that, Meredith, let's turn it over to questions.

Meredith Burns: [Operator Instructions] So our first question is for you, Sean. Can you explain why currency is benefiting operating income and EBITDA, but it had a negative impact on free cash flow this quarter?

Sean Quinn: Yes, so that's been a theme throughout the year that currency has benefited adjusted EBITDA. And as I just said in the remarks on our forward-looking guidance as we -- really for fiscal '28, but it's true for fiscal '27 as well. We expect -- we continue to expect currency to be favorable year-over-year in '27 and '28 from an adjusted EBITDA perspective. And that really just has to do with the direction of travel of our main currencies relative to the dollar, the euro being our largest net exposure from an adjusted EBITDA perspective.

And we have a currency hedging program where we average in over each quarter for some currencies over a 2-year period, for some currencies over a 1-year period depending on our forecast visibility. And so that means that as rates change, there's a little bit of a delayed effect of when we either benefit or get hurt from those currency changes. And right now, we're certainly in this period of getting help from that. So that's the story from an adjusted EBITDA perspective.

And like I said, because we average in each quarter and we contract out for our largest exposures over a 2-year period, that gives us visibility also to what we expect in fiscal '27 and fiscal '28, which will continue in the direction of positive impact. So then on the -- we mentioned that the currency impact on working capital was negative. That operates under a little bit of a different dynamic.

And what we saw in Q3, I mean, just to do the kind of maybe an illustration of how the math works, we have -- at the end of the December quarter, we typically have a bunch of liabilities in our working capital that then get flushed out in Q3, and the opposite is true in Q2 and Q4. And so if you think about it, at the end of December of 2024, I don't have the rates in front of me, but I think the euro, that's our largest exposure. The euro is at, I think, [ EUR 104 million ] or thereabouts.

And at the end of December of 2025, it was somewhere around [ EUR 116 million ]. And so if you imagine you have, just for illustration, EUR 100 million of liabilities that will flush through in Q3. And at the end of December 2024, that was worth EUR 104 million. At the end of December of 2025, that was worth 116 million in U.S. dollar terms. And so that has a negative impact when you have an outflow quarter from working capital. The opposite is true as well, right?

So in Q2, because it's a large working capital inflow quarter, also for Q4, the quarter that we're now in is a large -- typically a large working capital inflow quarter. There, we benefit from that dynamic. So that's all normal stuff. And over the course of a year, tends to even out and certainly over a multiyear period. But that was the dynamic that we had in Q3.

Meredith Burns: All right. I'm going to go to Robert for the next question. Robert, here's some more math. This is a fun call. We got a lot of math. Robert, am I calculating correctly that you paid $35 million for three acquisitions that are expected to yield $13 million of adjusted EBITDA next year. Is that less than 3x forward EBITDA? Or am I missing something?

Robert Keane: Your math is correct. But it is important to note that, that math is based on our consolidated reporting, and we have two of the acquisitions where we purchased less than 100% because the founder of each of those has stayed active and kept his investment or each of their investments in their -- the businesses they founded. And we really like that. It creates great aligned incentives for both Cimpress and the founder. But as we noted, we bought 85% of Turl. We expect to pay for the full acquisition amount, the 85% over 3 years. So not all of that is upfront, but it will be a small use of cash in fiscal '27 and '28.

We also bought 50% of Mixim. So the implied valuation is higher if you're calculating off the enterprise value of 100% ownership. That being said, even if you adjust for that, we paid very attractive multiples of both profit, of EBITDA, of cash flow and our base case returns on the capital are also very attractive with a relatively short payback.

Meredith Burns: Okay. A question for Sean on leverage. Sean, how will you be able to keep net leverage at 3x trailing 12-month EBITDA at the end of Q4 when you have already spent $25 million on M&A in April and your free cash flow guidance has come down?

Sean Quinn: Yes. Under -- the way it works under our credit agreement, we're able to take credit for trailing 12-month EBITDA when we do an acquisition. So we don't get just what is in our reported results, but we look back over a 12-month period. And that makes sense. We also get to take pro forma benefit from any synergies that we expect to have. And really -- and there, we're limited to the things that are under our control. So that tends to be the things that are on the cost side, procurement savings and the like. The updated guidance that we provided for at least $465 million, that implies further year-over-year EBITDA growth in Q4.

And so obviously, that plays into the leverage expectations for the end of Q4 as well. And then if you do the math on our full year free cash flow guidance, as is typical, like Q4 is a large free cash flow quarter, and we do expect significant free cash flow in Q4 as well. I think at the midpoint of the guidance range, it's somewhere around $80 million if you just do that math. So anyway, so that's how you get to the leverage guidance that we provided.

And then just referencing back to the prior question as well that Robert just answered, we did pay less than 3x for the recent M&A because of the dynamics that Robert just went through.

Meredith Burns: Sean, I'm going to stick with you on this next one. Can you please comment on each segment -- we get this question every quarter. Can you please comment on each segment's revenue performance in the month of April versus last year? What trends have you noticed?

Sean Quinn: We try not to get into too much detail on a particular month's performance. And so we'll stay true to that here. But yes, I think I think the main takeaways, and I can understand why this question gets asked, especially in the current environment. I think the key takeaways are, one, we felt comfortable increasing our guidance for the full year. Obviously, we only have 1 quarter left. And so that's based on what we're seeing in April. It's also based on our forecast for the rest of the year. So I think that's a signal of confidence.

I know that there's obviously a lot of focus right now on the health of SMBs, the health of consumers from a demand perspective. And I'll just say we haven't seen a change there in April. And so anyway, so we feel good about the updated guidance that we provided. And again, maybe I'll just also reiterate to the guidance that we have provided, which is increased for revenue and profitability does also consider increased fuel and energy costs in that guidance. And we will have some of that in Q4.

Meredith Burns: Robert, I'm going to shift to you for the next one. You bought some shares this quarter and your Board authorized more purchases. That was in March for anybody who missed it, a $200 million authorization that replaced the last one. Will there be more repurchases in Q4?

Robert Keane: So we don't provide forward guidance about repurchases. I will describe how we think about it. It's the same as we've said many times before. First of all, we do want to repurchase shares when we think they are undervalued, and we do think our shares are still undervalued, although less so than earlier this year. Second, like any capital allocation, we horse race share repurchases against other options, and we're in a cycle of higher-than-normal CapEx where we see excellent returns. And as we discussed a few moments ago, we have some very attractive tuck-in acquisition opportunities. So we just have to take those into account.

And third, -- from the cash available, we are solving for a number of different things in fiscal '26, Sean talked about higher cash taxes, on favorable net working capital timing and very importantly, our commitment to deleverage plus the normal seasonality of the business. So we do have a very strong balance sheet, strong liquidity. We think we'd be able to continue to have attractive capital allocation opportunities in the future. We certainly will continue to look at M&A -- I'm sorry, excuse me, share buybacks is a use of that.

But again, I would go back to that leverage once again because we have called for net leverage to be below -- at or below 3x by the end of this quarter. And it's really something that's important to us to achieve.

Meredith Burns: Okay. Sean, a question for you. Based on everything you went through at the opening of the call, why aren't you updating your FY '28 targets at this point? I know you said there's still work to do on the cost savings piece, but every other part of that bridge was favorable?

Sean Quinn: Yes. I think it's a fair question and fully expected that question. If you take a step back, we put these targets in place. I think the first time we started to talk about them was in Robert's letter to investors at the end of July. So we're talking about less than 1 year ago. And that was just after we finished the year where we did a little over $430 million in adjusted EBITDA. So at the time, we were basically saying that we'd grow our adjusted EBITDA around 40%. I think it's 39% or something over the next 3 years. and also with pretty sizable -- sizably improved free cash flow conversion on that as well.

And so that's a lot of growth. So just to keep things in perspective. But when we put the targets in place, we did it as this at least framework, and we had that in the guidance that we've used throughout this year as well. So that, of course, means it could be higher. But from the Board down through the management team, we're completely committed to delivering what we said we would do. And hopefully, it's clear from what we outlined at the beginning of the call earlier that we're making good progress, and we're confident that we'll meet or exceed those targets. But we still have a long way to go.

Our updated guidance for fiscal '26 that we just went through is $465 million. So we still have a long way to go to make sure that we deliver against at least $600 million over the next 2 or so years. In our view, I think if you just model out what the free cash flow per share would be in fiscal '28 based on the targets that we have and also knowledge that, that would also imply significantly lower leverage, and that's part of our targets as well. I don't think that these fiscal '28 targets are today reflected in how we're valued.

And so we'll keep updating each quarter on our progress, but we're going to leave our fiscal '28 targets as they are. There are certainly areas that we're ahead of plan based on what I shared earlier. And so I think the main takeaway for investors should be that the probability of achievement has continued to increase each quarter based on the progress that we're making and the specific examples that we shared. And it is in at lease framework.

So we're certainly -- we certainly could end higher -- but we have 2 years to go, and we don't want to get ahead of ourselves because we want to be sure that if we provide a committed target that we're sure that we hit it.

Meredith Burns: Great. Sean, I'm going to stick with you for the next few questions here. So first up, are you able to estimate how much of a revenue benefit the Upload & Print business has got from regional elections during Q3?

Sean Quinn: Yes. We didn't break that out. There's -- every quarter, there's always some change in activity. And this quarter, there happened to be in some countries in Europe, some nice volume growth attached to regional elections, and that tends to impact a few products in particular. It wasn't like the dominant trend by any stretch, but it definitely was a help including in France. And -- but we were not going to break out that specifically. But for posters, flyers, there was definitely some help there.

It's sometimes hard to like the -- it's not like we can see it overall in the volume, but it's not like we're scanning the content of every order and then trying to categorize that as if we're an election or not. So that's why it's a little bit difficult to break that out, and we don't seek to do that externally, but definitely helps this quarter.

Meredith Burns: Next question for you. Can you provide more color on the weather disruptions to Vistaprint's revenue in January and February?

Sean Quinn: Yes. If you'll recall, in each of January and February, there were some very significant snowstorms -- and typically, like if we -- we'll look at bookings for each day on a map, right? And so you can see that by state, year-over-year trends, et cetera. You can get more specific than that if you really want to drill down even further geographically. But imagine you're looking at a map and you can see a bunch of green and red based on year-over-year bookings.

Typically, what would happen when there is a severe snowstorm is all the impacted states that you might expect if it was happening in the Northeast or if it was happening in the Midwest or whatever, you could see very clearly in that visualization, the states that are impacted and that's pretty normal stuff. And one of the things that was different about the large storm that hit in January was that -- and also across the Southeast, there were significant issues with the electrical grid and freezing and winds and freezing rain. And so there are a lot of states where there are significant power outages.

And of course, that impacts people's both focus on coming to Vistaprint in this case and ordering what they need, but also ability, right, because they were -- they had power outages. So we can see -- when that happens, like we can see it very clearly like what states are impacted whoever. And that was just a broader impact than what we would typically see when there's a snowstorm in the winter months. And so that's what we're referring to. And it's a real thing, like it has a real impact. That dampened the results in January. There were some similar storms in February that were pretty severe.

And then as we got to the -- towards the end of February and then into March, in Vistaprint, we saw a definitive acceleration in results, leading to overall a strong quarter for Vistaprint.

Meredith Burns: Okay. And can you provide more color on the cost increases that you expect from energy prices? And will you look to offset that with price increases?

Sean Quinn: Yes. Well, there's -- obviously, energy prices or oil prices are, at some point, an input to a lot of our either raw materials or logistics cost inbound freight, outbound freight. So there's certainly impact. Some of that impact is a little bit delayed depending on the respective supply chain for the particular material. On the logistics side of things, again, for inbound freight, outbound logistics, that's a little bit more real time. The way a lot of our, for example, outbound logistics work is that contractually, there's a fuel surcharge that is a variable that can go up or down depending on where oil prices are and if they're outside of a certain bound.

And so the cost increases will happen. They're real. And I think that's to be expected. We do expect that in large part, we would be looking to pass these on from a price standpoint. And to the extent that the increase specifically in oil prices and the flow-through that impact that has on logistics costs, especially for outbound logistics, that also then as hopefully, those prices at some point, normalize that we would then bring that back down. And so there's certainly -- we'll have some cost impact in Q4. It's not overly material, but it's notable, and we do expect that much of that will be offset by price increases, yes.

Meredith Burns: That brings us to the end of our pre-submitted and live questions. So I'm going to turn the call back over to Robert to wrap things up.

Robert Keane: Thanks, Meredith. The key takeaways from our announcement today are we've raised our FY '26 revenue and profit guidance for the second time. And we certainly expect to end the year -- the fiscal year with net leverage that is more favorable than our prior guidance. Strategically and operationally, we are progressing in key areas that I discussed briefly today that we covered in much more detail in my July letter to investors and in our September Investor Day.

At the top level, what we continue to do is enable millions of businesses to build their brands, stand out and grow by leveraging our core competitive strength in manufacturing and supply chain excellence and by continuing to improve the customer experience to drive efficiency gains. Our ongoing progress reinforces our confidence in our path to fiscal '28 EBITDA of at least $600 million and approximately 45% free cash flow conversion, coupled with significant reductions in net leverage. And achieving that result should really drive significant returns for long-term investors. So I'll wrap up by saying thank you again for joining the call, and thank you for continuing to entrust your capital with us. Have a great day.

Operator: This does conclude today's program. Thank you all for joining, and you may disconnect.