Oct 30, 2026 earnings call — Trust acquisition expands Technology Peripherals
ACCO completed the acquisition of Trust, which generates approximately $100 million in annual revenue, to scale Technology Peripherals.
Revenue $0.4B (est $0.4B) · EPS $0.28 (est $0.19)
Key quotes
"Together, pro forma sales from these categories will approach $500 million annually, or about 30% of our future sales."
"Learning & Creative represents approximately 30% of pro forma annualized sales. This back-to-school season, the categories grew in North America and Mexico."
"Our third priority is to improve earnings and cash flow. We remain on track to deliver $100 million multi-year cost reduction target."
Analyst Q&A 4
Holiday gaming, back-to-school, Q4 cash flow
Q (Joe Gomes · Noble Capital): They asked how confident management is for the holiday season for Technology Peripherals and gaming and when they will know how the season plays out. They also asked where retailers' ending inventory was after back-to-school and whether fourth-quarter free cash flow is lower than historically.
A: Management said U.S. consumer spending is constrained but some favorable game releases, notably GTA VI, give cautious optimism; clarity depends on sell-through and POS and they won't know until after the quarter ends. They said back-to-school was exceptional (Mexico up almost 20%, U.S. and Canada up mid-single digits) and large U.S. retailers exited the season essentially in line with expectations. For fourth-quarter free cash flow, they took a conservative view because of integrations, restructurings and working capital uncertainty, so Q4 is a little more muted than historically.
"So we're cautiously optimistic that it's going to perform to our expectations, but it's still early, and a lot of it will depend on sell-through and POS, and we really won't know that until after the quarter ends." — Tom Tedford (CEO)
Workspace decline and tech peripherals fall
Q (Greg Burns · Sidoti & Company): How much did Workspace Solutions decline this quarter, and how much of that segment is in declining versus growing categories? Also, how much did Technology Peripherals fall this quarter and the splits for gaming versus computer?
A: Management said Workspace Solutions has moderated and is down low single digits globally, with variation by market and category and some areas like Leitz essentially flat. They said it's hard to split the business into fixed percentages, but the strategy is shifting toward growth categories like ergonomics, wellness and lamination. For Technology Peripherals, they said the global business declined kind of low double digits, with gaming and enterprise down about the same but driven by different factors (console demand muted, Switch 2 underperformed) and computer accessories hit by lower laptop sales.
"It's down low single digits, really across the globe." — Tom Tedford (CEO)
Tech acquisitions, hardware costs, gross margin
Q (Kevin Steinke · Barrington Research Associates): Do EPOS and Trust give the company the footprint it needs in Technology Peripherals, or will they pursue more acquisitions? When might hardware costs normalize? Also, can you give more color on gross margin excluding the tariff refund and the mix impact?
A: Management said EPOS filled a premium audio gap and Trust broadened channel reach, creating a more balanced, scalable platform, but integrations remain and future deals will be opportunistic. They said external data indicate hardware cost trends should improve through 2027 and they will also pursue internal growth synergies. On gross margin, they said tariffs and disruptions caused volatility, customer and product mix was the single biggest issue, mix should improve in Q4, and fixed cost deleveraging and promotions pressured the quarter relative to year-to-date.
"As it relates to future acquisitions, I think we will be opportunistic." — Tom Tedford (CEO)
Chips, pricing, and GTA VI risk
Q (William Reuter · BofA): Are chip shortages still a problem and could supply be disrupted if demand for GTA VI is strong? What was the impact of price on revenue this quarter? If GTA VI is delayed into the holiday, would that pose significant earnings risk?
A: Management said supply chain and commercial teams have the forecast aligned and they are in a good position on chip availability, better than competitors, and they do not anticipate issues through the next few quarters. They said pricing added roughly a couple percent benefit year-to-date and they have priced appropriately though there is still some pricing to go. On GTA VI, they said some revenue risk exists but most sell-in is done, the remainder is POS-driven in the last weeks, and they do not see material risk to the quarter if the title is delayed or under-indexes expectations.
"We don't anticipate any issues, even with potential increased demand, really through the next few quarters." — Tom Tedford (CEO)