Oct 29, 2026 earnings call — Quad expands integrated marketing and in-store retail media
Company raised full year guidance: net sales now expected to decline 1%-3% and adjusted EBITDA expected to be between $185 million and $195 million.
Revenue $0.6B (est $0.6B) · EPS $0.35 (est $0.37)
Key quotes
"During the quarter, we announced Direct, Quad's newly branded full-service direct marketing agency."
"We are currently deploying the network across more than 100 additional stores, demonstrating strong retailer adoption and continued progress in building a scaled platform for CPG advertisers."
"Our strong balance sheet continues to provide financial flexibility, enabling us to return $23 million to shareholders during the first three quarters of 2026, including $15 million in regular cash dividends and $8 million in share repurchases."
Analyst Q&A 3
How clients buy more services
Q (Kevin Steinke · Barrington): The analyst asked how the company expands sales within clients and how the model differs for new versus existing clients. He also asked about the Direct agency launch and why it was formalized, and about signing a national chain for In-Store Connect and fuel surcharges.
A: Management said the growth works as a "flywheel" where advisory/agency wins lead to much more targeted print revenue, often turning $1 in agency into $3 in targeted print. They formalized Direct to package agency solutions specific to direct mail, using pre-market testing and data to iterate. On In-Store Connect they said the national chain links many regional stores into a national opportunity, and fuel surcharges are contractually adjusted weekly so costs are covered though margins are slightly diluted.
"I refer to this as sort of a growth flywheel because when you look at our pie charts and you see targeted print, large scale print, and then integrated solutions, they all kind of work together." — Joel Quadracci (CEO·CHAIR)
Paper resale impact and cash items
Q (Barton Crockett · Rosenblatt): The analyst asked how much pass-through (paper and other) revenue affected guidance and EBITDA, and what cash items shown at quarter end (Peru sale, Mexico tax, Capmont receivable) are in the financials. He also asked about the In-Store Connect store counts and the 800-store benchmark.
A: Joel said they are taking more control of paper supply and that supplying paper is largely pass-through. Tony said paper sales increased in 2026 at a lower margin and that you can attribute the majority of the 1% improvement in the guide to pass-through; he also said temporary ink and fuel surcharges have diluted EBITDA margin. Tony said the Peru building and equipment sale for over $17 million was collected in the quarter, Mexico tax was settled with a $12 million payment and a $5 million reversal flowed back into results, and the Capmont note remains on the balance sheet with an $11 million reserve. On In-Store Connect, Tony said adding 100 stores brings total to near 160 stores by year end and Joel said 800 stores is a useful comparison but meaningful scale could occur earlier.
"Yeah, I think you can attribute the majority of the 1% improve in the guide to that." — Tony Staniak (CFO)
Agency growth, margins, and in-store timing
Q (Mark Zgutowicz · StoneX): The analyst asked why agency growth isn't translating to adjusted EBITDA growth and about the reduced 2028 share for integrated solutions. He also asked whether margin expansion is still expected and how long in-store tests take to show returns.
A: Management said the agency-to-targeted-print "flywheel" can shift mix toward lower-margin pass-throughs even as it drives more targeted print revenue, and they refreshed the 2028 mix from the prior 31% to 25% after a comprehensive review. Tony said targeted print runs at a higher margin profile than large scale print and they still expect EBITDA margin accretion going forward. Joel said in-store investments are capitalized, payback timing varies by customer, early adopters took about 18 months but newer customers are expanding in roughly half that time or less.
"Targeted print runs at a higher margin profile than the large scale print." — Tony Staniak (CFO)