Quad/Graphics Inc (QUAD) 2025 Q2 法說會逐字稿

Good morning and welcome to Quad's second quarter. Welcome to our 2025 conference call. (Operator Instructions) Please note this event is being recorded.

早安，歡迎收看 Quad 第二季。歡迎參加我們的 2025 年電話會議。（操作員指示）請注意，此事件正在被記錄。

I will now turn the conference call over to Katie Krebsbach, Quad's Senior Manager of Investment Relations. Katie, please go ahead.

現在，我將電話會議轉給 Quad 投資關係高級經理 Katie Krebsbach。凱蒂，請繼續。

Thank you, Operator, and good morning, everyone. With me today are Joel Quadracci, Quad's Chairman, President, and Chief Executive Officer; and Tony Staniak, Quad's Chief Financial Officer. Joel will lead today's call with a business update and Tony will follow with a summary of Quad's second quarter and year-to-date financial results followed by Q&A.

謝謝接線員，大家早安。今天與我一起出席的還有 Quad 公司董事長、總裁兼執行長 Joel Quadracci 和 Quad 公司財務長 Tony Staniak。喬爾 (Joel) 將主持今天的電話會議，介紹業務最新情況，隨後托尼 (Tony) 將總結 Quad 第二季度和年初至今的財務業績，隨後進行問答。

I would like to remind everyone that this call is being webcast and forward-looking statements are subject to Safe Harbor provisions as outlined in our quarterly news release and in today's slide presentation on slide 2. Quad's financial results are prepared in accordance with generally accepted accounting non-GAAP financial measures, including adjusted EBITDA margin, adjusted EBITDA margin, adjusted dilutive earnings per share, free cash flow, net debt, and debt leverage ratio.

我想提醒大家，本次電話會議正在網路直播，前瞻性陳述受安全港條款的約束，如我們的季度新聞稿和今天的幻燈片 2 所述。Quad 的財務結果是按照公認會計非 GAAP 財務指標編制的，包括調整後的 EBITDA 利潤率、調整後的 EBITDA 利潤率、調整後的每股稀釋收益、自由現金流、淨債務和債務槓桿率。

We have included in the slide presentation reconciliations of these non-GAAP financial measures to GAAP financial measures. Finally, a replay of the call will be available on the investor section of quad.com shortly after our call concludes today.

我們在幻燈片簡報中納入了這些非 GAAP 財務指標與 GAAP 財務指標的對帳。最後，今天電話會議結束後不久，您可以在 quad.com 的投資者專區上重播本次電話會議。

I will now hand over the call to Joel.

我現在將通話交給喬爾。

Thank you, Katie, and good morning, everyone. Second quarter results met our expectations as we continue to differentiate ourselves as a marketing experience company that simplifies the complexities of marketing for brands and marketers.

謝謝你，凱蒂，大家早安。第二季的業績符合我們的預期，我們繼續將自己定位為一家行銷體驗公司，為品牌和行銷人員簡化行銷的複雜性。

Our distinctive offering shown on slide 3includes a suite of integrated solutions for creative production and media backed by intelligence and tech across all digital and physical channels. We continue to invest in our strategic growth areas, including innovative solutions and superior talent to stay ahead of industry trends and execute faster, better, and with more agility.

幻燈片 3 中展示的我們的獨特產品包括一套用於創意製作和媒體的整合解決方案，該解決方案由所有數位和實體管道的智慧和技術支援。我們將繼續投資於我們的策略成長領域，包括創新解決方案和優秀人才，以保持領先於行業趨勢並更快、更好、更靈活地執行。

Quad's overall supply chain continues to have limited direct exposure to tariffs. Our largest import is the paper we bring in from Canada, as well as books we manufacture in our facilities in Mexico. These products are compliant under the USMCA, and our expectation is that they will continue to be exempt from tariffs.

Quad 的整體供應鏈繼續受到有限的關稅直接影響。我們最大的進口商品是從加拿大進口的紙張，以及我們在墨西哥工廠生產的書籍。這些產品符合 USMCA 的規定，我們預計它們將繼續免關稅。

During the second quarter, we did not see a significant pullback from clients due to tariffs or inflationary pressures. However, we continue to closely monitor for potential impacts on our clients, given the widespread uncertainty of when and how tariffs will ultimately be implemented. We are paying particular attention to our client supply chains for potential disruptions as well as fluctuations in consumer demand that may affect their mission-critical marketing plans.

在第二季度，我們並未看到客戶因關稅或通膨壓力而大幅撤資。然而，鑑於關稅最終何時以及如何實施仍存在很大的不確定性，我們將繼續密切關注其對客戶的潛在影響。我們特別關注客戶的供應鏈，以防潛在的中斷以及可能影響其關鍵行銷計劃的消費者需求波動。

Rising postal rates also continue to challenge our clients, but a special nine-month USPS catalog discount launching in October offers some relief. This 10% discount aims to test volume elasticity within the catalog vertical. We appreciate the USPS agreeing to this test, which follows a recent study from the Postal Regulatory Commission confirming that rising rates negatively impact mail volume, a long-held view within Quad and other industries that rely on the USPS services to sustain essential communication and commerce.

不斷上漲的郵費也繼續給我們的客戶帶來挑戰，但 10 月推出的為期九個月的 USPS 目錄特別折扣可以減輕一些負擔。此次 10% 的折扣旨在測試目錄垂直領域的銷售彈性。我們感謝美國郵政同意進行此項測試，此前郵政監管委員會的一項最新研究證實，費率上漲會對郵件數量產生負面影響，這是 Quad 和其他依賴美國郵政服務維持基本通信和商業的行業長期以來持有的觀點。

The PRC also has acknowledged for the first time that the current system is not meeting objectives, reinforcing the need for a sustainable approach. We are excited to welcome David Steiner as the recently appointed Postmaster General. He brings with him a compelling blend of operational expertise, financial discipline, and strategic vision, as well as an employee-friendly management approach at a critical time for the USPS. Quad looks forward to continuing our legacy of strong collaboration with the USPS leadership to ensure print remains a valuable part of the marketing ecosystem.

中華人民共和國也首次承認現行體制未能實現目標，強調了採取永續發展方法的必要性。我們很高興歡迎大衛‧史坦納 (David Steiner) 擔任新任郵政總長。他為美國郵政服務帶來了卓越的營運專業知識、財務紀律和策略眼光，以及員工友善的管理方法，這在美國郵政服務的關鍵時刻尤其重要。Quad 期待繼續與 USPS 領導層保持密切合作，以確保印刷品仍然是行銷生態系統中的重要組成部分。

We continue to offer a two-pronged approach to help our clients mitigate the impact of postal rates, which remain the single largest marketing expense for mailers. The first prong is to provide innovative postal optimization solutions to maximize savings. Quad offers a full suite of postal solutions, including innovations like Household Fusion, in which we bundle multiple magazines from various publishers and catalogs from different brands destined for the same household into a single package to reduce costs, and expanded co-mail capabilities that drive additional postal savings opportunities through economies of scale.

我們繼續提供雙管齊下的方法來幫助我們的客戶減輕郵資的影響，郵資仍然是郵寄者最大的單一行銷開支。第一步是提供創新的郵政優化解決方案，以最大限度地節省開支。Quad 提供全套郵政解決方案，包括家庭融合等創新技術，我們將來自不同出版商的多本雜誌和來自不同品牌的目錄捆綁成一個包裹寄給同一家庭，以降低成本，並擴展聯合郵寄功能，通過規模經濟帶來額外的郵政節省機會。

The second prong of this strategy focuses on offsetting price increases through improved response rates for mail-to-marketing products. Much of our offering focuses on using our proprietary data stack to enhance audience targeting and responsiveness across channels, including in-home direct mail. I will discuss further in a moment.

該策略的第二個面向著重於透過提高郵件行銷產品的回應率來抵消價格上漲。我們的服務大多專注於使用我們的專有資料堆疊來增強跨渠道的受眾定位和回應能力，包括家庭直郵。我稍後將進一步討論。

On slide 4, we share how Quad is investing in the rapidly evolving technology of artificial intelligence to create internal cost savings and support revenue generation. We organize our approach to AI application into three categories. Process automation, which replicates and replaces repetitive human tasks. Cognitive insights, which uses machine learning and logarithms to produce predictive insights. And cognitive engagement, where generative AI can continuously analyze large pools of data to dynamically create new content and insights.

在第 4 張投影片上，我們分享了 Quad 如何投資快速發展的人工智慧技術來節省內部成本並支援創造收入。我們將人工智慧應用方法分為三類。流程自動化，複製並取代重複的人工任務。認知洞察，使用機器學習和對數來產生預測洞察。以及認知參與，其中產生人工智慧可以持續分析大量數據以動態地創建新的內容和見解。

Quad leverages AI across these categories to optimize each aspect of the marketing process. In MX Intelligence, we are focusing on using AI-powered insights from our data stack to predict behaviors and optimize messaging to reach the right audiences.

Quad 利用這些類別的人工智慧來優化行銷過程的各個方面。在 MX Intelligence 中，我們專注於使用來自資料堆疊的人工智慧洞察來預測行為並優化訊息傳遞以覆蓋合適的受眾。

In MX Creative, we are applying AI-driven automation to accelerate the production of high-quality, customized content across channels, ensuring relevant connections at scale. In MX Production, we are streamlining workflows like scheduling and machine maintenance to reduce manual intervention and improve speed to market without compromising quality. And in MX Media, we are using AI to optimize campaign performance through continuously refining media execution across digital and physical channels, tracking real-time progress and making intelligence adjustments for maximum impact.

在 MX Creative，我們正在應用人工智慧驅動的自動化來加速跨通路製作高品質、客製化的內容，確保大規模的相關連接。在 MX 生產中，我們正在簡化調度和機器維護等工作流程，以減少人工幹預並提高上市速度，同時不影響品質。在 MX Media，我們利用人工智慧來優化廣告活動效果，透過不斷改進數位和實體管道的媒體執行，追蹤即時進度並進行智慧調整以實現最大影響。

Transitioning to slide 5, marketers increasingly rely on audience intelligence to drive stronger campaign outcomes and quantifiable ROI, and our AI-powered household-based data stack is helping meet that need. Our data stack includes more than 20,000 addressable demographic transactional, attitudinal, and behavioral characteristics, as well as hundreds of proprietary interests or what we call passions, representing 92% of the US households.

轉到投影片 5，行銷人員越來越依賴受眾情報來推動更強大的行銷活動成果和可量化的投資報酬率，而我們基於人工智慧的家庭數據堆疊正在幫助滿足這一需求。我們的資料堆疊包括 20,000 多個可尋址的人口交易、態度和行為特徵，以及數百個專有興趣或我們所說的熱情，代表了 92% 的美國家庭。

We are actively applying our data stack to client work across all channels. One major use case for our data stack is enhancing clients' media buying with precision at scale. For example, Spirit of Gallo, the fourth-largest spirit supplier by volume in the US, relies on our data guide to guide its buying strategy across out-of-home, social, and connected TV media channels. Gallo is pleased with the progress our partnership has generated so far, and we look forward to growing together in the future quarters.

我們正在積極地將我們的資料堆疊應用於所有管道的客戶工作。我們的資料堆疊的一個主要用例是大規模精確地增強客戶的媒體購買能力。例如，美國第四大烈酒供應商 Gallo 依靠我們的數據指南來指導其在戶外、社交和連網電視媒體管道的採購策略。Gallo 對我們的合作迄今所取得的進展感到滿意，我們期待在未來幾季一起成長。

We also use our data stack to enhance direct marketing campaign effectiveness. By filtering target characteristics and passions from our data stack, we optimize mailing lists to increase response rates and achieve a greater ROI for our clients' initiatives. Earlier this year, we applied our data stack to identify the best potential customers for our direct mail campaign we helped execute for our nationwide home services company. The new customer acquisition mailing led to more than an 80% increase in revenue and a 65% increase in return on ad spend compared to the client's 2024 mailing campaign.

我們也使用數據堆疊來增強直接行銷活動的有效性。透過從我們的資料堆疊中過濾目標特徵和興趣，我們優化了郵件清單以提高回應率並為客戶的計劃實現更高的投資回報率。今年早些時候，我們利用數據堆疊來識別我們為全國家庭服務公司執行的直郵活動的最佳潛在客戶。與客戶 2024 年的郵寄活動相比，新客戶獲取郵件使收入增加了 80% 以上，廣告支出回報率增加了 65%。

As we highlighted last quarter, Quad is providing integrated marketing services for Valvoline, instant oil changes across creative, production, and media. Using a combination of demographic and transactional characteristics, we are generating targeted lists to market to clients' grand openings and store remodels through in-home direct mail. The initial results from this application of our data stack are quite promising.

正如我們在上個季度所強調的那樣，Quad 為 Valvoline 提供整合行銷服務，涵蓋創意、製作和媒體的即時換油服務。透過結合人口統計和交易特徵，我們產生有針對性的列表，透過家庭直郵向客戶的開業和商店改造進行行銷。我們的數據堆疊應用的初步結果非常令人鼓舞。

In addition to the use cases I've outlined, we're exploring new avenues to monetize our differentiated data capabilities, and I look forward to sharing more about these opportunities on future calls. The biggest hurdle to scaling data applications is the time and specialized knowledge required to interpret the relevant data for a particular use case.

除了我概述的用例之外，我們還在探索將差異化資料功能貨幣化的新途徑，我期待在未來的電話會議上分享更多有關這些機會的資訊。擴展資料應用程式的最大障礙是解釋特定用例的相關資料所需的時間和專業知識。

During the quarter, we solved for this challenge through the launch of Audience Builder 2.0, an AI-powered tool that enables Quad employees to easily access our data stack to create complex, high-propensity audiences. By year's end, we expect to finish integrating a large language model within the tool to enable even faster audience creation using natural language prompts.

在本季度，我們透過推出 Audience Builder 2.0 解決了這項挑戰，這是一款由人工智慧驅動的工具，使 Quad 員工能夠輕鬆存取我們的資料堆疊來創建複雜、高傾向的受眾。到今年年底，我們預計將完成工具中大型語言模型的集成，以便使用自然語言提示更快地創建受眾。

These queries can be as simple as, quote, build me audience of all potential customers who are in the market for premium pet food who shop online, end of quote. The tool will then generate an audience list following the requested parameters in a format that can be deployed directly to online or offline channels.

這些查詢可以很簡單，例如，引用“為我建立所有在網上購買優質寵物食品的潛在客戶的受眾”，引用結束。然後，該工具將根據請求的參數以可直接部署到線上或離線管道的格式產生受眾清單。

On slide 6, we provide an update on in-store Connect by Quad, which leverages the high foot traffic of brick-and-mortar stores to generate direct consumer connections for retailers and brands. We recently announced our partnership with Vallarta, a leading Latino-owned grocery chain in California known for providing high-quality, authentic ingredients to its customers.

在第 6 張投影片上，我們提供了 Quad 店內 Connect 的最新情況，它利用實體店的高人流量為零售商和品牌建立直接的消費者聯繫。我們最近宣布與 Vallarta 建立合作夥伴關係，Vallarta 是加州一家領先的拉丁裔連鎖雜貨店，以向顧客提供高品質、正宗的食材而聞名。

By the end of the summer, in-store Connect will go live in 15 Vallarta stores, featuring messages in both English and Spanish, and providing CPGs with expanded access to shoppers. Steve Netherton, Chief Information Officer and Vice President of Continuous Improvement for Vallarta Supermarkets, said, in-store Connect gives us an effective tool to communicate our unique products and potential savings to shoppers. While opening new opportunities for brands to engage with communities we serve in meaningful, measurable ways.

到今年夏季末，店內 Connect 將在 15 家 Vallarta 商店上線，提供英語和西班牙語兩種信息，為快速消費品公司提供更廣泛的購物者管道。Vallarta 超市首席資訊長兼持續改進副總裁 Steve Netherton 表示，店內 Connect 為我們提供了一種有效的工具，可以向購物者傳達我們的獨特產品和潛在的節省空間。同時為品牌開闢了與我們服務的社群以有意義、可衡量的方式互動的新機會。

I'm pleased to share that we have successfully doubled our in-store Connect footprint with the state-marked companies, recently installing the solution in 15 additional stores. This marks the first grocery client to expand its store count beyond our initial test phase. With in-store Connect, we are strengthening our roles as strategic advisors, helping physical retailers adapt to a rapidly evolving media environment.

我很高興地告訴大家，我們已成功與國有企業合作，將店內 Connect 覆蓋範圍擴大了一倍，最近又在另外 15 家商店安裝了這個解決方案。這標誌著我們第一家在初始測試階段之後擴大門市數量的雜貨店客戶。透過店內連接，我們正在加強我們作為策略顧問的角色，幫助實體零售商適應快速發展的媒體環境。

Our dynamic real-time advertising channel delivers measurable results for advertisers and retailers alike. Based on a sampling of data from transaction logs, Quad has seen an average of 5% to 20% product sales lift from participating brands. The range in sales lift depends on campaign objectives.

我們的動態即時廣告管道為廣告主和零售商帶來可衡量的成果。根據交易日誌的資料樣本，Quad 發現參與品牌的產品銷售額平均提升了 5% 至 20%。銷售提升的範圍取決於活動目標。

Promotional campaigns on our platform often generate the highest returns, with some achieving sales increases greater than 20% for featured products. Brand awareness ads, like those from Michelob Ultra, consistently deliver single-digit sales increases, adding steady value over time.

我們平台上的促銷活動通常會產生最高的回報，其中一些特色產品的銷售額成長超過 20%。品牌知名度廣告（例如 Michelob Ultra 的廣告）持續帶來個位數的銷售成長，並隨著時間的推移增加穩定的價值。

In addition to individual product lift, In-store Connect has demonstrated its ability to boost across entire product categories. We are also using In-store Connect to help other types of retailers create their own internal In-store retail media ecosystems. The focus here is to elevate the shopper experience with promotional content directly in Iowa. As we shared last quarter, one of the nation's largest home improvement retailers currently has more than 550 of our digital screens installed in approximately 100 of its stores.

除了提升單一產品之外，店內連接也展現了其提升整個產品類別的能力。我們也使用 In-store Connect 來幫助其他類型的零售商創建自己的內部店內零售媒體生態系統。這裡的重點是透過促銷內容直接提升愛荷華州的購物者體驗。正如我們上個季度所分享的，美國最大的家居裝飾零售商之一目前在其約 100 家門市安裝了 550 多個我們的數位螢幕。

Transitioning to slide 7, during the quarter, the company and its leadership received several recognitions and awards reflecting Quad's industry expertise. For the sixth year in a row, we ranked among AdAge's top 25 world's largest agency companies. We also earned a repeat spot on MM&M's Agency 100 for our expertise in healthcare marketing.

轉到幻燈片 7，在本季度，該公司及其領導層獲得了多項認可和獎項，反映了 Quad 的行業專業知識。我們連續第六年躋身 AdAge 全球 25 大代理公司之列。我們也憑藉在醫療保健行銷方面的專業知識再次榮登 MM&M 的 Agency 100 榜單。

Several of our leaders received industry recognition during the quarter-two, ranging from commerce marketers pioneering retail media to e-commerce studio professionals and AdWeek's most influential leaders driving growth across advertising, marketing, media, and tech.

我們的多位領導者在第二季度獲得了行業認可，其中包括開拓零售媒體的商業行銷人員、電子商務工作室專業人士以及推動廣告、行銷、媒體和技術領域成長的 AdWeek 最具影響力的領導者。

As an industry thought leader, Quad regularly partners with some of the nation's most reputable researchers to explore marketing trends, as shown on slide 8. Quad recently partnered with the Harris Poll, one of the longest-running surveys in the US, to conduct a cross-generational consumer study on how Americans engage with digital and physical media.

身為產業思想領袖，Quad 定期與一些美國最知名的研究人員合作探索行銷趨勢，如幻燈片 8 所示。Quad 最近與美國歷史最悠久的民意調查機構之一哈里斯民意調查 (Harris Poll) 合作，對美國人如何使用數位和實體媒體進行了一項跨代消費者研究。

The study, titled The Return of Touch Report, Reimagining Consumer Engagement in 2025, finds that consumers desire tactile brand experiences, including In-store shopping and immersive print catalogs and direct mail. Some key findings are that 71% of consumers say experience a brand in a physical store deepens my connection and loyalty to it. 71% of consumers also say print catalogs or magazines feel more authentic than digital campaigns.

這項名為《觸覺回歸報告：重新構想 2025 年消費者參與度》的研究發現，消費者渴望獲得觸覺品牌體驗，包括店內購物、沉浸式印刷目錄和直郵。一些重要的發現是，71% 的消費者表示在實體店體驗品牌加深了我對品牌的連結和忠誠度。 71% 的消費者也表示，印刷目錄或雜誌比數位廣告活動更真實。

Findings were even more compelling for younger generations, as 86% of Gen Z and Millennials say touching and feeling products are essential to my purchasing decisions, and 73% say they look forward to receiving catalogs from brands. These trends support Quad's belief that integrating digital and physical touchpoints is essential to impactful marketing. That's why we have built our services to seamlessly connect creative production and media solutions across online and offline channels to enhance customer engagement and improve marketing ROI.

對於年輕一代來說，調查結果更有說服力，86% 的 Z 世代和千禧世代表示觸摸和感受產品對於他們的購買決策至關重要，73% 的人表示他們期待收到品牌的目錄。這些趨勢支持了 Quad 的信念：整合數位和實體接觸點對於有效的營銷至關重要。這就是為什麼我們建立我們的服務來無縫連接線上和線下管道的創意製作和媒體解決方案，以增強客戶參與度並提高行銷投資回報率。

On slide 9, we spotlight a longtime partner that leverages tactile media to improve engagement with consumers. KnitWell Group has a portfolio of iconic American fashion brands, including Talbot's and Chico’s. Catalogs play a vital role in marketing these brands, and Quad has proudly served as Talbot's trusted catalog print partner for more than 15 years.

在第 9 張投影片上，我們重點介紹了一位利用觸覺媒體來提高與消費者互動的長期合作夥伴。KnitWell Group 擁有一系列標誌性的美國時尚品牌，包括 Talbot's 和 Chico's。目錄在行銷這些品牌方面發揮著至關重要的作用，而 Quad 很榮幸能夠作為 Talbot 值得信賴的目錄印刷合作夥伴超過 15 年。

Beyond print execution and paper sourcing, Quad employees work as an extension of Talbot's marketing team, working directly on site in the client's facilities where they handle creative pre-media that supports the brand's catalogs and social channels. Building on our strong manufacturing and service record with Talbot's, Quad has recently expanded our partnership with other affiliates of KnitWell Group, winning catalog and direct mail print execution for three brands under the Chico's portfolio.

除了印刷執行和紙張採購之外，Quad 員工也是 Talbot 行銷團隊的延伸，直接在客戶的設施現場工作，處理支援品牌目錄和社群管道的創意印前媒體。憑藉與 Talbot's 的良好製造和服務記錄，Quad 最近擴大了與 KnitWell Group 其他附屬公司的合作夥伴關係，贏得了 Chico's 旗下三個品牌的目錄和直郵印刷執行。

Transitioning to slide 10, we are proud to share new work we debuted for Natrol, the nation's leading drug-free sleep aid brand. As Natrol's agency of record, our Betty Creative Agency was engaged to help reposition the brand from a sleep supplement to a wellness performance partner. We collaborated with MVP quarterback Josh Allen to promote the client's new sleep and restore product line through a campaign featuring 15 and 30-second video sprouts across digital, linear TV, and connected TV, including Amazon, Select TV, and Walmart Connect.

轉到第 10 張幻燈片，我們很自豪地分享我們為全國領先的無藥物助眠品牌 Natrol 推出的新作品。作為 Natrol 的代理機構，我們的 Betty Creative Agency 致力於幫助該品牌從睡眠補充劑重新定位為健康表現合作夥伴。我們與 MVP 四分衛 Josh Allen 合作，透過在數位、線性電視和連網電視（包括亞馬遜、Select TV 和 Walmart Connect）上播放 15 秒和 30 秒的影片短片來推廣客戶的新睡眠和恢復產品線。

The spot entitled This Is Me has garnered strong results, receiving over 1.8 million YouTube views and 5.8 million Instagram Reel views in under two months. The campaign has also been picked up by major media outlets and marketing publications, including People, Sports Illustrated, Bleacher Report, MMM, and Media Post.

這支名為《這就是我》的廣告取得了優異的成績，在不到兩個月的時間內，YouTube 上的觀看次數超過 180 萬次，Instagram Reel 上的觀看次數超過 580 萬次。該活動還得到了《人物》、《體育畫報》、《Bleacher Report》、《MMM》和《Media Post》等主要媒體和行銷出版物的報導。

Rebekah Lyle, Natrol's Chief Marketing Officer, said utilizing MVP quarterback Josh Allen, we've been able to tap into a huge new audience and see the impact utilizing top-tier talent at scale can have. We're thrilled about the This Is Me spot that's gone live along with the Natrol Pro Sleeper Sweepstakes, and are even more excited about what's still to come.

Natrol 首席行銷長 Rebekah Lyle 表示，利用 MVP 四分衛 Josh Allen，我們已經能夠吸引大量新觀眾，並看到大規模利用頂級人才可以產生的影響。我們對與 Natrol Pro Sleeper 抽獎活動同時上線的「This Is Me」廣告感到非常興奮，並且對即將推出的活動更加興奮。

Natrol is just one of three standout creative campaigns our Betty agency has launched in the last two months, including new work for the Minnesota lottery and a creative campaign for Kemp's, a Midwest dairy products brand owned by Dairy Farmers of America.

Natrol 只是我們 Betty 代理商在過去兩個月推出的三個傑出創意活動之一，其他三個活動包括為明尼蘇達州彩票開展的新工作以及為美國奶農協會旗下的中西部乳製品品牌 Kemp's 開展的創意活動。

Before I turn over the call to Tony, I would like to recognize our employees and thank them for their continued hard work, particularly as we prepare for our peak busy season. Through our persistent and commitment to innovation, we're supplying and simplifying the complexities of marketing and driving better business outcomes for our clients.

在將電話轉給托尼之前，我想先對我們的員工表示感謝，並感謝他們一直以來的辛勤工作，特別是在我們為繁忙季節做準備的時候。透過堅持不懈地致力於創新，我們正在提供和簡化行銷的複雜性並為客戶提供更好的業務成果。

With that, I will now turn the call over to Tony for the financial review.

說完這些，我現在將電話轉給托尼進行財務審查。

Thanks, Joel, and good morning, everyone. On slide 11, we show our diverse revenue mix. Net sales were $572 million in the second quarter of 2025, a decrease of 4% compared to the second impact of the February 28, 2025 divestiture of our European operations.

謝謝，喬爾，大家早安。在投影片 11 上，我們展示了多樣化的收入組合。2025 年第二季淨銷售額為 5.72 億美元，與 2025 年 2 月 28 日剝離歐洲業務的第二次影響相比下降了 4%。

The decline in net sales during the second quarter was primarily due to lower paper and logistics sales. Net sales were $1.2 billion in the first half of 2025, a 3% decline compared to the first half of 2024, when excluding the 4% impact of the year of divestiture. On a year-to-date basis, the decline in net sales was primarily due to lower paper, logistics, and agency solution sales, including the loss of a large grocery client, which annualized at the beginning of March 2025.

第二季淨銷售額的下降主要是因為紙張和物流銷售額的下降。2025 年上半年淨銷售額為 12 億美元，與 2024 年上半年相比下降 3%，不包括剝離當年 4% 的影響。從年初至今，淨銷售額的下降主要是由於紙張、物流和代理解決方案銷售額的下降，包括失去一家大型雜貨客戶，該損失在 2025 年 3 月初按年計算。

Comparing our net sales breakdown between the first half of 2024 and 2025, our revenue as a percentage of total sales increased 2% in our targeted print offerings, driven by direct marketing, packaging, and In-store, while our large-scale print offerings decreased 2% in our revenue mix, due to expected organic declines in magazines and retail inserts.

比較 2024 年上半年和 2025 年上半年的淨銷售額細分，在直接行銷、包裝和店內行銷的推動下，我們的目標印刷品產品收入佔總銷售額的百分比增長了 2%，而我們的大規模印刷品產品收入組合下降了 2%，原因是雜誌和零售插頁的預期有機下降。

Slide 12 provides a snapshot of our second quarter 2025 financial results. Adjusted EBITDA was $43 million in the second quarter of 2025, as compared to $52 million in the second quarter of 2024, and adjusted EBITDA margin declined from 8.2% to 7.6%. On a year-to-date basis, adjusted EBITDA was $89 million in 2025, compared to $102 million in 2024, and adjusted EBITDA margin declined from 7.9% to 7.4%.

幻燈片 12 提供了我們 2025 年第二季財務表現的快照。2025 年第二季調整後 EBITDA 為 4,300 萬美元，而 2024 年第二季為 5,200 萬美元，調整後 EBITDA 利潤率從 8.2% 下降至 7.6%。從年初至今，2025 年調整後的 EBITDA 為 8,900 萬美元，而 2024 年為 1.02 億美元，調整後的 EBITDA 利潤率從 7.9% 下降至 7.4%。

The decrease in adjusted EBITDA in both periods was primarily due to the impact of lower sales, increased investments in innovative offerings to drive future revenue growth, and the divestiture of our European operations, partially offset by lower selling, general, and administrative expenses, benefits from improved manufacturing productivity, and savings from cost reduction initiatives.

兩個期間調整後 EBITDA 的下降主要由於銷售額下降、為推動未來收入增長而增加的創新產品投資以及歐洲業務的剝離，但銷售、一般及管理費用的降低、製造生產率提高帶來的好處以及成本削減舉措帶來的節省部分抵消了這一影響。

Adjusted diluted earnings per share was $0.14 in the second quarter of 2025, as compared to $0.12 in the second quarter of 2024. Year-to-date, adjusted diluted earnings per share was $0.34 in 2025, compared to $0.22 in 2024. The increases are due to higher earnings and the beneficial impact of share repurchases.

2025 年第二季調整後每股攤薄收益為 0.14 美元，而 2024 年第二季為 0.12 美元。年初至今，2025 年調整後每股攤薄收益為 0.34 美元，而 2024 年為 0.22 美元。成長是由於收益增加和股票回購的有利影響。

Pre-cash flow improved $16 million from last year to negative $66 million in the six months ended June 30, 2025, and included $34 million of pre-cash flow generation in the second quarter of 2025. The increase in pre-cash flow is primarily due to an increase in cash earnings, including lower restructuring payments and lower interest payments, as well as a $9 million decrease in capital expenditures.

截至 2025 年 6 月 30 日的六個月內，預現金流較去年同期增加 1,600 萬美元，至負 6,600 萬美元，其中包括 2025 年第二季產生的 3,400 萬美元預現金流。預付現金流的增加主要歸因於現金收益的增加，包括重組支付和利息支付的減少，以及資本支出減少 900 萬美元。

In addition, during the first quarter of this year, we made proactive inventory purchases of paper and other materials in advance of potential tariffs. This inventory was utilized during the second quarter, which also contributed to improved working capital compared to the first quarter.

此外，今年第一季度，我們在潛在關稅實施前主動採購了紙張和其他材料的庫存。該庫存已於第二季得到利用，與第一季相比，這也有助於改善營運資金。

We show the seasonality of our free cash flow and debt leverage on slide 13. Due to the seasonality of our business, from the timing of holiday-related advertising and promotions, we typically generate negative pre-cash flow in the first nine months of the year, followed by large positive pre-cash flow in the fourth quarter. In 2025, we anticipate a similar seasonal pattern for our free cash flow and debt leverage. When removing the impact of seasonality, our net debt has decreased by $84 million from June 30, 2024 to June 30, 2025.

我們在第 13 張投影片上展示了自由現金流和債務槓桿的季節性。由於我們業務的季節性，從假日相關廣告和促銷的時間來看，我們通常會在一年的前九個月產生負的預現金流，然後在第四季度產生大量的正的預現金流。2025 年，我們預期自由現金流和債務槓桿將呈現類似的季節性模式。在消除季節性的影響後，從 2024 年 6 月 30 日到 2025 年 6 月 30 日，我們的淨債務減少了 8,400 萬美元。

Our free cash flow, in addition to proceeds from asset sales, fuels our capital allocation strategy, as shown on slide 14. During the second quarter, we made progress on the sale of closed facilities, including the sale of our 65,000 square foot Sacramento, California building for approximately $5 million. We continue to expect to generate future cash proceeds from additional owned facilities that are currently for sale.

我們的自由現金流，加上資產出售的收益，為我們的資本配置策略提供動力，如幻燈片 14 所示。在第二季度，我們在已關閉設施的銷售方面取得了進展，包括以約 500 萬美元的價格出售位於加州薩克拉門託的 65,000 平方英尺的建築。我們繼續期望從目前正在出售的其他自有設施中獲得未來的現金收益。

Our strong cash generation recently enabled us to deepen our product offering by acquiring the co-mailing assets of Honor, a co-mail and logistics solutions provider. It is crucial to provide the industry and our clients with additional co-mail postal optimization solutions, since postage is the largest cost for our clients to produce and deliver print marketing campaigns.

我們強勁的現金產生能力最近使我們能夠透過收購聯合郵寄和物流解決方案提供商 Honor 的聯合郵寄資產來深化我們的產品供應。為產業和客戶提供額外的聯合郵件郵政優化解決方案至關重要，因為郵資是我們的客戶製作和投放印刷行銷活動的最大成本。

We are pleased that the OnRoom integration is going well. In addition to the OnRoom acquisition, we have used our strong cash generation to maintain low debt balances and return $15 million of capital to shareholders year to date. This year, we increased the quarterly dividend by 50% to $0.75 per share, and our next dividend is payable on September 5.

我們很高興看到 OnRoom 整合進展順利。除了收購 OnRoom 之外，我們還利用強大的現金產生能力來維持較低的債務餘額，並在今年迄今向股東返還了 1,500 萬美元的資本。今年，我們將季度股息提高了 50%，達到每股 0.75 美元，下一次股息將於 9 月 5 日支付。

In addition, we repurchased 1.4 million shares of Class A common stock thus far in 2025. This brings total repurchases to 7.3 million shares since we commenced buybacks in 2022, representing approximately 13% of Quad's March 31, 2022 outstanding shares. We believe this represents strong value, and we will remain opportunistic in terms of our future share purchases.

此外，截至 2025 年，我們已回購了 140 萬股 A 類普通股。自 2022 年開始回購以來，總回購量已達 730 萬股，約佔 Quad 2022 年 3 月 31 日流通股的 13%。我們相信這代表著強大的價值，並且我們將在未來的股票購買方面保持機會主義。

Slide 15 includes a summary of our debt capital structure. At the end of the second quarter, our debt had a blended interest rate of 7.2%, and our total available liquidity, including cash on hand, under our most restrictive debt covenant was $202 million, with our next significant maturity of $193 million not due until October 2029.

投影片 15 包含我們的債務資本結構的摘要。截至第二季末，我們的債務混合利率為 7.2%，根據我們最嚴格的債務契約，我們的總可用流動資金（包括庫存現金）為 2.02 億美元，我們的下一個重要到期債務為 1.93 億美元，要到 2029 年 10 月才到期。

As a reminder, given uncertainty regarding interest rates, we entered into two interest rate collar agreements for $150 million notional value during 2023. The interest rate collars cap our exposure if interest rates increase, and we benefit if interest rates were to fall, down to approximately 2% so far. Including these interest rate collars, we would pay lower interest expense on approximately 86% of our June 30, debt if interest rates decline.

提醒一下，鑑於利率的不確定性，我們在 2023 年簽訂了兩份名目價值為 1.5 億美元的利率領圈協議。如果利率上升，利率區間會限制我們的風險敞口，如果利率下降，我們將受益，目前利率已降至約 2%。包括這些利率區間，如果利率下降，我們將為 6 月 30 日的債務支付較低的利息支出。

We reaffirm our 2025 guidance as shown on slide 16. We continue to expect net sales to decline 2% to 6% compared to 2024, excluding 2025 net sales of $23 million and 2024 net sales of $153 million from our divested European operations. Total year 2025 adjusted EBITDA is expected to be between $180 million and $220 million, with $200 million at the midpoint of that range. Compared to the second quarter of 2025, which is our lowest quarter for print volumes, we expect sequentially higher adjusted EBITDA in the third and fourth quarters of 2025 during our seasonal production peak.

我們重申第 16 張投影片所示的 2025 年指引。我們仍預期淨銷售額將與 2024 年相比下降 2% 至 6%，不包括 2025 年的 2,300 萬美元淨銷售額和 2024 年剝離的歐洲業務的 1.53 億美元淨銷售額。預計 2025 年全年調整後 EBITDA 將在 1.8 億美元至 2.2 億美元之間，中間值為 2 億美元。與印刷量最低的 2025 年第二季相比，我們預計 2025 年第三季和第四季（在我們的季節性生產高峰期）的調整後 EBITDA 將連續上升。

We are closely monitoring the potential impacts of tariffs and inflationary pressures on our clients, in addition to the recent post-sold rate increases, which could affect print and marketing spend. As we have always done in times of economic disruption, we will remain nimble and adapt to the changing demand environment, while maintaining our disciplined approach to how we manage all aspects of our business. We expect 2025 free cash flow to be in the range of $40 million to $60 million.

除了最近的售後費率上漲之外，我們還在密切關注關稅和通膨壓力對客戶的潛在影響，這可能會影響印刷和行銷支出。正如我們在經濟動盪時期一貫所做的那樣，我們將保持靈活並適應不斷變化的需求環境，同時保持嚴謹的方法來管理我們業務的各個方面。我們預計 2025 年自由現金流將在 4,000 萬美元至 6,000 萬美元之間。

And finally, our net debt leverage ratio is expected to decrease to approximately 1.5 times by the end of 2025, achieving the low end of our long-term targeted net debt leverage range of 1.5 times to 2.0 times. As a reminder, we may operate above this range at certain times of the year, primarily due to the seasonality of our business.

最後，預計到 2025 年底，我們的淨債務槓桿將降至約 1.5 倍，達到我們長期目標淨債務槓桿率範圍的低端，即 1.5 倍至 2.0 倍。提醒一下，我們一年中某些時候的營運可能會超出這個範圍，這主要是由於我們業務的季節性。

Slide 17 includes a summary of our financial outlook and our long-term financial goals as we continue to build on our momentum as a marketing experience company. Compared to net sales declining 10% in 2024, we expect the rate of net sales decline to improve to negative 4% in 2025, excluding the year of divestiture, and then reach an inflection point of net sales growth in 2028. We are strategically investing for the long-term as we expect growth in our integrated solutions and targeted print offerings to outpace organic decline in our large-scale print product lines of retail inserts and magazines.

投影片 17 概述了我們的財務前景和長期財務目標，我們將繼續鞏固作為行銷體驗公司的良好勢頭。與2024年淨銷售額下降10%相比，我們預計2025年淨銷售額下降率將改善至負4%（不包括剝離年份），然後在2028年達到淨銷售額增長的拐點。我們正在進行長期策略投資，因為我們預計我們的整合解決方案和有針對性的印刷產品的成長將超過我們的零售插頁和雜誌的大規模印刷產品線的有機下降。

In addition, by 2028, we expect to improve adjusted EBITDA margin by at least 100 basis points compared to 2024, and then reach low double-digit adjusted EBITDA margins in the long-term as our net sales mix of higher-margin services and products increases while continuing to improve manufacturing productivity and reduce costs.

此外，到 2028 年，我們預計調整後的 EBITDA 利潤率將比 2024 年提高至少 100 個基點，然後隨著我們高利潤率服務和產品的淨銷售組合的增加，同時繼續提高製造生產率並降低成本，長期內調整後的 EBITDA 利潤率將達到較低的兩位數。

Regarding free cash flow, we expect to improve our free cash flow conversion as a percentage of adjusted EBITDA from approximately 25% based on 2025 guidance to 35% by 2028 and to 40% in the long-term, primarily due to lower interest payments on decreasing debt balances and lower restructuring payments.

關於自由現金流，我們預期自由現金流轉換率佔調整後 EBITDA 的百分比將從基於 2025 年指引的約 25% 提高到 2028 年的 35%，長期來看將達到 40%，這主要是由於債務餘額減少導致的利息支付降低以及重組支付減少。

Finally, we continue to expect to maintain our current long-term targeted debt leverage range of 1.5 times to 2.0 times as part of our balanced capital allocation strategy. We believe it requires a compelling long-term investment, and we remain focused on achieving our financial goals, including returning capital to shareholders.

最後，作為平衡資本配置策略的一部分，我們繼續預期維持目前 1.5 倍至 2.0 倍的長期目標債務槓桿範圍。我們相信這需要引人注目的長期投資，並且我們仍然專注於實現我們的財務目標，包括向股東返還資本。

With that, I'd like to turn the call back to our operator for questions.

說到這裡，我想把電話轉回給我們的接線生以回答問題。

(Operator Instructions) Kevin Steinke, Barrington Research Associates

（操作員指示）Kevin Steinke，Barrington Research Associates

Good morning, Kevin.

早安，凱文。

So, I wanted to start out by asking about the landscape in terms of the postal rates and the post office. It sounded like, again, that you voiced on this call with maybe a little more focus on the pricing versus volume tradeoff. I know you keep in touch closely with folks at the Postal Service.

因此，我想先詢問一下郵資和郵局的情況。聽起來，您在這次電話會議上可能更專注於價格與銷量的權衡。我知道您與郵政局的工作人員保持密切聯繫。

So, kind of maybe give us a little bit more on how you see that progressing and if we potentially can get a little more relief on that front wall. So, recognizing you do a lot for your clients to help offset, rising rates.

因此，您能否向我們詳細介紹您認為的進展情況，以及我們是否有可能減輕前牆的壓力。因此，認識到您為客戶做了很多事情來幫助抵消不斷上升的利率。

Yeah, a lot going on here. Last week was the formal transition of the old Postmaster General to the new one. I was actually at the reception for him at the National Postal Museum, which is part of the Smithsonian Institute.

是的，這裡發生了很多事。上週是新舊郵政局長的正式交接。我當時正在史密森尼學會下屬的國家郵政博物館參加他的招待會。

I knew David when he was CEO of Waste Management and I know him as a strong, practical, people-oriented leader. So, I'm optimistic about his talents being able to be applied to what is a rather complicated story. But the other things happening is they did just implement that expected 11% postal rate increase, which puts more weight on top of the 50% to 70% that they've increased over the past four years alone.

我認識大衛時他還是廢棄物管理公司的首席執行官，我知道他是一位強大、務實、以人為本的領導者。因此，我對他的才華能夠應用於相當複雜的故事感到樂觀。但發生的其他事情是，他們確實實施了預期的 11% 郵資上調，這比過去四年中他們僅增加的 50% 至 70% 的郵資有了更大的提升。

But that was expected and I think that the hope here is that they're starting to recognize that those increases have hurt them as well as volume in the industry. And it's an age-old argument that when you increase your biggest cost to your clients, volume will go down. They seem to finally be believing that.

但這是意料之中的，我認為這裡的希望是他們開始認識到這些成長不僅損害了他們自己，也損害了行業的銷售。這是一個古老的觀點：當你增加客戶的最大成本時，銷售量就會下降。他們似乎終於相信了這一點。

And so, one of the things that they're doing which is encouraging is this test that starts in October, which goes for nine months, where if you reach certain criteria as a cataloger, that you can get up to a 10% discount. That's really important because it's the prospecting side using catalogs where the volume dries up the quickest when rates increase. So, hopefully that relief will help show maybe less decline and in some cases some growth. And we're looking forward to that.

因此，他們正在做的一件令人鼓舞的事情就是從 10 月開始進行為期 9 個月的測試，如果您作為編目員達到某些標準，您就可以獲得高達 10% 的折扣。這一點非常重要，因為當費率上升時，使用目錄的勘探量會最快減少。因此，希望這種救濟將有助於減少衰退，在某些情況下甚至能實現成長。我們對此充滿期待。

The other big thing that happened is the Postal Rate Commission, which really oversees the rate structure of the post office, started a review of everything a couple years ahead of when they usually do it. And some initial things just came out last week with we just submitted new comments this week that they're accepting is that they recognize formally that the pricing increases have hurt volume.

發生的另一件大事是，負責監督郵局費率結構的郵政費率委員會比通常的時間提前了幾年開始對所有事項進行審查。上週我們剛提交了一些初步意見，他們正在接受這些意見，他們正式承認價格上漲已經損害了銷售。

There's even a recommendation to go to once a year price increases because it's hard for businesses to manage. But they also went as far as to suggest that the rate increases should be capped again under CPI increases. And so, that's something we're watching and we will be participating in. And so, I'm encouraged. I'm complicated, difficult thing to manage.

甚至有人建議每年提高一次價格，因為這對企業來說很難管理。但他們甚至也建議，利率上調幅度應再次受到消費者物價指數上漲幅度的限制。所以，這是我們正在關注並將參與的事情。因此，我感到很受鼓舞。我很複雜，很難管理。

So, it's not easy for any postmaster general to come in and fix something like this. But I like what we're hearing. I like the direction. And we're going to stay very closely in touch with the post office as they think about their next moves because they are engaging with the industry again, which is nice to see.

因此，對於任何郵政局長來說，解決這樣的問題並不是一件容易的事。但我喜歡我們所聽到的。我喜歡這個方向。我們將與郵局保持密切聯繫，了解他們下一步的行動，因為他們正在再次與該行業接觸，這是令人高興的。

Okay, great. And just wanted to shift to your ongoing investments and growth and innovation. And a lot of the discussion about AI in your remarks and specifically the launch of Audience Builder 2.0. You noted in your press release that that's a significant milestone in being able to activate this wealth of data that you have.

好的，太好了。我只是想轉向您正在進行的投資、成長和創新。您的演講中有很多關於人工智慧的討論，特別是Audience Builder 2.0的發布。您在新聞稿中指出，這是啟動您擁有的大量數據的一個重要里程碑。

So, maybe can you touch on it, but what does it do for you that you weren't able to do before and how that benefits the client and ultimately how that contributes to maybe growth in your business?

那麼，也許您可以談論它，但它能為您做什麼，而您以前無法做到，它如何使客戶受益，以及最終如何促進您的業務成長？

Yeah, I'd say the data stack that we've done in partnering with Google Cloud to launch it and be able to make sure that we'll be able to use it in ways that we expect to in the future. What it really kind of does, Audience Builder, which was built on the Snowflake platform, really helps kind of democratize the access to the data.

是的，我想說的是，我們與 Google Cloud 合作推出了資料堆疊，並確保我們能夠以我們預期的方式在未來使用它。它真正起到的作用是，基於 Snowflake 平台構建的 Audience Builder 確實有助於實現資料存取的民主化。

So, it's one thing to have a large data stack. It's another to kind of translate and dive into it and say, you know, here's the audience I need to build from that data stack that's good for this specific customer and the attributes they're looking for. Traditionally, you're working with some data scientists to try and navigate that. They're doing all sorts of work and modeling to pull out the right data in the data stack.

因此，擁有大量資料堆疊是一回事。另一種方法是進行翻譯並深入研究，然後說，你知道，這是我需要從資料堆疊中建立的受眾，這對特定客戶和他們正在尋找的屬性有益。傳統上，您會與一些資料科學家合作來嘗試解決這個問題。他們正在進行各種工作和建模以從數據堆疊中提取正確的數據。

What Audience Builder 2.0 does is actually allow us to automate that. So, even someone like me, although hopefully they'll keep me from doing that, could actually start entering some of the attributes into the model and use some AI features to help navigate through the data stack to automatically pull those out.

Audience Builder 2.0 的作用實際上是讓我們實現自動化。因此，即使像我這樣的人，儘管希望他們會阻止我這樣做，但實際上可以開始將一些屬性輸入模型並使用一些人工智慧功能來幫助瀏覽資料堆疊以自動將其拉出。

And as I referenced before, the next phase of this is where we're going to apply, generative AI or large language models to actually help do prompts into the data stack. So, you go from having to input into multiple fields to actually just prompting the AI to go find -- I want the person who likes to run outside and uses, these types of shoes for what they like to do.

正如我之前提到的，下一階段我們將應用生成式人工智慧或大型語言模型來實際幫助將提示輸入資料堆疊。因此，您不再需要輸入多個字段，而是只需提示 AI 去查找 - 我希望那些喜歡在戶外跑步並使用這類鞋子的人能夠做他們喜歡做的事情。

Please create an audience of 300,000 people who look like that. And it will then automatically navigate it. And so, you can sort of see the progression of the use of AI on the data stack. But again, AI is a tool. And so, the way I look at it, it's a way to make things much more accessible in a faster pace so that customers will be able to iterate the audience data faster than ever.

請創造一個由 30 萬名長得像那樣的觀眾組成的群體。然後它就會自動導航。因此，您可以看到 AI 在資料堆疊上的使用進展。但再說一遍，人工智慧是一種工具。因此，在我看來，這是一種讓事情以更快的速度變得更容易獲得的方法，以便客戶能夠比以往更快地迭代受眾數據。

Yeah, that sounds really interesting. I mean, do you think this is a tool or something you can go out to your client base and kind of show them that this is a differentiator and, ultimately these sort of tools that you continue to build and launch kind of continue to drive new business wins for you?

是的，聽起來真的很有趣。我的意思是，您是否認為這是一種工具或某種東西，您可以向客戶群展示這是一種差異化因素，並且最終您不斷構建和推出的這類工具會繼續為您帶來新的業務勝利？

Yeah, I think there's a lot of differentiators that happen. Certainly, this will be the data stack is. But where we spend our time, and I'm trying to show you in the script and roll out in the examples, is it's not -- it's not the data stack to itself. It's not an AI model onto itself. It's what is it applied to to help the customer sell more business. And that's what we're totally focused on.

是的，我認為存在著許多差異。當然，這將是資料堆疊。但是我們花費時間的地方，以及我試圖在腳本中向您展示並在範例中推出的地方，它不是 - 它不是資料堆疊本身。它本身並不是一個人工智慧模型。它的作用是幫助客戶銷售更多業務。這正是我們全心關注的重點。

And so, when we talk about the data stack and that we've got -- audience 2.0 to help navigate it, what we're really saying to the customer is, we've got this great data stack. Now we're going to be able to grab data faster than ever, more accurately than ever. And we're, at the same time, showing them where to apply that. And so, great, we got the audience data quickly. It may help us more quickly say, this much should be in social. This much of your budget should be in direct mail. These are the different places you should spend the money.

因此，當我們談論資料堆疊以及我們所擁有的——受眾 2.0 來幫助導航它時，我們真正想告訴客戶的是，我們擁有這個很棒的資料堆疊。現在我們將能夠比以往更快、更準確地獲取數據。同時，我們也向他們展示瞭如何應用這一點。太好了，我們很快就獲得了觀眾數據。它可能幫助我們更快地說，這應該在社交中。您的預算中很大一部分應該用於直郵。這些是您應該花錢的不同地方。

It's that complexity that the customers are asking us to help them with. And that's why, I think it's important to understand in a complex marketing world that's evolving here. It's not like one thing that a customer is looking for. They're looking for help and how to use that one thing. And how does it tie to the three or four other things that are happening?

正是這種複雜性讓客戶要求我們幫助他們解決。這就是為什麼我認為了解正在不斷發展的複雜行銷世界非常重要。這不像是顧客正在尋找的東西。他們正在尋求幫助以及如何使用這一東西。它與正在發生的其他三、四件事有何關聯？

I mean, in the half or even in the quarter, I'm really excited by, the 7% increases in sales we're seeing in direct mail and packaging and a 13% increase in sales for in-store. Because we're not selling those individual products by mimicking what they're already doing. We're getting the sales by tying in complexity of new offerings to help them get more responsiveness out of that.

我的意思是，在本季度甚至整個季度，我都非常興奮，我們看到直郵和包裝銷售額增長了 7%，店內銷售額增長了 13%。因為我們不會透過模仿他們的做法來銷售單一產品。我們透過結合新產品的複雜性來幫助他們獲得更多的回應，從而獲得銷售。

And like an example in direct mail, I'm not just saying we're going to replicate what you're doing. We're actually saying let's start with new audience and let's figure out how to come up with a challenger direct mail piece to the one you're currently doing. By the way, we'll test that virtually in our virtual testing platform before we roll it out.

就像直郵中的例子一樣，我不僅僅是說我們要複製你所做的事情。我們實際上是說，讓我們從新的受眾開始，讓我們弄清楚如何提出一個挑戰你目前正在做的直郵。順便說一句，在推出之前，我們會在我們的虛擬測試平台上進行虛擬測試。

That's not how it's typically done. And so we're winning big programs based on tying those complexities together. The same in packaging. We're not just trying to do the same form factor someone's doing. In the case of a battery supplier, they're trying to get away from plastic. So we help create a form factor that just uses paper that fits the machines they're going to do.

這並不是通常的做法。因此，我們透過將這些複雜性結合在一起來贏得大型專案。包裝也一樣。我們不只是試圖模仿別人所做的形式。對於電池供應商來說，他們正在嘗試擺脫塑膠。因此，我們幫助創建一種僅使用適合他們要使用的機器的紙張的形式。

So we won that. But also in packaging, we have cases where we're using the same sort of virtual analytics to inform what the form factor and what the creative should look like on the packaging when it's in the aisle. But furthermore, In-store group then is saying here's the signage that should accompany it in the aisle with the packaging.

所以我們贏了。但在包裝方面，我們也有一些案例使用相同類型的虛擬分析來告知包裝在貨架上時的形式因素和創意應該是什麼樣的。但此外，店內團隊也表示，這是應該與包裝一起放在走道上的標誌。

So finally, when you look at those, we're tying complexities together, just not mimicking what people are doing. And that's the whole power of this MX marketing solution is we're going to have all the buzzwords working for us, the AI tools, you name it, the data stacks. But it's how you're applying it and how the customers can feel comfortable that we're going to make it easy.

所以最後，當你看到這些時，我們會發現我們將複雜性連結在一起，而不是模仿人們所做的事情。這就是 MX 行銷解決方案的全部力量，我們將利用所有的流行語、AI 工具以及資料堆疊為我們服務。但關鍵在於你如何應用它，以及如何讓客戶感到舒適，我們會讓一切變得簡單。

Great. Very helpful, color. And I appreciate you touching on some of the -- it sounds like really healthy growth rates in the targeted print categories. I believe you said 7% and 13% for a couple of the categories.

偉大的。非常有幫助，顏色。我很感謝您談到其中一些——聽起來目標印刷類別的成長率確實很健康。我相信您說的幾個類別的比例是 7% 和 13%。

Yeah, year to date. A little higher than before.

是的，今年到目前為止。比之前稍微高一點。

Okay, great. Well, yeah, that's very helpful, color. And because that kind of dovetails in this bigger picture, my question is any evidence you can point to that gives you greater confidence about this journey you're on to achieving net sales growth?

好的，太好了。嗯，是的，顏色很有幫助。而由於這種情況與更大的圖景相吻合，我的問題是，您能否指出任何證據，讓您對實現淨銷售成長的旅程更有信心？

I know you continue to say by 2028, but it sounds like there's some kind of real tangible evidence you're seeing so far this year that the strategy in that journey continues to progress and take hold.

我知道您一直說到 2028 年，但聽起來您今年到目前為止已經看到了一些真正的確鑿證據，表明這一旅程中的策略正在繼續進步並紮根。

Yeah, I think you look at the pie charts that we show you of targeted print versus large-scale print. In large-scale print, that is viable marketing material. Retail inserts still work. People still want magazines, but they have the biggest decline rate. And so, part of the migration to increasing the share of pie in targeted print and on the integrated solution side -- is that you have that steady decline, but it's still good revenue. It's good cash flow revenue.

是的，我想您可以看一下我們向您展示的針對性印刷與大規模印刷的餅圖。在大規模印刷中，這是可行的行銷材料。零售插頁仍然有效。人們仍然想要雜誌，但雜誌的下降率最高。因此，轉向增加定向印刷和綜合解決方案的份額的部分原因是，雖然收入穩定下降，但仍然是不錯的收入。這是良好的現金流收入。

And so, that kind of dictates it a little bit. I mean, in fact, I think we're seeing a little bit less decline in retail inserts than we typically expect. Some of that's maybe some market share and maybe a little bit more resilience in some categories, but it will continue to decline.

所以，這在某種程度上決定了這一點。我的意思是，事實上，我認為我們看到的零售插頁的下降幅度比我們通常預期的要小一些。其中一些可能是一些市場份額，也許在某些類別中更有彈性，但它將繼續下降。

So, that's the healthy balance that people have to think about, about why 2028 for the flip. We still have this big, girthy print volume stuff that creates good cash flow, and we'll manage it as we management while we grow the other stuff. But it's how we're winning the other stuff that encourages me, because we're not winning it by just doing the Me Too pitch. We're doing it by using intelligence to create those channels to be more customer-centric from a growth rate standpoint, higher ROI.

所以，這是人們必須思考的健康平衡，關於為什麼 2028 年是翻轉期。我們仍然擁有大量印刷品，可以創造良好的現金流，我們將在管理其他產品的同時對其進行管理。但令我感到鼓舞的是我們如何贏得其他東西，因為我們不是僅僅透過做 Me Too 宣傳就能贏得的。我們透過利用智慧技術來創造這些管道，從成長率的角度來看，這些管道更加以客戶為中心，投資報酬率更高。

All right. Fantastic. That's, again, really great commentary. I appreciate it. I'll turn it back over.

好的。極好的。這又是一個非常精彩的評論。我很感激。我會把它翻過來。

Okay. Thanks. We'll talk to you later. Operator, next question.

好的。謝謝。我們稍後再和你聊。接線員，下一個問題。

Barton Crockett, Rosenblatt.

巴頓·克羅克特，羅森布拉特。

Good morning, Barton.

早上好，巴頓。

Good morning. Thanks for taking the question. I guess a couple of things I was curious about on the numbers. One is your sales trend kind of excluding the Europe divestiture down 4% in the last quarter, a little bit of a deceleration from the down 2% in the first quarter, even though I think you had the benefit of lapping the loss of a grocery client.

早安.感謝您回答這個問題。我想我對這些數字中的一些事情感到好奇。一是你們的銷售趨勢，排除歐洲業務剝離的影響，上個季度下降了 4%，與第一季度的 2% 相比略有下降，儘管我認為你們因失去一位雜貨客戶而受益。

I was just wondering if you could just remind us how material was that grocery impact, and also unwrap a little bit, unpack a little bit about what prompted the deceleration here in trends in the second quarter versus the first.

我只是想知道您是否可以提醒我們食品雜貨的影響有多大，並稍微解釋一下，是什麼導致第二季度的趨勢與第一季相比放緩。

Yeah. I'll start with your question on the grocery client. We had disclosed earlier 3% of revenue. I think $90 million to $100 million on the top line for a year. And then when you look at quarter-over-quarter, you're right on the trend Q1 versus Q2. Q2 is typically our lowest volume quarter. We

是的。我先從您關於雜貨店客戶的問題開始。我們之前已經披露了3%的收入。我認為一年的營業收入將達到 9,000 萬至 1 億美元。然後，當您查看季度環比情況時，您會發現第一季相對於第二季的趨勢是正確的。第二季通常是我們交易量最低的季度。我們

saw higher organic decline in some of those larger print product lines in that quarter. We also saw some volume get into the first quarter that might typically have fallen into the second quarter, which explains the kind of the quarter-over-quarter trend. But we're still, for the year, we're down 3% on the top line, so closer to the better end of our range of 2% to 6%.

該季度，部分大型印刷產品線的有機下滑幅度較大。我們還看到，一些通常會落在第二季度的交易量進入了第一季度，這解釋了這種季度環比趨勢。但今年我們的營業額仍下降了 3%，因此更接近 2% 至 6% 區間的較高值。

And now we expect increasing volumes going into our third and then the fourth quarter. So it's just a matter of more volumes in Q2.

現在我們預計第三季和第四季的銷量將會增加。所以這只是第二季銷售量增加的問題。

Okay. So to that end, I mean, I know you guys have the full year guidance. Anything you can say about how the third quarter is trending based on what you can see so far?

好的。因此，為此，我的意思是，我知道你們有全年指導。根據您目前所看到的情況，您能說說第三季的趨勢嗎？

Yeah. I guess I didn't see any volumes in the quarter to be alarming. But I will say -- we were worried about the effect of tariffs and the last quarter, and we talked about that. But we also said that we hadn't seen large scale pullback because of tariffs.

是的。我想我沒有看到本季出現任何令人擔憂的交易量。但我要說的是——我們擔心關稅和上個季度的影響，我們也討論過這個問題。但我們也表示，我們並沒有看到因關稅而出現大規模的回檔。

I'd say the tone that I'm hearing in the marketplace now is cautious optimism that -- boy the world is still functioning after all this stuff that's happened, that, you know, again, I think people are sort of charging ahead. We'll continue to look at what kind of impact maybe as the tariffs roll out it will have on the consumer.

我想說，我現在在市場上聽到的基調是謹慎樂觀——在發生了所有這些事情之後，世界仍在運轉，你知道，我再次認為人們正在向前衝。我們將繼續關注關稅的推出可能對消費者產生什麼樣的影響。

But as I talk to catalogers, there seems to be an optimism there, cautious optimism. I think in retail, a little bit of the same. But it depends on who you talk to and what category. So, I think that I'm feeling comfortable with what we're seeing and what we're hearing in terms of our guidance and relative to our guidance.

但當我與編目員交談時，他們似乎有一種樂觀、謹慎的樂觀。我認為在零售業，情況也有些類似。但這取決於你與誰交談以及交談的類別。因此，我認為，就我們的指導而言以及相對於我們的指導而言，我對我們所看到和聽到的內容感到滿意。

Yeah. But it sounds like you said that trends have been volumes are up. And that was a comment I want to make sure I understand. Are you saying?

是的。但聽起來您說的是趨勢是數量正在上升。我想確保自己理解了這一評論。你是說什麼？

Yeah. I think as the rest of the year plays out, you should expect, compared to the second quarter, higher revenue and the third and then the fourth to be the highest revenue and even the quarter of the year.

是的。我認為，隨著今年剩餘時間的推移，與第二季度相比，你應該預期收入會更高，第三季和第四季將成為收入最高的季度，甚至是全年收入最高的季度。

Decently, but on a year-over-year basis, is the trend, are you saying that trend improves or just it goes up seasonally quarter to quarter?

不錯，但與去年同期相比，您是說趨勢有所改善，還是只是逐季度季節性上漲？

It'll stay to within the guidance range that we gave of the 2 to 6 on the quarters.

它將保持在我們給出的 2 至 6 季的指導範圍內。

All right. And then you guys, in terms of the asset sales, you guys had a couple of things going on here -- that I just want to make sure I understand what's in the results you just reported. So, you guys had closed Sacramento. And so, that cash is in the door here in the quarter you just reported. Is that correct?

好的。然後，就資產銷售而言，你們發生了幾件事——我只是想確保我理解你們剛剛報告的結果。所以，你們關上了薩克拉門托。因此，您剛剛報告的這個季度的現金就已經到賬了。對嗎？

That is correct. $5 million.

沒錯，500萬美元。

And then you guys had bought Enru, I think for $34 million. And that outflow is also in the quarter you just reported?

然後你們收購了 Enru，我想價值是 3400 萬美元。您剛剛報告的這個季度也出現了資金流出嗎？

We paid $16 million up front and that's in the quarter that we just reported. There's a $2million cash payment later this year. And then there's an earn out that depends on how the business performs that makes up the rest of the potential purchase price over five years.

我們預付了 1600 萬美元，這是我們剛剛報告的季度金額。今年稍後將支付 200 萬美元現金。然後還有一筆盈利，取決於業務表現，這筆盈利將在五年內彌補剩餘的潛在購買價格。

Okay. All right. Now, in terms of the other kind of assets, I mean, is there can you just remind us what do you have that is on the block right now that could be sold that's remaining at this point?

好的。好的。現在，就其他類型的資產而言，我的意思是，您能否提醒我們一下，目前您有哪些可以出售的資產？

Yeah. We've got two buildings located in Effingham, Illinois. These are all from earlier plant closures. We have one building in Waukee, Iowa. And we have one building in Greenville, Michigan, which was our most recent plant closure done in the early part of the second quarter.

是的。我們在伊利諾州埃芬漢姆有兩棟建築。這些都是早期工廠關閉造成的。我們在愛荷華州沃基有一棟建築。我們在密西根州格林維爾有一棟建築，這是我們最近在第二季初關閉的工廠。

The Greenville and Waukee plants are relatively small, I think around 100,000 square feet. Effingham's got a little more between the two buildings, a little more square footage to it.

格林維爾和沃基工廠相對較小，我認為大約有 100,000 平方英尺。埃芬漢姆的兩棟建築之間的距離稍大一些，建築面積也稍大一些。

Okay. All right. Now, in terms of your guide for net debt at $300 million, I think from what was $350 million, so about a $50 million net reduction, which kind of squares with the middle point of your free cash flow guidance for the year.

好的。好的。現在，就您指導的 3 億美元淨債務而言，我認為從之前的 3.5 億美元來看，淨減少額約為 5,000 萬美元，這與您今年自由現金流指導的中點相符。

How are you guys kind of treating cash from potential asset sales when you're guiding for net debt? Is that kind of not included or anything you can say about that?

當你們指導淨債務時，你們是如何處理來自潛在資產銷售的現金的？這是不包括的嗎？或者您對此有什麼看法？

Yeah. I would say we do make estimates on when we think facilities are going to sell and what we think they're going to sell for. And we do include that in the year-end guidance. So it's possible, depending on the timing of asset sales, that the only impact it would have would be on the net debt and the debt leverage. And again, we'll eventually sell those buildings. So depending on timing, it's possible something could slip into 2026.

是的。我想說的是，我們確實對設施何時出售以及以什麼價格出售做出了估計。我們確實將其納入了年終指導中。因此，根據資產出售的時機，它唯一可能的影響是淨債務和債務槓桿。而且，我們最終會出售這些建築。因此，根據時間安排，某些事情可能會延續到 2026 年。

Okay. All right. That's cool. And then I guess the final point is on this Postal Service Report, which sounds interesting, the recommendation for CPI capped rate increases would sound like revolutionary compared to the last four years of much bigger than inflation at a time when inflation has been elevated.

好的。好的。這很酷。然後我想最後一點是關於這份郵政服務報告的，這聽起來很有趣，與過去四年通貨膨脹率高企的時期相比，對 CPI 利率上限增長的建議聽起來像是革命性的。

What would it take for that to be implemented? And what would be the timing for that to be implemented? And what is the probability of that in your opinion?

要實現這一點需要做些什麼？什麼時候實施？您認為這種可能性有多大？

Yeah, that's a good question. That will have to play out because they're the governing body that overlooks it. And there's lots of process that goes on here. There's lots of input being gathered this week, quite frankly. And so what the process will be, how long that will take, is a little bit yet to be seen. It's not revolutionary. It's actually where we came from until the pandemic happened.

是的，這是個好問題。這必須要實現，因為他們是監督此事的管理機構。這裡有很多過程。坦白說，本週收集了大量意見。因此，整個過程是怎樣的，需要多長時間，還有待觀察。這並不是革命性的。事實上，在疫情爆發之前，我們一直來自這裡。

So after the pandemic happened, where they were allowed to use the authority to go above the CPI increase. But for the many years, decade plus before that, it was capped at CPI. And if you look at that range, what happened was -- yeah, we had decline in print, but it was pretty consistent and manageable.

因此，在疫情發生後，他們被允許使用權力來提高CPI漲幅。但在此之前的很多年，甚至十多年裡，其上限都是 CPI。如果你看一下這個範圍，你會發現情況是——是的，我們的印刷量確實有所下降，但這是相當穩定且可控的。

And then as soon as the pandemic happened, you saw a big increase in the decline in the print, but then it bounced way back, back to a little bit better than the decrease that it was seeing. But that's when they really started cranking the prices. So in the next subsequent, from 2021, is when you suddenly saw the print decline accelerate because you just saw the pricing increase so dramatically.

疫情爆發後，印刷量大幅下降，但隨後又反彈，比之前的下降幅度略有改善。但就在那時他們才真正開始抬高價格。因此，在接下來的一段時間裡，從 2021 年開始，你會突然看到印刷量加速下降，因為你看到價格大幅上漲。

And I guess the challenge is -- is they got to run it like a declining business. I think the previous Postmaster General declared he wanted to run it like a growing business. Well, the only way you can grow revenue if volume is declining is you crank pricing. Well, that's a very short-term thing to do.

我想，挑戰在於──他們必須像經營一家衰退的企業一樣去經營它。我認為前郵政局長曾表示他想像經營成長型企業一樣來經營它。好吧，如果銷量下降，那麼增加收入的唯一方法就是提高價格。嗯，這只是一個短期的事情。

And so I think there's a lot of people in the industry really pushing to come up with something that works. And will it be a cap at CPI? I don't know. But I think lessons are being learned here. And I think there's a real impetus and desire to want to come up with something that allows the industry to be healthy, which means the post office can be healthy. But it's going to take some complexity and some heavy lifting to get that happening.

因此我認為業內有很多人在努力尋找切實可行的方法。這會對 CPI 造成限制嗎？我不知道。但我認為我們正在從中吸取教訓。我認為人們確實有動力和願望去想辦法讓這個產業變得健康，這意味著郵局也能變得健康。但要實現這一點，需要一些複雜性和繁重的工作。

I wish I could give you a more succinct answer, but we will share it as we see it happening.

我希望我能給你一個更簡潔的答案，但我們會在看到結果後分享它。

Okay. All right. That's helpful. And that's it for me for questions. Thank you.

好的。好的。這很有幫助。我的問題就到這裡。謝謝。

All right. Thanks, Barton. Operator?

好的。謝謝，巴頓。操作員？

Thank you. This concludes our question and answer session. I would like to turn the conference back over to Joel Quadracci for closing remarks.

謝謝。我們的問答環節到此結束。我想將會議交還給 Joel Quadracci 做最後發言。

All right. Thank you, everyone, for joining today's call. And I want to close by reiterating that Quad remains steadfast in our strategic vision, leveraging our integrated marketing platform to unlock diversified growth, improve print and marketing efficiencies, and create meaningful value for all stakeholders.

好的。感謝大家參加今天的電話會議。最後，我想重申，Quad 始終堅定不移地堅持我們的策略願景，利用我們的綜合行銷平台實現多元化成長，提高印刷和行銷效率，為所有利害關係人創造有意義的價值。

With that, thank you again, and have a great day.

最後，再次感謝您，祝您有美好的一天。

Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

謝謝。會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。