Quad/Graphics reported third-quarter 2026 results that were broadly steady on sales but mixed on earnings: revenue was nearly unchanged from a year earlier, while net income and adjusted EBITDA declined and adjusted earnings per share increased. The company also raised the midpoint of its full-year sales outlook, announced a new brand for its direct-marketing agency and reported progress in its in-store retail media business.
Quad said it returned $23 million to shareholders so far this year through share repurchases and dividends, while maintaining its year-end leverage target and continuing to invest in growth and automation.
Key details
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Third-quarter sales were essentially flat. Net sales were $587 million, compared with $588 million in the third quarter of 2025.
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Net earnings and adjusted EBITDA were lower. Quad recorded net earnings of $6 million, or 11 cents per diluted share, versus $10 million, or 21 cents per share, a year earlier. Adjusted EBITDA was $51 million, down from $53 million.
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Adjusted earnings per share increased. Adjusted diluted EPS rose 13% to 35 cents from 31 cents in the year-earlier quarter.
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The company improved its full-year sales outlook. Quad raised the midpoint of its 2026 guidance for adjusted annual net sales change from a 3% decline to a 2% decline. It narrowed its guidance ranges for adjusted EBITDA and free cash flow, while keeping both within the original ranges.
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Quad maintained its year-end leverage target. It continues to expect a net debt leverage ratio of approximately 1.5 times at the end of 2026, while also returning capital to shareholders and investing in growth and automation.
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Shareholder returns included buybacks and a dividend. Quad repurchased 1 million shares in 2026, bringing total repurchases to 8.4 million shares since the buyback program began in 2022—about 15% of the shares outstanding on March 31, 2022. The company also declared a quarterly dividend of 10 cents per share, payable December 4, 2026.
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Quad introduced Direct, its newly branded full-service direct-marketing agency. The offering combines audience intelligence, pre-market creative validation, production and measurement services.
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Its In-Store Connect network signed its first national retailer. Screens are expected to launch in 30 Florida stores this winter.
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Quad cited broader client relationships as part of its strategy. It said retailers including Wakefern and Chedraui USA’s Smart & Final banner have expanded their work with the company beyond print to include In-Store Connect and Rise media services.
What changes for investors
The revised sales outlook points to a smaller expected full-year revenue decline than Quad previously forecast. The quarter’s results were mixed: adjusted EPS improved even as net earnings and adjusted EBITDA fell. Quad is also combining shareholder returns with investment in its marketing and retail-media capabilities, while keeping its stated year-end leverage target unchanged.