Technology
Quad Reports Second Quarter and Year-to-Date 2026 Results
Published
3 months agoon
By
Realizes Net Sales Increase in the Second Quarter and
Reaffirms Full-Year 2026 Financial Guidance
SUSSEX, Wis., July 28, 2026 /PRNewswire/ — Quad/Graphics, Inc. (NYSE: QUAD) (“Quad” or the “Company”), a marketing experience company that solves complex marketing challenges for its clients, today reported results for the second quarter ended June 30, 2026.
Recent Highlights
Realized Net Sales of $578 million in the second quarter of 2026 compared to $572 million in the second quarter of 2025, representing a 1% increase in Net Sales.Recognized Net Earnings of $4 million and $0.07 Diluted Earnings Per Share in the second quarter of 2026, compared to a Net Loss of $0.1 million and $0.00 Diluted Loss Per Share in 2025.Reported Non-GAAP Adjusted EBITDA of $42 million in the second quarter of 2026, compared to $43 million in 2025.Achieved $0.24 Adjusted Diluted Earnings Per Share in the second quarter of 2026, an increase of 71% from $0.14 per share in 2025.Earned industry recognition for Rise media agency through inclusion in Forrester’s report, “The Media Management Services Landscape, Q2 2026.”*Named strategic marketing partner to Wakefern Food Corp., with Rise serving as client’s media AOR and In-Store Connect by Quad to deploy across 30 ShopRite locations later this year.Enhancing the national footprint of Quad’s Packaging business with the addition of a new 100,000 square-foot facility in Salt Lake City, Utah.Repurchased 0.4 million shares of Quad Class A common stock in 2026, bringing total repurchases to 7.9 million shares since commencing buybacks in 2022, representing 14.1% of Quad’s March 31, 2022, outstanding shares.Declared quarterly dividend of $0.10 per share payable September 4, 2026.Reaffirms full-year 2026 financial guidance.
Joel Quadracci, Chairman and Chief Executive Officer of Quad, said: “We continue to execute our long-term strategy by investing in growth-oriented offerings across our agency solutions and targeted print businesses. We announced the westward expansion of our Packaging division with a new facility in Salt Lake City, which is expected to be operational in the fourth quarter of 2026. This investment rounds out a national manufacturing footprint for our Packaging business, enhancing our ability to serve both national brands and regional packaging clients with greater speed, flexibility and reach.
“We also continue to deepen existing account relationships and expand opportunities as clients adopt more of our integrated creative, media and marketing solutions. For example, we have broadened our work with long-time print client Wakefern, the nation’s largest retailer-owned grocery cooperative, to include Rise’s media services; content creation; and In-Store Connect, our in-store retail media network solution, in 30 of its ShopRite stores.
“As we continue to invest in long-term growth, we remain equally focused on driving productivity and operational excellence. Through automation, AI-enabled tools and disciplined cost management, we continue to strengthen our operating model and drive strong productivity in our print business lines. Supported by these efforts, we remain on track to achieve our full-year guidance despite ongoing macroeconomic and geopolitical uncertainty.”
Added Tony Staniak, Chief Financial Officer and Treasurer of Quad: “Net Sales grew year-over-year in the second quarter of 2026, driven by higher paper sales and logistics sales, representing progress toward our 2028 projected full-year revenue growth. Adjusted EBITDA and Free Cash Flow were essentially flat compared to 2025 and consistent with our full-year financial guidance. We continue to monitor inflation, economic and global trade dynamics, and geopolitical tensions, and are adjusting as necessary to mitigate their impact on our business and our clients. While continuing to invest to drive long-term growth, we returned $13 million to shareholders during the first half of 2026 through our quarterly dividend of $0.10 per share and share repurchases. We expect to remain opportunistic in terms of future share repurchases.”
Second Quarter 2026 Financial Results
Net Sales were $578 million in the second quarter of 2026, an increase of 1% compared to the same period in 2025. The increase in Net Sales was primarily due to higher paper sales and higher logistics sales.Net Earnings were $4 million, or $0.07 Diluted Earnings Per Share, in the second quarter of 2026 compared to a Net Loss of $0.1 million, or $0.00 Diluted Loss Per Share, in the second quarter of 2025. The improvement was primarily due to lower interest expense, lower depreciation and amortization, and lower selling, general and administrative expenses, partially offset by the impact from increased income tax expense and increased restructuring, impairment and transaction-related charges, net. Diluted Earnings Per Share were also higher due to the increase in Net Earnings.Adjusted EBITDA was $42 million in the second quarter of 2026, compared to $43 million in the same period in 2025. The decrease was primarily due to the mix of Net Sales.Adjusted Diluted Earnings Per Share was $0.24 in the second quarter of 2026, as compared to $0.14 in the second quarter of 2025.
Year-to-Date 2026 Financial Results
Net Sales were $1.2 billion in the six months ended June 30, 2026, a decrease of 4% compared to the same period in 2025. Excluding the 2% impact of the divestiture of the Company’s European operations, Net Sales declined 2%. The decline in Net Sales was primarily due to lower print volumes and lower agency solutions sales, partially offset by higher paper sales.Net Earnings were $10 million, or $0.20 Diluted Earnings Per Share, in the six months ended June 30, 2026, compared to Net Earnings of $6 million, or $0.11 Diluted Earnings Per Share, in the same period in 2025. The improvement was primarily due to lower interest expense, lower selling, general and administrative expenses, and lower depreciation and amortization, partially offset by the impact from lower Net Sales, higher income tax expense, and higher restructuring, impairment and transaction-related charges, net.Adjusted EBITDA was $87 million in the six months ended June 30, 2026, as compared to $89 million in the same period in 2025. The decrease was primarily due to the impact of lower Net Sales and the impact from the mix of Net Sales, partially offset by lower selling, general and administrative expenses.Adjusted Diluted Earnings Per Share was $0.48 in the six months ended June 30, 2026, as compared to $0.34 in the same period in 2025, an increase of 41%.Net Cash Used in Operating Activities was $41 million in the six months ended June 30, 2026, compared to $42 million year-to-date in 2025. Free Cash Flow was negative $66 million in both year-to-date 2026 and 2025. As a reminder, the Company historically generates most of its Free Cash Flow in the fourth quarter of the year.Net Debt was $394 million at June 30, 2026, as compared to $308 million at December 31, 2025, and $448 million at June 30, 2025. Compared to December 31, 2025, Net Debt increased primarily due to negative $66 million in Free Cash Flow and the payment of cash dividends and share repurchases. When removing seasonality, Net Debt decreased $54 million or 12%.
Dividend
Quad’s next quarterly dividend of $0.10 per share will be payable on September 4, 2026, to shareholders of record as of August 17, 2026.
2026 Guidance
The Company’s full-year 2026 financial guidance is unchanged and is as follows:
Financial Metric
2026 Guidance Range
Adjusted Annual Net Sales Change (1)
1% to 5% decline
Full-Year Adjusted EBITDA
$175 million to $215 million
Free Cash Flow
$40 million to $60 million
Capital Expenditures
$55 million to $65 million
Year-End Net Debt Leverage Ratio (2)
Approximately 1.5x
(1) Adjusted Annual Net Sales Change excludes the 2025 Net Sales of $23 million from the Company’s European operations, divested on February 28, 2025.
(2) Net Debt Leverage Ratio is calculated at the midpoint of the Adjusted EBITDA guidance.
Conference Call and Webcast Information
Quad will hold a live webcast and conference call to discuss the results on Wednesday, July 29, 2026, at 8:30 a.m. ET.
Those wishing to participate via the webcast should access the call through the investor relations section of Quad’s website at quad.com/investor-relations. Those wishing to participate via telephone may dial in at 877-328-5508 (USA) or 412-317-5424 (International). Participants may pre-register for the conference call at https://dpregister.com/sreg/10210027/104504e2940.
The webcast replay will be available through the investor relations section of Quad’s website.
*Forrester Objectivity Statement
Forrester does not endorse any company, product, brand, or service included in its research publications and does not advise any person to select the products or services of any company or brand based on the ratings included in such publications. Information is based on the best available resources. Opinions reflect judgment at the time and are subject to change. This report is part of a broader collection of Forrester resources, including interactive models, frameworks, tools, data, and access to analyst guidance. For more information, read about Forrester’s objectivity here.
About Quad
Quad (NYSE: QUAD) is a marketing experience, or MX, company that helps brands make direct consumer connections, from household to in-store to online. The company does this through its MX Solutions Suite, a comprehensive range of marketing and print services that seamlessly integrate creative, production and media solutions across online and offline channels. Supported by state-of-the-art technology and data-driven intelligence, Quad simplifies the complexities of marketing by removing friction wherever it occurs along the marketing journey. The company tailors its uniquely flexible, scalable and connected solutions to each client’s objectives, driving cost efficiencies, improving speed-to-market, strengthening marketing effectiveness and delivering value on client investments.
Quad employs approximately 10,000 people in 10 countries and serves approximately 2,100 clients including industry leading blue-chip companies that serve both businesses and consumers in multiple industry verticals, with a particular focus on commerce, including retail, consumer packaged goods, and direct-to-consumer; financial services; and health. Quad is ranked among the largest agency companies in the U.S. by Ad Age, buoyed by its full-service media agency, Rise, and creative agency, Betty. Quad is also one of the largest commercial printers in North America, according to Printing Impressions.
For more information about Quad, including its commitment to operating responsibly, intentional innovation and values-driven culture, visit quad.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements regarding, among other things, our current expectations about the Company’s future results, financial condition, sales, earnings, free cash flow, capital expenditures, leverage, margins, objectives, goals, strategies, beliefs, intentions, plans, estimates, prospects, projections and outlook of the Company, including information under the heading “2026 Guidance,” and can generally be identified by the use of words or phrases such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “plan,” “foresee,” “project,” “believe,” or “continue” or the negatives of these terms, variations on them and other similar expressions. These forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause actual results to be materially different from those expressed in or implied by such forward-looking statements. Forward-looking statements are based largely on the Company’s expectations and judgments and are subject to a number of risks and uncertainties, many of which are unforeseeable and beyond our control.
The factors that could cause actual results to materially differ include, among others: the impact of increased business complexity as a result of the Company’s transformation to a marketing experience company, including adapting marketing offerings and business processes as required by new markets; the impact of decreasing demand for printing services and significant overcapacity in a highly competitive environment creating downward pricing pressures and potential under-utilization of assets; the impact of changes in postal rates, service levels or regulations; the impact of rapid changes in technology, including artificial intelligence, and the risk the Company is unable to adapt its marketing offerings to compete in this technology-driven environment; the impact of increases in its operating costs, including the cost and availability of raw materials (such as paper, ink components and other materials), inventory, parts for equipment, labor, fuel and other energy costs and freight rates, and the risk the Company is unable to pass along such increases to clients; the impact macroeconomic conditions, including elevated interest rates, postal rate increases, tariffs, trade restrictions, cost pressures and the price and availability of paper, have had, and may continue to have, on the Company’s business, financial condition, cash flows and results of operations (including future uncertain impacts); the risk the Company is unable to reduce costs and improve operating efficiency rapidly enough to meet market conditions; the impact of a data-breach of sensitive information, ransomware attack or other cyber incident on the Company; the fragility and decline in overall distribution channels; the failure to attract and retain qualified talent across the enterprise; the impact of digital media and similar technological changes, including digital substitution by consumers; the failure of clients to perform under contracts or to renew contracts with clients on favorable terms or at all; the failure to successfully identify, manage, complete and integrate acquisitions, investment opportunities or other significant transactions, as well as the successful identification and execution of strategic divestitures; the impact negative publicity could have on our business and brand reputation; the impact of risks associated with the operations outside of the United States (“U.S.”), including trade restrictions, currency fluctuations, the global economy, costs incurred or reputational damage suffered due to improper conduct of its employees, contractors or agents, and geopolitical events like war and terrorism; the impact of significant capital expenditures and investments that may be needed to sustain and grow the Company’s platforms, processes, systems, client and product technology, marketing and talent, to remain technologically and economically competitive, and to adapt to future changes, such as artificial intelligence; the impact of the various restrictive covenants in the Company’s debt facilities on the Company’s ability to operate its business, as well as the uncertain negative impacts macroeconomic conditions may have on the Company’s ability to continue to be in compliance with these restrictive covenants; the impact of an other than temporary decline in operating results and enterprise value that could lead to non-cash impairment charges due to the impairment of property, plant and equipment, goodwill and other intangible assets; the impact of regulatory matters and legislative developments or changes in laws, including changes in cybersecurity, consumer protection, safety, privacy and environmental laws; and the impact on the holders of Quad’s class A common stock of a limited active market for such shares and the inability to independently elect directors or control decisions due to the voting power of the class B common stock; and the other risk factors identified in the Company’s most recent Annual Report on Form 10-K, which may be amended or supplemented by subsequent Quarterly Reports on Form 10-Q or other reports filed with the Securities and Exchange Commission.
Except to the extent required by the federal securities laws, the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Non-GAAP Financial Measures
This press release contains financial measures not prepared in accordance with generally accepted accounting principles (referred to as non-GAAP), specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. Adjusted EBITDA is defined as net earnings (loss) excluding interest expense, income tax expense, depreciation and amortization (EBITDA), restructuring, impairment and transaction-related charges, net and the settlement charge from defined benefit pension plan annuitization. EBITDA Margin and Adjusted EBITDA Margin are defined as EBITDA or Adjusted EBITDA divided by Net Sales. Free Cash Flow is defined as net cash provided by (used in) operating activities less purchases of property, plant and equipment. Net Debt Leverage Ratio is defined as total debt and finance lease obligations less cash and cash equivalents (Net Debt) divided by the trailing twelve months Adjusted EBITDA. Adjusted Diluted Earnings Per Share is defined as earnings (loss) before income taxes excluding restructuring, impairment and transaction-related charges, net, and adjusted for income tax expense at a normalized tax rate, divided by diluted weighted average number of common shares outstanding.
The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies. Reconciliations to the GAAP equivalent of these non-GAAP measures are contained in tabular form on the attached unaudited financial statements.
Investor Relations Contact
Julie Fraundorf
Executive Director, Corporate Development & Investor Relations
IR@quad.com
Media Contact
Claire Ho
Director, Corporate Communications
414-566-2955
cho@quad.com
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(UNAUDITED)
Three Months Ended June 30,
2026
2025
Net sales
$ 577.5
$ 571.9
Cost of sales
456.1
448.1
Selling, general and administrative expenses
79.6
80.2
Depreciation and amortization
17.2
20.7
Restructuring, impairment and transaction-related charges, net
9.7
9.2
Total operating expenses
562.6
558.2
Operating income
14.9
13.7
Interest expense
8.9
13.2
Net pension (income) expense
(0.2)
0.3
Earnings before income taxes
6.2
0.2
Income tax expense
2.5
0.3
Net earnings (loss)
$ 3.7
$ (0.1)
Earnings (loss) per share
Basic
$ 0.08
$ 0.00
Diluted
$ 0.07
$ 0.00
Weighted average number of common shares outstanding
Basic
48.0
47.6
Diluted
50.0
47.6
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(UNAUDITED)
Six Months Ended June 30,
2026
2025
Net sales
$ 1,158.5
$ 1,201.3
Cost of sales
914.2
948.1
Selling, general and administrative expenses
158.0
163.7
Depreciation and amortization
35.6
40.4
Restructuring, impairment and transaction-related charges, net
18.1
15.8
Total operating expenses
1,125.9
1,168.0
Operating income
32.6
33.3
Interest expense
18.9
25.6
Net pension (income) expense
(0.4)
0.7
Earnings before income taxes
14.1
7.0
Income tax expense
4.2
1.3
Net earnings
$ 9.9
$ 5.7
Earnings per share
Basic
$ 0.21
$ 0.12
Diluted
$ 0.20
$ 0.11
Weighted average number of common shares outstanding
Basic
47.9
47.8
Diluted
49.8
50.1
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of June 30, 2026 and December 31, 2025
(in millions)
(UNAUDITED)
June 30, 2026
December 31,
2025
ASSETS
Cash and cash equivalents
$ 7.4
$ 63.3
Receivables, less allowances for credit losses
298.2
294.8
Inventories
156.1
143.5
Prepaid expenses and other current assets
39.8
36.8
Total current assets
501.5
538.4
Property, plant and equipment—net
454.0
461.6
Operating lease right-of-use assets—net
63.6
68.0
Goodwill
107.6
107.6
Other intangible assets—net
11.7
13.7
Other long-term assets
59.4
63.6
Total assets
$ 1,197.8
$ 1,252.9
LIABILITIES AND SHAREHOLDERS’ EQUITY
Accounts payable
$ 315.3
$ 342.0
Other current liabilities
184.2
211.7
Short-term debt and current portion of long-term debt
50.2
47.0
Current portion of finance lease obligations
0.6
0.5
Current portion of operating lease obligations
23.4
23.0
Total current liabilities
573.7
624.2
Long-term debt
349.8
322.9
Finance lease obligations
0.9
0.8
Operating lease obligations
44.3
49.8
Deferred income taxes
4.1
4.0
Other long-term liabilities
100.3
122.6
Total liabilities
1,073.1
1,124.3
Shareholders’ equity
Preferred stock
—
—
Common stock
1.4
1.4
Additional paid-in capital
842.7
846.2
Treasury stock, at cost
(35.6)
(36.3)
Accumulated deficit
(623.4)
(623.2)
Accumulated other comprehensive loss
(60.4)
(59.5)
Total shareholders’ equity
124.7
128.6
Total liabilities and shareholders’ equity
$ 1,197.8
$ 1,252.9
QUAD/GRAPHICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Six Months Ended June 30, 2026 and 2025
(in millions)
(UNAUDITED)
Six Months Ended June 30,
2026
2025
OPERATING ACTIVITIES
Net earnings
$ 9.9
$ 5.7
Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization
35.6
40.4
Impairment charges
1.0
4.5
Amortization of debt issuance costs and original issue discount
0.8
0.8
Stock-based compensation
4.2
3.8
Loss on the sale of a business
—
0.5
Loss (gain) on the sale or disposal of property, plant and equipment, net
0.1
(4.5)
Deferred income taxes
(0.1)
0.6
Changes in operating assets and liabilities – net of acquisitions and divestitures
(92.4)
(93.4)
Net cash used in operating activities
(40.9)
(41.6)
INVESTING ACTIVITIES
Purchases of property, plant and equipment
(25.3)
(24.3)
Cost investment in unconsolidated entities
—
(0.2)
Proceeds from the sale of property, plant and equipment
0.2
5.3
Acquisition of a business
(1.9)
(16.3)
Other investing activities
0.2
(2.7)
Net cash used in investing activities
(26.8)
(38.2)
FINANCING ACTIVITIES
Payments of current and long-term debt
(18.3)
(13.0)
Payments of finance lease obligations
(0.3)
(0.7)
Borrowings on revolving credit facilities
618.9
678.4
Payments on revolving credit facilities
(571.4)
(590.7)
Purchases of treasury stock
(3.2)
(7.6)
Equity awards redeemed to pay employees’ tax obligations
(3.8)
(3.6)
Payment of cash dividends
(10.2)
(7.4)
Net cash provided by financing activities
11.7
55.4
Effect of exchange rates on cash and cash equivalents
0.1
0.2
Net decrease in cash and cash equivalents, including cash classified as held for sale
(55.9)
(24.2)
Less: net decrease in cash classified as held for sale
—
(1.7)
Net decrease in cash and cash equivalents
(55.9)
(22.5)
Cash and cash equivalents at beginning of period
63.3
29.2
Cash and cash equivalents at end of period
$ 7.4
$ 6.7
QUAD/GRAPHICS, INC.
SEGMENT FINANCIAL INFORMATION
For the Three and Six Months Ended June 30, 2026 and 2025
(in millions)
(UNAUDITED)
Net Sales
Operating
Income (Loss)
Restructuring,
Impairment and
Transaction-Related
Charges, Net (1)
Three months ended June 30, 2026
United States Print and Related Services
$ 526.0
$ 26.7
$ 5.8
International
51.5
1.9
3.3
Total operating segments
577.5
28.6
9.1
Corporate
—
(13.7)
0.6
Total
$ 577.5
$ 14.9
$ 9.7
Three months ended June 30, 2025
United States Print and Related Services
$ 524.5
$ 22.8
$ 8.6
International
47.4
3.9
0.2
Total operating segments
571.9
26.7
8.8
Corporate
—
(13.0)
0.4
Total
$ 571.9
$ 13.7
$ 9.2
Six months ended June 30, 2026
United States Print and Related Services
$ 1,057.0
$ 52.8
$ 13.5
International
101.5
5.6
3.6
Total operating segments
1,158.5
58.4
17.1
Corporate
—
(25.8)
1.0
Total
$ 1,158.5
$ 32.6
$ 18.1
Six months ended June 30, 2025
United States Print and Related Services
$ 1,078.3
$ 54.5
$ 12.1
International
123.0
4.5
3.0
Total operating segments
1,201.3
59.0
15.1
Corporate
—
(25.7)
0.7
Total
$ 1,201.3
$ 33.3
$ 15.8
(1)
Restructuring, impairment and transaction-related charges, net are included within operating income (loss).
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Three Months Ended June 30, 2026 and 2025
(in millions, except margin data)
(UNAUDITED)
Three Months Ended June 30,
2026
2025
Net earnings (loss)
$ 3.7
$ (0.1)
Interest expense
8.9
13.2
Income tax expense
2.5
0.3
Depreciation and amortization
17.2
20.7
EBITDA (non-GAAP)
$ 32.3
$ 34.1
EBITDA Margin (non-GAAP)
5.6 %
6.0 %
Restructuring, impairment and transaction-related charges, net (1)
9.7
9.2
Adjusted EBITDA (non-GAAP)
$ 42.0
$ 43.3
Adjusted EBITDA Margin (non-GAAP)
7.3 %
7.6 %
(1)
Operating results for the three months ended June 30, 2026 and 2025, were affected by the following restructuring, impairment and transaction-related charges, net:
Three Months Ended June 30,
2026
2025
Employee termination charges (a)
$ 6.7
$ 5.8
Impairment charges (b)
0.8
4.2
Transaction-related charges (c)
0.4
0.4
Integration costs (d)
0.3
0.2
Other restructuring charges (income) (e)
1.5
(1.4)
Restructuring, impairment and transaction-related charges, net
$ 9.7
$ 9.2
(a)
Employee termination charges were related to workforce reductions through facility consolidations and separation programs.
(b)
Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction activities, as well as software licensing and related implementation costs from a terminated project and charges for operating lease right-of-use assets during the three months ended June 30, 2025.
(c)
Transaction-related charges consisted of professional service fees related to business acquisition and divestiture activities.
(d)
Integration costs were primarily costs related to the integration of acquired companies.
(e)
Other restructuring charges (income) primarily include costs to maintain and exit closed facilities, as well as lease exit charges, and are presented net of a $4.3 million gain on the sale of the West Sacramento, California facility during the three months ended June 30, 2025.
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
EBITDA, EBITDA MARGIN, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
For the Six Months Ended June 30, 2026 and 2025
(in millions, except margin data)
(UNAUDITED)
Six Months Ended June 30,
2026
2025
Net earnings
$ 9.9
$ 5.7
Interest expense
18.9
25.6
Income tax expense
4.2
1.3
Depreciation and amortization
35.6
40.4
EBITDA (non-GAAP)
$ 68.6
$ 73.0
EBITDA Margin (non-GAAP)
5.9 %
6.1 %
Restructuring, impairment and transaction-related charges, net (1)
18.1
15.8
Adjusted EBITDA (non-GAAP)
$ 86.7
$ 88.8
Adjusted EBITDA Margin (non-GAAP)
7.5 %
7.4 %
(1)
Operating results for the six months ended June 30, 2026 and 2025, were affected by the following restructuring, impairment and transaction-related charges, net:
Six Months Ended June 30,
2026
2025
Employee termination charges (a)
$ 11.1
$ 6.5
Impairment charges (b)
1.0
4.5
Transaction-related charges (c)
0.6
3.0
Integration costs (d)
0.7
0.2
Other restructuring charges, net (e)
4.7
1.6
Restructuring, impairment and transaction-related charges, net
$ 18.1
$ 15.8
(a)
Employee termination charges were related to workforce reductions through facility consolidations and separation programs.
(b)
Impairment charges were for certain property, plant and equipment no longer being utilized in production as a result of facility consolidations and other capacity reduction activities, as well as software licensing and related implementation costs from a terminated project and charges for operating lease right-of-use assets during the six months ended June 30, 2025.
(c)
Transaction-related charges consisted of professional service fees related to business acquisition and divestiture activities, including charges related to the sale of the European operations in 2025.
(d)
Integration costs were primarily costs related to the integration of acquisitions.
(e)
Other restructuring charges, net primarily include costs to maintain and exit closed facilities, as well as lease exit charges, and are presented net of a $4.3 million gain on the sale of the West Sacramento, California facility during the six months ended June 30, 2025.
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
FREE CASH FLOW
For the Six Months Ended June 30, 2026 and 2025
(in millions)
(UNAUDITED)
Six Months Ended June 30,
2026
2025
Net cash used in operating activities
$ (40.9)
$ (41.6)
Less: purchases of property, plant and equipment
25.3
24.3
Free Cash Flow (non-GAAP)
$ (66.2)
$ (65.9)
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
NET DEBT AND NET DEBT LEVERAGE RATIO
As of June 30, 2026 and December 31, 2025
(in millions, except ratio)
(UNAUDITED)
June 30, 2026
December 31,
2025(2)
Total debt and finance lease obligations on the condensed consolidated balance sheets
$ 401.5
$ 371.2
Less: Cash and cash equivalents
7.4
63.3
Net Debt (non-GAAP)
$ 394.1
$ 307.9
Divided by: trailing twelve months Adjusted EBITDA (non-GAAP) (1)
$ 194.1
$ 196.2
Net Debt Leverage Ratio (non-GAAP)
2.03 x
1.57 x
(1)
The calculation of Adjusted EBITDA for the trailing twelve months ended June 30, 2026, and December 31, 2025, was as follows:
Add
Subtract
Trailing Twelve
Months Ended
Year Ended
Six Months Ended
December 31,
2025(2)
June 30, 2026
June 30, 2025
June 30, 2026
Net earnings
$ 27.0
$ 9.9
$ 5.7
$ 31.2
Interest expense
50.5
18.9
25.6
43.8
Income tax expense
5.5
4.2
1.3
8.4
Depreciation and amortization
78.6
35.6
40.4
73.8
EBITDA (non-GAAP)
$ 161.6
$ 68.6
$ 73.0
$ 157.2
Restructuring, impairment and transaction-related charges, net
21.8
18.1
15.8
24.1
Settlement charge from defined benefit pension plan annuitization
12.8
—
—
12.8
Adjusted EBITDA (non-GAAP)
$ 196.2
$ 86.7
$ 88.8
$ 194.1
(2)
Financial information for the year ended December 31, 2025, is included as reported in the Company’s 2025 Annual Report on Form 10-K filed with the SEC on February 18, 2026.
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Three Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(UNAUDITED)
Three Months Ended June 30,
2026
2025
Earnings before income taxes
$ 6.2
$ 0.2
Restructuring, impairment and transaction-related charges, net
9.7
9.2
Adjusted net earnings, before income taxes (non-GAAP)
15.9
9.4
Income tax expense at 25% normalized tax rate
4.0
2.4
Adjusted net earnings (non-GAAP)
$ 11.9
$ 7.0
Basic weighted average number of common shares outstanding
48.0
47.6
Plus: effect of dilutive equity incentive instruments (1)
2.0
1.9
Diluted weighted average number of common shares outstanding (1)
50.0
49.5
Adjusted diluted earnings per share (non-GAAP) (2)
$ 0.24
$ 0.14
Diluted earnings (loss) per share (GAAP)
$ 0.07
$ 0.00
Restructuring, impairment and transaction-related charges, net per share
0.20
0.19
Income tax expense from condensed consolidated statement of operations per share
0.05
0.01
Income tax expense at 25% normalized tax rate per share
(0.08)
(0.05)
Effect of dilutive equity incentive instruments
—
(0.01)
Adjusted diluted earnings per share (non-GAAP) (2)
$ 0.24
$ 0.14
(1)
Effect of dilutive equity incentive instruments and diluted weighted average number of common shares outstanding for the three months ended June 30, 2025 are non-GAAP.
(2)
Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net and (ii) discrete income tax items.
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
QUAD/GRAPHICS, INC.
RECONCILIATION OF GAAP TO NON-GAAP MEASURES
ADJUSTED DILUTED EARNINGS PER SHARE
For the Six Months Ended June 30, 2026 and 2025
(in millions, except per share data)
(UNAUDITED)
Six Months Ended June 30,
2026
2025
Earnings before income taxes
$ 14.1
$ 7.0
Restructuring, impairment and transaction-related charges, net
18.1
15.8
Adjusted net earnings, before income taxes (non-GAAP)
32.2
22.8
Income tax expense at 25% normalized tax rate
8.1
5.7
Adjusted net earnings (non-GAAP)
$ 24.1
$ 17.1
Basic weighted average number of common shares outstanding
47.9
47.8
Plus: effect of dilutive equity incentive instruments
1.9
2.3
Diluted weighted average number of common shares outstanding
49.8
50.1
Adjusted diluted earnings per share (non-GAAP) (1)
$ 0.48
$ 0.34
Diluted earnings per share (GAAP)
$ 0.20
$ 0.11
Restructuring, impairment and transaction-related charges, net per share
0.36
0.32
Income tax expense from condensed consolidated statement of operations per share
0.08
0.02
Income tax expense at 25% normalized tax rate per share
(0.16)
(0.11)
Adjusted diluted earnings per share (non-GAAP) (1)
$ 0.48
$ 0.34
(1)
Adjusted diluted earnings per share excludes the following: (i) restructuring, impairment and transaction-related charges, net and (ii) discrete income tax items.
In addition to financial measures prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), this earnings announcement also contains non-GAAP financial measures, specifically EBITDA, EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Net Debt, Net Debt Leverage Ratio and Adjusted Diluted Earnings Per Share. The Company believes that these non-GAAP measures, when presented in conjunction with comparable GAAP measures, provide additional information for evaluating Quad’s performance and are important measures by which Quad’s management assesses the profitability and liquidity of its business. These non-GAAP measures should be considered in addition to, not as a substitute for or superior to, net earnings (loss) as a measure of operating performance or to cash flows provided by (used in) operating activities as a measure of liquidity. These non-GAAP measures may be different than non-GAAP financial measures used by other companies.
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SOURCE Quad
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Technology
Warhound Launches with $200 Million to Rebuild America’s Military Working Dog Supply, Using Advanced Genetics and Defense Technology
Published
44 minutes agoon
October 23, 2026By
Company will produce genetically enhanced working dogs that leverage cybernetics technology to improve health and performance while ending reliance on foreign suppliers
DALLAS and COSTA MESA, Calif., Oct. 23, 2026 /PRNewswire/ — Warhound, a new defense technology company conceived by American technology entrepreneurs Ben Lamm and Palmer Luckey emerged from stealth with a $200 million seed round. Warhound will rebuild America’s domestic supply of elite working dogs for U.S. military forces, law-enforcement, emergency first response teams—a critical national security resource that the U.S. has long relied on foreign countries to provide. Led by CEO David Spirk, the company will reduce dependence on a shrinking European supply chain and strengthen America’s ability to protect its own people, infrastructure, and national security interests.
Warhound is modernizing America’s working-dog program by delivering a vertically integrated program, combining Colossal’s enhanced genetics platform and secure biobanking capabilities of America’s top-performing dog arsenal, controlled delivery through cloning with best-in-class training and animal care. Through a partnership, all dogs will be equipped by Anduril’s advanced cybernetic Augments, software, and battlefield situational awareness. The company is backed by In-Q-Tel, Sequoia Capital, ARK Invest, Franklin Templeton, 8VC, USIT, Bob Nelsen, Breyer Capital, CAZ Investments, Neogenesis, Builders VC, and Lux Capital among others. Based in Texas, Warhound will operate under the guidance of the American Humane Society which will certify its training programs and support the reunification of retired military working dogs with their former handlers and adoption protocols.
“Palmer, Ben and the Warhound team are exceptional. Sequoia is proud to back them,” said Shaun Maguire, Partner at Sequoia Capital.
Warhound is bringing together Colossal’s breakthroughs in genetics, cloning, and animal biology with Anduril’s advanced defense technology to fundamentally change how America produces, trains, and protects its military working dogs. Colossal’s science will help produce healthier dogs with characteristics suited to demanding missions, while Anduril’s technology will give dogs and their handlers greater awareness and protection in the field.
“Every day, we ask dogs to put their lives on the line to protect ours. They detect explosives, protect our troops, and run toward dangers that most people are trained to run away from. Yet we’re still relying on outdated approaches to breeding and training these extraordinary animals, with too many never making it through the process. We have an opportunity to fundamentally change that. Colossal has spent years pioneering breakthroughs in genetics, cloning, and animal biology, and now we’re applying that science to give these dogs the best possible chance at a long, healthy life and a successful mission. If we’re going to ask man’s best friend to protect America, we owe it to them to use every tool at our disposal to protect them, too,” said Ben Lamm.
Since the Army established the K-9 Corps in 1942, military working dogs have served alongside America’s armed forces for more than 84 years—detecting threats, protecting service members and supporting missions worldwide. That program has evolved in The United States Department of War’s (DOW) Military Working Dog Program, which currently includes 2,200+ working dog teams that are operationally critical for detection and patrol work, and a critical part of the defense infrastructure of the country. More than 80% of U.S. military working dogs are currently acquired from Europe, creating a critical interdependency on foreign nations for an asset the Pentagon itself calls irreplaceable. That dependency is compounding: after a rigorous, roughly three-year acquisition-and-training pipeline, less than half of the dogs procured are ultimately deemed fit for service, meaning the U.S. must source and train roughly 200 dogs today to field 100 working animals tomorrow.
“Man’s best friend deserves man’s best tech,” said Palmer Luckey.
David Spirk has been named the CEO of Warhound. As a veteran of the United States Marine Corps, he worked as an intelligence specialist with multiple deployments and ultimately served as the Deputy Associate Director of National Intelligence for Afghanistan and Pakistan at the Office of the Director of National Intelligence representing the Intelligence Community at the White House and on Capital Hill. He has an extensive background in the U.S. military, intelligence community, and federal data governance, specifically focused on scaling algorithmic warfare and creating data driven advantages. More recently, he was a Senior Counselor at Palantir Technologies where he focused on expanding the company’s software footprints across the U.S. government, allied international partners, and commercial sectors. Previously, he was appointed the First Chief Data Officer (CDO) for the Department of War, where he worked on accelerating the military’s data-driven capabilities and was the first CDO for the U.S. Special Operations Command (USSOCOM).
“Our long-term goal is simple: healthier dogs, better-prepared teams, and more service members and first responders coming home safely. Leading Warhound, and strengthening America’s working-dog capabilities, is an opportunity to apply my experience to a mission I care deeply about: protecting people and helping the animals who support them,” said David Spirk. “My focus is building a team that can turn scientific advances into capabilities that work in the field.”
Building Healthier, More Capable Working Dogs to Protect Both Dogs and People
The concept of Warhound was conceived years ago by Palmer and Ben after a discussion at Peter Diamandis’ Moonshots Summit. Military working-dog programs face a costly challenge: more than half of candidate dogs fail to complete training, while reliance on overseas breeders leaves the United States dependent on a constrained foreign supply chain. Warhound was created to improve that system—producing fewer dogs with a greater likelihood of remaining healthy, completing training, and succeeding in their missions.
Warhound dog-and-handler teams will also connect Anduril’s integrated capabilities—including eye and ear protection and Eagle Eye technology—will help safeguard working dogs, their handlers and the wider unit while supporting safer, more effective missions.
“For millennia, people have selectively bred dogs to be companions and helpmates. Modern biotechnology gives us a more precise way to shape some of their traits, thus improving both the work dogs do and their own health and well-being,” said Alta Charo, Warren P. Knowles Professor Emerita of Law and Bioethics at the University of Wisconsin–Madison. “The Warhound project offers the possibility of improving working dogs’ health and welfare while supporting the lifesaving work they do. But we still must look carefully at who benefits, what risks the animals bear, and how concern for animal welfare translates into practice through careful evaluation of the evidence, meaningful oversight, and responsibility for the dogs throughout their lives, including retirement. The American Humane Society brings valuable experience through its military working dog reunification efforts and Pups4Patriots program. That experience provides a foundation, but public trust has to be earned through the care we provide and the commitments we keep.”
Animal welfare is central to the program. By improving health, durability, and training success, Warhound will significantly reduce washouts, limit the number of dogs unnecessarily entering intensive training and enable safer, more effective missions. Technologies and therapeutics developed through the program will also be made available to all dogs and ultimately improve the health of all dogs, not only those serving alongside America’s service men and women. Together, these capabilities will establish a secure domestic supply of military working dogs while giving American service members healthier, more capable canine partners.
“Working dogs are extraordinary animals whose courage and loyalty save lives,” said Dr. Robin Ganzert, President and CEO of American Humane Society. “We owe these dogs a commitment to their well-being that matches their service to us. What excites me about Warhound is the opportunity to make health, welfare, and exceptional care fundamental to a working-dog program from the very beginning. Success means helping these dogs thrive throughout their lives—from training and active service to the loving, dignified retirement every canine hero deserves.”
Warhound is built to take today’s level of performance and make it better: using cutting edge engineering and technology, on American soil, from American companies, without the wait times, price volatility, or geopolitical exposure of a foreign supply chain.
About Warhound
Warhound is a Texas-based defense technology company building a secure domestic supply of healthier, more capable working dogs for the U.S. military, law enforcement and emergency responders. Conceived by Palmer Luckey and Ben Lamm, Warhound combines biotechnology licensed from Colossal Biosciences with advanced training and Anduril’s cybernetic augments and software. The company aims to reduce reliance on foreign suppliers, improve canine health and performance, and enhance safety for dogs and their handlers. Animal welfare is central to Warhound’s mission, with a commitment to lifelong care from birth through training, service and retirement. To follow along, please visit: warhound.com.
About Anduril
Anduril Industries is a defense technology company that builds autonomous systems and a common operating layer to give the United States and its allies a persistent advantage in sensing, decision-making, and force projection.
About the American Humane Society
The American Humane Society is the country’s first national humane organization and a global leader in animal welfare. Founded in 1877, American Humane has been at the forefront of protecting animals, rescuing them from cruelty, abuse, and natural disasters, and setting the gold standard in science-based welfare certifications. The organization oversees prominent programs including the iconic “No Animals Were Harmed®” film and television certification, the American Humane Certified™ farm and zoo standards, military working dog reunifications, and the Pups4Patriots™ service dog program. Learn more at americanhumane.org.
About Colossal Biosciences
Colossal was founded by emerging technology and software entrepreneur Ben Lamm and world-renowned geneticist and serial biotech entrepreneur George Church, Ph.D., and is the first to apply CRISPR technology for the purposes of species de-extinction. Colossal creates innovative technologies for species restoration, critically endangered species protection and the repopulation of critical ecosystems that support the continuation of life on Earth. Colossal is accepting humanity’s duty to restore Earth to a healthier state, while also solving for the future economies and biological necessities of the human condition through cutting-edge science and technologies. To follow along, please visit: www.colossal.com.
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SOURCE Warhound
Technology
Best Version Media Names Chris Laurence Next CEO; Kevin O’Brien Transitions to CRO
Published
44 minutes agoon
October 23, 2026By
Leadership investment strengthens companywide execution and sharpens focus on Publisher success and revenue growth
BROOKFIELD, Wis., Oct. 23, 2026 /PRNewswire/ — Best Version Media (BVM), a local media and marketing company serving more than 1,300 communities across the United States and Canada, today announced that Chris Laurence has joined the company as Chief Executive Officer. Kevin O’Brien, who previously served as CEO, will transition to Chief Revenue Officer, focusing on leading BVM’s sales field and accelerating revenue growth.
The appointments reflect BVM’s investment in leadership to support its next stage of growth. By establishing dedicated executive leadership for the broader organization and the sales field, BVM is strengthening its ability to execute across the business while supporting its independent Publishers and the local businesses they serve.
“Our growth has brought us to a point where leading the overall company and leading our sales field each deserve a dedicated focus,” said O’Brien. “This transition allows me to concentrate on working with our sales leaders and Publishers, strengthening the field, and helping more local businesses connect with their communities. I’m excited to partner with Chris as we build on BVM’s momentum.”
Laurence brings experience as CEO, CFO, and COO of public, private, and private equity-backed companies, where he has led growth, operational improvement, and technology transformation. Before moving into operating roles, he was a general partner at Brentwood Associates, a Los Angeles-based private equity firm.
“BVM has built a powerful combination of community storytelling, local relationships, and marketing solutions for small businesses,” said Laurence. “I look forward to working with Kevin and the entire team to build on that foundation, strengthen how we operate, and support the success of our Publishers and clients.”
As CEO, Laurence will lead BVM’s overall strategy and operations, working with the team to scale operations and support the success of our Publishers and the local businesses they serve. As CRO, O’Brien will focus on sales leadership, Publisher growth, and revenue generation. Together, they will help advance BVM’s print and digital offerings and position the company for continued growth.
About Best Version Media
Founded in 2007, Best Version Media (BVM) connects local businesses with customers through community magazines, targeted digital advertising, and online presence management tools. Serving more than 1,300 communities across the United States and Canada, BVM’s network of independent Publishers builds relationships with local businesses and brings community stories to life. BVM is a portfolio company of H.I.G. Capital. To learn more, visit www.bestversionmedia.com.
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SOURCE Best Version Media, LLC
Technology
Dow and Small Caps Climb Weekly While Nasdaq Slips on Megacap Earnings Charges
Published
44 minutes agoon
October 23, 2026By
VANCOUVER, BC, Oct. 23, 2026 /PRNewswire/ — Stock Preachers News Commentary – Stocks closed a volatile earnings week with a split verdict: the Dow gained 0.64% and the Russell 2000 jumped 2.07%, while the Nasdaq Composite fell 0.45% and the S&P 500 slipped 0.22%. The VIX rose to 19.40 and the VXN climbed to 28.13 as traders weighed a wave of third-quarter results. Gold dropped 3.47% and silver fell 4.90% on the week, while WTI crude rose 3.74% on Thursday alone. The 10-year Treasury yield eased 11 basis points to 4.99%. Active Companies from around the markets with current developments this week include: Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA).
Large-cap benchmarks diverged sharply this week. The Dow closed at 52,337.54, up 0.64% for the week despite a 1% drop on Friday, while the S&P 500 ended at 7,642.22, down 0.22% weekly after touching a week high of 7,770.40. The Nasdaq Composite settled at 26,022.45, down 0.45% on the week, dragged by a rough stretch for megacap tech following a batch of earnings reports.
The Russell 2000 was the standout, closing at 2,777.63 for a 2.07% weekly gain, outperforming its large-cap peers as investors rotated toward smaller names. RSI readings show the Nasdaq at 38.9 and the S&P 500 at 43.5, both in cooler territory, while the Dow’s RSI of 54.1 reflects its relative strength this week.
Volatility ticked higher into the weekend, with the VIX up 0.96 points for the week to 19.40 and the VXN up a full point to 28.13. In commodities, natural gas spiked 8.66% on Thursday alone even as it remained down 0.65% for the week, while copper rose 2.44% daily. The dollar firmed slightly against the euro, with EUR/USD down 0.24% on the week to 1.12.
The full report also breaks down key support and resistance levels for each index, additional earnings movers, and sentiment heading into next week’s sessions.
CONTINUED… Read this and more news for Meta Platforms, Inc. (Nasdaq: META), Texas Instruments Incorporated (Nasdaq: TXN), RTX (NYSE: RTX), IBM (NYSE: IBM), and First Citizens BancShares, Inc. (Nasdaq: FCNCA) at: https://stockpreachers.com/articles/small-caps-lead-big-tech-lags-as-earnings-season-shakes-the-tape/
In other industry developments and happenings in the market this week include:
Meta Platforms, Inc. (Nasdaq: META) Meta reported third-quarter revenue of $64.60 billion, up 26% year over year, but net income of $9.86 billion reflected a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health and social media litigation. Diluted EPS was $3.83, up 265% year over year; excluding the litigation charge, EPS would have been $7.40.
Operating margin fell to 20% from 40% a year earlier, while costs and expenses rose 68% to $51.61 billion. Capital expenditures, including finance lease payments, totaled $34.91 billion, and free cash flow was negative $2.12 billion for the quarter.
“We hit major milestones this quarter toward delivering personal superintelligence for everyone – including launching Muse and Muse Wonder, our first frontier model,” said Mark Zuckerberg, Meta founder and CEO. “Our investments are paying off, the core business is strong, and we’re seeing velocity across the board.” The company guided fourth-quarter revenue to a range of $73-76 billion and raised full-year 2026 total expense guidance to $175-179 billion. Read the release.
Texas Instruments Incorporated (Nasdaq: TXN) Texas Instruments reported third-quarter revenue of $6.06 billion, up 28% from a year earlier, with net income of $2.43 billion and earnings per share of $2.62. Operating profit rose 73% to $2.87 billion, and revenue increased 11% sequentially.
“Revenue increased 11% sequentially and 28% from the same quarter a year ago with continued broad growth in industrial, automotive and data center,” said Haviv Ilan, TI’s chairman, president and CEO. Trailing 12-month cash flow from operations was $9.9 billion, with free cash flow of $8.4 billion.
The company returned $5.8 billion to shareholders over the trailing 12 months and guided fourth-quarter revenue to a range of $5.80 billion to $6.30 billion, with earnings per share expected between $2.45 and $2.79. Read the release.
RTX (NYSE: RTX) RTX reported third-quarter sales of $25.0 billion, up 11% versus the prior year and 12% organically, with adjusted EPS of $2.26, up 33% from a year earlier. GAAP EPS was $1.89. Operating cash flow was $2.9 billion and free cash flow was $2.1 billion, with results including $0.25 of IEEPA cost recovery per share.
The company’s backlog reached a record $340 billion, including $176 billion commercial and $164 billion defense, after over $81 billion of new awards including Tomahawk and AMRAAM multi-year production contracts.
“Our strong execution and operational focus in the third quarter enabled RTX to deliver double-digit organic sales growth across commercial aerospace and defense,” said RTX Chairman and CEO Chris Calio. The company raised its full-year adjusted EPS outlook to $7.65-$7.75 and adjusted sales guidance to $97.0-$97.5 billion. Read the release.
IBM (NYSE: IBM) IBM reported third-quarter revenue of $17.1 billion, up 5% as reported and 6% at constant currency, with Software revenue up 8% and Infrastructure revenue up 4%. GAAP diluted earnings per share were $2.31, up 26% year over year, while operating (non-GAAP) EPS was $2.95, up 11%.
The company generated $4.0 billion in net cash from operating activities in the quarter and $3.0 billion in free cash flow, up $0.7 billion year over year. Year to date, free cash flow reached $7.8 billion.
“Disciplined execution throughout the quarter drove accelerated revenue growth and strong free cash flow,” said Arvind Krishna, IBM chairman, president and chief executive officer. IBM now expects full-year free cash flow to increase by more than $1 billion year over year, while continuing to guide constant currency revenue growth of four to five percent. Read the release.
First Citizens BancShares, Inc. (Nasdaq: FCNCA) First Citizens BancShares reported third-quarter net income of $606 million, down from $672 million in the linked quarter. Net income available to common stockholders was $577 million, or $51.23 per common share, a $63 million decrease from the prior quarter’s $640 million.
Net interest income rose to $1.70 billion, up $43 million from the linked quarter, while net interest margin declined 3 basis points to 3.07%. The company completed its BMO Branch Acquisition on September 4, 2026, assuming approximately $4.9 billion in deposits and acquiring approximately $650 million in loans.
“We returned $600 million to our stockholders through share repurchases and further optimized our balance sheet by repaying another $8.0 billion of the Purchase Money Note,” said Chairman and CEO Frank B. Holding, Jr. The board approved a new repurchase plan authorizing up to $1.2 billion of Class A common shares through 2027. Read the release.
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