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SEC filingStrong Q3 with revenue accelerating 12.3% on customer volume growth and elections, driving profitability turnaround to $13.8M net income amid operating leverage and strategic capacity investments.
Revenue increased 12.3% to $886.2 million in Q3 FY2026 from $789.5 million, primarily driven by customer and order volume growth across the businesses, supplemented by volumes from regional elections that benefited the current-year period. This organic constant-currency momentum reflects effective demand capture in core markets.
Net income turned to a $13.8 million profit ($0.55 diluted EPS) from a prior-year loss of $8.2 million (-$0.33 EPS), supported by operating gains and favorable FX hedging. The company expects volatility to continue in future periods for derivative currency contracts, as hedge accounting is not applied for most positions. This underscores prudent risk management amid currency exposure.
Cash from operations was $173.2 million, down from $190.6 million on working capital timing, yielding $98.7 million free cash flow after $74.5 million capital expenditures. Capex focused on purchasing manufacturing and automation equipment plus expanding the North American production network, positioning for internal fulfillment capacity to complement third-party usage. Updated intercompany methodology cross-charges merchant businesses variable fulfillment costs (labor, materials, shipping), excluding prior overhead allocations, for clearer cost transparency.
Overall, Q3 reflects volume-fueled growth funding strategic self-reliance in production, with profitability inflection enabling reinvestment despite mix-driven cost pressures.