ACCO Brands reported QQ3 2025 revenue of $383.7 million, a year-over-year decline of 8.8% and a quarter-over-quarter drop of 2.8%. Gross profit reached $126.6 million with a gross margin of 32.99%, while operating income stood at $26.0 million, yielding a margin of 6.78%. Net income totaled $4.0 million and diluted EPS was $0.04 for the quarter. The company posted a negative net income progression on a YoY/QoQ basis, reflecting pressure from mix, input costs, and a higher effective tax rate, with net margin at 1.04% and tax rate shown as a high 72.8% in the period. EBITDA was $26.0 million (6.78% EBITDA margin). Liquidity remained solid with a current ratio of 1.68 and a modest debt posture (debt ratio 5.6%, debt/equity 0.19), supporting a positive cash-flow profile: operating cash flow per share $0.78 and free cash flow per share $0.72, alongside cash per share of $0.90. However, inventory days outstanding (~110 days) and receivables days (~69 days) imply working-capital intensity and a cash conversion cycle of about 118 days, underscoring near-term working-capital optimization needs. Management commentary is not included in the dataset, limiting quote-based interpretation, but the quantitative backdrop signals a cautious near-term outlook with potential for margin stabilization if price realization and cost controls take hold. The Quarter-to-Date performance sits within a multi-quarter trend of elevated working-capital requirements and modest top-line momentum, suggesting ACCO remains disciplined on balance-sheet management while pursuing product/channel mix improvements and price leverage to drive margin recovery. The investment implication is a cautious stance pending evidence of improved top-line trajectory and sustainable margin expansion, supported by robust cash generation and conservative leverage.
Key Performance Indicators
Revenue
Decreasing
383.70M
QoQ: -2.81% | YoY: -8.84%
Gross Profit
Decreasing
126.60M
32.99% margin
QoQ: -2.39% | YoY: -7.52%
Operating Income
Decreasing
26.00M
QoQ: -21.21% | YoY: -1.14%
Net Income
Decreasing
4.00M
QoQ: -86.30% | YoY: -56.99%
EPS
Decreasing
0.04
QoQ: -87.50% | YoY: -58.72%
Revenue Trend
Margin Analysis
Financial Highlights
- Revenue: $383.7 million in Q3 2025, YoY -8.84%, QoQ -2.81%. Four-quarter trend shows Q2 2025 at $394.8m, Q1 2025 at $317.4m, Q4 2024 at $448.1m, highlighting sequential volatility and a softer Q3 relative to year-ago levels.
- Gross Profit & Margin: Gross profit $126.6 million; gross margin 32.99% (0.3299). YoY gross profit decline -7.52%; QoQ decline -2.39%.
- Operating Income & Margin: Operating income $26.0 million; operating margin 6.78% (0.0678). YoY margin decline of about 1.14%; QoQ drop of 21.21% in operating income.
- Net Income & EPS: Net income $4.0 million; net margin 1.04%. YoY net income down -56.99%; QoQ down -86.30%. EPS $0.04; YoY EPS down -58.72%; QoQ down -87.50%.
- EBITDA & Efficiency: EBITDA $26.0 million; EBITDA margin 6.78%. Interest expense $12.5 million; pretax income $14.7 million; tax expense $10.7 million; effective tax rate 72.8% (notable for the quarter).
- Cash Flow & Liquidity: Operating cash flow per share $0.78; free cash flow per share $0.72; cash per share $0.90. Current ratio 1.68; quick ratio 0.96; cash ratio 0.19. Dividend yield 1.86%; payout ratio listed at 170% (likely reflecting timing of dividends vs. buybacks or data artifact).
- Leverage & Capital Structure: Debt ratio 0.055; debt/equity 0.193; long-term debt to capitalization 9.31%; total debt to capitalization 16.2%. Interest coverage around 2.08x.
- Asset/Liability Management & Turnover: DSO 69.5 days; DIO 110.4 days; CCC ~118.4 days; receivables turnover 1.30x; inventory turnover 0.82x. Price multiples: P/E ~22.87x; P/B 0.57x; P/S 0.95x; EV/EBITDA ~15.69x.
- Market Position Indicators: Dividend yield 1.86%; enterprise value multiple 15.69x; price-to-book ~0.57x, indicating a value-like posture relative to book.
- Net takeaway: The quarter shows top-line softness with mixed profitability signals, a high effective tax rate, and a cash-strong, low-leverage balance sheet. Cash generation supports flexibility for strategic investments and potential deleveraging if macro conditions improve.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
383.70M
-8.84%
-2.81%
Gross Profit
126.60M
-7.52%
-2.39%
Operating Income
26.00M
-1.14%
-21.21%
Net Income
4.00M
-56.99%
-86.30%
EPS
0.04
-58.72%
-87.50%
Key Financial Ratios
Gross Profit Margin
Fair
33.00%
Gross profit margin is moderate, room for improvement in cost management
Operating Profit Margin
Fair
6.78%
Operating margin is moderate, room for improvement in cost management
Net Profit Margin
Weak
1.04%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
0.18%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
0.62%
Return on equity suggests inefficient capital allocation
Current Ratio
Healthy
1.68
Current ratio shows adequate liquidity to meet short-term obligations
Debt to Equity
Conservative
0.19
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Fair Value
22.87x
P/E ratio in line with market averages
Price to Book
Undervalued
0.57x
Trading below book value, potential value opportunity or distressed
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