Quadient S.A. (NPACY) Q3 2025 Sales/Trading Call Transcript

Quadient S.A. ( NPACY ) Q3 2025 Sales/Trading Call December 2, 2025 12:00 PM EST

Good evening, and welcome to Quadient's Third Quarter 2025 Sales Presentation. I am Anne-Sophie Jugean, Quadient's Head of Investor Relations, and I am here today with Geoffrey Godet, CEO; and Laurent Du Passage, CFO. We will have a short presentation followed by a Q&A. You can submit your questions in writing through the web or ask questions live by dialing into the conference call. Thank you very much. And with that, over to you, Geoffrey.

Thank you, Anne-Sophie, and good evening, everybody. For the third quarter of 2025, Quadient delivered EUR 248 million in revenue. While this reflects a 3.5% organic decline year-on-year. Our growth engines continue to show a strong momentum. Digital accelerated with a 9.2% organic growth, driven by a sustained subscription growth across all regions. Our Lockers business accelerated in subscription growth and once again posted double-digit subscription revenue growth. Subscription growth for the Lockers is fueled by increasing customer adoption and the continued monetization of our U.S., Japanese and European locker networks. Meanwhile, Mail remained broadly in line with the previous quarter's trends, and we now expect the rebound in U.S. hardware sales in the fourth quarter firmly. Let me highlight a few key achievements in the third quarter. Quadient's digital SaaS-based intelligent automation platform is now #1 worldwide. Let me repeat this, #1 worldwide for customer communication management according to the latest IDC ranking with an 11% market share in 2024. We