Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock characte ...

A strong stock as of late has been Deluxe (DLX) . Shares have been marching higher, with the stock up 28% over the past month. The stock hit a new 52-week high of $28.24 in the previous session. Deluxe has gained 24.7% since the start of the year compared to the -3.3% gain for the Zacks Business Services sector and the 18.8% return for the Zacks Business - Office Products industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus ...

On a non-GAAP basis, Deluxe posted comparable adjusted EBITDA of $431.5 million, up $25 million, or 6.2%, from the prior year. Adjusted EBITDA margin expanded 90 basis points to 20.2%. Comparable adjusted EPS increased 12.6% to $3.67 from $3.26, which Zint attributed primarily to higher operating profits and slightly lower interest expense.Chief Financial Officer Chip Zint reported total revenue of $2.133 billion for the full year, up 0.5% versus 2024 on a reported basis and up 1.1% on a comparable adjusted ...

Deluxe (DLX) came out with quarterly earnings of $0.96 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.84 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +15.21%. A quarter ago, it was expected that this payments and data company would post earnings of $0.92 per share when it actually produced earnings of $1.09, delivering a surprise of +18.48%.Over the last four quarters, th ...

Financial Data and Key Metrics Changes - Total revenue for 2025 was $2.133 billion, a 0.5% increase compared to 2024, and a 1.1% increase on a comparable adjusted basis [18] - GAAP net income improved to $85.3 million, or $1.87 per share, up from $52.9 million, or $1.18 per share in 2024 [18] - Comparable adjusted EBITDA was $431.5 million, a 6.2% increase from the previous year, with adjusted EBITDA margins expanding by 90 basis points to 20.2% [18][19] - Comparable adjusted EPS grew by 12.6% to $3.67 from $3.26 in 2024 [19] Business Line Data and Key Metrics Changes - Merchant services revenue for 2025 was $398.6 million, growing by 3.8% compared to 2024, with adjusted EBITDA at $85.9 million, a 9.4% increase [19][20] - B2B payment segment revenue finished at $290.5 million, reflecting a 0.9% growth, with adjusted EBITDA at $64.4 million, a 12.8% increase [22][23] - Data-driven marketing business revenue reached $307.3 million, a 31.3% increase year-over-year, with adjusted EBITDA at $86.4 million, reflecting a 28.1% margin rate [25][26] - Print business revenue was $1.14 billion, a decline of 5.7% compared to the previous year, with adjusted EBITDA at $366.9 million, a 2.6% decline [28][29] Market Data and Key Metrics Changes - Payments and data now account for 47% of total revenue, up from 43% a year ago, with expectations to achieve revenue parity with print businesses later in 2026 [5][7] - The data segment expanded its revenue by over 30% year-over-year, indicating strong demand across market verticals [8] - The print segment continues to experience secular decline, with legacy check revenue declining by 1.8% [28] Company Strategy and Development Direction - The company is focused on shifting its revenue mix towards payments and data, aiming for ongoing profitable growth [6][7] - There is a strong emphasis on driving operational efficiencies and improving margins across all business segments [13][14] - The company aims to increase cash flow generation to lower net debt and improve leverage ratios, with a target of achieving a leverage ratio of 3 times or lower [15][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting traditional consumer behavior patterns stabilizing [46] - The company anticipates continued growth in the data segment, with expectations for double-digit growth in the first half of 2026 [49] - Management highlighted the importance of executing their strategic priorities to achieve a strong trajectory heading into 2026 [39] Other Important Information - The company generated $175 million of free cash flow in 2025, achieving its 2026 goal a year early [5] - The board approved a regular quarterly dividend of $0.30 per share, payable on February 23, 2026 [34] Q&A Session Summary Question: How is Deluxe positioned to respond to trends in AI and agentic commerce? - Management stated that Deluxe is well-positioned, having applied AI technology across multiple business areas, leading to improved performance and significant revenue growth in the data-driven marketing business [42][44] Question: What are the primary objectives for the business in 2026? - The main objectives include shifting the revenue mix towards payments and data, driving operational efficiency, and generating cash flow to lower debt [55][56] Question: What does the pipeline look like for 2026 in terms of distribution growth? - Management indicated a robust pipeline for the ISV distribution channel, with ongoing investments in improving API suites and reporting tools [57][58] Question: What are the opportunities for build versus buy decisions in investments? - Management emphasized a balanced approach, making responsible acquisitions while also focusing on internal capability development to enhance business growth [65][66]

Deluxe (NYSE:DLX) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Company ParticipantsBarry McCarthy - President and CEOBrian Anderson - VP of Strategy and IRChip Zint - CFOConference Call ParticipantsKartik Mehta - Research AnalystMarc Riddick - Senior Equity AnalystNone - AnalystOperatorLadies and gentlemen, thank you for standing by, and welcome to the Deluxe quarterly earnings conference call. All participants are currently in a listen-only mode, and today's call is being recorded. At this time, I wo ...

Deluxe (NYSE:DLX) Q4 2025 Earnings call January 28, 2026 05:00 PM ET Speaker5Ladies and gentlemen, thank you for standing by, and welcome to the Deluxe Quarterly Earnings Conference Call. All participants are currently in a listen-only mode, and today's call is being recorded. At this time, I would like to turn the conference over to your host, Vice President of Strategy and Investor Relations, Brian Anderson. Please go ahead.Speaker1Thank you, operator, and welcome to the Deluxe Fourth Quarter and Full Yea ...

Fourth Quarter and Full Year 2025 Earnings January 28, 2026 © 2026 Deluxe Corporation Brian Anderson Vice President, Strategy & Investor Relations 2 Today's Presenters Barry McCarthy President and Chief Executive Officer Chip Zint Senior Vice President and Chief Financial Officer Brian Anderson Vice President, Strategy & Investor Relations 3 Cautionary Statement Statements made in this presentation regarding Deluxe, the company's,or management's intentions, expectations, outlook, or predictions about future ...

Financial Performance - Full year reported revenue increased by 0.5% to $2,133.2 million, while comparable adjusted revenue increased by 1.1%[4] - Full year net income rose to $85.3 million, a 61.2% increase from $52.9 million in 2024[5] - Comparable adjusted EBITDA increased by 6.2% to $431.5 million for the full year[4] - Full year GAAP diluted EPS was $1.87, up 58.5% from $1.18 in 2024; comparable adjusted diluted EPS improved by 12.6% to $3.67[5] - Total revenue for the year ended December 31, 2025, was $2,133.2 million, slightly up from $2,121.8 million in 2024, indicating a 0.5% increase[23] - Adjusted EBITDA for the year ended December 31, 2025, rose to $431.5 million from $412.1 million in 2024, reflecting a 4.0% increase[28] - Net income for the year ended December 31, 2025, increased to $85.3 million from $52.9 million in 2024, representing a 61.5% growth[21] Cash Flow and Debt Management - Free cash flow increased by $75.3 million to $175.3 million in 2025[4] - Free cash flow for the year ended December 31, 2025, was $175.3 million, compared to $100.0 million in 2024, marking a 75.3% increase[21] - Net cash provided by operating activities increased to $270.6 million in 2025 from $194.3 million in 2024, reflecting a growth of 39.2%[38] - Total debt reduced by $73.7 million, while net debt decreased by $76.2 million[4] - The company reported a total debt of $1,429.4 million as of December 31, 2025, down from $1,503.1 million in 2024, a reduction of 4.9%[35] - Net debt decreased to $1,392.5 million in 2025 from $1,468.7 million in 2024, indicating a 5.2% decline[35] - Management emphasizes free cash flow as a key indicator for servicing debt and returning value to shareholders after necessary capital investments[37] - The company acknowledges that not all free cash flow is available for discretionary spending due to mandatory debt payments and other cash requirements[37] - Free cash flow provides insight into cash available for dividends, debt reduction, acquisitions, and share repurchases[37] Future Projections - The company expects 2026 revenue to increase by 0.5% and comparable adjusted revenue to rise by 1.1%[7] - For 2026, adjusted diluted EPS is projected to be between $3.90 and $4.30, with free cash flow expected to be approximately $200 million[14] Operational Focus - The comparable adjusted EBITDA margin for 2025 was 20.2%, up 90 basis points from the prior year[7] - The adjusted EBITDA margin for the year ended December 31, 2025, improved to 20.2% from 19.4% in 2024[28] - Merchant Services revenue for the year ended December 31, 2025, increased to $398.6 million, up from $384.0 million in 2024, a growth of 3.8%[23] - Data Solutions revenue for the year ended December 31, 2025, surged to $307.3 million from $234.0 million in 2024, representing a significant increase of 31.3%[23] - The company plans to continue focusing on operational efficiency and strategic decision-making to enhance performance and enterprise value[27] Dividend Declaration - The company declared a quarterly dividend of $0.30 per share, payable on February 23, 2026[10]

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