Financial Performance - Adjusted EBITDA increased by $17 million to $326 million for the first nine months of 2025, with an adjusted EBITDA margin of 20.4%, up from 19.3% in the same period of 2024[92]. - Total revenue for the first nine months of 2025 decreased by $3 million to $1.60 billion, impacted by a $10 million reduction due to business exits; excluding this, revenue would have increased[93]. - Free cash flow rose by $32 million to $96 million in the first nine months of 2025, driven by improved operational performance[94]. - Net income for Q3 2025 was $33,766,000, a 276.5% increase from Q3 2024, while diluted EPS rose to $0.74, up 270.0% year-over-year[118]. - Adjusted diluted EPS for Q3 2025 was $1.09, a 29.8% increase from Q3 2024, reflecting benefits from pricing and cost management actions[118]. - Adjusted EBITDA for Q3 2025 reached $118,887,000, compared to $104,902,000 in Q3 2024, marking a 13.3% increase[123]. - Adjusted EBITDA margin improved to 22.0% in Q3 2025 from 19.9% in Q3 2024, reflecting enhanced operational efficiency[123]. - Total revenue for Q3 2025 was $279,945,000, a decrease of 5.8% compared to Q3 2024, and for the first nine months of 2025, it was $852,296,000, down 6.3% year-over-year[137]. Cost Management - Selling, general and administrative (SG&A) expenses decreased by 6.8% in Q3 2025 compared to Q3 2024, contributing to improved profitability[88]. - SG&A expense decreased by 6.8% in Q3 2025 and 6.3% in the first nine months compared to the same periods in 2024, driven by cost management actions[109]. - The company expects to realize annual cost savings of approximately $6 million in cost of sales and $14 million in SG&A expenses in 2025 compared to 2024[129]. - Restructuring and integration expenses dropped by 73.6% in Q3 2025 and 59.3% in the first nine months compared to 2024, reflecting alignment with growth strategy[112]. Debt and Cash Management - The company reduced net debt by $45 million from the previous year end, reflecting a commitment to enhancing financial performance[90]. - Cash and cash equivalents stood at $26 million as of September 30, 2025, with an additional $393 million available for borrowing under the revolving credit facility[99]. - Total debt as of September 30, 2025, was $1,449,785,000, down from $1,503,151,000 at the end of 2024, while net debt decreased to $1,423,982,000[122]. - As of September 30, 2025, total debt obligations were $1.47 billion, down from $1.52 billion as of December 31, 2024[146]. - The principal amount of fixed interest rate debt was $925 million at an average interest rate of 8.1% as of September 30, 2025[146]. Strategic Investments - The acquisition of assets from JPMorgan Chase's CheckMatch service for $25 million is expected to strengthen the B2B Payments segment[91]. - The company anticipates capital expenditures between $90 million and $100 million for the full year 2025, compared to $94 million in 2024[99]. - The company is focused on growth investments, debt reduction, and returning capital to shareholders through dividends, which are subject to board approval[99]. - The North Star program aims for a $100 million run-rate improvement in free cash flow and an $80 million run-rate improvement in adjusted EBITDA by 2026[128]. - Restructuring and integration expenses incurred through September 30, 2025, totaled approximately $110 million, with an additional $5 million expected in Q4 2025[128]. Tax and Interest - Interest expense increased by 2.1% in Q3 2025 and 2.0% in the first nine months, primarily due to higher interest rates despite a reduction in average debt outstanding[115]. - The effective income tax rate decreased to 28.5% in Q3 2025 from 33.6% in Q3 2024, benefiting from lower tax impacts from foreign operations[117]. Asset Performance - The company recorded a 100% reduction in asset impairment charges in Q3 2025 compared to $6,700,000 in Q3 2024, indicating improved asset performance[113].

Core Insights - Deluxe (DLX) reported quarterly earnings of $1.09 per share, exceeding the Zacks Consensus Estimate of $0.92 per share, and showing an increase from $0.84 per share a year ago, resulting in an earnings surprise of +18.48% [1] - The company achieved revenues of $540.2 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.36% and up from $528.4 million year-over-year [2] - Deluxe has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise for the previous quarter was +23.94%, with actual earnings of $0.88 per share compared to an expected $0.71 per share [1] - The current consensus EPS estimate for the upcoming quarter is $0.94, with projected revenues of $513.1 million, while the estimate for the current fiscal year is $3.49 on $2.11 billion in revenues [7] Market Position - Deluxe shares have underperformed the market, losing about 19.3% since the beginning of the year, while the S&P 500 has gained 15.1% [3] - The Zacks Industry Rank places the Business - Office Products sector in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] Future Outlook - The sustainability of Deluxe's stock price movement will depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current Zacks Rank for Deluxe is 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh. ...

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was reported at $540.2 million, reflecting a 2.2% increase year-over-year and a 2.5% increase on a comparable adjusted basis [13] - GAAP net income improved to $33.7 million, or $0.74 per share, compared to $8.9 million, or $0.20 per share in Q3 2024 [14] - Comparable adjusted EBITDA reached $118.9 million, up 13.8% year-over-year, with margins improving to 22% of revenue, an increase of 220 basis points [14] - Adjusted EPS grew nearly 30% year-over-year to $1.09 per share [5][14] Business Line Data and Key Metrics Changes - The data segment saw revenue growth of 46% year-over-year, reaching $89.2 million, driven by strong demand for marketing campaigns [17] - Merchant services revenue grew by 4.8% year-over-year, totaling $98 million, with adjusted EBITDA improving by 14.6% to $20.4 million [15] - B2B payments segment revenues were $73.1 million, a decline of 2.7% year-over-year, but adjusted EBITDA expanded by 9.8% [16] - Print segment revenue declined by 5.9% year-over-year to $279.9 million, with branded promotional products seeing a 14.7% decline [20] Market Data and Key Metrics Changes - Payments and data now account for 47% of total company revenue, up nearly 400 basis points from the previous year [7] - The company reported a year-to-date free cash flow expansion of over 49%, growing by more than $31 million compared to the prior year [6] Company Strategy and Development Direction - The company is focused on shifting its revenue mix towards payments and data, driving operating efficiencies, and increasing EBITDA and cash flow to lower net debt [6][12] - The strategic priorities include enhancing the payments and data segments while leveraging cash flows from the print segment [6][12] - The company aims to achieve a debt-to-EBITDA target ratio below three times by the end of 2026 [5][23] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of free cash flow improvements and the overall health of core fundamentals [29][27] - The company anticipates continued strong growth in the data segment, although some moderation is expected in Q4 due to seasonal factors [19][35] - Management remains committed to maintaining a balanced capital allocation strategy focused on debt reduction and internal investments for growth [40][41] Other Important Information - The company achieved a net debt reduction of over $20 million during the quarter, resulting in a leverage ratio of 3.3 times, ahead of schedule [6][23] - A quarterly dividend of $0.30 per share was approved, payable on December 1, 2025 [24] Q&A Session Summary Question: Discussion on free cash flow and its sustainability - Management highlighted the focus on improving free cash flow through enhanced profitability, lower restructuring spend, and strong working capital efficiency [29] Question: Insights on the distribution partners and pipeline - Management discussed the successful partnership with People's Bank and the healthy pipeline of opportunities in financial institutions and ISVs [31] Question: Key drivers behind the data segment's growth - Management attributed the data segment's growth to investments in infrastructure and proprietary AI tools that enhance marketing effectiveness [34] Question: Clarification on print segment margins - Management explained that improved margins in the print segment were driven by a focus on profitable volume and operational efficiencies [36][39] Question: Capital allocation strategy post-leverage target achievement - Management reiterated the commitment to debt reduction while also investing in high-return growth opportunities in payments and data [40][41]

Group 1 - The article does not provide any relevant content regarding the company or industry [1]

Third Quarter 2025 Earnings November 5, 2025 Today's Presenters Barry McCarthy President and Chief Executive Officer Chip Zint Senior Vice President and Chief Financial Officer Brian Anderson © 2025 Deluxe Corporation Brian Anderson Vice President, Strategy & Investor Relations 2 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 results or eve ...

Financial Performance - Reported revenue for Q3 2025 increased by 2.2% to $540.2 million, while comparable adjusted revenue rose by 2.5%[4] - Net income for Q3 2025 was $33.7 million, significantly up from $8.9 million in Q3 2024[4] - Comparable adjusted EBITDA increased by 13.8% to $118.9 million, with a margin of 22.0%, up 220 basis points year-over-year[4][9] - Adjusted diluted EPS improved by 29.8% to $1.09, compared to $0.84 in the same quarter last year[4][9] - Total revenue for Q3 2025 was $540.2 million, a slight increase of 2.4% compared to $528.4 million in Q3 2024[21] - Adjusted EBITDA for Q3 2025 reached $118.9 million, representing a 13.5% increase from $104.9 million in Q3 2024[25] - The adjusted EBITDA margin improved to 22.0% in Q3 2025, up from 19.9% in Q3 2024[29] - Comparable adjusted revenue for the nine months ended September 30, 2025, was $1,598.0 million, a slight increase from $1,590.9 million in the same period of 2024[29] Cash Flow and Debt - Free cash flow for the first nine months of 2025 increased by $31.6 million to $95.9 million[4] - Cash from operating activities for the first nine months of 2025 was $168.5 million, up from $134.1 million in 2024[19] - Free cash flow for Q3 2025 was $43.8 million, slightly down from $46.7 million in Q3 2024[35] - Total debt as of September 30, 2025, was $1,449.8 million, down from $1,503.1 million at the end of 2024[32] - Net debt as of September 30, 2025, was $1,424.0 million, down from $1,468.7 million at the end of 2024[17] - Net debt decreased to $1,424.0 million as of September 30, 2025, compared to $1,468.7 million at the end of 2024[32] Guidance and Dividends - The company raised its full-year 2025 guidance for adjusted diluted EPS, with revenue expected between $2.11 billion and $2.13 billion[9] - Adjusted EBITDA guidance for 2025 is set between $425 million and $435 million[9] - The Board of Directors approved a quarterly dividend of $0.30 per share, payable on December 1, 2025[7] Revenue Breakdown - Merchant Services revenue increased to $98.0 million, up 4.8% from $93.5 million year-over-year[21] - Data Solutions revenue surged to $89.2 million, a significant increase of 46.1% compared to $61.1 million in the same quarter last year[21]

MINNEAPOLIS--(BUSINESS WIRE)--Deluxe (NYSE: DLX), a trusted Payments and Data company, today announced its third quarter 2025 financial results through an earnings release available on the company's Investor Relations website at www.investors.deluxe.com. The earnings release will be furnished with the Securities and Exchange Commission (SEC) on a Form 8-K and available here. At 5:00 p.m. ET (4:00 p.m. CT) today, the company will host an open-access conference call to discuss these financial res. ...

Company Overview - Deluxe is a Trusted Payments and Data company that has been supporting businesses for over 100 years, helping them pay, get paid, and grow [2][3] - The company processes more than $2 trillion in annual payment volume, serving millions of small businesses and thousands of financial institutions [2] Financial Reporting - Deluxe will report its third quarter 2025 financial results on November 5, 2025, after market close [1] - An open-access conference call will be held on the same day at 5:00 p.m. ET, allowing interested parties to listen in [1] Recent Developments - Deluxe has expanded its partnership with Peoples Bank, a $9.5 billion financial institution, to deliver integrated Merchant Services [5] - Michelle T. Collins has been elected to Deluxe's Board of Directors, bringing over four decades of experience in business transformations and risk management [6] - Deluxe Merchant Services has won the 2025 Association of TeleServices International Call Center Award of Distinction for the 13th consecutive year, highlighting the exceptional performance of its customer care team [7]

MINNEAPOLIS--(BUSINESS WIRE)--Deluxe (NYSE: DLX), a trusted Payments and Data company, today announced an expanded partnership with Peoples Bank, a $9.5 billion financial institution headquartered in Marietta, Ohio. This new engagement will deliver integrated Merchant Services, further strengthening a relationship built on shared values of innovation, service, and community impact. Over the past year, Peoples Bank has been deepening its relationship with Deluxe, choosing to place a portion of i. ...