Deluxe(US:DLX)2026-01-28 21:16Financial 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]