DFIN Reports Fourth-Quarter and Full-Year 2024 Results

Core Insights - Donnelley Financial Solutions, Inc. (DFIN) reported financial results for Q4 and full year 2024, highlighting a shift towards software solutions as a key growth driver [1][4][5]. Financial Performance - Q4 2024 net sales were $156.3 million, a decrease of$20.2 million or 11.4% from Q4 2023, primarily due to reduced capital markets transactional revenue [6]. - Full-year 2024 organic software solutions net sales grew by 13.8%, totaling $329.7 million, which accounted for approximately 42$6.3 million, or $0.21 per diluted share, compared to$10.6 million, or $0.35 per diluted share in Q4 2023 [7][11]. - Adjusted EBITDA for Q4 2024 was$31.7 million, a decrease of $9.6 million from Q4 2023, with an Adjusted EBITDA margin of 20.3$217.3 million in Adjusted EBITDA and a margin of 27.8%, both exceeding 2023 levels despite lower transactional revenue [5][11]. - Cost control initiatives and a favorable sales mix contributed to improved profitability metrics [8]. Cash Flow and Share Repurchase - Q4 2024 operating cash flow was $56.4 million, while free cash flow was$41.3 million [11]. - The company repurchased 281,753 shares for $17.4 million in Q4 2024, with a total of 947,288 shares repurchased for$58.7 million throughout the year [11]. Market Outlook - The company remains optimistic about capturing future opportunities in software solutions, despite uncertainties in transactional offerings [5]. - An uptick in capital markets transactional activity at the start of 2025 is viewed positively [5].