DFIN Reports Second-Quarter 2025 Results

Core Insights - Donnelley Financial Solutions, Inc. (DFIN) reported a decrease in net sales for Q2 2025, totaling $218.1 million, down 10.1% from Q2 2024, primarily due to lower print and distribution volumes and reduced capital markets transactional revenue [3][5][7] - The company achieved record software solutions net sales of $92.2 million, a 7.7% increase year-over-year, with software solutions now accounting for 42.3% of total net sales, up from 35.3% in the previous year [5][7][8] - Adjusted EBITDA for Q2 2025 was $76.3 million, reflecting a decrease of $10.9 million compared to the same quarter in 2024, with an adjusted EBITDA margin of 35.0% [7][8][10] Financial Performance - Net earnings for Q2 2025 were $36.1 million, or $1.28 per diluted share, compared to $44.1 million, or $1.47 per diluted share, in Q2 2024 [4][5][8] - The company reported an increase in operating cash flow by $12.2 million and free cash flow by $14.9 million year-over-year [5][7] - Gross leverage was reported at 0.9x and net leverage at 0.7x as of June 30, 2025 [5][7] Market Outlook - The company expressed optimism regarding improving market activity trends despite ongoing macroeconomic challenges, indicating a focus on transitioning to a more recurring sales mix and disciplined capital allocation [2][5] - Guidance for Q3 2025 includes total net sales projected between $165 million and $175 million, with an adjusted EBITDA margin expected to range from 23% to 25% [10][11]