October 2025 DFINsolutions.com © 2025 DFIN. All rights reserved Investor Presentation This presentation is the intellectual property of DFIN. The ideas expressed in it may not be adopted or reproduced without prior permission from and compensation to DFIN. Forward Looking Statements and Use of Non-GAAP Financial Measures USE OF FORWARD-LOOKING STATEMENTS This presentation includes certain "forward-looking statements" within the meaning of, and subject to the safe harbor created by, Section 21E of the Securi ...

Core Insights - Donnelley Financial Solutions reported strong non-GAAP earnings per share of $1.49, exceeding the consensus estimate of $1.42, but total revenue of $218.1 million fell short of expectations of $225.5 million and declined from $242.7 million year-over-year [1][2] Financial Performance - Non-GAAP EPS for Q2 2025 was $1.49, down 10.2% from $1.66 in Q2 2024 [2] - Total revenue was $218.1 million, a decrease of 10.1% from $242.7 million in the prior year [2] - Free cash flow increased to $51.7 million, up 40.5% from $36.8 million in Q2 2024 [2][8] - Adjusted EBITDA fell 12.5% to $76.3 million, with a margin of 35.0%, down 0.9 percentage points [2][7] - Software Solutions revenue reached $92.2 million, growing 7.7% year-over-year and accounting for 42.3% of total sales, up from 35.3% a year ago [2][5] Business Overview - Donnelley Financial Solutions specializes in software and services for compliance, regulatory, and financial reporting, serving corporations, investment companies, and capital markets [3] - The company is focusing on expanding its software offerings while reducing reliance on legacy print and manual services [4] Strategic Focus - Key areas of emphasis include technological leadership in regulatory software and managing the balance between cyclical project-driven demand and stable recurring revenues from software subscriptions [4] - The company aims to achieve a 60% software mix by 2028, with ongoing efforts to grow its software revenue [12] Market Conditions and Outlook - Management anticipates Q3 2025 GAAP net sales between $165 million and $175 million, indicating a decline from both the previous quarter and the prior year [11] - The adjusted EBITDA margin is expected to fall to 23% to 25%, reflecting ongoing pressures from lower transactional and print revenues [11] - The capital markets segment is projected to deliver $35 million to $40 million in transactional net sales [11]

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]

Company Overview - DFIN is a leader in assisting companies with their regulatory reporting requirements[9] - DFIN's portfolio of software solutions and regulatory experts support corporations and money managers in SEC compliance document creation, formatting, filing, and distribution[10] - Approximately 80% of the top 50 global fund complexes work with DFIN[10] Financial Performance & Metrics - Q1 2025 TTM net sales reached $779.6 million[12, 25] - Q1 2025 TTM Adjusted EBITDA was $230.3 million, resulting in a 29.5% margin[12, 19, 25] - Q1 2025 TTM Free Cash Flow was $94.4 million[25] - Net leverage as of March 31, 2025, was 0.8x[14, 25, 51] - Software sales in Q1 2025 TTM reached $334 million[14] Capital Allocation & Shareholder Value - From 2020 to 2024, the company repurchased 8.3 million shares for $276.4 million, at an average price of $33.42 per share[48] - A $150 million share repurchase program is in place, expiring December 31, 2025[49] Segment Performance (Q1 2025 TTM) - Capital Markets segment net sales were $527 million, with an EBITDA of $178 million and a 34% margin[12] - Investment Companies segment net sales were $253 million, with an EBITDA of $90 million and a 36% margin[12]

Core Insights - Donnelley Financial Solutions, Inc. (DFIN) reported strong financial performance in Q1 2025, with Adjusted EBITDA of $68.2 million, a 23.6% increase year-over-year, and an Adjusted EBITDA margin of 33.9%, up approximately 680 basis points from the previous year [2][6][7]. Financial Performance - Net sales for Q1 2025 were $201.1 million, a decrease of $2.3 million, or 1.1%, from Q1 2024, primarily due to lower capital markets compliance volumes and Venue sales [4][6]. - Net earnings for Q1 2025 were $31.0 million, or $1.05 per diluted share, compared to $33.3 million, or $1.09 per diluted share, in Q1 2024 [5][6]. - The company achieved record software solutions net sales of $84.6 million, a 5.4% increase from Q1 2024, accounting for 42.1% of total net sales, up from 39.5% [6][8]. Strategic Focus - DFIN is focused on expanding the adoption of its software solutions, with a 5.8% organic increase in total software solutions net sales compared to Q1 2024 [3][6]. - The company aims to increase its recurring sales mix, manage costs aggressively, and allocate capital in a disciplined manner to enhance shareholder value [3][6]. Debt and Share Repurchase - DFIN amended its credit agreement to establish a $300 million revolving facility and a $115 million term loan A facility, using proceeds to retire existing debt [6][7]. - The company repurchased 861,301 shares for approximately $41.8 million at an average price of $48.57 per share, with a remaining share repurchase authorization of $49.5 million as of March 31, 2025 [6][7].