Fourth Quarter and Full Year 2025 Earnings January 28, 2026 © 2026 Deluxe Corporation Brian Anderson Vice President, Strategy & Investor Relations 2 Today's Presenters Barry McCarthy President and Chief Executive Officer Chip Zint Senior Vice President and Chief Financial Officer Brian Anderson 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 ...

Company Overview - Trimble Inc. (TRMB) is valued at $17.6 billion and operates as a global technology company providing hardware, software, and data solutions across various industries including construction, geospatial, transportation, agriculture, and utilities [1] - The company focuses on advanced positioning, scanning, and analytics technologies, which enhance accuracy, productivity, and asset management for professionals [1] Earnings Expectations - Analysts anticipate that TRMB will report a profit of $0.82 per share for the fiscal fourth quarter of 2025, reflecting a 12.3% increase from the same quarter last year [2] - For FY2025, EPS is expected to be $2.56, representing a 15.8% increase from $2.21 in fiscal 2024, with further growth projected to $2.87 in fiscal 2026, a 12.1% year-over-year rise [3] Stock Performance - TRMB stock has seen a marginal decline over the past year, underperforming the S&P 500 Index, which gained 15.1%, and the Technology Select Sector SPDR Fund, which rose by 26.4% during the same period [4] - A notable drop of approximately 5.7% occurred on January 16, following the CEO's sale of 7,500 shares, which raised investor concerns and triggered technical selling when the stock fell below its 200-day moving average [5] Analyst Ratings - The consensus opinion among analysts on TRMB stock is bullish, with a "Strong Buy" rating from 11 out of 13 analysts, one suggesting a "Moderate Buy," and one giving a "Hold" [6] - The average analyst price target for TRMB is $97.91, indicating a potential upside of 32.5% from current levels [6]

Core Insights - SentinelOne (S) shares have decreased approximately 8% due to macro-driven deal delays and a reduction in FY26 guidance, although the company's fundamentals are showing improvement [1] Group 1: Financial Performance - Platform adoption is accelerating, with non-endpoint solutions approaching 50% of total bookings [1] - Data Solutions are experiencing triple-digit growth [1] Group 2: Strategic Focus - The company is emphasizing the integration of Purple AI into its offerings [1]

Core Insights - Women We Admire has announced The Top 50 Women Leaders of Buffalo for 2025, highlighting the city's economic transition from manufacturing to sectors like healthcare, education, and tourism [1] Group 1: Featured Leaders - Megan Bahleda, Director of Nursing Services at Kaleida Health, is recognized for her leadership in optimizing patient care through resource allocation and operational oversight [2] - Katielynn Meyers, Partner Technology Strategist at Microsoft, is acknowledged for aligning business needs with technology strategy, particularly in supporting nonprofits and social impact organizations [3] - Elizabeth Smith, Assistant Vice President at Acacia Network, is celebrated for her role in managing integrated behavioral health services and advancing culturally competent care [4] Group 2: Additional Recognitions - The list includes notable leaders such as Elizabeth Mauro (Endeavor Health Services), Kimberly Beaty (University at Buffalo), and many others, showcasing a diverse range of industries and contributions [6]

Financial Performance Highlights - Q3 2025 revenue increased to $540.2 million, a 2.2% increase compared to Q3 2024[16] - Comparable adjusted revenue increased by 2.5% compared to Q3 2024[16] - Net income for Q3 2025 was $33.7 million, up from $8.9 million in Q3 2024[16] - Adjusted EBITDA for Q3 2025 reached $118.9 million, a 13.8% increase compared to Q3 2024, with a margin of 22.0%[16] - Comparable adjusted EPS was $1.09, a 29.8% increase compared to Q3 2024[17] Segment Performance - Data Solutions revenue increased by 46.0% compared to Q3 2024[17] - Merchant Services revenue increased by 4.8% compared to Q3 2024[17] - B2B Payments revenue decreased by 2.7% compared to Q3 2024[17] - Print revenue decreased by 5.9%, with Check revenue down by 2.1% compared to Q3 2024[17] Balance Sheet and Cash Flow - Net debt decreased by $44.7 million compared to year-end 2024[17] - Leverage ratio reached 3.3x in Q3 2025[17] - Cash flow from operations year-to-date was $168.5 million, a 25.7% increase compared to YTD Q3 2024[17] 2025 Guidance - Revenue is projected to be between $2.11 billion and $2.13 billion, flat to a 1% increase compared to 2024[46] - Adjusted EBITDA is expected to be between $425 million and $435 million, a 5% to 7% increase compared to 2024[46] - Adjusted EPS is projected to be between $3.45 and $3.60, a 6% to 10% increase compared to 2024[46] - Free cash flow is expected to be between $140 million and $150 million, a 40% to 50% increase compared to 2024[46]

Core Insights - Dell Technologies has seen a 17% increase in stock price over the past month, but Hewlett Packard Enterprise (HPE) may present a more attractive investment opportunity due to its superior revenue growth and profitability metrics [2] - Regular assessment of investment alternatives is essential for a robust strategy, with HPE showing better performance indicators compared to Dell Technologies [2] Company Performance Comparison - HPE's revenue growth over the last 12 months was 14.0%, while Dell's was 10.5%. Over the past three years, HPE's average revenue growth was 5.9%, significantly outperforming Dell's -1.3% [6] - HPE's three-year average margin stands at 7.6%, compared to Dell's 6.1%, indicating stronger profitability for HPE [6] Business Segments - Dell operates in various segments including infrastructure, client devices, and VMware, offering a range of products such as desktops, workstations, software, multi-cloud solutions, networking, security, and digital workspace solutions [4] - HPE focuses on data solutions, general and workload-optimized servers, and networking hardware, including wired and wireless components like Wi-Fi access points, switches, routers, and sensors [4]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $521 million, down 2.5% year-over-year, attributed mainly to the low-margin promotional portion of Print [4][17] - Comparable adjusted EBITDA increased by 4.5% year-over-year to $106 million, with EBITDA margin expanding by 140 basis points to just above 20% [4][5] - Comparable adjusted EPS rose by 3.5% to $0.88, and year-to-date free cash flow expanded by over 200% to more than $34 million compared to 2024 [5][17] - The leverage ratio improved to 3.5 times, with a target to be below 3 times next year [5][28] Business Segment Data and Key Metrics Changes - Data Solutions segment revenue grew by over 18% in Q2, continuing to be a standout performer [5][22] - Merchant Services revenue increased by 2.9% year-over-year to $101.4 million, with adjusted EBITDA improving by 13% to $21.7 million [18][19] - B2B payments segment revenues were $71 million, up 1.1% year-over-year, with adjusted EBITDA expanding by 11.4% [20] - Print segment revenue declined by 9% year-over-year to $281.1 million, with adjusted EBITDA declining by 3.7% but maintaining a margin of 32.2% [23][26] Market Data and Key Metrics Changes - The overall revenue ratio remains modestly weighted toward Print at 54% to 46% for the year [10] - Payments and Data segments combined have expanded year-over-year by a blended rate of just under 7.5% [10] Company Strategy and Development Direction - The company is focused on transforming from a paper payments company to a digital payments and data company, with ongoing investments in technology and partnerships [15][11] - The acquisition of CheckMatch is expected to enhance the Deluxe Payment Network, creating revenue and cost synergy opportunities [11][12] - The company aims to maintain strong margins in Print while avoiding low-margin promotional deals [8][27] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic uncertainty but expressed confidence in affirming revenue and earnings guidance while increasing free cash flow expectations [30][33] - The company expects to see continued growth in the Data Solutions segment and a solid exit growth rate for B2B payments as it enters 2026 [21][30] Other Important Information - The company ended Q2 with a net debt level of $1.44 billion, a reduction from previous levels, and aims for a leverage ratio of three times or better by 2026 [28][29] - A quarterly dividend of $0.30 per share was approved, payable on September 2, 2025 [30] Q&A Session Summary Question: What has driven the efficiency in the merchant business? - Management highlighted a focus on operating efficiency, pricing strategies, and new market expansions as key drivers for margin improvement [35][36] Question: Has Brian Mahoney implemented any ideas in the merchant business? - Management confirmed that Mahoney has made significant progress and is already seeing positive results from his initiatives [37][39] Question: What are the key drivers for the increase in free cash flow? - The increase is attributed to improved profitability, reduced restructuring spend, and better working capital efficiency [40][42] Question: What continues to drive growth in the Data Solutions segment? - Growth is driven by helping financial institutions target low-cost deposits and expanding into non-FI verticals [46][48] Question: What does the CheckMatch acquisition bring to the company? - CheckMatch enhances the existing Deluxe Payment Network by adding more lockboxes, allowing for digital payment processing and improved cash flow [49][51] Question: What is the outlook for future acquisition opportunities? - The company remains disciplined in capital allocation and will consider opportunities that align with its strategy for growth [60][62] Question: How is the company managing macroeconomic challenges? - Management noted a continuation of consumer hesitancy but emphasized good forecast accuracy and performance across the business [55][57]

Q2 2025 Financial Performance - Total revenue was $521.3 million, a decrease of 3.1% compared to Q2 2024[28] - Net income was $22.4 million, or $0.50 per share on a diluted basis, up from $20.5 million, or $0.46 per share in Q2 2024[28] - Adjusted EBITDA increased 4.6% to $106.5 million, with an adjusted EBITDA margin of 20.4%, up 140 basis points versus Q2 2024[28] - Adjusted diluted EPS was $0.88, up 3.5% compared to Q2 2024[28] Segment Performance - Merchant Services revenue increased 2.9% to $101.4 million, with an adjusted EBITDA margin of 21.4%, up 190 basis points year-over-year[29, 31] - B2B Payments revenue increased 1.1% to $71.0 million, with an adjusted EBITDA margin of 22.0%, up 210 basis points year-over-year[32, 34] - Data Solutions revenue increased 18.1% to $67.8 million, with an adjusted EBITDA margin of 30.1%, up 260 basis points year-over-year[35, 37] - Print revenue decreased 9.0%, with an adjusted EBITDA margin of 32.2%, expanding 180 basis points year-over-year[45, 47] Balance Sheet and Cash Flow - Net debt was $1,444.6 million as of June 30, 2025, with a net debt to adjusted EBITDA ratio of 3.5x[49] - Free cash flow for the six months ended June 30, 2025, was $52.1 million, compared to $17.6 million for the same period in 2024[49] 2025 Guidance - Revenue is projected to be between $2.090 billion and $2.155 billion, representing a decline of 1% to an increase of 2%[52] - Adjusted EBITDA is expected to be between $415 million and $435 million, an increase of 2% to 7%[52] - Adjusted EPS is projected to be between $3.25 and $3.55, flat to an increase of 9%[52] - Free cash flow is expected to be between $130 million and $150 million, an increase of 30% to 50%[52]

Q1 2025 Financial Performance - Total revenue reached $536.5 million, a 0.3% increase compared to Q1 2024[25] - Comparable adjusted revenue increased by 1.4% compared to Q1 2024[25] - Adjusted EBITDA increased by 3.4% to $100.2 million compared to Q1 2024[25] - Adjusted EBITDA margin increased by 40 basis points to 18.7% compared to Q1 2024[25] - Adjusted diluted EPS increased by 4.2% to $0.75 compared to Q1 2024[25] - Net income attributable to Deluxe was $14.0 million, or $0.31 per share, up from $10.8 million in Q1 2024[25,60] Segment Performance - Data Solutions revenue increased significantly by 29.3%[33] - Data Solutions adjusted EBITDA margin increased by 50 basis points to 25.5%[34] - Print segment revenue decreased by 4.0%[39] - Print segment adjusted EBITDA margin expanded by 120 basis points to 31.2%[41] Balance Sheet and Cash Flow - Net debt to adjusted EBITDA ratio remained at 3.6x[43] - Free cash flow increased significantly to $24.3 million, compared to $6.2 million in Q1 2024[43] 2025 Guidance - Revenue is projected to be between $2.090 billion and $2.155 billion, representing a comparable adjusted growth of -1% to +2%[46] - Adjusted EBITDA is expected to be between $415 million and $435 million, a growth of +2% to +7%[46] - Adjusted EPS is projected to be between $3.25 and $3.55, representing a growth of 0% to +9%[46] - Free cash flow is expected to be between $120 million and $140 million, a growth of +20% to +40%[46]