Deluxe (DLX) investor relations material

Executive summary

• Q2 2026 comparable adjusted revenue grew 2.6% year-over-year to $499.3M, despite a reported revenue decline of 4.2% due to business exits and Print segment divestiture.

• Payments and Data segments now represent 52% of revenue, up from less than one-third in 2021, with Data Solutions revenue up 21.4% year-over-year.

• Adjusted EBITDA increased 5.3% to $108.8M, with margin expanding to 21.8%.

• Free cash flow for the first half reached $85.9M, up 64.9% year-over-year, supporting $75M+ net debt reduction.

• Closed the Celero acquisition on July 31, 2026, expanding payment solutions, distribution, and scale in merchant services.

Financial highlights

• Q2 2026 total revenue was $499.3M, down 4.2% reported but up 2.6% on a comparable adjusted basis year-over-year.

• Net income for Q2 2026 was $19.2M ($0.41/share), down from $22.4M ($0.50/share) due to one-time transaction expenses.

• Adjusted EBITDA was $108.8M, up 5.3% year-over-year; margin reached 21.8%.

• Adjusted diluted EPS was $0.87, up from $0.82 year-over-year.

• Free cash flow for the first half was $85.9M, up from $52.1M in the prior year.

Outlook and guidance

• 2026 revenue guidance: $2.095B–$2.12B; adjusted EBITDA: $455M–$475M; adjusted EPS: $3.60–$4.00; free cash flow: ~$200M.

• Guidance reflects Celero contribution for August–December and affirms/narrows base business estimates.

• Celero expected to be accretive to adjusted EPS and margin in the first full year post-close.

• Capital expenditures for 2026 projected at $100–$110M.

• Quarterly dividend of $0.30 per share maintained.