Deluxe (DLX) investor relations material

Executive summary

• Q3 revenue rose 2.5% YoY to $553.9M; comparable adjusted revenue grew 9.1%, while comparable adjusted EBITDA increased 9.6% to $127.1M.

• Payments and Data growth and stronger cash generation offset Print pressure; FY2026 revenue and adjusted EBITDA guidance increased, with free cash flow outlook affirmed.

• For 9M, adjusted EBITDA rose to $353.8M and adjusted diluted EPS to $2.99, while GAAP net income fell to $68.0M.

Financial highlights

• Q3 GAAP net income was $13.0M, or $0.28 diluted EPS, versus $33.7M, or $0.74; acquisition costs and higher interest expense weighed on results.

• Q3 comparable adjusted diluted EPS was $1.06; comparable adjusted EBITDA was $127.1M versus $116.0M.

• 9M operating cash flow rose 28.1% to $215.9M; free cash flow increased 40.7% to $134.9M.

• 9M SG&A declined $14.3M, or 2.2%, YoY.

Outlook and guidance

• FY2026 revenue guidance increased to $2.13B–$2.15B from $2.095B–$2.12B; adjusted EBITDA guidance rose to $470M–$480M from $455M–$475M.

• Adjusted EPS guidance increased to $3.80–$4.00 from $3.60–$4.00; free cash flow outlook remained ~$200M.

• Assumptions include interest expense of ~$130M, a 26% adjusted tax rate, D&A of ~$170M, 46.5M average shares and CapEx of ~$110M.

• Long-range targets include 2%–4% annual revenue growth, 4%–6% adjusted EBITDA growth, $200M+ FCF, adjusted EBITDA margin above 21% and net leverage below 3x.