Donnelley Financial Solutions (DFIN) investor relations material

Executive summary

• Q4 2025 net sales rose 10.4% year-over-year to $172.5M, driven by double-digit growth in software solutions and tech-enabled services, with software comprising up to 52.7% of total net sales.

• Adjusted EBITDA for Q4 2025 increased 44.5% to $45.8M, with margin expanding 630 basis points to 26.6%.

• Full-year 2025 net sales were $767.0M, with software solutions accounting for $358.4M and growing 8.7% year-over-year.

• Transformation efforts since 2020 improved profitability, sales mix, and operational efficiency.

• Share repurchases totaled $172.3M for 2025, reducing shares outstanding by 3.6M, with $53.8M remaining authorized.

Financial highlights

• Q4 2025 net sales: $172.5M, up 10.4% year-over-year, exceeding guidance.

• Q4 adjusted EBITDA: $45.8M, up $14.1M year-over-year; margin 26.6%, up 630 bps.

• Full-year adjusted EBITDA: $239.8M, up 10.4% year-over-year; margin 31.3%, up 350 bps.

• Free cash flow: $47.9M in Q4; $107.8M for 2025, up $2.6M year-over-year.

• Q4 non-GAAP gross margin: 63.5%, up 360 bps; Q4 GAAP gross margin: 55.1%.

Outlook and guidance

• Q1 2026 net sales guidance: $200M–$210M; adjusted EBITDA margin: 33%–35%.

• Software sales expected to grow at a double-digit rate annually, with software revenue projected to represent ~60% of total revenue by 2028.

• Full-year 2026 capital spending projected at $55M–$60M, flat year-over-year.

• Expect continued decline in print/distribution, offset by software growth.

• Long-term EBITDA margin expected to remain above 30%.