Deluxe (DLX) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 0.3% year-over-year to $536.5 million, with comparable adjusted revenue up 1.4% after business exits, driven by pricing actions and data-driven marketing, offset by Print declines.

• Net income increased to $14.0 million ($0.31 per share), up from $10.8 million in Q1 2024, reflecting cost management, lower restructuring expense, and improved operating leverage.

• Comparable adjusted EBITDA rose 3.4% to $100.2 million, with margin expanding 40 basis points to 18.7%, as cost actions offset inflation and business exits.

• Free cash flow improved by $18.1 million to $24.3 million, supporting debt reduction priorities and improved liquidity.

• S&P ratings upgrade and positive outlook reflect progress on capital allocation, debt reduction, and financial discipline.

Financial highlights

• Total revenue was $536.5 million (up 0.3% year-over-year); comparable adjusted EPS was $0.75, up 4.2% year-over-year.

• GAAP net income was $14 million ($0.31 per share), up from $11 million ($0.24 per share) in Q1 2024.

• Adjusted EBITDA was $100.2 million, margin 18.7% (up from 18.3% in Q1 2024).

• Free cash flow was $24.3 million, up from $6.2 million year-over-year.

• SG&A expenses decreased by $8.9 million (3.8%) year-over-year.

Outlook and guidance

• Full-year 2025 guidance maintained: revenue of $2.090–$2.155 billion, adjusted EBITDA of $415–$435 million, adjusted EPS of $3.25–$3.55, and free cash flow of $120–$140 million.

• CapEx for 2025 expected between $90–$100 million, focused on growth and innovation.

• Dividend of $0.30 per share per quarter reaffirmed.

• Long-term targets by 2026: 2–4% annual revenue growth, 4–6% EBITDA growth, 3x leverage, 30%+ FCF conversion, and 15%+ annual total shareholder return.

• Guidance subject to macroeconomic conditions, global instability, tariffs, labor supply, inflation, and portfolio changes.