Deluxe (DLX) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with revenue and profit growth, margin expansion, and accelerated free cash flow generation, meeting 2026 targets a year early.

• Payments and Data segments now represent 47% of revenue, up from 43% last year, with Data revenue up 31% year-over-year.

• Net debt reduced by $76.2 million, leverage ratio improved to 3.2x, and regular dividend paid for over 30 years.

• Strategic focus on shifting revenue mix toward Payments and Data, driving efficiencies, and increasing cash flow to further reduce debt.

• Maintained dividend and reduced net debt, supporting long-term value creation and shareholder returns.

Financial highlights

• Full-year revenue reached $2.133 billion, up 0.5% reported and 1.1% on a comparable adjusted basis.

• GAAP net income was $85.3 million ($1.87/share), up from $52.9 million ($1.18/share) in 2024.

• Comparable adjusted EBITDA was $431.5 million, up 6.2%, with margins expanding 90 basis points to 20.2%.

• Comparable adjusted EPS grew 12.6% to $3.67.

• Free cash flow was $175.3 million, up from $100 million in 2024.

Outlook and guidance

• 2026 revenue guidance: $2.11–$2.175 billion (-1% to +2% comparable adjusted growth).

• Adjusted EBITDA guidance: $445–$470 million (3–9% growth); adjusted EPS: $3.90–$4.30 (6–17% growth).

• Free cash flow expected to reach ~$200 million (14% growth).

• Payments and Data expected to reach revenue parity with Print in 2026.

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