Donnelley Financial Solutions (DFIN) Q4 2025 earnings summary

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 up to 47% of total sales.

• Share repurchases totaled $172.3M in 2025, including 3.6M shares (12% of outstanding) at an average price of $48.36; $53.8M remains authorized.

• Launched Active Intelligence AI suite and completed 'chapter 2' of transformation, focusing on software, operational simplification, and technology upgrades.

Financial highlights

• Q4 2025 net sales: $172.5M, up 10.4% year-over-year; Q4 software solutions net sales grew 11.4% to $90.9M.

• Q4 adjusted EBITDA: $45.8M, up $14.1M (44%) 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 for 2025: $107.8M; Q4 free cash flow was $47.9M.

• 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, focused on software development.

• Expect continued decline in print/distribution, offset by software growth; transactional sales guidance flat year-over-year.

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