Q4 2025 Deluxe Corp Earnings Call Transcript
Key Points
- Deluxe Corp (DLX) achieved a 6% growth in comparable adjusted EBITDA, with organic revenue growing by 1%, marking the third consecutive year of EBITDA growth outpacing revenue.
- The company reported a 13% increase in comparable adjusted EPS and a 23% rise in operating income, showcasing strong profitability.
- Deluxe Corp (DLX) generated $175 million in free cash flow, achieving its 2026 goal a year early, and reduced net debt by $76 million, lowering the leverage ratio to 3.2x.
- The strategic shift towards payments and data is progressing well, with these segments now accounting for 47% of revenue, up from 43% the previous year.
- The data segment experienced standout performance, with revenue expanding by over 30% year-over-year, driven by AI-enabled data analytics tools.
- The Print business experienced a revenue decline of just under 2% for the full year, reflecting ongoing secular challenges in this segment.
- Despite improvements, the B2B payments segment only achieved a modest 0.9% revenue growth, indicating slower progress compared to other segments.
- The company faces significant competition and macroeconomic uncertainties, which could impact growth in its key segments.
- Deluxe Corp (DLX) continues to experience secular decline in its legacy check and promotional product solutions, with a 5.7% overall decline in the Print segment.
- The company anticipates facing challenging year-over-year comparisons in the data segment due to extraordinary demand experienced in 2025.
Ladies and gentlemen, thank you for standing by and welcome to the Deluxe quarterly earnings conference call. (Operator Instructions) and today's call is being recorded.
At this time, I would like to turn the conference over to your host, Vice President of Strategy and Investor Relations, Brian Anderson. Please go ahead.
Thank you, operator, and welcome to the Deluxe Fourth Quarter and Full Year 2025 Earnings Call. Joining me on today's call are Barry McCarthy, our President and Chief Executive Officer; and Chip Zint, our Chief Financial Officer. At the end of today's prepared remarks, we will take questions.
Before we begin, and as seen on the current slide, I'd like to remind everyone that comments made today regarding management's intentions, projections, financial estimates and expectations about the company's future strategy or performance are forward-looking in nature as defined in the Private Securities Litigation Reform Act of 1995. Additional information
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