Fri, May 2, 1:14 PM (17 days ago)
**Deluxe Corporation (DLX) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $536.5 million, up 0.3% YoY, driven by pricing actions and data-driven marketing growth, offset by secular declines in Print segment and business exits. - **Net Income:** $14.0 million, up 29.7% YoY, reflecting pricing, cost management, and reduced restructuring expenses. - **Earnings per Share (EPS):** $0.31, up 29.2% YoY. - **Adjusted EBITDA:** $100.2 million, flat YoY, with a margin of 18.7%, excluding business exits. - **Cash Flow:** Operating cash flow increased by $24 million to $50.3 million, driven by pricing, cost management, and reduced restructuring spend. **Segment Performance:** - **Merchant Services:** Revenue up 1.3% YoY, flat EBITDA margin at 21.9%. - **B2B Payments:** Revenue up 1.1% YoY, flat EBITDA margin at 19.0%. - **Data Solutions:** Revenue up 29.3% YoY, EBITDA up 32.4% YoY, margin at 25.5%. - **Print:** Revenue down 4.0% YoY, flat EBITDA, margin at 31.2%. **Cash Flow & Liquidity:** - **Cash & Equivalents:** $30.3 million. - **Available Borrowing:** $368.3 million under revolving credit facility. - **Capital Expenditures:** Expected to be $90-$100 million for 2025. - **Dividends:** Regular quarterly payments expected, subject to board approval. **Debt & Future Operations:** - **Total Debt:** $1.49 billion, with a weighted-average interest rate of 7.6%. - **Debt Covenants:** Complied with all covenants as of Q1 2025. - **Future Impact:** Continued focus on growth investments, debt reduction, and shareholder returns. Uncertainties include inflation, supply chain disruptions, and geopolitical events. **Trends & Uncertainties:** - **Inflation & Supply Chain:** Implementing price increases and monitoring supply chain for disruptions. - **Economic Conditions:** Monitoring small business sentiment and consumer spending trends. - **Geopolitical Events:** Potential impacts on global economy and performance. **Future Outlook:** - **North Star Program:** Aims for $100 million run-rate improvement in free cash flow and $80 million in adjusted EBITDA by 2026. - **Cost Savings:** Expected annual savings of $5 million in cost of sales and $13 million in SG&A in 2025. - **Growth Initiatives:** Focus on integrated software channels, expanding Data Solutions, and enhancing marketing and sales capabilities.