Deluxe (NYSE:DLX) Releases Earnings Results, Beats Estimates By $0.11 EPS

Key Points

• Deluxe reported quarterly EPS of $1.06, beating estimates by $0.11, while revenue of $553.9 million exceeded forecasts and rose 2.5% year over year.
• The company raised its 2026 revenue, adjusted EBITDA, and adjusted EPS guidance, and said Data Solutions revenue grew 15.4% to a record $102.9 million.
• Risks include higher net debt following Celero financing and continued declines in print revenue; management aims to reduce leverage to 3 times or lower by the end of 2028.

Deluxe (NYSE:DLX - Get Free Report) posted its earnings results on Wednesday. The business services provider reported $1.06 earnings per share for the quarter, beating analysts' consensus estimates of $0.95 by $0.11, FiscalAI reports. Deluxe had a net margin of 4.91% and a return on equity of 23.51%. The firm had revenue of $553.90 million during the quarter, compared to analyst estimates of $532.67 million. During the same period last year, the firm posted $1.09 earnings per share. Deluxe's revenue for the quarter was up 2.5% compared to the same quarter last year.

Here are the key takeaways from Deluxe's conference call:

• Deluxe raised its 2026 revenue guidance to $2.13–$2.15 billion and adjusted EBITDA guidance to $470–$480 million, while narrowing adjusted EPS guidance upward to $3.80–$4.00. It affirmed its approximately $200 million free cash flow outlook.
• Payments and Data Solutions reached 57% of revenue, supporting the company’s mix shift toward growth businesses. Data Solutions revenue rose 15.4% to a record $102.9 million, its eighth consecutive quarter of growth above 15%.
• Year-to-date free cash flow increased 40.7% to $134.9 million, and adjusted EBITDA margin expanded 90 basis points year over year. Management said Celero integration is progressing as expected or ahead of schedule, with a $15 million cost-synergy target over 24 months.
• Celero financing lifted net debt to $1.93 billion, up $536.7 million from year-end 2025, with pro forma net leverage of about 3.8 times. The company reiterated its goal of reducing leverage to 3 times or lower by the end of 2028.
• Print revenue declined 3.6% on a comparable adjusted basis, and management expects low- to mid-single-digit declines to continue. B2B Payments’ unusually strong quarterly growth and margins are also expected to moderate toward the company’s low-single-digit growth and mid-20s margin outlook.

Deluxe Stock Up 6.9%

Deluxe stock traded up $1.51 during mid-day trading on Wednesday, reaching $23.50. 614,532 shares of the company were exchanged, compared to its average volume of 454,225. The firm has a market cap of $1.08 billion, a P/E ratio of 6.26, a PEG ratio of 0.66 and a beta of 1.29. The company has a debt-to-equity ratio of 2.02, a quick ratio of 1.08 and a current ratio of 1.20. Deluxe has a 12-month low of $18.15 and a 12-month high of $32.07. The business has a fifty day moving average of $23.32 and a 200 day moving average of $25.31.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on DLX shares. Weiss Ratings upgraded shares of Deluxe from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, October 8th. Barrington Research initiated coverage on shares of Deluxe in a report on Tuesday, September 29th. They issued an "outperform" rating and a $31.00 price target for the company. Finally, Wall Street Zen lowered Deluxe from a "buy" rating to a "hold" rating in a research report on Saturday. One research analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $31.00.

About Deluxe

Deluxe Corporation is a provider of payments, marketing and business technology solutions serving small businesses, financial institutions and consumers. The company's offerings include checks and related forms, business supplies, promotional products, website and digital marketing services, customer relationship management tools, data-driven marketing solutions and payment processing services.

Deluxe also provides receivables management, fraud prevention and other financial technology services designed to help businesses and financial institutions manage transactions and customer relationships.

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