Deluxe : Q1 2026 Deluxe Investor Presentation
DLX
Published on 05/06/2026 at 06:18 am EDT
First Quarter 2026 Earnings
May 6, 2026
© 2026 Deluxe Corporation
Vice President,
Strategy & Investor Relations
Today's Presenters
Barry McCarthy
President and Chief Executive Officer
Senior Vice President and Chief Financial Officer
Vice President, Strategy & Investor Relations
Cautionary Statement
Statements made in this presentation regarding Deluxe, the company's,or management's intentions, expectations, outlook, or predictions about future results or events are considered "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. These statements reflect management's current intentions or beliefs and are subject to risks and uncertainties that could cause actual results or events to differ from stated expectations, which variat ions could be material and adverse. Factors that could lead to such variations include, but are not limited to, the following: changes in local, regional, national, and international economic or political conditions, including those arising from heightened inflation, rising interest rates, a recession, uncertainties surrounding trade policies or tariffs, or intensified international hostilities, and their impact on the company, its data, customers, or demand for the company's products and services; the effects of proposed and enacted legislative and regulatory actions affecting the company or the financial services industry as a whole; ongoing cost increases and/or declines in the availability of data, materials, and other services; the company's ability to execute its strategy and to realize the intended benefits; the inherent unreliability of earnings, revenue, and cash flow predictions due to numerous factors, many of which are beyond the company's control; declining demand for the company's checks, check-related products and services, and business forms; risks that the company's strategies intended to drive sustained revenue and earnings growth, despite the continuing decline in checks and forms, are delayed or unsuccessful; intense competition; consolidation of financial institutions and/or bank failures, reducing the number of potential customers and referral sources and increasing downward pressure on the company's revenue and gross profit; risks related to acquisitions, including integration-related risks and risks that future acquisitions will not be consummated; risks that any such acquisitions do not produce the anticipated results or synergies; risks that the company's cost reduction initiatives will be delayed or unsuccessful; risks related to any divestitures contemplated or undertaken by the company; performance shortfalls by one or more of the company's major suppliers, licensors, data or service providers; continuing supply chain and labor supply issues; unanticipated delays, costs, and expenses in the development and marketing of products and services, including financial technology and treasury management solutions; the failure of such products and services to deliver the expected revenues and other financial targets; risks related to security breaches, computer malware, or other cyber-attacks; risks of interruptions to the company's website operations or information technology systems; and risks of unfavorable outcomes and the costs to defend litigation and other disputes. The company's forward-looking statements speak only as of the time made, and management assumes no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the company's current expectations are contained in the company's Form 10-K for the year ended December 31, 2025 and other filings made with the SEC. The company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information, or future circumstances.
Portions of the financial and statistical information discussed during this call are addressed in more detail in today's press release, which is posted on the company's investor relations website at https://www.investors.deluxe.com. This information was also furnished to the SEC on the Form 8-K filed by the company this evening. Any references to non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release and as part of this presenta tion.
President and Chief Executive Officer
Q1'26 Financial Highlights
(in millions)
+0.3%
+2.7%
n/m
+17.7%
+19.7%
n/m - not meaningful
Q1'26 Comparable Adjusted Highlights
DRIVE PAYMENTS & DATA GROWTH
EFFICIENCY FOCUS: DRIVE OPERATING LEVERAGE
INCREASE CASH FLOW & IMPROVE LEVERAGE RATIO
EXPANSION OF EARNINGS METRICS
Data Solutions Revenue +26.3% vs. Q1'25
Merchant Services Revenue +7.3% vs. Q1'25
B2B Payments Revenue +4.7% vs. Q1'25
Print Comp Adj Revenue (5.9%); Check Comp Adj Revenue (4.4%) vs. Q1'25
OpEx efficiency: Q1 total SG&A down $15.9M, (7.1%) vs. Q1'25
Operating Income: $71.8; +49.3% vs Q1'25
Payments & Data margin expansion: Adj EBITDA +24.2%; +200 bps vs Q1'25
Print margin expansion: Comp Adj EBITDA 32.7%; +70 bps vs. Q1'25
Target Net Leverage Ratio reached: 3.0x vs. 3.2x at YE'25
Free Cash Flow $27.3M, 12.3% vs. Q1'25
Total Debt reduced by $32.3M vs. YE'25
Balance sheet positioned to flexibly consider LT investment opportunities
13th consecutive quarter of year-over-year Adj EBITDA expansion
Comparable adjusted EPS $1.05, +45.8% vs. Q1'25
Maintained Dividend: returning capital to shareholders
Comparable Adjusted EBITDA: $117.9 million // +19.7% vs. Q1'25; 21.9% margin // +310 bps YoY
7
OUR BUSINESSES
LEGACY PRINT BUSINESSES
PAYMENTS & DATA BUSINESSES
CORPORATE
Checks
Promotional
Products
Merchant
Services
B2B
Payments
Data
Corporate
-
-
-
(6.4%)
Drive efficiencies
across shared-service functions
$275.9 million 51.3%
12.5%
24.2%
Secular growth markets
Merchant: Deep vertical expertise
B2B Payments: Software & payments that ease complex customer pain points
Data: Market leader across financial institutions broadening to adjacent verticals
$262.2 million 48.7%
(5.9%) *
32.7%
Reliable cash flows to pay down debt and re-invest in Payments & Data businesses
Large installed base of FIs and SMBs
Q1'26 REVENUE
Rev % of Total DLX
YOY % Rev Growth
Q1'26 ADJUSTED EBITDA MARGIN %
KEY COMPONENTS
8
* On a comparable adjusted basis
Long-term Value Creation Algorithm
Chief Financial Officer
Q1'26 Financial Summary
Comparable Metrics
TOTAL REVENUE
Up 0.3%
versus Q1'25; Comparable adjusted revenue up 2.7%
NET INCOME
Or $0.77 per share on a diluted basis; Up from $14.0M, or $0.31 per share in Q1'25, on lower SG&A and restructuring
Adjusted EBITDA
Increased 19.7%
versus Q1'25
Adj. EBITDA margin
Increased 310 basis points versus Q1'25
Adj. Diluted EPS
Up 45.8%
compared to Q1'25
Merchant Services
Payment Processing &
Reporting
Omnichannel Payments
Terminals & Devices
(in millions)
+7.3%
+25.2%
B2B Payments
Treasury Management
Receivables as a Service
B2B/Digital Payments
Payables as a Service
Fraud & Security
Protection
(in millions)
+4.7%
+29.3%
Data Solutions
Data Driven Marketing
Data Analytics and SMB SaaS Solutions
(in millions)
+26.3%
+15.7%
Adjusted EBITDA margin was 23.4%, in line with full-year low- to mid-20 percent rate outlook
-10.0%
-5.6%
-5.9%
-3.8%
Consumer and
Business Checks
Web Storefront Platform
for Branded Products
Extensive range of
Promotional offerings
Business Essentials
(in millions)
Adjusted EBITDA margin for Q1 26 was 32.7%, up 70 basis points year-over-year, on a comparable adjusted basis on operating efficiencies across core print offerings
Balance Sheet and Cash Flow
(in millions)
(in millions)
For the 12 Months Ended
3/31/2026
12/31/2025
Variance
Net Debt
$1,369.9
$1,392.5
($22.6)
LTM Adjusted EBITDA
$449.2
$431.5
$17.7
Net Debt to Adjusted EBITDA
3.0x
3.2x
For the Quarter Ended
3/31/2026
03/31/2025
Variance
Cash Provided by Operating Activities
$52.7
$50.3
$2.4
Less Capital Expenditures
(25.4)
(26.0)
0.6
Free Cash Flow
$27.3
$24.3
$3.0
2026 Guidance
Declared regular dividend of $0.30 per share
Updated to reflect Safeguard divestiture
Additional modeling assumptions:
Interest expense of approximately $110 million
Adjusted tax rate of 26%
Depreciation and amortization of $140 million, of which acquisition amortization is approximately $40 million
Average outstanding share count of 46.5 million shares
Capital expenditures between $90 and
$100 million
All figures are approximate, and remain subject to, among other things, prevailing macroeconomic conditions including potential tariff impacts, labor supply challenges, inflation, and the impact of other potential changes to the company's portfolio.
Long-term Value Creation Algorithm
Q & A
Vice President,
Strategy & Investor Relations
Disclaimer
Deluxe Corporation published this content on May 06, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 06, 2026 at 10:16 UTC.