Donnelley Financial Solutions (DFIN) Company Report

DFIN's business is transitioning, with software now just under 50% of revenue, and the company targets 60% of total sales from software solutions by 2028.
EBITDA margins have increased to nearly 30% and are projected to be north of 30% long-term, driven by the shift to software and disciplined cost management.
The company anticipates significant profitability impact from a rebound in capital markets activity, with incremental margins on a potential $100 million revenue increase estimated at 50%-60%.
DFIN launched ArcFlex for the private funds market and a rebuilt Venue data room in the fourth quarter of 2025, while leveraging AI (e.g., Active Intelligence) across its products and operations.

Jan 13, 2026, 1:45 PM

Transcript

Donnelley Financial Solutions Discusses Software Growth, Margin Expansion, and Capital Markets Outlook

DFIN

Product Launch

Guidance Update

New Projects/Investments

Donnelley Financial Solutions (DFIN) helps clients comply with SEC regulations, with its business currently just under 50% software and a long-term target of 60% of total sales from software solutions by 2028.
The company's revenue base is 75% recurring or reoccurring, with event-driven revenue making up 25%. An improvement in capital markets activity, which is currently at historical lows, could lead to 50%-60% incremental margins on increased revenue.
DFIN has improved its EBITDA margins from mid-teens to close to 30%, with a long-term guidance of north of 30%, driven by the shift to software, cost management, and pricing.
DFIN is leveraging artificial intelligence (AI) across its product suite, including Active Intelligence, and for internal efficiencies, viewing it as a tailwind for the business.
New growth initiatives include the ArcFlex offering for the private funds market and a rebuild of the Venue data room product rolled out in Q4 2025.

Jan 13, 2026, 1:45 PM

Transcript

Donnelley Financial Solutions discusses business transformation and growth strategy at Needham Conference

DFIN

New Projects/Investments

Revenue Acceleration/Inflection

Guidance Update

Donnelley Financial Solutions (DFIN) is undergoing a business transformation, with software solutions now comprising just under 50% of revenue and a target to reach 60% of total sales from software by 2028.
The company's revenue base is primarily recurring, with 75% of revenue being recurring or reoccurring. Event-driven transactional revenue is currently below $200 million (approximately $160 million on a trailing basis), which is more than $100 million off its long-term average, offering significant upside potential with 50%-60% incremental margins if capital markets activity improves.
DFIN has significantly improved its EBITDA margins from mid-teens to close to 30%, with a long-term goal of north of 30%, primarily due to the shift towards higher-margin software solutions and disciplined cost management.
Growth opportunities include the recent Q4 2025 rollout of a rebuilt Venue data room and the new ArcFlex offering for the private funds market, alongside leveraging AI for internal efficiencies and product enhancements like Active Intelligence.

Jan 13, 2026, 1:45 PM

Transcript

DFIN Reports Q3 2025 Results and Provides Q4 2025 Outlook

DFIN

Earnings

Guidance Update

Share Buyback

DFIN reported Q3 2025 consolidated net sales of $175.3 million, a 2.3% decrease from Q3 2024, while adjusted EBITDA increased 14.6% to $49.5 million with an adjusted EBITDA margin of 28.2%.
Software solutions net sales grew 10.3% year-over-year, representing approximately 52% of total sales in the quarter, driven by strong demand for products like ActiveDisclosure and ArcSuite.
The company completed the termination of its primary defined benefit pension plan, involving a $12.5 million cash contribution and a non-cash pre-tax settlement charge of $82.8 million, resulting in a $2.20 per diluted share negative EPS impact.
DFIN repurchased approximately 659,000 shares for $35.5 million in Q3 2025, with $114.5 million remaining on its current share repurchase authorization as of September 30, 2025.
For Q4 2025, the company expects consolidated net sales in the range of $150 million to $160 million and adjusted EBITDA margin between 22% and 24%, with the U.S. government shutdown impacting capital markets transactional revenue.

Oct 29, 2025, 1:00 PM

Transcript

DFIN Reports Strong Q3 2025 Adjusted EBITDA and Software Sales Growth

DFIN

Earnings

Share Buyback

Revenue Acceleration/Inflection

DFIN reported Q3 2025 Adjusted EBITDA of $49.5 million, an increase of 14.6% year-over-year, with an Adjusted EBITDA margin of 28.2%, up 410 basis points from Q3 2024.
Software Solutions net sales for Q3 2025 were $90.7 million, representing a 10.3% increase from Q3 2024 and accounting for 51.7% of total net sales. Recurring compliance software products, ActiveDisclosure and Arc Suite, collectively grew approximately 16%.
The company generated $71.7 million in Adjusted Free Cash Flow in Q3 2025, an increase of $4.4 million from Q3 2024.
DFIN repurchased approximately 659,000 shares of common stock for $35.5 million during Q3 2025 at an average price of $53.79 per share. The company's net leverage stood at 0.6x at September 30, 2025.

Oct 29, 2025, 1:00 PM

Presentation

Donnelley Financial Solutions Reports Strong Q3 2025 Software Growth Amidst Government Shutdown Concerns

DFIN

Earnings

Product Launch

Demand Weakening

Donnelley Financial Solutions (DFIN) reported strong Q3 2025 results, with software solutions net sales increasing 10.3% year-over-year to represent approximately 52% of total sales, and adjusted EBITDA growing 14.6% to $49.5 million with a 28.2% margin.
Growth in software was primarily driven by ActiveDisclosure sales increasing approximately 26% and ArcSuite sales increasing approximately 10% in Q3 2025.
The company launched a new Venue virtual data room product and ArcFlex, a new module within ArcSuite, to enhance its software offerings.
The U.S. government shutdown, which began October 1, has delayed capital markets deal activity and is expected to push some M&A transactions into 2026, impacting Q4 2025 performance.

Oct 29, 2025, 1:00 PM

Transcript

DFIN reports Q3 2025 financial results

DFIN

Earnings

Revenue Acceleration/Inflection

Demand Weakening

For Q3 2025, DFIN reported consolidated net sales of $180.0 million, with Adjusted EBITDA reaching $49.4 million and an Adjusted EBITDA margin of 27.4%.
The company generated $61.3 million in Free Cash Flow during Q3 2025.
The Capital Markets Software Solutions segment saw net sales of $59.0 million, an 11% increase in Q3 2025, contributing $20.6 million in Non-GAAP Adjusted EBITDA with a 35% margin.
Conversely, the Capital Markets Compliance & Communications Management segment experienced a 10% decrease in net sales to $57.2 million for Q3 2025, with Non-GAAP Adjusted EBITDA of $19.6 million and a 34% margin.

Oct 29, 2025, 1:00 PM

Presentation

Donnelley Financial Solutions Reports Q3 2025 Results, Launches New Products, and Addresses Government Shutdown Impact

DFIN

Earnings

Product Launch

Guidance Update

Donnelley Financial Solutions reported Q3 2025 net sales of $175.3 million, a 2.3% decrease year-over-year, while software solutions net sales grew approximately 10% and adjusted EBITDA margin expanded to 28.2%.
The company completed the termination of its primary defined benefit pension plan, incurring an $82.8 million non-cash pre-tax settlement charge (negative $2.20 per diluted share after-tax).
DFIN launched a redesigned version of Venue and introduced ArcFlex, a new module for alternative investments within ArcSuite, during Q3 2025.
The ongoing U.S. government shutdown, which began on October 1, is expected to cause a sequential decline of approximately $7 million in Q4 2025 capital markets transactional net sales, with an estimated range of $30 million to $40 million for the quarter.
DFIN is monitoring proposals for reduced SEC reporting frequency, noting its ActiveDisclosure subscription model offers insulation from potential revenue impact as it's based on software delivery, not per-filing.

Oct 29, 2025, 1:00 PM

Transcript

DFIN Reports Third-Quarter 2025 Results

DFIN

Earnings

Guidance Update

Share Buyback

Donnelley Financial Solutions reported a GAAP net loss of $40.9 million, or $1.49 per diluted share, for the third quarter of 2025, primarily driven by an $82.8 million non-cash charge related to a pension plan settlement.
Excluding this and other items, non-GAAP net earnings increased to $23.7 million, or $0.86 per diluted share, and Adjusted EBITDA grew 14.6% to $49.5 million, achieving a 28.2% margin in Q3 2025.
Total net sales for Q3 2025 were $175.3 million, a 2.3% decrease from Q3 2024, though software solutions net sales increased 10.3% to $90.7 million, accounting for 51.7% of total net sales.
The company provided Q4 2025 guidance, expecting total net sales between $150 million and $160 million and an Adjusted EBITDA margin of 22% to 24%.

Oct 29, 2025, 11:00 AM

8-K

Donnelley Financial Solutions Reports Third-Quarter 2025 Results

DFIN

Earnings

Share Buyback

Donnelley Financial Solutions (DFIN) reported a GAAP net loss of $40.9 million, or $1.49 per diluted share, for the third quarter of 2025, largely driven by an $82.8 million non-cash charge from a pension plan settlement.
Despite the GAAP loss, non-GAAP net earnings increased to $23.7 million, or $0.86 per diluted share, in Q3 2025, compared to $14.3 million, or $0.48 per diluted share, in Q3 2024.
Total net sales for Q3 2025 were $175.3 million, a 2.3% decrease year-over-year, though software solutions net sales grew 10.3% to $90.7 million, representing 51.7% of total net sales.
Adjusted EBITDA rose 14.6% to $49.5 million, with an Adjusted EBITDA margin of 28.2% in Q3 2025.
The company repurchased 659,367 shares for approximately $35.5 million during the quarter.