Executive Summary

Q2 revenue of $521.3M declined 3.1% YoY as management intentionally walked away from low-margin promotional print, but margins expanded and EPS grew; comparable adjusted EBITDA rose 4.6% with margin up 140 bps to 20.4%, and comparable adjusted EPS increased to $0.88 .
Results vs S&P Global consensus: revenue missed ($521.3M vs $526.9M*), while EPS beat ($0.88 vs $0.75*) on disciplined cost execution and mix; full-year revenue, adjusted EBITDA, and adjusted EPS guidance affirmed, free cash flow guidance raised to $130–$150M . Values retrieved from S&P Global*.
Segment performance was mixed: Data Solutions +18.1% revenue with 30.1% margins; Merchant +2.9% revenue with margin +190 bps; B2B +1.1% revenue; Print revenue down 9% but margins held at 32.2% as declines were concentrated in low-margin promo .
CheckMatch acquisition from J.P. Morgan’s Kinexys extends Deluxe Payment Network scale; not material in 2025 but expected to add B2B growth as it scales in 2026+ .

What Went Well and What Went Wrong

What Went Well
- Margin and EPS resilience: “tenth consecutive quarter of year over year comparable adjusted EBITDA growth,” margin +140 bps to just above 20%, comparable adjusted EPS +3.5% to $0.88 .
- Data Solutions momentum: revenue +18.1% and margin +260 bps to 30.1% on strong FI deposit campaigns and expansion into non-FI verticals; “we can actually show [customers] the return” on marketing campaigns .
- Cash and leverage: YTD free cash flow $52.1M (+$34.5M YoY), leverage improved to 3.5x with a path to ~3.3x by YE and <3x next year; FCF guidance raised .
What Went Wrong
- Top-line softness tied to low-margin promo print: Print revenue -9% YoY, driven by branded promo -25.1% and non-renewal of unattractive-margin orders; legacy checks -3.2%, forms/other -7.2% .
- Macro overhang on Merchant: “lingering macroeconomic uncertainty” and “generalized consumer stress” continued to weigh on spending despite sequential improvement .
- B2B cadence: sequential improvement expected, but YoY moderation anticipated in Q3 due to onboarding timing; stronger Q4 exit rate expected .

Financial Results

Overall results by period (oldest → newest):

Metric	Q2 2024	Q4 2024	Q1 2025	Q2 2025
Revenue ($M)	$537.8	$520.5	$536.5	$521.3
Adjusted EBITDA ($M)	$103.4	$103.3	$100.2	$106.5
Adjusted EBITDA Margin (%)	19.2%	19.8%	18.7%	20.4%
GAAP Diluted EPS ($)	$0.46	$0.28	$0.31	$0.50
Comparable Adjusted Diluted EPS ($)	$0.85	$0.84	$0.75	$0.88

Q2 2025 vs S&P Global consensus:

Metric	Q2 2025 Consensus*	Q2 2025 Actual
Revenue ($M)	$526.9*	$521.3
Adjusted/Primary EPS ($)	$0.75*	$0.88

Values retrieved from S&P Global*.

Segment breakdown:

Segment	Q2 2024	Q2 2025
Merchant Services Revenue ($M)	$98.5	$101.4
Merchant Services Adj. EBITDA ($M)	$19.2	$21.7
Merchant Services Adj. EBITDA Margin (%)	19.5%	21.4%
B2B Payments Revenue ($M)	$70.2	$71.0
B2B Payments Adj. EBITDA ($M)	$14.0	$15.6
B2B Payments Adj. EBITDA Margin (%)	19.9%	22.0%
Data Solutions Revenue ($M)	$57.4	$67.8
Data Solutions Adj. EBITDA ($M)	$15.8	$20.4
Data Solutions Adj. EBITDA Margin (%)	27.5%	30.1%
Print Revenue ($M)	$308.8	$281.1
Print Adj. EBITDA ($M)	$93.9	$90.4
Print Adj. EBITDA Margin (%)	30.4%	32.2%

Cash flow and balance sheet KPIs:

KPI	YTD Jun 2024	YTD Jun 2025
Cash from Operations ($M)	$66.2	$101.4
Free Cash Flow ($M)	$17.6	$52.1

KPI	Dec 31, 2024	Jun 30, 2025
Net Debt ($M)	$1,468.7	$1,444.6
Net Debt / Adj. EBITDA (x)	3.6x	3.5x

Dividend declared: $0.30 per share payable 9/2/2025 (record date 8/18/2025) .

Guidance Changes

Metric	Period	Previous Guidance (Q1 2025)	Current Guidance (Q2 2025)	Change
Revenue	FY 2025	$2.090–$2.155B	$2.090–$2.155B	Maintained
Adjusted EBITDA	FY 2025	$415–$435M	$415–$435M	Maintained
Adjusted Diluted EPS	FY 2025	$3.25–$3.55	$3.25–$3.55	Maintained
Free Cash Flow	FY 2025	$120–$140M	$130–$150M	Raised

FY25 modeling assumptions reiterated:

Interest expense ~$122.5M; adjusted tax rate ~26%; D&A ~~$135M (~~$45M acquisition amortization); avg diluted shares ~45.5M; capex $90–$100M .

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
AI/Technology initiatives	Continued platform investment; segment recast underscores Payments/Data focus	Noted execution momentum and S&P ratings upgrade; product innovation cadence implied	Launched DAX AI assistant and reimagined Deluxe.connect developer portal to speed ISV integrations	Improving
Macro/consumer	2024 saw cost control and deleveraging despite macro headwinds	Solid start to 2025 with operating leverage	“Generalized consumer stress” but slightly moderated; macro uncertainty still impacting Merchant	Mixed
Data Solutions performance	FY24 growth and margin expansion	Q1 growth across Payments/Data	+18.1% revenue; strong FI deposit campaigns; non-FI expansion; low double-digit FY growth expected (Q4 comp tough)	Improving
B2B Payments cadence	FY24 B2B normalizing	Q1 low single-digit growth	+1.1% Q2; sequential improvement expected; Q3 moderates YoY on onboarding timing; stronger Q4 exit	Stable
Merchant Services	FY24 mid-single-digit growth and margin ~20%	Q1 low single-digit growth	+2.9% Q2; margin +190 bps; low single-digit FY trajectory; ISV partnerships ramping	Improving
Print trajectory	FY24 low-30s margins	Q1 margin ~31%	Revenue -9% on low-margin promo declines; segment margins held at 32.2%; declines not expected to recur at Q2 rate	Stable margins; revenue down
Capital allocation/leverage	Net debt reduced in 2024; refinancing completed	Debt reduction commitments reiterated	Leverage 3.5x; path to ~3.3x YE and <3x next year; dividend maintained	Improving
Strategic M&A/partnerships	FY24 investments to support growth	Announced new Merchant leader and partnerships	CheckMatch acquisition extends DPN; ISV partnerships (Chargent, SchoolAuction.net, MyKidReports) to embed growth	Improving

Management Commentary

“Our second quarter was highlighted by strong results across each of our core profitability metrics… top line of $521,000,000 was down 2.5%… fully attributable to the low margin promotional portion of Print.”
“We’re affirming our overall full year revenue and earnings guidance and increasing our free cash flow guidance.”
On CheckMatch + DPN: “Consistent with our capital allocation priorities, the CheckMatch product will bolt onto our existing DPN platform… not expected to have a material impact to our 2025 B2B segment results, but… positive impact as it scales across 2026 and beyond.”
CFO: “Comparable adjusted EBITDA was $106.5 million… margins were 20.4%… Q2 comparable adjusted EPS of $0.88… Free cash flow… $52.1 million year to date.”
CFO on guidance: “Revenue of $2,090,000,000 to $2,155,000,000… Adjusted EBITDA of $415,000,000 to $435,000,000… Adjusted EPS of $3.25 to $3.55… increased free cash flow of $130,000,000 to $150,000,000.”

Q&A Highlights

Merchant margin improvement: CEO cited operating efficiency, pricing, and new markets/partnerships; early benefits from new Merchant leader’s initiatives .
Free cash flow drivers: CFO pointed to improved profitability, lower restructuring cash, and working capital execution supporting raised FCF guidance .
Data Solutions durability: CEO emphasized measurable ROI driving client spend; CFO guided to continued momentum in Q3, with Q4 comp headwind and potential YoY decline limited to seasonality .
Print promo softness: CFO reiterated decision to forgo low-margin revenue; impact measured in “a few million” and margins expanded regardless .
CheckMatch synergy: CEO framed network effects—more endpoints increase value—supporting broader B2B payments ambitions and receivables automation cross-sell (Receivables360) .

Estimates Context

Q2 2025 delivered an EPS beat and revenue miss vs S&P Global consensus: $0.88 vs $0.75* and $521.3M vs $526.9M* respectively, consistent with management’s emphasis on profitable growth and mix . Values retrieved from S&P Global*.
FY 2025 Primary EPS consensus sits near the upper end of management’s $3.25–$3.55 range (consensus ~$3.55*), suggesting limited room to raise for EPS absent upside on margins or lower interest expense; free cash flow raise may support higher quality of earnings. Values retrieved from S&P Global*.
Estimate implications: modest top-line trimming (promo print), offset by EPS/EBITDA upward bias from cost discipline and mix; watch Q3 B2B onboarding phasing and Q4 Data Solutions comp headwind .

Key Takeaways for Investors

Quality over quantity: top-line softness was intentional in low-margin promo, while margins and EPS improved—supportive of multiple resiliency on earnings quality .
Catalysts: FCF guidance raised; leverage trending toward ~3.3x by YE; dividend maintained—deleveraging plus cash return could support sentiment .
Growth engines: Data Solutions strength (FI deposit campaigns, non-FI expansion) and improving Merchant trajectory with ISV partnerships (e.g., Chargent) underpin mix shift toward Payments/Data .
Near-term watch items: Q3 B2B onboarding timing (sequential up, YoY moderate), normalization in Print promo declines (management does not expect Q2’s rate to recur), and macro pressures on discretionary spend .
Strategic optionality: CheckMatch integration expands DPN’s network effects and should add a couple of points of B2B growth when fully scaled (2026+); additional bolt-ons possible but capital allocation remains disciplined .
Estimates: Expect sell-side to trim revenue but lift EPS/FCF forecasts given execution on margins and cash conversion; consensus EPS already near high end of guidance . Values retrieved from S&P Global*.
Stock narrative: EPS/FCF beat-and-raise with a credible deleveraging path and Payments/Data momentum vs headline revenue miss should be net constructive; visibility into Q3–Q4 cadence is the key debate .

Additional Context Documents

8-K Q2 2025 earnings release and financials (incl. segment tables, cash flow) .
Q2 2025 earnings call transcript (management commentary, guidance detail, Q&A) .
Q1 2025 8-K (prior quarter baseline, guidance prior state) .
Q4 2024 8-K (two quarters back baseline) .
CheckMatch acquisition press release (strategic direction) .
Q2 press releases on Deluxe.ai “DAX” and developer portal (innovation narrative) .

DELUXE CORP (DLX)·Q2 2025 Earnings Summary