Deluxe (NYSE:DLX) Announces Earnings Results

Deluxe (NYSE:DLX) posted its earnings results on Wednesday. The business services provider reported $1.05 earnings per share for the quarter, beating the consensus estimate of $0.91 by $0.14, Briefing.com reports. The company had revenue of $538.10 million for the quarter, compared to analyst estimates of $534.97 million. Deluxe had a net margin of 5.01% and a return on equity of 24.11%. Deluxe’s revenue was up .3% on a year-over-year basis. During the same period in the previous year, the business posted $0.75 EPS. Deluxe updated its FY 2026 guidance to 3.600-4.000 EPS.

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

• Reached the company’s long-term 3x net leverage target three quarters early, with net debt down to $1.37B and year‑over‑year free cash flow growth (~12%), giving management more balance-sheet flexibility.
• Strategic mix shift: combined Payments and Data now account for 51% of revenue, the first time Print is below 50% in Deluxe’s history, marking progress toward a higher‑growth, higher‑margin business mix.
• Profitability and operating leverage were strong in Q1 — adjusted EBITDA up ~19.7% (comparable) with margins expanding ~310 bps and adjusted EPS improving materially (adjusted EPS $1.05 vs. $0.72 prior year).
• Closed the Safeguard divestiture on March 1 and updated 2026 guidance to reflect the exit; management kept free cash flow guidance at ~$200M while guiding revenue to $1.985B–$2.05B (‑1% to +2% comparable).
• Legacy Print pressures persist: print segment comparable adjusted revenue declined ~5.9% year‑over‑year (legacy checks down ~4.4%), indicating ongoing structural declines despite margin improvement.

Deluxe Trading Down 2.6%

Deluxe stock traded down $0.69 during trading on Friday, hitting $26.15. The company had a trading volume of 279,289 shares, compared to its average volume of 455,211. The stock has a market cap of $1.18 billion, a price-to-earnings ratio of 11.18, a price-to-earnings-growth ratio of 0.62 and a beta of 1.33. The company has a current ratio of 1.15, a quick ratio of 0.98 and a debt-to-equity ratio of 1.98. Deluxe has a 1-year low of $13.61 and a 1-year high of $32.07. The company’s 50 day simple moving average is $28.22 and its 200-day simple moving average is $24.52.

Deluxe Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 4.6%. The ex-dividend date is Tuesday, May 19th. Deluxe’s dividend payout ratio (DPR) is 63.83%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of DLX. Strs Ohio purchased a new stake in shares of Deluxe in the 1st quarter valued at $30,000. Raymond James Financial Inc. acquired a new position in Deluxe in the 2nd quarter valued at about $31,000. UMB Bank n.a. increased its stake in Deluxe by 3,597.9% during the fourth quarter. UMB Bank n.a. now owns 1,738 shares of the business services provider’s stock worth $39,000 after purchasing an additional 1,691 shares during the period. Kemnay Advisory Services Inc. purchased a new stake in Deluxe during the fourth quarter worth about $114,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of Deluxe by 476.6% during the second quarter. Tower Research Capital LLC TRC now owns 8,148 shares of the business services provider’s stock worth $130,000 after purchasing an additional 6,735 shares in the last quarter. 93.90% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

DLX has been the topic of a number of recent analyst reports. Weiss Ratings upgraded Deluxe from a “hold (c+)” rating to a “buy (b-)” rating in a report on Tuesday, February 10th. Zacks Research cut Deluxe from a “strong-buy” rating to a “hold” rating in a research note on Friday, April 10th. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy”.

About Deluxe

Deluxe Corporation, founded in 1915 and headquartered in Shoreview, Minnesota, is a provider of integrated business and financial technology solutions. Originally established as a check printing company, Deluxe has evolved its offerings to support small businesses, financial institutions and entrepreneurs with a comprehensive suite of services spanning print, digital and software platforms.

The company’s core business activities include printing checks, forms and promotional materials, as well as delivering digital marketing and customer engagement solutions.