Deluxe (NYSE:DLX) Announces Earnings Results

Deluxe (NYSE:DLX) released its quarterly earnings results on Wednesday. The business services provider reported $0.87 EPS for the quarter, beating analysts’ consensus estimates of $0.81 by $0.06, FiscalAI reports. Deluxe had a return on equity of 24.11% and a net margin of 5.01%.The business had revenue of $499.30 million during the quarter, compared to analyst estimates of $486.30 million. During the same quarter in the prior year, the company posted $0.88 EPS. Deluxe’s quarterly revenue was down 4.2% compared to the same quarter last year.

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

• Q2 execution remained strong, with comparable adjusted revenue up 2.6%, adjusted EBITDA up 5.3%, adjusted EPS increasing to $0.87, and adjusted EBITDA margin expanding to 21.8%. Year-to-date free cash flow rose nearly 65% to $85.9 million, supporting $75.2 million of net debt reduction.
• Deluxe closed its Celero acquisition, expanding the merchant-services platform to more than 210,000 merchants and over $70 billion in annual payment volume. Management expects cost synergies and longer-term revenue opportunities, while raising full-year 2026 revenue guidance to $2.095 billion-$2.12 billion and adjusted EBITDA guidance to $455 million-$475 million.
• The payments and data businesses continued to drive the transformation, growing 11% year to date and reaching 52% of revenue. Data Solutions revenue increased 21.4% in Q2, marking more than 15% growth for seven consecutive quarters, while merchant-services revenue grew 6.1%.
• Print remains a declining business, with comparable adjusted revenue down 4.3% in Q2; legacy check revenue fell 1.7% and other print revenue declined 10.1%. Management expects low- to mid-single-digit print revenue declines for the full year, while warning that difficult comparisons could moderate Data Solutions growth in the second half.
• Despite higher revenue and EBITDA guidance from Celero, Deluxe left adjusted EPS guidance at $3.60-$4.00 and free cash flow guidance at approximately $200 million because incremental interest expense, integration costs, and tax effects are expected to offset much of the acquisition’s near-term contribution. The company expects Celero to be EPS-accretive in the first full year after closing and plans to return to approximately 3.0 times net leverage within two years.

Deluxe Stock Down 1.4%

DLX traded down $0.37 during trading on Thursday, reaching $26.25. The stock had a trading volume of 936,871 shares, compared to its average volume of 451,803. The stock’s 50 day moving average is $24.51 and its two-hundred day moving average is $26.10. The company has a current ratio of 1.15, a quick ratio of 1.05 and a debt-to-equity ratio of 1.98. The company has a market capitalization of $1.20 billion, a price-to-earnings ratio of 11.22, a P/E/G ratio of 0.68 and a beta of 1.24. Deluxe has a one year low of $17.07 and a one year high of $32.07.

Deluxe Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Investors of record on Tuesday, August 18th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 4.6%. The ex-dividend date of this dividend is Tuesday, August 18th. Deluxe’s dividend payout ratio is presently 51.28%.

More Deluxe News

Here are the key news stories impacting Deluxe this week:

• Positive Sentiment: Quarterly earnings exceeded expectations. Deluxe reported adjusted earnings of $0.87 per share, above the $0.81 consensus estimate. Revenue reached $499.3 million, also ahead of analyst expectations of approximately $486–$491 million. Deluxe Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: Cash flow improved substantially. Operating cash flow rose nearly 59% year over year to $81.2 million, while capital spending was $22.6 million. Total liabilities declined to $1.51 billion, providing some support amid the company’s high debt burden. Deluxe Corporation Stock Rises on Q2 2026 Earnings
• Positive Sentiment: Deluxe declared a quarterly dividend of $0.30 per share. The dividend is payable September 1 to shareholders of record August 18, representing an annualized yield of approximately 4.5%. The ex-dividend date is August 18.
• Neutral Sentiment: Institutional positioning was mixed. In the latest reported quarter, 115 institutional investors increased their holdings while 101 reduced positions. Goldman Sachs and several other firms added shares, but American Century, Morgan Stanley and State Street also trimmed their stakes. Institutional Holdings Activity
• Negative Sentiment: Underlying operating trends weakened. Revenue declined 4.2% from the prior-year quarter, net income fell 14.4% to $19.2 million, and diluted EPS was reportedly down 18% year over year. Gross profit and operating profit also declined, tempering the positive impact of the earnings and revenue beats.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on DLX shares. Wall Street Zen raised Deluxe from a “buy” rating to a “strong-buy” rating in a research note on Saturday, June 6th. Weiss Ratings lowered Deluxe from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, July 15th. Finally, Zacks Research cut shares of Deluxe from a “strong-buy” rating to a “hold” rating in a report on Friday, April 10th. One analyst has rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has an average rating of “Hold”.

Institutional Trading of Deluxe

A number of hedge funds have recently modified their holdings of DLX. Brooklyn Investment Group bought a new position in shares of Deluxe in the 4th quarter worth about $270,000. State Board of Administration of Florida Retirement System boosted its stake in Deluxe by 22.0% during the fourth quarter. State Board of Administration of Florida Retirement System now owns 15,168 shares of the business services provider’s stock worth $339,000 after acquiring an additional 2,739 shares in the last quarter. Verition Fund Management LLC grew its holdings in Deluxe by 19.4% in the third quarter. Verition Fund Management LLC now owns 13,384 shares of the business services provider’s stock worth $259,000 after purchasing an additional 2,170 shares during the period. Mercer Global Advisors Inc. ADV purchased a new stake in Deluxe in the third quarter worth about $247,000. Finally, Focus Partners Wealth bought a new position in shares of Deluxe during the third quarter valued at approximately $373,000. Institutional investors own 93.90% of the company’s stock.

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.