Deluxe Corporation · NYSE:DLX
Deluxe — Q1 2025 Earnings Presentation
33 slides from Deluxe's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings April 30, 2025 © 2025 Deluxe Corporation
Slide 2: Brian Anderson, Strategy & Investor Relations
Brian Anderson Vice President, Strategy & Investor Relations 2
Slide 3: Today's Presenters
Today’s Presenters Barry McCarthy Chip Zint Brian Anderson President and Senior Vice President and Vice President, Chief Executive Officer Chief Financial Officer Strategy & Investor Relations 3
Slide 4: Cautionary Statement
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 sta
Slide 5: Barry McCarthy
Barry McCarthy President and Chief Executive Officer 5
Slide 6: Q1'25 Financial Highlights
Q1'25 Financial Highlights (in millions) +0.3% +1.4% +29.6% -0.3% +3.4% 6
Slide 7: Q1'25 Highlights
Q1'25 Highlights Strong execution within increasingly volatile macroeconomic conditions 7
Slide 8: Q1'25 Financial Overview
Q1'25 Financial Overview Revenue mix shifting towards Payments and Data 8
Slide 9: Long-term Value Creation Algorithm
Long-term Value Creation Algorithm 9
Slide 10: Chip Zint
Chip Zint Chief Financial Officer 10
Slide 11: Q1'25 Financial Summary
Q1'25 Financial Summary TOTAL REVENUE NET INCOME Adjusted EBITDA Adj. EBITDA margin Adj. Diluted EPS $536.5M $14.0M $100.2M 18.7% $0.75 Up 0.3% Or $0.31 per share Increased 3.4% Increased 40 Up 4.2% versus Q1'24; on a diluted basis; versus Q1'24 basis points compared to Comparable Up from $10.8M in
Slide 12: Merchant Services
Merchant Services Payment Processing & Omnichannel Payments Terminals & Devices Reporting (in millions) +1.3% Adjusted EBITDA margin was 21.9%, down 30 basis points year-over- year on overall channel mix 12
Slide 13: B2B Payments
B2B Payments Treasury Management B2B/Digital Payments Fraud & Security Receivables as a Service Payables as a Service Protection (in millions) +1.2% Adjusted EBITDA margin was 18.9%, down 30 basis points year-over- year 13
Slide 14: Data Solutions
Data Solutions Data Driven Marketing Data Analytics and SMB SaaS Solutions (in millions) +29.3% +32.2% Adjusted EBITDA margin was 25.5%, up 50 basis points year-over-year driven by operating expense management and overall strong revenues 14
Slide 15: Print
Print Consumer and Extensive range of Web Storefront Platform Business Essentials for Branded Products Business Checks Promotional offerings (in millions) -4.0% -0.2% Adjusted EBITDA margin was 31.2%, expanding 120 basis points year-over-year on segment mix and continuing strong operating efficiency
Slide 16: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Net Debt to Adjusted EBITDA Free Cash Flow (in millions) (in millions) For the 12 Months Ended For the Quarter Ended 3/31/2025 12/31/2024 Variance 3/31/2025 03/31/2024 Variance Cash Provided by Net Debt $1,462.3 $1,468.7 ($6.4) $50.3 $26.6 $23.7 Operating Activities LTM A
Slide 17: Capital Structure - Debt maturity ladder
Capital Structure - Debt maturity ladder 17
Slide 18: 2025 Guidance
2025 Guidance Declared regular dividend of $0.30 per share Additional modeling assumptions: ◦ Interest expense of approximately $120 million ◦ Adjusted tax rate of 26% ◦ Depreciation and amortization of $140 million, of which acquisition amortization is approximately $45 million ◦ Average outstandin
Slide 19: Long-term Value Creation Algorithm
Long-term Value Creation Algorithm 19
Slide 20: Questions
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Slide 21: Brian Anderson, Strategy & Investor Relations
Brian Anderson Vice President, Strategy & Investor Relations 21
Slide 22: Upcoming Conferences/Events
Upcoming Conferences/Events 22
Slide 23: Appendix
Appendix dlx
Slide 24: Consolidated Condensed Statements of Income
Consolidated Condensed Statements of Income in millions, except per share amounts (Unaudited) Quarter Ended March 31, 2025 2024 Revenue $536.5 $535.0 Cost of revenue (255.5) (251.5) Gross profit 281.0 283.5 Selling, general and administrative expense (225.2) (234.1) Restructuring and integration exp
Slide 25: Segment Information
Segment Information in millions (Unaudited) Quarter Ended March 31, 2025 2024 Revenue: Merchant Services $97.8 $96.5 B2B Payments 70.2 69.4 Data Solutions 77.2 59.7 Print 291.3 303.4 Business exits(1) — 6.0 Total $536.5 $535.0 Comparable adjusted revenue $536.5 $529.0 Adjusted EBITDA: Merchant Servi
Slide 26: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in millions (Unaudited) Quarter Ended March 31, 2025 2024 Net income $14.0 $10.8 Interest expense 31.3 30.8 Income tax provision 5.3 5.6 Depreciation and amortization expense 35.3 41.7 EBITDA 85.9 88.9 Re
Slide 27: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q1 2025 dollars and shares in millions, except per share amounts (Unaudited) Restructuring Share-based Certain legal Income tax Q1 2025 Acquisition and integration compensation /environmenta impact of Q1 2025 GAAP amortization expens
Slide 28: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q1 2024 dollars and shares in millions, except per share amounts (Unaudited) Acquisition Gain on and Restructuring Share-based Certain legal / sale of Income tax Q1 2024 accelerated and integration compensation environmental business
Slide 29: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EBITDA Margin in millions (Unaudited) Quarter Ended March 31, 2025 2024 Revenue $536.5 $535.0 Business exits — (6.0) Comparable adjusted revenue $536.5 $529.0 Adjusted EBITDA $1
Slide 30: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EPS Outlook (Unaudited) Total Year 2025 Outlook 2024 Actual (in billions) Revenue $2.090 - $2.155 $2.122 Less: Business exits — (0.011) Comparable adjusted revenue $2.090 - $2.1
Slide 31: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Net Debt to Adjusted EBITDA dollars in millions (Unaudited) December 31, March 31, 2025 2024 Total debt $1,492.6 $1,503.1 Cash and cash equivalents (30.3) (34.4) Net debt $1,462.3 $1,468.7 TRAILING 12 MONTHS ADJUSTED EBITDA: 12 Months Ended 12 Months Ended
Slide 32: Reconciliation of GAAP to Non-GAAP Measures
Reconciliation of GAAP to Non-GAAP Measures Free Cash Flow in millions (Unaudited) Quarter Ended March 31, 2025 2024 Net cash provided by operating activities $50.3 $26.6 Purchases of capital assets (26.0) (20.4) Free cash flow $24.3 $6.2 32
Slide 33: deluxe.
deluxe.