Deluxe Corporation recently released its 10-Q report, providing insights into the company's financial performance and operations. Deluxe Corporation offers technology-enabled solutions to small and medium-sized businesses and financial institutions in the United States and Canada. The company operates through four segments: Merchant Services, B2B Payments, Data Solutions, and Print. It provides credit and debit card authorization and payment systems, processing services, treasury management solutions, fraud and security services, data analytics, marketing services, financial institution profitability reporting, and printed personal and business checks.
In the first quarter of 2025, Deluxe Corporation reported consolidated revenue of $536 million, reflecting a $2 million increase compared to the first quarter of 2024. The company's net income also increased by $3 million to $14 million, driven by pricing and cost management actions, reduced restructuring and integration expenses, and growth in its data-driven marketing business. Despite the impact of business exits, the company's adjusted EBITDA remained nearly unchanged at $100 million for each period. However, excluding the impact of business exits, adjusted EBITDA would have increased, driven by pricing and cost management actions and growth in data-driven marketing.
Deluxe Corporation reported an increase in net cash provided by operating activities, which rose by $24 million to $50 million, reflecting the positive impacts of pricing and cost management actions, lower performance-based employee cash bonuses, reduced restructuring and integration spend, and the growth in data-driven marketing. The company's free cash flow also increased by $18 million to $24 million.
The company closely monitors market conditions, including the interest rate environment, inflationary pressures on labor, delivery, and material costs, small business sentiment, and consumer discretionary spending. Deluxe Corporation holds cash and cash equivalents of $30 million and has an additional $368 million available for borrowing under its revolving credit facility as of March 31, 2025. The company anticipates that capital expenditures will be between $90 and $100 million for the full year, as it continues to build scale across its product categories and invest in innovation.
Despite facing challenges such as inflationary pressures and supply chain disruptions, Deluxe Corporation remains focused on its strategy of driving scale and accelerating profit growth. The company aims to enhance shareholder value by accelerating adjusted EBITDA growth, increasing cash flow, reducing debt, and improving its leverage ratio. Additionally, Deluxe Corporation maintains its capital allocation priorities focused on responsible growth investments, debt reduction, and returning capital to shareholders through dividends. As a result of these announcements, the company's shares have moved 2.3% on the market, and are now trading at a price of $15.09. Check out the company's full 10-Q submission here.
