Deluxe (NYSE:DLX) executives said the company closed fiscal 2025 with what they described as strong fourth-quarter and full-year performance, highlighting profit growth, improved cash generation, and continued progress in shifting the business mix toward Payments and Data.
Full-year 2025 results: profit growth and improved cash flow
President and CEO Barry McCarthy said Deluxe delivered “robust growth of all profit metrics,” noting that comparable adjusted EBITDA expanded more than 6% and organic revenue grew 1% for the year. He added that 2025 marked the third consecutive year in which EBITDA grew faster than revenue.
On a non-GAAP basis, Deluxe posted comparable adjusted EBITDA of $431.5 million, up $25 million, or 6.2%, from the prior year. Adjusted EBITDA margin expanded 90 basis points to 20.2%. Comparable adjusted EPS increased 12.6% to $3.67 from $3.26, which Zint attributed primarily to higher operating profits and slightly lower interest expense.
McCarthy and Zint also emphasized accelerated progress on cash generation and the balance sheet. Deluxe generated $175.3 million of free cash flow, up from $100 million in 2024. Zint cited lower cash restructuring spend, improved adjusted EBITDA, working capital efficiency, and lower cash taxes as key contributors. The company reduced net debt by $76.2 million to $1.39 billion and ended the year with net debt to adjusted EBITDA of 3.2x, down from 3.6x a year earlier.
Strategic mix shift: Payments and Data approach parity with Print
McCarthy said Payments and Data rose to 47% of revenue in 2025, up from 43% a year earlier and about 30% in early 2021. He said the company expects Payments and Data to reach revenue parity with Print later in 2026, aligning with Deluxe’s longer-term goal of transforming into a payments and data company.
Management highlighted the Data segment’s growth, with McCarthy calling it a “standout performance” and Zint reporting full-year revenue of $307.3 million, up 31.3% year-over-year. Zint said Data’s adjusted EBITDA was $86.4 million, with a 28.1% margin, and noted margin expansion included “certain volume-related vendor rebates” tied to the company’s North Star program. Fourth-quarter Data revenue was $73 million, down sequentially from Q3 due to seasonality but up 30.6% year-over-year; Q4 adjusted EBITDA rose just over 40% to $17.3 million, with a 23.7% margin.
In Merchant Services, Zint reported full-year revenue of $398.6 million, up 3.8%, and adjusted EBITDA of $85.9 million, up 9.4%, with margin expanding 120 basis points to 21.6%. Fourth-quarter Merchant revenue rose 6.3% to $101.5 million, and Q4 adjusted EBITDA was $22.3 million, representing 22% of revenue. McCarthy said Merchant Services revenue growth improved sequentially through 2025 toward the company’s mid-single-digit outlook, and he pointed to ongoing investments in technology platforms and service model expansion.
For B2B Payments, Zint reported full-year revenue of $290.5 million, up 0.9%, alongside adjusted EBITDA of $64.4 million and a 22.2% margin, reflecting 12.8% adjusted EBITDA growth. Fourth-quarter B2B revenue rose 4.5% to $76.3 million; Q4 adjusted EBITDA increased 29% year-over-year to $18.7 million, with a 24.5% margin.
Print performance and cost discipline
In Print, Zint reported 2025 revenue of $1.14 billion, down 5.7% year-over-year, consistent with what management described as an expected low-to-mid-single-digit secular decline profile. Legacy check revenue declined 1.8% for the year, while printed forms and other business products declined 6.5%. Promotional product solutions declined 15.3% and were described as concentrated in lower-margin, non-core offerings.
Print adjusted EBITDA was $366.9 million, down 2.6%, and segment margin was 32.3%, which Zint said remained consistent with the long-term low-thirties outlook and improved by 100 basis points year-over-year. Fourth-quarter Print revenue declined 3.8% to $284.5 million; Q4 adjusted EBITDA was $92.2 million, for a 32.4% margin.
McCarthy said Deluxe reduced overall SG&A expenses by roughly $40 million in 2025, a year-over-year improvement of more than 4%, and said margin expanded across each segment for both the quarter and full year.
2026 guidance and key assumptions
Management issued full-year 2026 guidance calling for:
- Revenue: $2.11 billion to $2.175 billion (comparable adjusted growth of -1% to +2% versus 2025)
- Adjusted EBITDA: $445 million to $470 million (comparable adjusted growth of 3% to 9%)
- Adjusted EPS: $3.90 to $4.30 (comparable adjusted growth of 6% to 17%)
- Free cash flow: approximately $200 million (14% growth versus 2025)
Segment expectations embedded in the outlook include mid-single-digit Merchant revenue growth, low single-digit B2B growth, mid- to high-single-digit Data growth, and low- to mid-single-digit Print declines. Zint said Merchant margins are expected to reach a mid-20s profile, with B2B, Data, and Print margins generally expected to remain in the low-to-mid-20s range (for B2B and Data) and low-30s range (for Print).
Zint also provided modeling assumptions, including interest expense of approximately $110 million, an adjusted tax rate of 26%, depreciation and amortization of approximately $135 million (including about $45 million of acquisition amortization), an average share count of approximately 46.5 million, and capital expenditures of $90 million to $100 million.
AI initiatives, investments, and shareholder returns
On the Q&A, McCarthy said Deluxe has applied AI across multiple areas of the business and is “not experimenting with it,” citing its use in data-driven marketing campaigns, lockbox operations to improve matching rates, and self-service chatbots across Merchant and B2B, as well as on the company website.
Executives also addressed investment priorities. Zint said the company’s CapEx guidance reflects ongoing organic investment to drive efficiencies and competitiveness. McCarthy said Deluxe completed two small acquisitions, including CheckMatch to support B2B and the purchase of residual commission rights from one of its largest ISO partners within Merchant Services. Zint said the ISO residual purchase is not expected to materially impact Merchant revenue in 2026, but Deluxe expects it to improve segment margins by as much as 200 to 300 basis points.
Deluxe’s board approved a quarterly dividend of $0.30 per share, payable Feb. 23, 2026, to shareholders of record as of Feb. 9, 2026. Management also noted improved credit standing during 2025, including two S&P upgrades and a Fitch outlook move to positive watch, and said material debt maturities align with its 2029 capital structure following a late-2024 refinancing.
About Deluxe (NYSE:DLX)
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.
