Deluxe — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported revenue increased 2.5% year-over-year to $553.9 million for the third quarter of 2026, compared to $540.2 million in 2025; comparable adjusted revenue increased 9.1% to $553.9 million.
• Net income for the third quarter was $13.0 million, a decline from $33.7 million in 2025, driven by acquisition-related costs and higher interest expense.
• Comparable adjusted EBITDA increased 9.6% to $127.1 million, with an adjusted EBITDA margin of 22.9%, up 10 basis points from the prior year.
• GAAP diluted EPS was $0.28 versus $0.74 in 2025; comparable adjusted diluted EPS improved 1.9% to $1.06.
• Cash from operating activities for the first nine months increased 28.1% to $215.9 million, while free cash flow increased 40.7% to $134.9 million.
• Net debt increased to $1,929.2 million as of September 30, 2026, from $1,392.5 million as of December 31, 2025.

Guidance and Future Outlook:

• Updated full-year 2026 revenue guidance to $2.13 billion to $2.15 billion.
• Updated full-year 2026 adjusted EBITDA guidance to $470 million to $480 million.
• Updated full-year 2026 adjusted diluted EPS guidance to $3.80 to $4.00.
• Affirmed full-year 2026 free cash flow guidance of approximately $200 million.
• Guidance remains subject to macroeconomic conditions, global instability, tariffs, labor supply challenges, inflation, and potential portfolio changes.

Business Segments and Product Lines:

• Revenue across combined Payments and Data segments expanded by over 21%, accelerated by the mid-quarter addition of Celero.
• Merchant Services revenue grew to $135.1 million in Q3 2026 from $98.0 million in 2025; adjusted EBITDA margin was 23.8%.
• B2B Payments revenue increased to $77.3 million in Q3 2026 from $73.1 million in 2025; adjusted EBITDA margin was 29.1%.
• Data Solutions revenue rose to $102.9 million in Q3 2026 from $89.2 million in 2025; adjusted EBITDA margin was 26.8%.
• Print segment revenue decreased to $238.6 million in Q3 2026 from $279.9 million in 2025; adjusted EBITDA margin was 35.3%.
• The Safeguard small business distributor channel was sold in March 2026, impacting prior-year comparable results.

Market and Competitive Landscape:

• The company continues to execute a mix shift towards Payments and Data segments to drive enterprise growth.
• Management notes intense competition and the risk of financial institution consolidation or bank failures reducing potential customers.
• The company processes more than $2 trillion in annual payment volume across millions of small businesses, thousands of financial institutions, and hundreds of consumer brands.

Risks and Challenges:

• Declining demand for checks, check-related products, and business forms remains a structural challenge.
• Risks include integration-related issues from acquisitions, failure to realize anticipated synergies, and potential delays in cost reduction initiatives.
• Exposure to supply chain and labor supply issues, as well as rising interest rates and inflation.
• Potential risks related to security breaches, cyber-attacks, and interruptions to IT systems or website operations.

Management Commentary and Tone:

• CEO Barry McCarthy stated that the mix shift towards Payments and Data accelerated, driving strong overall enterprise growth, and that the company is executing well on Celero integration synergy targets.
• CFO Chip Zint highlighted continued expansion of comparable adjusted EBITDA and year-to-date free cash flow, reflecting focused execution and margin expansion as revenue scales.
• Management affirmed capital allocation discipline, noting that investments are driving continued growth in key profitability metrics and cash generation.

Other Key Points:

• The Board of Directors approved a regular quarterly dividend of $0.30 per share, payable on December 1, 2026, to shareholders of record as of November 17, 2026.
• The company completed the acquisition of Celero mid-quarter, contributing to revenue growth and mix shift.
• Goodwill increased to $1,808.4 million as of September 30, 2026, from $1,422.8 million as of December 31, 2025.
• Total debt increased to $2,004.1 million as of September 30, 2026, from $1,429.4 million as of December 31, 2025.