Deluxe 2025 Q3 Earnings Strong Performance with 276% Net Income Surge

Deluxe (DLX) reported Q3 2025 earnings that significantly outperformed expectations. The company’s net income surged 276.5% year-over-year to $33.77 million, while revenue rose 2.2% to $540.25 million. Guidance was raised for the year, with adjusted EPS now projected at $3.45–$3.60, reflecting management’s confidence in sustained momentum.

Revenue

Deluxe’s revenue growth was driven by strong performance in high-margin segments. Merchant Services revenue reached $98 million, while B2B Payments reported $73.1 million. Data Solutions saw a significant jump, contributing $89.2 million, and the Print segment recorded $279.9 million despite a 5.9% decline.

Earnings/Net Income

Earnings per share (EPS) soared 275% to $0.75, and net income surged 276.5% to $33.77 million. This marked a pivotal turnaround, underscoring the company’s ability to leverage operational efficiencies and strategic pricing.

Post-Earnings Price Action Review

The strategy of buying DLX shares on earnings announcements and holding for 30 days has historically yielded robust returns. Over three years, this approach generated a 15.5% cumulative gain, outperforming the S&P 500’s 12.4%. Immediate price jumps, such as a 19.84% surge post-Q3 2025 earnings, highlight market confidence. The 30-day holding period further capitalized on momentum, with a 6.0% rise in the following month. A consistent 5.94% dividend yield and expanding EBITDA margins reinforced investor optimism.

CEO Commentary

Barry McCarthy, President and CEO, emphasized Deluxe’s disciplined execution. “Adjusted EBITDA grew significantly faster than revenue, with margins expanding across all segments,” he stated. McCarthy highlighted the “One Deluxe” model, which has strengthened cross-divisional partnerships, such as the expanded collaboration with Peoples Bank. Cost discipline, including a 7% reduction in SG&A expenses, drove margin expansion, while the shift to payments and data now accounts for 47% of revenue.

Guidance

Deluxe raised its full-year 2025 adjusted EPS guidance to $3.45–$3.60, reflecting 6–10% adjusted growth. Revenue is projected at $2.11–$2.13 billion, with adjusted EBITDA of $425–$435 million. Free cash flow is expected to reach $140–$150 million, supported by debt reduction and operational efficiency.

Additional News

Deluxe announced the acquisition of JPMorgan Chase Bank’s CheckMatch electronic check conveyance service, enhancing its B2B Payments segment. The company also appointed a new sales leader in the ISV space to accelerate growth. Capital allocation priorities remain focused on debt reduction, with a leverage ratio of 3.3x achieved ahead of schedule.