Deluxe Corporation Q1 Earnings: Data Solutions Growth to Decelerate

Deluxe Corporation reported a decent quarter driven by declining restructuring costs and strong growth in data solutions. However, the company expects growth in data solutions to decelerate. The deceleration is expected to occur towards the end of the year.

Deluxe Corporation (DLX) reported a robust first quarter 2025, driven by a decline in restructuring costs and strong growth in its data solutions segment. The company's revenue for the quarter stood at $2.12 billion, a decrease of -3.22% compared to the previous year's $2.19 billion. However, earnings were $52.78 million, an increase of 102.38% [1].

Despite the positive quarter, Deluxe expects growth in data solutions to decelerate towards the end of the year. The company's restructuring expenses fell by around $6 million year-over-year, contributing to a significant increase in net income. This reduction also helped in improving Deluxe's credit rating [2].

The company's strong performance in data solutions was offset by the declining checks business, which put pressure on gross profits. However, the adjusted net income, which adds back restructuring expenses, showed organic growth.

Deluxe's debt remains a concern, with analysts considering it to be substantial. The company's cash position is strong, which should help in managing its debt levels. The company is expected to report its second quarter 2025 results on August 6, 2025.

References:
[1] https://stockanalysis.com/stocks/dlx/
[2] https://seekingalpha.com/article/4802520-deluxe-corporation-growth-in-data-solutions-expected-to-decelerate