Deluxe: A Strong Finish to 2024 and Bright Prospects for 2025

As we approach the end of 2024, investors are eagerly awaiting Deluxe's fourth quarter and full year results, scheduled to be released on February 5, 2025. The company has had a strong year, marked by consistent earnings growth and robust cash flow momentum. Let's take a closer look at Deluxe's performance in 2024 and what investors can expect in the coming year.



Deluxe's strategic focus on Trusted Payments and Data has paid off in 2024. The company reported a 5.9% decrease in revenue, but this was primarily due to external factors. Comparable adjusted revenue, which excludes the impact of business exits, decreased by only 3.0%. This indicates that the core business is performing relatively well. Additionally, Deluxe's net income improved by 25.0% to $20.5 million, driven by stronger operating results and lower restructuring spend. The company's comparable adjusted EBITDA margin increased by 80 basis points to 19.0%, and its comparable adjusted diluted EPS grew by 4.9% to $0.85.



Deluxe's strong cash flow momentum and operating leverage present across its portfolio indicate that the company is well-positioned to deliver on its full-year growth targets. The company has affirmed its 2024 guidance for adjusted EBITDA, adjusted diluted EPS, and free cash flow, suggesting confidence in its ability to maintain growth throughout the year.

As we look ahead to 2025, investors can expect Deluxe to continue focusing on its Trusted Payments and Data strategy. The company's consistent earnings growth and strong cash flow momentum in the first half of 2024 demonstrate its ability to execute on its strategic priorities. Deluxe's capital allocation priorities, including reduced net debt levels, have contributed to its improved financial performance and outlook for 2025. By maintaining a focus on core capital allocation priorities, Deluxe can continue to enhance its earnings, cash flows, and overall financial flexibility.



In conclusion, Deluxe's strong finish to 2024 and bright prospects for 2025 make it an attractive investment opportunity. The company's strategic focus on Trusted Payments and Data, combined with its strong cash flow momentum and earnings growth, positions it well for continued success. As investors await the company's fourth quarter and full year results, they can have confidence in Deluxe's ability to deliver on its financial objectives and maintain its trajectory towards long-term growth.