Deluxe (DLX) investor relations material

Executive summary

• Q1 2026 revenue grew 0.3% to $538.1 million, with comparable adjusted revenue up 2.7% year-over-year, driven by Payments and Data segments now representing over 50% of total revenue, offsetting Print declines and the Safeguard divestiture.

• Net income rose to $35.8 million ($0.77/share), up from $14.0 million ($0.31/share) in Q1 2025, reflecting cost management, lower SG&A and restructuring expenses, and a $5.1 million gain from the Safeguard divestiture.

• Adjusted EBITDA increased 19.7% to $117.9 million, with margin expanding to 21.9% from 18.7% year-over-year.

• Achieved 3x net leverage ratio target three quarters ahead of schedule, driven by disciplined execution and debt reduction.

• Closed the divestiture of the Safeguard print business in March 2026, impacting segment mix and guidance.

Financial highlights

• Q1 total revenue was $538.1 million (+0.3% year-over-year); comparable adjusted EPS was $1.05, up 45.8% year-over-year.

• Free cash flow grew 12% year-over-year to $27.3 million; cash from operating activities was $52.7 million.

• Adjusted EBITDA margin rose to 21.9% from 18.7% year-over-year.

• Net debt reduced to $1.37 billion, down $22.6 million from year-end 2025; total debt reduced by $32.3 million.

• Board approved a quarterly dividend of $0.30 per share, payable June 2, 2026.

Outlook and guidance

• 2026 revenue guidance: $1.985–$2.05 billion, reflecting (1%) to +2% comparable adjusted growth.

• Adjusted EBITDA guidance: $430–$455 million, up 4–10% year-over-year.

• Adjusted EPS guidance: $3.60–$4.00, up 9–21% year-over-year.

• Free cash flow guidance unchanged at ~$200 million, 14% growth over 2025.

• Guidance reflects Safeguard divestiture and assumes $110 million interest expense, 26% tax rate, $90–$100 million CapEx, and stable macroeconomic conditions.