Deluxe (NYSE:DLX) Issues Quarterly Earnings Results, Beats Expectations By $0.11 EPS

Deluxe (NYSE:DLX) released its quarterly earnings results on Wednesday. The business services provider reported $1.06 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.95 by $0.11, FiscalAI reports. The business had revenue of $553.90 million during the quarter, compared to the consensus estimate of $532.67 million. Deluxe had a return on equity of 23.21% and a net margin of 3.90%. The firm’s quarterly revenue was up 2.5% on a year-over-year basis. During the same period in the previous year, the company posted $1.09 EPS.

Here are the key takeaways from Deluxe’s conference call:

• Deluxe raised its 2026 revenue guidance to $2.13–$2.15 billion and adjusted EBITDA guidance to $470–$480 million, while narrowing adjusted EPS guidance upward to $3.80–$4.00. It affirmed its approximately $200 million free cash flow outlook.
• Payments and Data Solutions reached 57% of revenue, supporting the company’s mix shift toward growth businesses. Data Solutions revenue rose 15.4% to a record $102.9 million, its eighth consecutive quarter of growth above 15%.
• Year-to-date free cash flow increased 40.7% to $134.9 million, and adjusted EBITDA margin expanded 90 basis points year over year. Management said Celero integration is progressing as expected or ahead of schedule, with a $15 million cost-synergy target over 24 months.
• Celero financing lifted net debt to $1.93 billion, up $536.7 million from year-end 2025, with pro forma net leverage of about 3.8 times. The company reiterated its goal of reducing leverage to 3 times or lower by the end of 2028.
• Print revenue declined 3.6% on a comparable adjusted basis, and management expects low- to mid-single-digit declines to continue. B2B Payments’ unusually strong quarterly growth and margins are also expected to moderate toward the company’s low-single-digit growth and mid-20s margin outlook.

Deluxe Price Performance

DLX stock traded down $1.06 during midday trading on Friday, reaching $26.64. The company had a trading volume of 872,943 shares, compared to its average volume of 458,016. Deluxe has a 1-year low of $18.56 and a 1-year high of $32.07. The stock has a 50 day moving average price of $23.40 and a 200-day moving average price of $25.32. The company has a debt-to-equity ratio of 2.02, a current ratio of 1.20 and a quick ratio of 1.08. The company has a market capitalization of $1.22 billion, a price-to-earnings ratio of 14.88, a price-to-earnings-growth ratio of 0.71 and a beta of 1.29.

Deluxe Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Tuesday, November 17th will be given a $0.30 dividend. The ex-dividend date is Tuesday, November 17th. This represents a $1.20 dividend on an annualized basis and a dividend yield of 4.5%. Deluxe’s dividend payout ratio (DPR) is presently 67.04%.

Wall Street Analyst Weigh In

Several analysts have weighed in on the stock. Weiss Ratings upgraded shares of Deluxe from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Thursday, October 8th. Barrington Research initiated coverage on shares of Deluxe in a research report on Tuesday, September 29th. They set an “outperform” rating and a $31.00 target price on the stock. Finally, Wall Street Zen lowered shares of Deluxe from a “buy” rating to a “hold” rating in a research report on Saturday, October 31st. One research analyst has rated the stock with a Strong Buy rating, one has given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $31.00.

About Deluxe

Deluxe Corporation is a provider of payments, marketing and business technology solutions serving small businesses, financial institutions and consumers. The company’s offerings include checks and related forms, business supplies, promotional products, website and digital marketing services, customer relationship management tools, data-driven marketing solutions and payment processing services.

Deluxe also provides receivables management, fraud prevention and other financial technology services designed to help businesses and financial institutions manage transactions and customer relationships.