Donnelley Financial Solutions (DFIN)
NYSE:DFIN
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Donnelley Financial Solutions
(NYSE:DFIN)
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Rating:64Neutral
Price Target:
$53.00
▲(9.01% Upside)
Action:ReiteratedDate:02/19/26
The score is driven primarily by solid financial stability (strong free cash flow and improved leverage) and a constructive earnings-call outlook emphasizing sustained >30% margin profile and growing recurring software mix. These positives are tempered by weakening bottom-line trends in the financial statements, only neutral-to-mixed technical momentum, and a high P/E valuation that leaves less room for execution missteps (especially given transactional and capital-markets cyclicality).
Positive Factors
Strong free cash flow
Consistent operating cash generation (FCF ~$108M in 2025 and steady OCF historically) provides durable financial flexibility. It supports capex for product development, disciplined buybacks, and cushions against cyclical revenue swings, strengthening long-term execution optionality.
Negative Factors
Multi-year revenue decline
A multi-year downtrend in revenue erodes scale benefits and limits operating leverage over time. Even with margin discipline, sustained top-line softness pressures net income and ROE, requiring consistent SaaS growth to reverse structural declines over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistent operating cash generation (FCF ~$108M in 2025 and steady OCF historically) provides durable financial flexibility. It supports capex for product development, disciplined buybacks, and cushions against cyclical revenue swings, strengthening long-term execution optionality.
Read all positive factors
Donnelley Financial Solutions (DFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.25B
Dividend YieldN/A
Average Volume (3M)279.72K
Price to Earnings (P/E)39.6
Beta (1Y)1.27
Revenue Growth-6.40%
EPS Growth-66.39%
CountryUS
Employees1,800
SectorTechnology
Sector Strength88
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.70
Shares Outstanding25,619,984
10 Day Avg. Volume291,627
30 Day Avg. Volume279,723
Financial Highlights & Ratios
PEG Ratio-0.63
Price to Book (P/B)3.39
Price to Sales (P/S)1.67
P/FCF Ratio11.91
Enterprise Value/Market Cap1.13
Enterprise Value/Revenue1.83
Enterprise Value/Gross Profit2.88
Enterprise Value/Ebitda11.39
Forecast
1Y Price Target
$61.50Price Target Upside26.49% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.42
Revenue Forecast (FY)$781.26M
Donnelley Financial Solutions Business Overview & Revenue Model
Company Description
Donnelley Financial Solutions, Inc. operates as a risk and compliance solutions company worldwide. The company operates through four segments: Capital Markets Software Solutions (CM-SS), Capital Markets Compliance and Communications Management...
How the Company Makes Money
DFIN generates revenue primarily through a combination of software-as-a-service (SaaS) subscriptions and service fees associated with its compliance and regulatory offerings. Key revenue streams include fees from clients for access to its cloud-ba...
Donnelley Financial Solutions Key Performance Indicators (KPIs)
Any
Net Sales by Product
Shows revenue from individual products, helping investors understand product performance and market demand.
Shows revenue from individual products, helping investors understand product performance and market demand.
Data provided by:
The Fly
The FlyDonnelley Financial Solutions Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call highlights strong profitability and margin expansion, meaningful software revenue growth, successful product launches and disciplined capital allocation (notably share repurchases), alongside solid free cash flow and a conservative leverage profile. Offsetting these positives are ongoing secular declines in print and distribution, a multi-year reduction in transactional revenue (despite a Q4 rebound), lumpy growth for some products (Arc Suite) tied to regulatory timing, and exposure to capital markets volatility that could affect near-term transaction-driven sales. Overall the company appears to be structurally more profitable and positioned for sustained recurring revenue growth, but near-term results remain partially dependent on transactional activity and regulatory timing.Positive Updates
Strong Fourth Quarter Revenue Growth
Consolidated Q4 net sales of $172.5M, up $16.2M or 10.4% year-over-year; exceeded the high end of guidance driven by higher software sales and stronger-than-expected capital markets transactional revenue.
Negative Updates
Continued Multi-Year Decline in Transactional Revenue
2025 marked the fourth consecutive year of declining transactional revenue overall; while Q4 transactional revenue rose to $48.6M (+~29% YoY), the broader multi-year decline in transactional revenue remains a structural challenge.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Fourth Quarter Revenue Growth
Consolidated Q4 net sales of $172.5M, up $16.2M or 10.4% year-over-year; exceeded the high end of guidance driven by higher software sales and stronger-than-expected capital markets transactional revenue.
Read all positive updates
Company Guidance
DFIN guided to first-quarter 2026 consolidated net sales of $200 million to $210 million (midpoint $205 million, ~+2% YoY), consolidated adjusted EBITDA margin of 33%–35%, and transactional sales of $45 million–$50 million in Q1 (midpoint roughly flat vs. Q1 2025 and sequentially); for full-year 2026 they budgeted capital spending of $55 million–$60 million (vs. $57.1 million in 2025), expect recurring/reoccurring revenue to approach ~80% of total (with event‑driven ~20%), see print & distribution comprising ~14% of 2025 net sales and continuing to decline, do not expect major SEC rule changes in 2026, expect ArcFlex to ramp revenue beginning in 2027, pursue margins north of 30% over the long term, maintain a disciplined capital allocation posture (about $53.8 million remaining on the $150 million repurchase authorization), and enter 2026 with year‑end 2025 metrics of $171.3 million total debt, $146.8 million non‑GAAP net debt (0.6x leverage), $61 million revolver borrowings and $24.5 million cash on hand.Donnelley Financial Solutions Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
66
Positive
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 767.00M | 781.90M | 797.20M | 833.60M | 993.30M |
| Gross Profit | 486.60M | 484.00M | 463.90M | 463.40M | 580.20M |
| EBITDA | 123.20M | 209.70M | 192.00M | 212.00M | 275.20M |
| Net Income | 32.40M | 92.40M | 82.20M | 102.50M | 145.90M |
Balance Sheet | |||||
| Total Assets | 800.40M | 857.00M | 806.90M | 828.30M | 883.30M |
| Cash, Cash Equivalents and Short-Term Investments | 24.50M | 57.30M | 23.10M | 34.20M | 54.50M |
| Total Debt | 181.80M | 144.40M | 153.10M | 215.90M | 187.20M |
| Total Liabilities | 421.20M | 420.90M | 404.70M | 498.80M | 506.30M |
| Stockholders Equity | 379.20M | 436.10M | 402.20M | 329.50M | 377.00M |
Cash Flow | |||||
| Free Cash Flow | 107.80M | 105.20M | 62.20M | 96.00M | 137.70M |
| Operating Cash Flow | 164.90M | 171.10M | 124.00M | 150.20M | 180.00M |
| Investing Cash Flow | -57.00M | -53.30M | -51.30M | -50.90M | -45.00M |
| Financing Cash Flow | -141.80M | -82.10M | -84.60M | -121.10M | -154.90M |
Donnelley Financial Solutions Technical Analysis
Positive
48.62
Price Trends
47.82
Positive
48.19
Positive
51.61
Negative
Market Momentum
0.17
Negative
52.47
Neutral
64.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DFIN, the sentiment is Positive. The current price of 48.62 is above the 20-day moving average (MA) of 47.51, above the 50-day MA of 47.82, and below the 200-day MA of 51.61, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 64.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DFIN.
Donnelley Financial Solutions Risk Analysis
Donnelley Financial Solutions disclosed 28 risk factors in its most recent earnings report. Donnelley Financial Solutions reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Donnelley Financial Solutions Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.11B | 5.12 | 16.16% | 0.99% | 12.52% | 16.53% | |
74 Outperform | $3.64B | 8.88 | 25.95% | 1.47% | ― | ― | |
73 Outperform | $1.18B | 9.86 | 21.89% | ― | 65.74% | 345.40% | |
64 Neutral | $1.25B | 39.63 | 7.49% | ― | -6.40% | -66.39% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $72.47M | -79.41 | 5.65% | ― | 8.47% | -32.22% | |
50 Neutral | $1.88B | 31.31 | ― | 1.62% | -12.44% | ― |
* Technology Sector Average
DFIN
Donnelley Financial Solutions
48.62
7.47
18.15%
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MRX
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49.94
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31.92%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.