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Donnelley Financial Solutions
(NYSE:DFIN)
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Rating:68Neutral
Price Target:
$56.00
▲(16.04% Upside)
Action:Reiterated
Date:07/31/26
DFIN’s score is driven primarily by solid financial stability and strong cash-flow performance (with improving TTM cash conversion) plus constructive price trend strength above major moving averages. This is tempered by a high valuation (elevated P/E with no dividend yield support) and multi-year profitability compression versus prior peaks. The latest earnings call supports the score with positive software-led momentum, margin expansion, and buybacks, while acknowledging ongoing structural print declines and transaction-timing volatility.
Positive Factors
Free Cash Flow Strength
Sustained, improving free cash flow provides durable financial flexibility. Elevated FCF supports reinvestment in software, funds buybacks and deleveraging, and cushions transactional volatility, enabling the company to prioritize higher-return initiatives and maintain liquidity across business cycles.
Negative Factors
Secular Print Decline
A sustained, multi‑year decline in print revenue materially reduces a historical revenue base. Even with software growth, replacing high‑margin, legacy print volumes requires time and investment; the persistent shrinkage pressures top‑line growth and forces ongoing portfolio and cost adjustments.
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Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained, improving free cash flow provides durable financial flexibility. Elevated FCF supports reinvestment in software, funds buybacks and deleveraging, and cushions transactional volatility, enabling the company to prioritize higher-return initiatives and maintain liquidity across business cycles.
Read all positive factors
Donnelley Financial Solutions Key Performance Indicators (KPIs)
Any
Adjusted EBITDA by Segment
Evaluates profitability across business segments, offering insight into operational efficiency and financial health.
Evaluates profitability across business segments, offering insight into operational efficiency and financial health.
Data provided by:
The Fly
The FlyDonnelley Financial Solutions (DFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.16B
Dividend YieldN/A
Average Volume (3M)279.72K
Price to Earnings (P/E)31.5
Beta (1Y)1.35
Revenue Growth2.98%
EPS Growth-48.40%
CountryUS
Employees1,750
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)1.50
Shares Outstanding24,585,382
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$60.00Price Target Upside24.33% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)4.76
Revenue Forecast (FY)$780.63M
Donnelley Financial Solutions Business Overview & Revenue Model
Company Description
Donnelley Financial Solutions (DFIN) is a financial and regulatory compliance software and services company that helps public and private companies manage SEC reporting, financial reporting, and transactions such as IPOs, follow-on offerings, debt...
How the Company Makes Money
DFIN generates revenue primarily by selling software and technology-enabled services that support regulatory filing, compliance, and capital markets workflows. A significant portion comes from subscription-based (SaaS) fees for its cloud platforms...
Donnelley Financial Solutions Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive operational and financial outlook: software-led growth produced record software revenue, stronger gross margins, higher adjusted EBITDA and free cash flow, and a healthy balance sheet with active share repurchases. Headwinds are mostly structural and expected (continued secular decline in print and potential acceleration from proposed SEC E-Delivery rule), plus some near-term expense pressures (higher SG&A, bad debt, incentive compensation) and timing sensitivity in capital markets transactional revenue. On balance the positive momentum in software, margin expansion and cash generation outweigh the challenges, though the company will need to manage ongoing print contraction and regulatory-driven shifts.Positive Updates
Consolidated Revenue Growth
Second quarter net sales of $224.2 million, up $6.1 million or 2.8% year-over-year; third consecutive quarter of consolidated net sales growth. Excluding print and distribution, Q2 net sales increased 6.9% YoY.
Negative Updates
Print and Distribution Decline
Print and distribution net sales declined ~15% YoY (~$6 million) in Q2; long-term secular decline shown by reduction from ~$385 million at spin-off to ~$108 million on a trailing 4-quarter basis (≈72% decline).
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Q2-2026 Updates
Positive
Negative
Consolidated Revenue Growth
Second quarter net sales of $224.2 million, up $6.1 million or 2.8% year-over-year; third consecutive quarter of consolidated net sales growth. Excluding print and distribution, Q2 net sales increased 6.9% YoY.
Read all positive updates
Company Guidance
DFIN guided third-quarter 2026 consolidated net sales of $175.0–$185.0 million (midpoint $180.0M, ~+$5M or ~+3% year‑over‑year), adjusted EBITDA margin of 26%–28% (midpoint ~27%; top end roughly flat to last year’s ~28%), and capital markets transactional revenue of $45.0–$50.0 million (midpoint up ≈$6M versus Q3 last year); management said the guidance assumes growth in software (predominantly ActiveDisclosure and Venue) and higher capital‑markets transaction activity will more than offset a continued decline in print and distribution, with the range largely driven by timing of deal effectiveness.Donnelley Financial Solutions Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 777.50M | 767.00M | 781.90M | 797.20M | 833.60M | 993.30M |
| Gross Profit | 481.90M | 486.60M | 484.00M | 463.90M | 463.40M | 580.20M |
| EBITDA | 129.20M | 123.20M | 209.70M | 192.00M | 212.00M | 275.20M |
| Net Income | 35.20M | 32.40M | 92.40M | 82.20M | 102.50M | 145.90M |
Balance Sheet | ||||||
| Total Assets | 834.30M | 800.40M | 857.00M | 806.90M | 828.30M | 883.30M |
| Cash, Cash Equivalents and Short-Term Investments | 25.30M | 24.50M | 57.30M | 23.10M | 34.20M | 54.50M |
| Total Debt | 211.70M | 181.80M | 144.40M | 153.10M | 215.90M | 187.20M |
| Total Liabilities | 446.90M | 421.20M | 420.90M | 404.70M | 498.80M | 506.30M |
| Stockholders Equity | 387.40M | 379.20M | 436.10M | 402.20M | 329.50M | 377.00M |
Cash Flow | ||||||
| Free Cash Flow | 136.30M | 107.80M | 105.20M | 62.20M | 96.00M | 137.70M |
| Operating Cash Flow | 197.70M | 164.90M | 171.10M | 124.00M | 150.20M | 180.00M |
| Investing Cash Flow | -61.20M | -57.00M | -53.30M | -51.30M | -50.90M | -45.00M |
| Financing Cash Flow | -142.80M | -141.80M | -82.10M | -84.60M | -121.10M | -154.90M |
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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $4.67B | 21.79 | 25.95% | 0.93% | ― | ― | |
68 Neutral | $1.16B | 31.53 | 8.99% | ― | 2.98% | -48.40% | |
68 Neutral | $920.65M | 7.54 | 13.81% | ― | 48.35% | 37.83% | |
67 Neutral | $1.13B | 10.93 | 10.71% | 1.59% | 20.97% | 16.24% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
54 Neutral | $66.73M | -11.70 | -6.18% | ― | -3.91% | -129.85% | |
54 Neutral | $1.67B | 54.34 | -8.69% | 1.79% | -20.87% | -66.62% |
* Technology Sector Average
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Donnelley Financial Solutions Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Donnelley Financial unveils leadership overhaul to drive growth
Positive
May 14, 2026
On May 14, 2026, DFIN announced a leadership overhaul aimed at advancing its sales transformation, appointing veteran financial data executive Ken Napolitano as its first Chief Revenue Officer effective June 1, 2026, and moving Eric Johnson into a...
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.