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Deluxe Corp. (DLX)
NYSE:DLX
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Deluxe
(NYSE:DLX)
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Rating:68Neutral
Price Target:
$29.00
▲(23.14% Upside)
The score is driven most by improving operating performance and strong recent cash generation, though leverage remains a notable financial risk. Technicals are supportive with clear positive trend and momentum, while valuation is attractive on yield and a moderate P/E. Earnings call guidance is constructive on EPS and free cash flow, but tempered by modest revenue growth expectations and continued print headwinds.
Positive Factors
Mix shift to payments & data
A sustained shift toward payments and data increases exposure to higher-growth, higher-margin, and more recurring revenue streams. This structural mix change reduces reliance on legacy print, improving revenue durability, margin carry, and strategic optionality over the next several quarters.
Strong free cash flow generation
Material FCF improvement strengthens the company’s ability to deleverage, fund capex and product investment, and sustain shareholder returns. Reliable cash conversion enhances financial flexibility and lowers refinancing risk, supporting strategic execution over multiple quarters.
Margin expansion and SG&A efficiency
Consistent margin expansion and meaningful SG&A reductions reflect durable operational improvements and better cost discipline. Higher operating leverage makes earnings less sensitive to modest revenue trends, improving profitability resilience during industry headwinds.
Negative Factors
High leverage remains elevated
Elevated leverage constrains strategic flexibility, increases interest expense sensitivity, and limits ability to pursue M&A or absorb shocks. Although deleveraging is underway, maintaining higher debt metrics raises refinancing and covenant risk over the medium term.
Modest and inconsistent revenue growth
Persistent low single-digit topline growth reduces operating leverage benefits and forces reliance on margin gains for EPS growth. Inconsistent revenue trends limit long-term visibility into scale economies and make sustained investment returns more dependent on execution.
Secular decline in legacy print business
Ongoing structural decline in print revenue erodes a large portion of the business and forces growth to come from newer segments. Even with healthy print margins, secular contraction pressures aggregate revenue and increases the burden on payments and data to replace legacy volumes.
Deluxe (DLX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.19B
Dividend Yield5.41%
Average Volume (3M)414.86K
Price to Earnings (P/E)14.1
Beta (1Y)1.23
Revenue Growth-0.94%
EPS Growth47.48%
CountryUS
Employees4,981
SectorIndustrials
Sector Strength72
IndustryAdvertising Agencies
Share Statistics
EPS (TTM)0.96
Shares Outstanding45,007,664
10 Day Avg. Volume658,040
30 Day Avg. Volume414,862
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)1.49
Price to Sales (P/S)0.48
P/FCF Ratio5.80
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue1.25
Enterprise Value/Gross Profit2.35
Enterprise Value/Ebitda7.02
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Deluxe Business Overview & Revenue Model
Company DescriptionDeluxe Corporation provides technology-enabled solutions to enterprises, small businesses, and financial institutions in the United States, Canada, Australia, South America, and Europe. It operates through four segments: Payments, Cloud Solutions, Promotional Solutions, and Checks. The company provides treasury management solutions, including remittance and lockbox processing, remote deposit capture, receivables management, payment processing, and paperless treasury management solutions, as well as payment exchange, and fraud and security services; web hosting and design services, data-driven marketing solutions and hosted solutions, such as digital engagement, logo design, financial institution profitability reporting, and business incorporation services. It also offers business forms, accessories, advertising specialties, promotional apparel, and retail packaging services; and printed personal and business checks. The company was formerly known as Deluxe Check Printers, Incorporated and changed its name to Deluxe Corporation in 1988. Deluxe Corporation was founded in 1915 and is headquartered in Shoreview, Minnesota.
How the Company Makes MoneyDeluxe generates revenue through multiple streams, primarily by offering subscription-based services, transaction fees, and one-time service fees. Key revenue streams include digital marketing solutions, where clients pay for services like SEO, social media management, and content creation. In financial technology, Deluxe earns revenue from transaction processing fees associated with payment solutions and merchant services. Additionally, the company generates income from selling printed products like checks and promotional materials. Strategic partnerships with financial institutions and other service providers enhance its service offerings and customer reach, contributing to its overall earnings.
Deluxe Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial progress: solid adjusted EBITDA and EPS growth, substantial free cash flow generation, successful deleveraging, and a clear strategic shift toward higher-growth payments and data, led by a booming data segment (+31% revenue). However, topline growth remained modest overall, the legacy print business continued to decline (-5.7% revenue) with non-core promotional products underperforming, and the company faces tougher comparables in data later in 2026. On balance, the positive momentum in profitability, cash generation, margin expansion, and mix shift toward payments and data outweighs the remaining revenue challenges and sector headwinds.Q4-2025 Updates
Positive Updates
Adjusted EBITDA Growth and Margin Expansion
Full-year comparable adjusted EBITDA was $431.5M, up $25M or 6.2% year-over-year, with adjusted EBITDA margin expanding to 20.2% (+90 basis points vs. 2024).
EPS and Operating Income Improvement
Full-year comparable adjusted EPS rose to $3.67, up 12.6% from $3.26, and operating income increased by 23% year-over-year; GAAP net income improved to $85.3M ($1.87/sh) from $52.9M ($1.18/sh).
Strong Free Cash Flow and Deleveraging
Generated $175.3M of free cash flow in 2025 (vs. $100M in 2024), reduced net debt by ~$76M to $1,390M, and lowered net debt/adjusted EBITDA leverage to 3.2x (from 3.6x a year ago).
Strategic Mix Shift Toward Payments & Data
Payments and data now represent 47% of total revenue (up ~400 basis points from 43% a year ago). Combined payments & data grew ~12% in Q4 and ~10% for full year, supporting the shift toward higher-growth segments.
Data Segment Outperformance
Data revenue finished at $307.3M, up 31.3% year-over-year. Data adjusted EBITDA grew ~42.8% versus prior year to $86.4M, with a full-year margin of 28.1% and Q4 year-over-year revenue growth of 30.6%.
Merchant Services Momentum
Merchant Services revenue grew to $398.6M (+3.8% YoY), with Q4 merchant revenue at $101.5M (+6.3% YoY). Merchant adjusted EBITDA expanded 9.4% to $85.9M and margins improved ~120 basis points to 21.6% for the year.
Operational Efficiency and SG&A Reduction
SG&A expenses were reduced by roughly $40M in 2025 (an improvement of >4% YoY), contributing to operating leverage and margin expansion across all segments.
Ambitious 2026 Guidance Backed by Cash Flow
2026 guidance: revenue $2,110M–$2,175M (comparable adjusted -1% to +2%), adjusted EBITDA $445M–$470M, adjusted EPS $3.90–$4.30 (+6% to +17% comparable adjusted), and free cash flow ~ $200M (+~14% vs. 2025).
Print Margin Resilience
Although print revenue declined, print adjusted EBITDA finished at $366.9M with margins of 32.3% (expanded ~100 basis points year-over-year), reflecting disciplined mix/pricing actions.
Negative Updates
Overall Revenue Growth Modest
Total full-year revenue was $2,133M, up only 0.5% reported and 1.1% on a comparable adjusted basis versus 2024 — topline growth remains modest despite strong margin and cash flow performance.
Print Revenue Decline and Non-Core Weakness
Print segment revenue declined to $1,140M, down 5.7% YoY. Other promotional product solutions were particularly weak, down 15.3% year-over-year, concentrated in lower-margin, non-core offerings.
B2B Segment Slower Full-Year Growth
B2B payments full-year revenue was $290.5M, growing just 0.9% versus prior year (though Q4 improved to +4.5%). The segment remains in transition toward more recurring digital offerings.
Data Segment Seasonality and Tough Comparables Ahead
Q4 data revenue ($73M) stepped down sequentially from Q3 due to normal seasonality, and management warned of 'monster comps' in H2 2026 that will make sustaining 2025-level growth more difficult.
Leverage Still Above Long-Term Target
Net debt remains $1,390M with leverage at 3.2x—improved but still above the stated long-term target of ≤3.0x (management expects to reach sub-3.0x in H1 2026).
Topline Sensitivity to Macroeconomic Conditions
Management noted persistent macro and peer-group volatility and indicated that continued consumer spending patterns and other macro factors could influence merchant and overall results; guidance assumes stable macro conditions.
Print Secular Decline Continues to Pressure Revenue Mix
Despite margin management, secular declines in print (legacy products and forms) persist and require continued growth from payments & data to offset top-line contraction.
Company Guidance
Management guided 2026 revenue of $2,110M–$2,175M (≈‑1% to +2% comparable adjusted), adjusted EBITDA of $445M–$470M, adjusted EPS of $3.90–$4.30 (≈6%–17% comparable adjusted growth), and free cash flow of ≈$200M (≈14% growth vs. 2025). Segment assumptions: Merchant mid‑single‑digit revenue growth with margins targeting the mid‑20s, B2B low‑single‑digit growth with low‑to‑mid‑20s margins, Data mid‑ to high‑single‑digit growth with low‑to‑mid‑20s margins, and Print a low‑to‑mid‑single‑digit revenue decline with low‑30s margins. Modeling assumptions include interest expense ≈$110M, an adjusted tax rate of 26%, depreciation & amortization ≈$135M (acquisition amortization ≈$45M), an average share count ≈46.5M, and CapEx of $90M–$100M; management expects to reach sub‑3.0x net debt/adjusted EBITDA in H1 2026.Deluxe Financial Statement Overview
Summary
Improving profitability and a strong 2025 cash-flow rebound support the score, but high leverage remains a key constraint and revenue has been uneven despite the 2025 rebound.Income Statement
Revenue has been relatively stable over the last several years, with declines in 2023–2024 followed by a sharp rebound in 2025 (annual revenue growth ~69%). Profitability has improved meaningfully into 2025, with operating margin rising (to ~11.5%) and net margin improving (to ~4.0%) versus very low levels in 2023 (~1.2%). Offsetting these positives, net margins remain modest for the period overall and the revenue trajectory has been uneven, suggesting sensitivity to demand cycles and/or pricing/volume variability.62
Positive
Balance Sheet
Leverage is the key constraint: debt-to-equity remains elevated (roughly ~2.1x in 2025 and higher in prior years), which can limit flexibility and increase earnings sensitivity to financing costs. Equity has improved versus 2023–2024, and return on equity has strengthened in 2025 (~12.5%), reflecting better profitability. Still, the balance sheet profile is best characterized as debt-heavy, with improved returns but ongoing leverage risk.45
Neutral
Cash Flow
Cash generation is a relative strength. Operating cash flow and free cash flow improved materially in 2025 (operating cash flow ~$271M; free cash flow ~$175M) versus 2024, and free cash flow has generally remained positive across the period. Cash conversion improved in 2025 with free cash flow roughly matching net income, supporting debt service capacity. The main weakness is volatility: free cash flow growth swung sharply year-to-year (including declines in 2021–2022), indicating periodic pressure from working capital and/or investment needs.70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.13B | 2.12B | 2.19B | 2.24B | 2.02B |
| Gross Profit | 1.13B | 1.13B | 1.16B | 1.21B | 1.14B |
| EBITDA | 379.00M | 365.32M | 335.14M | 351.38M | 298.12M |
| Net Income | 85.20M | 52.80M | 26.12M | 65.39M | 62.63M |
Balance Sheet | |||||
| Total Assets | 2.87B | 2.83B | 3.08B | 3.08B | 3.07B |
| Cash, Cash Equivalents and Short-Term Investments | 36.90M | 34.40M | 71.96M | 40.44M | 41.23M |
| Total Debt | 1.51B | 1.56B | 1.67B | 1.71B | 1.75B |
| Total Liabilities | 2.18B | 2.21B | 2.48B | 2.47B | 2.50B |
| Stockholders Equity | 683.80M | 620.75M | 604.09M | 603.81M | 574.32M |
Cash Flow | |||||
| Free Cash Flow | 175.30M | 99.89M | 97.62M | 86.90M | 101.68M |
| Operating Cash Flow | 270.60M | 194.28M | 198.37M | 191.50M | 210.82M |
| Investing Cash Flow | -131.70M | -69.84M | -43.30M | -80.30M | -1.07B |
| Financing Cash Flow | -136.80M | -267.25M | -37.68M | -48.60M | 912.96M |
Deluxe Technical Analysis
Positive
23.55
Price Trends
22.53
Positive
20.86
Positive
18.51
Positive
Market Momentum
1.12
Negative
73.19
Negative
88.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DLX, the sentiment is Positive. The current price of 23.55 is below the 20-day moving average (MA) of 24.17, above the 50-day MA of 22.53, and above the 200-day MA of 18.51, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 73.19 is Negative, neither overbought nor oversold. The STOCH value of 88.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DLX.
Deluxe Risk Analysis
Deluxe disclosed 24 risk factors in its most recent earnings report. Deluxe 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
Deluxe Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.01B | 6.44 | 15.37% | ― | 0.32% | 69.78% | |
68 Neutral | $1.19B | 14.10 | 13.07% | 5.41% | -0.94% | 47.48% | |
66 Neutral | $754.23M | 74.11 | 4.55% | ― | 43.12% | ― | |
65 Neutral | $1.52B | 79.14 | 3.80% | ― | 6.76% | 1841.46% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $996.95M | 233.33 | 1.21% | 1.29% | 11.18% | ― | |
42 Neutral | $352.37M | -1.50 | -29.47% | ― | -7.12% | -7.75% |
* Industrials Sector Average
DLX
Deluxe
27.84
6.16
28.40%
STGW
Stagwell
6.07
-0.17
-2.72%
QNST
Quinstreet
13.34
-10.37
-43.74%
CRTO
Criteo SA
19.01
-18.65
-49.52%
EEX
Emerald Expositions Events
5.36
0.89
19.91%
ADV
Advantage Solutions
1.14
-1.48
-56.49%
Deluxe Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Deluxe Amends Financing Agreement to Boost Liquidity
Positive
Dec 17, 2025
On December 15, 2025, Deluxe Receivables LLC, a subsidiary of Deluxe Corporation, amended its Receivables Financing Agreement by increasing the facility limit to $100 million, raising the required capital amount to $17.5 million, and extending the termination date to December 14, 2028. The amendment impacts Deluxe’s operational liquidity and stability, while the fee adjustments tied to the company’s long-term credit ratings aim to reinforce financial positioning and investor confidence.
The most recent analyst rating on (DLX) stock is a Hold with a $20.50 price target. To see the full list of analyst forecasts on Deluxe stock, see the DLX Stock Forecast page.
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.