$DLX

DELUXE CORP

CIK:0000027996|SEC Filings

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Total revenue	$ 499.3	$ 521.3	$ 1,037.4	$ 1,057.7
Total cost of revenue	(239.7)	(242.0)	(498.4)	(497.4)
Selling, general and administrative expense	(202.1)	(214.5)	(411.5)	(439.8)
Restructuring and integration expense	(1.8)	(4.0)	(5.2)	(11.7)
Gain on sale of businesses and long-lived assets	0.0	0.0	5.1	0.0
Operating income	55.7	60.8	127.4	108.8
Interest expense	(28.0)	(30.9)	(55.6)	(62.2)
Other income, net	2.4	1.8	4.9	4.3
Income before income taxes	30.1	31.7	76.7	50.9
Income tax provision	(10.9)	(9.3)	(21.7)	(14.4)
Net income	19.2	22.4	55.0	36.5
Net income attributable to non-controlling interest	(0.1)	0.0	(0.1)	(0.1)
Net income attributable to Deluxe	19.1	22.4	54.9	36.4
Total comprehensive income	18.5	23.5	53.6	37.5
Total comprehensive income attributable to Deluxe	$ 18.4	$ 23.5	$ 53.5	$ 37.4
Basic earnings per share	$ 0.42	$ 0.50	$ 1.20	$ 0.81
Diluted earnings per share	$ 0.41	$ 0.50	$ 1.18	$ 0.80
Service [Member]
Total revenue	$ 262.3	$ 239.9	$ 539.3	$ 488.0
Total cost of revenue	(153.6)	(137.3)	(314.9)	(283.0)
Product [Member]
Total revenue	237.0	281.4	498.1	569.7
Total cost of revenue	$ (86.1)	$ (104.7)	$ (183.5)	$ (214.4)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net income	$ 55.0	$ 36.5
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of intangibles	60.7	57.6
Depreciation	12.2	11.2
Deferred income taxes	23.9	(9.5)
Amortization of prepaid product discounts	14.9	16.4
Employee share-based compensation expense	13.2	11.6
Operating lease expense	7.1	7.3
Amortization of cloud computing arrangement implementation costs	4.8	8.2
Gain on sale of businesses and long-lived assets	(5.1)	0.0
Other non-cash items, net	11.2	11.4
Changes in assets and liabilities:
Trade accounts receivable	14.2	(6.4)
Inventories and supplies	(2.6)	3.0
Other current and non-current assets	(11.1)	(1.9)
Accounts payable	(11.2)	(2.3)
Prepaid product discount payments	(10.1)	(16.0)
Other accrued and non-current liabilities	(43.2)	(25.7)
Net cash provided by operating activities	133.9	101.4
Cash flows from investing activities:
Purchases of capital assets	(48.0)	(49.3)
Proceeds from company-owned life insurance policy	34.0	0.0
Proceeds from sale of businesses and long-lived assets	10.8	2.0
Other	2.0	3.0
Net cash used by investing activities	(1.2)	(44.3)
Cash flows from financing activities:
Proceeds from issuing long-term debt and swingline loans	325.7	254.8
Payments on long-term debt and swingline loans	(405.1)	(289.1)
Cash dividends paid to shareholders	(29.2)	(28.1)
Holdback payments for acquired assets	(13.0)	(0.5)
Net change in settlement processing obligations	(255.7)	(258.4)
Other	(12.9)	(5.0)
Net cash used by financing activities	(390.2)	(326.3)
Effect of exchange rate change on cash, cash equivalents, restricted cash, and restricted cash equivalents	(1.1)	1.5
Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents	(258.6)	(267.7)
Cash, cash equivalents, restricted cash, and restricted cash equivalents, beginning of year	313.0	309.2
Cash, cash equivalents, restricted cash, and restricted cash equivalents, end of period (Note 3)	$ 54.4	$ 41.5

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Millions	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 34.9	$ 36.9
Trade accounts receivable, net of allowance for credit losses	169.2	187.6
Inventories and supplies, net of reserve	35.5	33.5
Prepaid expenses	32.8	33.3
Revenue in excess of billings	30.3	30.8
Settlement processing assets	17.5	273.6
Other current assets	53.9	70.1
Total current assets	374.1	665.8
Goodwill	1,422.8	1,422.8
Intangibles, net of accumulated amortization of $633.0 and $615.7, respectively	327.8	348.4
Property, plant and equipment, net of accumulated depreciation of $361.4 and $376.0, respectively	141.4	101.0
Operating lease assets	39.4	43.0
Long-term investments	7.8	26.4
Deferred income taxes	1.3	1.8
Other non-current assets	247.8	254.4
Total assets	2,562.4	2,863.6
Current liabilities:
Accounts payable	149.0	161.3
Accrued liabilities	144.6	190.6
Settlement processing obligations	19.3	275.0
Current portion of long-term debt	0.0	16.3
Total current liabilities	312.9	643.2
Long-term debt	1,352.2	1,413.1
Deferred income taxes	50.3	27.0
Finance lease liabilities	75.4	25.8
Operating lease liabilities	36.0	39.8
Other non-current liabilities	27.7	34.0
Commitments and contingencies (Note 12)
Shareholders' equity:
Common shares $1 par value (authorized: 500.0 shares; outstanding: June 30, 2026 - 45.8; December 31, 2025 - 45.0)	45.8	45.0
Additional paid-in capital	139.0	138.0
Retained earnings	542.6	515.9
Accumulated other comprehensive loss	(19.9)	(18.5)
Non-controlling interest	0.4	0.3
Total shareholders' equity	707.9	680.7
Total liabilities and shareholders' equity	$ 2,562.4	$ 2,863.6