Deluxe Corporation Reports Revenue Increase to $536.5 Million and Net Income Growth in Q1 2025

Deluxe Corporation reported its financial results for the first quarter of 2025, revealing a slight increase in total revenue to $536.5 million, up from $535.0 million in the same period last year. The growth was primarily driven by a $13.5 million increase in service revenue, which rose to $248.2 million, while product revenue decreased by $12 million to $288.3 million. The company’s net income also saw a significant increase, rising to $14.0 million from $10.8 million in the prior year, reflecting a 29.7% year-over-year growth. This improvement was attributed to effective pricing strategies, cost management initiatives, and a reduction in restructuring expenses.

In terms of operational metrics, Deluxe's adjusted EBITDA remained stable at approximately $100 million, despite the impact of business exits that reduced EBITDA by $4 million. The adjusted EBITDA margin was reported at 18.7%, nearly unchanged from 18.8% in the previous year. The company noted a 3.8% reduction in selling, general, and administrative expenses, which contributed to the overall profitability. Free cash flow also improved significantly, increasing to $24.3 million from $6.1 million in the first quarter of 2024, driven by enhanced operational efficiencies and lower performance-based employee bonuses.

Deluxe Corporation has been actively pursuing strategic initiatives, including its North Star program aimed at enhancing shareholder value through improved cash flow and reduced debt. The company has successfully completed significant elements of its organizational redesign, which included consolidating roles and optimizing operations. As part of its growth strategy, Deluxe has focused on expanding its data-driven marketing services, which saw a notable revenue increase of 29.3% year-over-year, reaching $77.2 million. However, the Print segment continued to face challenges, with revenue declining by 4% to $291.3 million due to ongoing secular declines in order volumes for checks and business forms.

The company’s balance sheet as of March 31, 2025, showed total assets of $2.57 billion, down from $2.83 billion at the end of 2024, primarily due to a decrease in settlement processing assets. Total liabilities also decreased to $1.95 billion from $2.21 billion, reflecting a reduction in current liabilities. Deluxe maintained a strong liquidity position with $30.3 million in cash and cash equivalents and $368 million available under its revolving credit facility. Looking ahead, Deluxe Corporation anticipates continued focus on growth investments and operational efficiencies, while remaining vigilant to market conditions, including inflationary pressures and potential supply chain disruptions.