Deluxe Corporation Reports $2.12 Billion Revenue for Fiscal Year 2024, Net Income Increases to $52.9 Million

Deluxe Corporation reported a consolidated revenue of $2.12 billion for the fiscal year ending December 31, 2024, a decrease of 3.2% from $2.19 billion in 2023. The decline was primarily attributed to a continuing decrease in order volumes for checks and business forms, as well as the impact of strategic business exits that accounted for a $45 million reduction in revenue. Despite these challenges, the company experienced growth in its data-driven marketing and merchant services segments, which helped to partially offset the overall revenue decline.

Net income for 2024 increased significantly to $52.9 million, up from $26.2 million in the previous year, reflecting the benefits of pricing and cost reduction initiatives. Adjusted EBITDA decreased slightly by 1.2% to $412 million, with an adjusted EBITDA margin of 19.4%, up from 19.0% in 2023. The company noted that the adjusted EBITDA would have increased if not for the impact of business exits, highlighting the effectiveness of its pricing and cost management strategies in a challenging economic environment.

In terms of strategic developments, Deluxe has made significant organizational changes, including a realignment of its business segments effective January 1, 2024, to better reflect its portfolio mix. The company has also exited several non-core businesses over the past three years, including its payroll and human resources services business, which was substantially transitioned to other providers in 2024. These divestitures are part of a broader strategy to focus resources on growth areas, particularly in payments and data solutions.

Operationally, Deluxe reported a total employee headcount of 4,981 as of December 31, 2024, with a notable emphasis on enhancing operational efficiency through its North Star program. This multi-year initiative aims to improve adjusted EBITDA by $80 million and free cash flow by $100 million by 2026. The company has also focused on cross-selling opportunities across its product lines and enhancing its marketing capabilities to drive customer engagement and retention.

Looking ahead, Deluxe anticipates continued challenges from inflationary pressures and a secular decline in check usage, but remains optimistic about its growth trajectory in the payments and data solutions sectors. The company plans to invest between $90 million and $100 million in capital expenditures in 2025, focusing on innovation and scaling its operations. With a strong cash position and available credit, Deluxe is well-positioned to navigate the evolving market landscape while maintaining its commitment to shareholder value through regular dividend payments.