third quarter 2026
Filed Nov 4, 2026DELUXE REPORTS STRONG THIRD QUARTER 2026 RESULTS INCREASES FULL-YEAR OUTLOOK FOR REVENUE AND ADJUSTED EBITDA
Comparable adjusted revenue increased 9.1% and comparable adjusted EBITDA increased 9.6% to $127.1 million, while GAAP net income declined 61.4% to $13.0 million because acquisition-related costs and higher interest expense offset incremental operating profits.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue, quarter ended September 30GAAP | $553.9M | – | 2.5% |
| Comparable adjusted revenue, quarter ended September 30non-GAAP | $553.9M | – | 9.1% |
| Cost of revenue, quarter ended September 30GAAP | $266.3M | – | – |
| Selling, general and administrative expense, quarter ended September 30GAAP | $226.2M | – | – |
| Restructuring and integration expense, quarter ended September 30GAAP | $8.7M | – | – |
| Operating income, quarter ended September 30GAAP | $52.7M | – | – |
| Interest expense, quarter ended September 30GAAP | $35M | – | – |
| Income before income taxes, quarter ended September 30GAAP | $19.7M | – | – |
| Income tax provision, quarter ended September 30GAAP | $6.7M | – | – |
| Net income, quarter ended September 30GAAP | $13M | – | (61.4%) |
| Net income attributable to Deluxe, quarter ended September 30GAAP | $13M | – | – |
| Diluted earnings per share, quarter ended September 30GAAP | $0.28 | – | (62.2%) |
| Adjusted diluted earnings per share, quarter ended September 30non-GAAP | $1.06 | – | – |
| Comparable adjusted diluted earnings per share, quarter ended September 30non-GAAP | $1.06 | – | 1.9% |
| EBITDA, quarter ended September 30non-GAAP | $100.1M | – | – |
| Adjusted EBITDA, quarter ended September 30non-GAAP | $127.1M | – | – |
| Comparable adjusted EBITDA, quarter ended September 30non-GAAP | $127.1M | – | 9.6% |
| Adjusted EBITDA margin, quarter ended September 30non-GAAP | 22.9 % | – | – |
| Comparable adjusted EBITDA margin, quarter ended September 30non-GAAP | 22.9 % | – | – |
| Revenue, nine months ended September 30GAAP | $1.59B | – | – |
| Comparable adjusted revenue, nine months ended September 30non-GAAP | $1.59B | – | – |
| Operating income, nine months ended September 30GAAP | $180.1M | – | – |
| Net income, nine months ended September 30GAAP | $68M | – | – |
| Diluted earnings per share, nine months ended September 30GAAP | $1.46 | – | – |
| Adjusted diluted earnings per share, nine months ended September 30non-GAAP | $2.99 | – | – |
| Comparable adjusted diluted earnings per share, nine months ended September 30non-GAAP | $2.99 | – | – |
| EBITDA, nine months ended September 30non-GAAP | $305.2M | – | – |
| Adjusted EBITDA, nine months ended September 30non-GAAP | $353.8M | – | – |
| Comparable adjusted EBITDA, nine months ended September 30non-GAAP | $353.8M | – | – |
| Adjusted EBITDA margin, nine months ended September 30non-GAAP | 22.2 % | – | – |
| Comparable adjusted EBITDA margin, nine months ended September 30non-GAAP | 22.2 % | – | – |
| Cash provided by operating activities, nine months ended September 30GAAP | $215.9M | – | 28.1% |
| Free cash flow, nine months ended September 30non-GAAP | $134.9M | – | 40.7% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Merchant Services, quarter ended September 30Not separately disclosed. | $135.1M | – | – |
| B2B Payments, quarter ended September 30Not separately disclosed. | $77.3M | – | – |
| Data Solutions, quarter ended September 30Not separately disclosed. | $102.9M | – | – |
| Print, quarter ended September 30Not separately disclosed. | $238.6M | – | – |
| Merchant Services, nine months ended September 30Not separately disclosed. | $347.5M | – | – |
| B2B Payments, nine months ended September 30Not separately disclosed. | $224.4M | – | – |
| Data Solutions, nine months ended September 30Not separately disclosed. | $282.6M | – | – |
| Print, nine months ended September 30Not separately disclosed. | $736.7M | – | – |
full year 2026 outlook
- Revenue$2.13 to $2.15 billion
- NoteAdjusted EBITDA of $470 to $480 million
- NoteAdjusted diluted EPS of $3.80 to $4.00
- NoteFree cash flow of approximately $200 million
Capital returns
- The Board of Directors approved a regular quarterly dividend of $0.30 per share.
- The dividend will be payable on December 1, 2026, to shareholders of record as of market closing on November 17, 2026.
- Dividends were $43.0 million for the nine months ended September 30, 2026, compared to $41.6 million in 2025.
What drove it
- Comparable adjusted revenue increased 9.1% compared to the prior year, reflecting removal of business exit impacts.
- Revenue across the combined Payments and Data businesses expanded by over 21%, and the addition of Celero mid-quarter further accelerated growth and mix shift progress.
- The comparable measures for 2025 exclude the results of the Safeguard small business distributor channel in the Print segment, which was sold in March 2026, and reflect the post-transaction terms with the buyer.
- Merchant Services adjusted EBITDA margin was 23.8 % versus 20.8 % in the prior-year quarter.
- B2B Payments adjusted EBITDA margin was 29.1 % versus 23.0 % in the prior-year quarter.
- Print adjusted EBITDA margin was 35.3 % versus 33.4 % in the prior-year quarter.
Concerns
- Net income declined to $13.0 million from $33.7 million as acquisition-related costs and higher interest expense offset incremental operating profits from increased revenues.
- GAAP diluted EPS was $0.28 versus $0.74 in 2025.
- Data Solutions adjusted EBITDA was $27.6 million versus $29.1 million, and adjusted EBITDA margin was 26.8 % versus 32.6 %.
- Interest expense was $35.0 million versus $30.5 million in the prior-year quarter.
- Acquisition transaction costs were $9.8 million in the quarter.
- The outlook remains subject to prevailing macroeconomic conditions, global instability, including tariffs, labor supply challenges, inflation, and other potential changes to the company's portfolio.
What to watch
- Execution against Celero integration synergy targets.
- The full-year revenue outlook of $2.13 to $2.15 billion and adjusted EBITDA outlook of $470 to $480 million.
- The full-year adjusted diluted EPS outlook of $3.80 to $4.00 and free cash flow outlook of approximately $200 million.
- The continuing mix shift toward Payments and Data segments.
- Net debt of $1,929.2 million following $642.9 million of payments for acquisitions during the first nine months.
Balance sheet and cash flow
- Cash and cash equivalents were $74.9 million at September 30, 2026, compared to $36.9 million at December 31, 2025.
- Total assets were $3,293.6 million at September 30, 2026, compared to $2,863.6 million at December 31, 2025.
- Current portion of long-term debt was $59.1 million at September 30, 2026, compared to $16.3 million at December 31, 2025.
- Long-term debt was $1,945.0 million at September 30, 2026, compared to $1,413.1 million at December 31, 2025.
- Total debt was $2,004.1 million at September 30, 2026, compared to $1,429.4 million at December 31, 2025.
- Net debt was $1,929.2 million at September 30, 2026, compared to $1,392.5 million at December 31, 2025.
- Shareholders' equity was $717.8 million at September 30, 2026, compared to $680.7 million at December 31, 2025.
- Payments for acquisitions were $642.9 million for the nine months ended September 30, 2026, compared to $12.1 million in 2025.
- Purchases of capital assets were $81.0 million for the nine months ended September 30, 2026, compared to $72.6 million in 2025.
- Net change in debt was $581.1 million for the nine months ended September 30, 2026, compared to $(56.1) million in 2025.
- Total investing activities were $(675.8) million for the nine months ended September 30, 2026, compared to $(76.0) million in 2025.
- Total financing activities were $242.3 million for the nine months ended September 30, 2026, compared to $(339.3) million in 2025.
- Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents was $(218.8) million for the nine months ended September 30, 2026, compared to $(245.6) million in 2025.
Analysis
Deluxe reported quarter revenue of $553.9 million, up 2.5% from $540.2 million. Comparable adjusted revenue was also $553.9 million and increased 9.1% from $507.9 million after removing prior-year business exit impacts. Management attributed the growth profile to an accelerated mix shift toward Payments and Data, stating that combined Payments and Data revenue expanded by over 21% and that Celero was added mid-quarter.
The segment revenue mix showed Merchant Services at $135.1 million, B2B Payments at $77.3 million, Data Solutions at $102.9 million, and Print at $238.6 million. Merchant Services adjusted EBITDA increased to $32.1 million from $20.4 million, while B2B Payments adjusted EBITDA increased to $22.5 million from $16.8 million. Data Solutions adjusted EBITDA declined to $27.6 million from $29.1 million. Print remained the largest revenue segment but reported revenue of $238.6 million versus $279.9 million.
Profitability improved on the comparable adjusted basis. Comparable adjusted EBITDA increased 9.6% to $127.1 million from $116.0 million, and comparable adjusted EBITDA margin was 22.9 % compared with 22.8 %. Adjusted EBITDA margin was 22.9 % versus 22.0 %. Margin gains in Merchant Services, B2B Payments, and Print were offset in part by Data Solutions, where adjusted EBITDA margin was 26.8 % versus 32.6 %.
GAAP results moved in the opposite direction. Operating income was $52.7 million compared with $75.8 million, net income was $13.0 million compared with $33.7 million, and diluted earnings per share was $0.28 compared with $0.74. The company said acquisition-related costs and higher interest expense offset incremental operating profits. Acquisition transaction costs were $9.8 million, while interest expense was $35.0 million compared with $30.5 million. Comparable adjusted diluted EPS nonetheless increased 1.9% to $1.06.
Cash generation strengthened through nine months, with operating cash flow of $215.9 million versus $168.5 million and free cash flow of $134.9 million versus $95.9 million. The company made $642.9 million of acquisition payments and reported net debt of $1,929.2 million at September 30, 2026, versus $1,392.5 million at December 31, 2025. Deluxe updated full-year guidance to revenue of $2.13 to $2.15 billion, adjusted EBITDA of $470 to $480 million, adjusted diluted EPS of $3.80 to $4.00, and free cash flow of approximately $200 million.
Management, verbatim
Our mix shift towards our Payments and Data segments accelerated, driving strong overall enterprise growth during the third quarter. Revenue across our combined Payments and Data businesses expanded by over 21%, as the addition of Celero mid-quarter further accelerated our growth and mix shift progress.
Barry McCarthy, President and CEO of Deluxe
We are executing well on the Celero integration synergy targets, while continuing to expand profit margins and cash flows across the overall enterprise.
Barry McCarthy, President and CEO of Deluxe
Continued expansion of our comparable adjusted EBITDA and year-to-date free cash flow results through the third quarter reflect our focused execution and the ability to expand our margins as revenue scales across our growth segments.
Chip Zint, Senior Vice President and Chief Financial Officer of Deluxe
Not in the filing
stated, not guessed- Previous-release outlook was not provided, so actual performance versus prior guidance is unavailable.
- Gross margin was not reported.
- Quarterly operating cash flow and quarterly free cash flow were not reported.
- Share repurchases were not reported.
- A full-year GAAP net income, GAAP diluted EPS, gross margin, operating expense, and tax-rate outlook were not provided.
- Prior-quarter comparisons were not reported.
- Segment-specific revenue growth rates and segment-specific revenue drivers were not reported.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.