# DELUXE CORP (DLX) Informational only - not investment advice. CIK: 0000027996 SIC: 2780 Blankbooks, Looseleaf Binders & Bookbindg & Relatd Work SIC breadcrumb: [Manufacturing](/division/D/) > [SIC Major Group 27](/major-group/27/) > [SIC 2780 Blankbooks, Looseleaf Binders & Bookbindg & Relatd Work](/industry/2780/) Latest 10-K filed: 2026-02-13 SEC page: https://www.sec.gov/edgar/browse/?CIK=27996 Filing source: https://www.sec.gov/Archives/edgar/data/27996/000002799626000037/dlx-20251231.htm ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2133200000 | USD | 2025 | 2026-02-13 | | Net income | 82100000 | USD | 2025 | 2026-02-13 | | Assets | 2863600000 | USD | 2025 | 2026-02-13 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-13. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000027996.json. Derived margins are computed from the extracted annual SEC facts. | Metric | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | 1,849,062,000 | 1,965,556,000 | 1,998,025,000 | 2,008,715,000 | 1,790,781,000 | 2,022,197,000 | 2,238,010,000 | 2,192,300,000 | 2,121,800,000 | 2,133,200,000 | | Net income | | 229,382,000 | 230,155,000 | 149,630,000 | -223,779,000 | 5,244,000 | 62,633,000 | 65,395,000 | 26,100,000 | 52,800,000 | 82,100,000 | | Operating income | | 366,887,000 | 329,176,000 | 231,221,000 | -188,251,000 | 40,729,000 | 142,154,000 | 169,446,000 | 160,800,000 | 192,200,000 | 232,400,000 | | Gross profit | 1,133,608,000 | 1,181,249,000 | 1,222,849,000 | 1,206,277,000 | 1,195,780,000 | 1,060,010,000 | 1,137,927,000 | 1,205,894,000 | 1,162,683,000 | 1,126,450,000 | | | Diluted EPS | | 4.65 | 4.72 | 3.16 | -5.20 | 0.11 | 1.45 | 1.50 | 0.59 | 1.18 | 1.80 | | Assets | | 2,184,338,000 | 2,208,827,000 | 2,305,096,000 | 1,943,311,000 | 1,842,175,000 | 3,074,384,000 | 3,076,520,000 | 3,080,622,000 | 2,831,000,000 | 2,863,600,000 | | Stockholders' equity | | | 1,015,013,000 | 915,413,000 | 546,979,000 | 513,392,000 | 574,598,000 | 604,200,000 | 604,600,000 | 620,900,000 | 680,700,000 | | Cash and cash equivalents | | 76,574,000 | 59,240,000 | 59,740,000 | 73,620,000 | 123,122,000 | 41,231,000 | 40,435,000 | 72,000,000 | 34,400,000 | 36,900,000 | | Net margin | | 12.41% | 11.71% | 7.49% | -11.14% | 0.29% | 3.10% | 2.92% | 1.19% | 2.49% | 3.85% | | Operating margin | | 19.84% | 16.75% | 11.57% | -9.37% | 2.27% | 7.03% | 7.57% | 7.33% | 9.06% | 10.89% | ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-07. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000027996.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-06-30 | | | 0.50 | reported discrete quarter | | 2022-Q3 | 2022-09-30 | | | 0.34 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.06 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | 571,686,000 | 16,375,000 | 0.37 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 537,844,000 | -7,983,000 | -0.18 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 537,364,000 | 14,976,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 534,955,000 | 10,803,000 | 0.24 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 537,816,000 | 20,459,000 | 0.46 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 528,444,000 | 8,931,000 | 0.20 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 520,546,000 | 12,609,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 536,471,000 | 14,013,000 | 0.31 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 521,262,000 | 22,385,000 | 0.50 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 540,247,000 | 33,729,000 | 0.74 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 535,220,000 | 11,974,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 538,100,000 | 35,800,000 | 0.77 | reported discrete quarter | ## Macro Cross-References - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [DFEDTARU](/indicator/DFEDTARU/): Federal Funds Target Range - Upper Limit - [DFEDTARL](/indicator/DFEDTARL/): Federal Funds Target Range - Lower Limit - [DGS3MO](/indicator/DGS3MO/): Market Yield on U.S. Treasury Securities at 3-Month Constant Maturity - [DGS2](/indicator/DGS2/): Market Yield on U.S. Treasury Securities at 2-Year Constant Maturity - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [DGS30](/indicator/DGS30/): Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity - [T10Y2Y](/indicator/T10Y2Y/): 10-Year Treasury Constant Maturity Minus 2-Year Treasury Constant Maturity - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CPIENGSL](/indicator/CPIENGSL/): Consumer Price Index for All Urban Consumers: Energy - [CUSR0000SAH1](/indicator/CUSR0000SAH1/): Consumer Price Index for All Urban Consumers: Shelter - [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index - [PCEPILFE](/indicator/PCEPILFE/): Personal Consumption Expenditures Excluding Food and Energy: Chain-type Price Index - [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities - [T10YIE](/indicator/T10YIE/): 10-Year Breakeven Inflation Rate - [U6RATE](/indicator/U6RATE/): Total Unemployed, Plus All Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm - [CIVPART](/indicator/CIVPART/): Labor Force Participation Rate - [EMRATIO](/indicator/EMRATIO/): Employment-Population Ratio - [UNEMPLOY](/indicator/UNEMPLOY/): Unemployed - [CE16OV](/indicator/CE16OV/): Employment Level - [ICSA](/indicator/ICSA/): Initial Claims - [JTSJOL](/indicator/JTSJOL/): Job Openings: Total Nonfarm - [JTSQUR](/indicator/JTSQUR/): Quits: Total Nonfarm - [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product - [A191RL1Q225SBEA](/indicator/A191RL1Q225SBEA/): Real Gross Domestic Product: Percent Change from Preceding Period - [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index - [TCU](/indicator/TCU/): Capacity Utilization: Total Index - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [M2SL](/indicator/M2SL/): M2 - [BOPGSTB](/indicator/BOPGSTB/): U.S. International Trade in Goods and Services: Balance - [MSPUS](/indicator/MSPUS/): Median Sales Price of Houses Sold for the United States - [HSN1F](/indicator/HSN1F/): New One Family Houses Sold: United States - [RHORUSQ156N](/indicator/RHORUSQ156N/): Homeownership Rate in the United States - [TTLCONS](/indicator/TTLCONS/): Total Construction Spending: Total Construction in the United States - [RRVRUSQ156N](/indicator/RRVRUSQ156N/): Rental Vacancy Rate in the United States - [TOTALSL](/indicator/TOTALSL/): Total Consumer Credit Owned and Securitized - [REVOLSL](/indicator/REVOLSL/): Revolving Consumer Credit Owned and Securitized - [DRCCLACBS](/indicator/DRCCLACBS/): Delinquency Rate on Credit Card Loans, All Commercial Banks - [GDP](/indicator/GDP/): Gross Domestic Product - [GPDI](/indicator/GPDI/): Gross Private Domestic Investment - [GCE](/indicator/GCE/): Government Consumption Expenditures and Gross Investment - [PCEC](/indicator/PCEC/): Personal Consumption Expenditures - [NETEXP](/indicator/NETEXP/): Net Exports of Goods and Services - [GFDEBTN](/indicator/GFDEBTN/): Federal Debt: Total Public Debt - [GFDEGDQ188S](/indicator/GFDEGDQ188S/): Federal Debt: Total Public Debt as Percent of Gross Domestic Product - [FYFSD](/indicator/FYFSD/): Federal Surplus or Deficit - [FGRECPT](/indicator/FGRECPT/): Federal Government Current Receipts - [FGEXPND](/indicator/FGEXPND/): Federal Government: Current Expenditures - [MANEMP](/indicator/MANEMP/): All Employees, Manufacturing - [USCONS](/indicator/USCONS/): All Employees, Construction - [USTRADE](/indicator/USTRADE/): All Employees, Retail Trade - [USFIRE](/indicator/USFIRE/): All Employees, Financial Activities - [USGOVT](/indicator/USGOVT/): All Employees, Government - [AWHAETP](/indicator/AWHAETP/): Average Weekly Hours of All Employees, Total Private - [DGORDER](/indicator/DGORDER/): Manufacturers' New Orders: Durable Goods - [NEWORDER](/indicator/NEWORDER/): Manufacturers' New Orders: Nondefense Capital Goods Excluding Aircraft - [BUSINV](/indicator/BUSINV/): Total Business Inventories - [EXPGS](/indicator/EXPGS/): Exports of Goods and Services - [IMPGS](/indicator/IMPGS/): Imports of Goods and Services - [IR](/indicator/IR/): Import Price Index (End Use): All Commodities - [PPIFIS](/indicator/PPIFIS/): Producer Price Index by Commodity: Final Demand ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/27996/000002799626000096/dlx-20260331.htm Extracted between Part I Item 2 and the next Item 3/4 or Part II heading after HTML sanitization. Confidence: high Filing date: 2026-05-07 Report date: 2026-03-31 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") provides a comprehensive overview of our financial condition, results of operations, and key factors affecting our performance. The following sections are included: •Executive Overview that discusses what we do and our operating results at a high level; •Consolidated Results of Operations; Restructuring and Integration Expense; and Segment Results that includes a more detailed discussion of our revenue and expenses; •Cash Flows and Liquidity and Capital Resources that discusses key aspects of our cash flows, financial commitments, capital structure, and financial position; and •Critical Accounting Estimates that discusses the accounting policies and estimates that require management to make complex judgments and assumptions and their application can have a material impact on our financial condition and results of operations. Forward-Looking Statements This MD&A discussion contains forward-looking statements that involve risks and uncertainties. Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025 (the "2025 Form 10-K") details known material risks and important information to consider when evaluating our forward-looking statements and is incorporated into this Item 2 of this report on Form 10-Q as if fully stated herein. The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information. Statements using terms such as “should result,” “believe,” “intend,” “plan,” “expect,” “anticipate,” “estimate,” “project,” “outlook,” “forecast,” and similar expressions are intended to indicate forward-looking statements under the Reform Act. Use of Non-GAAP Financial Measures This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). We also present certain non-GAAP financial measures, including free cash flow, net debt, adjusted diluted earnings per share (EPS), consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and consolidated adjusted EBITDA margin. We believe that these non-GAAP financial measures, when reviewed alongside GAAP financial measures, can provide additional insight into our operating performance. Consequently, these measures are also used internally for management reporting. Our non-GAAP measures should not be considered substitutes for GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely solely on any single financial measure. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies and therefore, may not facilitate useful comparisons. Reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Consolidated Results of Operations section. 21 EXECUTIVE OVERVIEW We empower businesses to build stronger customer relationships through a broad range of trusted, technology-enabled solutions designed to facilitate payments, drive growth, and improve operational efficiency. Our comprehensive portfolio includes merchant services solutions, marketing and data analytics, treasury management solutions, and promotional products, as well as customized checks and business forms tailored to our clients' needs. We serve a diverse customer base, including small and medium-sized businesses, financial institutions, and some of the world’s leading consumer brands. In addition, we offer checks and related accessories directly to individual consumers. Our extensive reach, scale, and multi-channel distribution network enable us to deliver innovative solutions and reliable support, positioning us well as a valued partner to our customers. Our Strategy A comprehensive discussion of our strategy is provided in Part I, Item 1 of the 2025 Form 10-K. In the first quarter of 2026, we continued to execute on our strategic priorities of accelerating profitable growth, enhancing operational efficiency, and disciplined capital allocation. Accelerating profitable growth – In March 2026, we completed the divestiture of the Safeguard small business distributor channel within our Print segment, generating $22.8 million of net proceeds. The transaction reduced first quarter 2026 Print revenue by approximately $12.6 million and Print adjusted EBITDA by approximately $1.7 million, and enables greater focus on our core growth businesses and ongoing portfolio optimization. Collectively, our payments and data businesses delivered 12.5% year-over-year revenue growth and a 22.8% increase in adjusted EBITDA in the first quarter of 2026. Enhancing operational efficiency – In the first quarter of 2026, we reduced selling, general and administrative (SG&A) expense by 7.1% year-over-year, reflecting the benefits of our ongoing and prior cost management efforts. Additionally, despite revenue pressures in the Print segment, operational improvements resulted in adjusted EBITDA margin improvement for this segment. These results contributed to year-over-year increases in net income, consolidated adjusted EBITDA, and consolidated adjusted EBITDA margin in the first quarter of 2026. Disciplined capital allocation – We continued to apply our capital allocation framework, working to ensure investments are aligned with our growth objectives and deliver optimal returns. In the first quarter of 2026, net cash provided by operating activities increased by $2.4 million year-over-year, and we reduced total debt by $32.3 million compared to year-end 2025. 2026 Financial Results Highlights of our financial results for the first quarter of 2026 compared to the first quarter of 2025 include: •Consolidated revenue – Increased by $1.6 million to $538.1 million, driven by growth in all three of our payments and data businesses. This growth was partially offset by demand softness for promotional products and the ongoing secular decline in order volumes for checks, business forms, and various business accessories in our Print segment. In addition, our first quarter business exit resulted in a decrease in revenue of approximately $12.6 million. •Net income – Increased by $21.8 million to $35.8 million, primarily reflecting the impact of our cost management and pricing initiatives, as well as lower restructuring and integration expense. Growth in our payments and data businesses further contributed to the improvement. Additionally, during the first quarter of 2026, we recognized a $5.1 million gain from the sale of the Safeguard small business distributor channel within the Print segment, and interest expense decreased $3.6 million year-over-year. These favorable factors were partially offset by the continuing demand softness and secular declines in the Print segment, as well as inflationary pressures impacting material and delivery costs. •Adjusted EBITDA – Increased $17.7 million to $117.9 million, driven by the benefits of our cost management and pricing initiatives and growth in our payments and data businesses. These favorable impacts were partially offset by demand softness and the ongoing secular declines in the Print segment and inflationary cost pressures. In addition, our first quarter business exit resulted in a decrease in adjusted EBITDA of approximately $1.7 million. Adjusted EBITDA margin increased to 21.9% for the first quarter of 2026, compared to 18.7% for the first quarter of 2025. The margin improvement was primarily driven by our cost management and pricing initiatives, partially offset by inflationary pressures and the shift in mix toward our growth businesses. A reconciliation of net income to adjusted EBITDA can be found in the Consolidated Results of Operations section. 22 •Net cash provided by operating activities – Increased by $2.4 million to $52.7 million. The increase was primarily driven by the benefits of our cost management and pricing actions, lower income tax payments due to the impact of federal tax law changes, and lower cash expenditures for restructuring and integration activities. These benefits were partially offset by higher payouts for performance-based employee cash bonuses related to our 2025 performance, timing-related changes in accounts payable, demand softness and continuing secular declines in the Print segment, and inflationary cost pressures. •Free cash flow – Increased by $3.0 million to $27.3 million, reflecting the same factors that drove the increase in net cash provided by operating activities. We continue to reinvest the free cash flow generated by our Print business into our other businesses. Free cash flow is defined as net cash provided by operating activities less purchases of capital assets. A reconciliation of free cash flow to its most directly related GAAP financial measure can be found in the Consolidated Results of Operations section. Recent Market Conditions We continually monitor macroeconomic conditions and other external factors that may affect our business, including interest rates, inflation, small business sentiment, consumer spending trends, and global economic conditions. As of March 31, 2026, 66% of our debt had a weighted-average fixed interest rate of 8.1%, which provides partial insulation from changes in market interest rates. This capital structure helps moderate our exposure to interest rate volatility in a higher‑rate environment, although future changes in rates could still affect our borrowing costs due to our variable-rate debt. Inflationary pressures have continued to affect the broader economy, particularly with respect to logistics, energy, and certain raw material costs. These pressures remain an important external factor influencing our cost structure, pricing dynamics, and customer demand. In response, we implemented targeted price adjustments, particularly within our Print and Merchant Services segments, to help offset increased costs while remaining mindful of customer price sensitivity. We continue to monitor inflation trends closely, including the potential for further cost volatility driven by supply chain disruptions, energy markets, and raw material price fluctuations. Global economic conditions remain uncertain, reflecting ongoing geopolitical unrest and evolving trade policies, treaties, and tariffs. These developments have the potential to disrupt supply chains, increase operating costs, and affect the availability and timing of certain goods and services. In addition, heightened geopolitical tensions have increased cybersecurity and technology‑related risks, reinforcing the importance of continued investments in information security, data protection, and technology resilience. We also closely track trends in small business sentiment and consumer discretionary spending, as these factors influence demand across our portfolio. Our analysis incorporates data from credit card networks, the Federal Reserve, leading economic forecasters, and our proprietary analytics. Recent economic indicators suggest continued pressure on consumer confidence, which has contributed to softer demand trends, particularly within discretionary spending categories. Small business sentiment softened in early 2026 amid higher uncertainty and cost pressures, although underlying demand and employment indicators remained relatively stable. Persistent inflation concerns, uncertainty in the labor market outlook, and trade‑related disruptions may continue to influence our customers’ purchasing behavior. A sustained period of economic uncertainty or a broader slowdown in global economic activity could adversely affect our financial position, results of operatio [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A Extracted between Item 7 and the next Item 7A/8 heading after HTML sanitization. Confidence: high ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") provides a comprehensive overview of our financial condition, results of operations, and key factors affecting our performance. The following sections are included: •Executive Overview that discusses what we do and our operating results at a high level; •Consolidated Results of Operations; Restructuring and Integration Expense; and Segment Results that includes a more detailed discussion of our revenue and expenses; •Cash Flows and Liquidity and Capital Resources that discusses key aspects of our cash flows, financial commitments, capital structure, and financial position; and 25 •Critical Accounting Estimates that discusses the accounting policies and estimates that require management to make complex judgments and assumptions and their application can have a material impact on our financial condition and results of operations. Forward-Looking Statements This MD&A discussion contains forward-looking statements that involve risks and uncertainties. Please refer to Part I, Item 1A, Risk Factors, for a detailed discussion of known material risks and important information to consider when evaluating our forward-looking statements. The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a “safe harbor” for forward-looking statements to encourage companies to provide prospective information. Statements using terms such as “should result,” “believe,” “intend,” “plan,” “expect,” ”anticipate,” “estimate,” “project,” “outlook,” "forecast," and similar expressions are intended to indicate forward-looking statements under the Reform Act. Use of Non-GAAP Financial Measures This MD&A includes financial information prepared in accordance with accounting principles generally accepted in the U.S. ("GAAP"). We also present certain non-GAAP financial measures, including free cash flow, net debt, adjusted diluted earnings per share (EPS), consolidated adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), and consolidated adjusted EBITDA margin. We believe that these non-GAAP financial measures, when reviewed alongside GAAP financial measures, can provide additional insight into our operating performance. Consequently, these measures are also used internally for management reporting. Non-GAAP measures should be considered alongside, but not as substitutes for, GAAP financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed reports in their entirety and not to rely solely on any single financial measure. Our non-GAAP financial measures may not be comparable to similarly titled measures used by other companies and therefore, may not facilitate useful comparisons. Reconciliations of our non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the Consolidated Results of Operations section. Scope of Discussion The following discussion and analysis focuses on our consolidated financial results for the years ended December 31, 2025 and December 31, 2024. For a comparison of results for the years ended December 31, 2024 and December 31, 2023, please refer to Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission (SEC) on February 21, 2025, and is incorporated by reference herein. We encourage you to read this discussion in conjunction with our consolidated financial statements and related notes in Part II, Item 8 of this report, to gain a full understanding of our financial performance and the factors influencing our results. EXECUTIVE OVERVIEW We empower businesses to build stronger customer relationships through a broad range of trusted, technology-enabled solutions designed to facilitate payments, drive growth, and improve operational efficiency. Our comprehensive portfolio includes merchant services solutions, marketing and data analytics, treasury management solutions, and promotional products, as well as customized checks and business forms tailored to our clients’ needs. We serve a diverse customer base, including small and medium-sized businesses, financial institutions, and some of the world’s leading consumer brands. In addition, we offer checks and related accessories directly to individual consumers. Our extensive reach, scale, and multi-channel distribution network enable us to deliver innovative solutions and reliable support, positioning us as a valued partner to our customers. Our Strategy A comprehensive discussion of our strategy is provided in Part I, Item 1 of this report. With our infrastructure modernization largely complete and non-strategic businesses divested, our attention is on growth investments that drive scale and accelerate profit growth ahead of revenue. Our disciplined pricing strategies and rigorous cost management continue to support operational excellence. Over the past three years, we successfully executed our North Star program, a comprehensive, multi-year initiative designed to enhance shareholder value by accelerating adjusted EBITDA growth, increasing cash flow, reducing debt, and improving our leverage ratio. The positive impact of the North Star program is reflected in our 2025 results, with both adjusted EBITDA and adjusted EBITDA margin increasing year-over-year. These improvements were driven in part by a 3.9% reduction in selling, general and administrative (SG&A) expense. Within our Print segment, our continued focus on driving efficiencies contributed to adjusted EBITDA margin improvement in 2025, despite continued revenue pressures in that business. We also 26 achieved a $76.3 million year-over-year increase in net cash provided by operating activities and reduced total debt by $73.7 million from the previous year-end. These results underscore our commitment to disciplined execution and the creation of long-term shareholder value. In August 2025, we acquired certain assets of JPMorgan Chase Bank's CheckMatch electronic check conveyance service business for cash payments totalling $24.6 million, approximately half of which was paid at closing and the remainder due in the first quarter of 2026. This acquisition is expected to enhance our market position and extend the scale of our B2B Payments segment. In February 2026, we entered into an agreement to sell certain assets and liabilities related to the small business distributor channel in our Print segment for approximately $25.0 million, with approximately half paid at closing and the remainder due over the next three years. The sale is expected to close in the first quarter of 2026. 2025 Financial Results Below are highlights of our financial performance for 2025, compared to the prior year. •Consolidated revenue – Increased by $11.4 million to $2.13 billion, including a decrease of $10.8 million attributable to business exits. The increase in revenue was mainly due to growth in our data-driven marketing and merchant services businesses. This growth was partially offset by weaker demand for certain of our promotional products, the ongoing secular decline in order volumes for checks, business forms, and various business accessories, as well as the impact of business exits. •Net income – Increased by $29.3 million to $82.2 million, reflecting the benefits of our pricing strategies and cost management initiatives. The increase also resulted from lower amortization expense, due to accelerated amortization associated with business exits and a trade name intangible asset in 2024, as well as lower acquisition-related amortization in 2025. Restructuring and integration expense also declined, and our data-driven marketing business delivered year-over-year growth, further contributing to the improvement. These positive factors were partially offset by weaker demand for certain promotional products and the continuing secular declines in the Print segment, inflationary pressures on materials and delivery costs, and the loss of earnings from exited businesses. Additionally, in 2024, we recognized a $31.2 million gain from the sale of businesses and long-lived assets, which did not recur in 2025. . •Adjusted EBITDA – Increased $19.4 million to $431.5 million, including the impact of business exits, which drove a $5.6 million decrease year-over-year. The increase in adjusted EBITDA was primarily driven by the benefits of our pricing strategies and cost management initiatives, and growth in data-driven marketing. These positive impacts were partially offset by the weaker demand for certain promotional products, ongoing secular declines in the Print segment, and inflationary cost pressures. Adjusted EBITDA margin increased to 20.2% in 2025, compared to 19.4% in 2024. The margin improvement was primarily driven by our pricing strategies and cost management initiatives, partially offset by inflationary pressures. A reconciliation of net income to adjusted EBITDA can be found in the Consolidated Results of Operations section. •Net cash provided by operating activities – Increased by $76.3 million to $270.6 million. Key contributors included the positive impacts of our pricing and cost management actions, lower income tax payments, mainly from foreign operations, reduced performance-based employee bonus payouts, and lower restructuring and integration expenditures. Additional positive impacts came from growth and volume-based rebates in our data-driven marketing business. These benefits were partially offset by softer demand for certain promotional products, the continuing secular declines in the Print segment, timing variations in accounts receivable and payable, inflationary cost pressures, and the impact of business exits. •Free cash flow – Increased by $75.3 million to $175.3 million, reflecting the same factors that drove the increase in net cash provided by operating activities. We continue to reinvest the free cash flow generated by our Print business into our other businesses. Free cash flow is defined as net cash provided by operating activities less purchases of capital assets. A reconciliation of free cash flow to its comparable GAAP financial measure can be found in the Consolidated Results of Operations section. 27 Recent Market Conditions We continuously monitor macroeconomic factors that may affect our business, including interest rates, inflation, and global economic trends. As of December 31, 2025, 64% of our debt had a weighted-average fixed interest rate of 8.1%, which provides partial insulation against future interest rate volatility. This approach helps us manage exposure to rising borrowing costs and supports our long-term financial stability. Inflationary pressures have persisted throughout the year, impacting key components of our cost structure such as labor, logistics, and raw materials. In response, we have implemented targeted price adjustments, particularly within our Print and Merchant Services segments, to help offset increased costs. We remain vigilant as we navigate ongoing global uncertainties, including geopolitical unrest and changes in trade policies, treaties, and tariffs, which have the potential to disrupt supply chains and further elevate costs. To mitigate these risks, we actively manage our supplier relationships, monitor inventory levels, and leverage our purchasing power to minimize potential disruptions. Additionally, ongoing geopolitical unrest has heightened cybersecurity and technology risks, reinforcing our commitment to continued investment in cybersecurity measures and technology infrastructure to safeguard our operations. We also closely track trends in small business sentiment and consumer discretionary spending, as these factors directly influence demand across our portfolio. Our analysis incorporates data from credit card networks, the Federal Reserve, leading economic forecasters, and our proprietary analytics. Recent indicators point to soft consumer confidence, which has contributed to weaker demand, particularly in discretionary categories such as promotional merchandise. This trend persisted throughout 2025, driven by persistent inflation worries, job insecurity, and the impact of new tariffs. Additionally, we monitor external factors that may affect our customers’ purchasing power, including potential global trade disruptions and geopolitical events. Prolonged economic uncertainty or a downturn in the global economy could adversely affect our financial position, results of operations, and future growth prospects. Liquidity As of December 31, 2025, we held cash and cash equivalents of $36.9 million, along with an additional $379.6 million available for borrowing under our revolving credit facility. We anticipate that capital expenditures will be between $90.0 and $100.0 million in 2026, compared to $95.3 million in 2025, as we continue to invest in innovation and scale our product offerings. Our capital allocation priorities remain focused on responsible growth investments, debt reduction, and returning capital to shareholders through dividends, which are subject to quarterly approval by our board of directors. We believe that net cash generated by operations, together with our cash and cash equivalents on hand and available credit, will be sufficient to meet our operating needs, contractual obligations, and debt service requirements over the next 12 months. This assessment takes into account our working capital position and anticipated cash flows. We regularly monitor our liquidity position in light of potential risks, including market volatility, interest rate fluctuations, and macroeconomic uncertainty, and we are prepared to adjust our capital allocation strategy as needed. As of December 31, 2025, we were in compliance with our debt covenants. Additional information regarding our long-term capital requirements and debt maturities can be found in the Cash Flows and Liquidity and Capital Resources sections. CONSOLIDATED RESULTS OF OPERATIONS Consolidated Revenue (in millions) 2025 2024 Change Total revenue $ 2,133.2  $ 2,121.8  0.5% Total revenue increased in 2025 compared to 2024, including the impact of business exits, which reduced revenue by $10.8 million. The increase in revenue was driven by robust demand for our data-driven marketing services, particularly from financial institutions, which contributed a $73.5 million year-over-year improvement. Strategic price increases implemented in response to inflation, particularly within our Print and Merchant Services segments, also supported revenue growth. These positive factors were partially offset by softer demand for certain promotional products, the continued secular decline in order volumes for checks, business forms, and various business accessories, as well as the impact of business exits. 28 We do not manage our business based on product versus service revenue. Instead, we analyze our revenue based on the product and service offerings shown under the caption "Note 15: Business Segment Information" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. Our revenue mix by business segment was as follows: 2025 2024 Merchant Services 18.7 % 18.1 % B2B Payments 13.6 % 13.6 % Data Solutions 14.4 % 11.0 % Print 53.3 % 56.8 % All other — 0.5 % Total revenue 100.0 % 100.0 % Consolidated Cost of Revenue (in millions) 2025 2024 Change Total cost of revenue $ 1,002.5  $ 995.3  0.7% Total cost of revenue as a percentage of total revenue 47.0 % 46.9 % 0.1 pt. Cost of revenue primarily includes raw materials for product manufacturing, shipping and handling, third-party costs for outsourced products and services, payroll and related expenses, information technology costs, depreciation and amortization of production and digital assets, residuals paid to independent sales organization (ISOs), and related overhead. Total cost of revenue increased in 2025 compared to 2024, primarily due to the revenue growth in our data-driven marketing business and ongoing inflationary pressures on materials and delivery costs. These increases were partially offset by softer demand for certain promotional products and the continued secular decline in checks, business forms, and various business accessories in our Print segment. Our cost management initiatives, including volume-based rebates in Data Solutions, also helped mitigate some of the cost increases. Additionally, business exits reduced costs by approximately $11.0 million, including the impact of accelerated amortization expense recognized in 2024. As a percentage of total revenue, total cost of revenue remained relatively flat in 2025 compared to 2024. Inflationary pressures on our cost structure and a shift in revenue mix toward our lower-margin growth businesses were offset by the benefits of our pricing strategies and cost management actions, as well as the absence of accelerated amortization expense recognized in the prior year. Consolidated SG&A Expense (in millions) 2025 2024 Change SG&A expense $ 873.3  $ 909.2  (3.9%) SG&A expense as a percentage of total revenue 40.9 % 42.9 % (2.0) pt. SG&A expense decreased in 2025 compared to 2024, primarily as a result of our ongoing cost management initiatives. These included workforce adjustments across multiple functions and the optimization of our marketing and sourcing strategies. Amortization expense also declined, reflecting accelerated amortization expense recognized in 2024 related to a trade name intangible asset, as well as lower acquisition-related amortization expense in 2025. Additionally, bad debt expense decreased $6.7 million year-over-year, mainly within the Print segment, and commission expense declined due to lower Print revenue volumes. These reductions were partially offset by increased medical costs in our Corporate operations, attributable to higher-cost claims that are expected to occur periodically as part of our self-insurance plan. As a percentage of total revenue, SG&A expense decreased in 2025 compared to 2024, reflecting the impact of our cost management actions and lower amortization and bad debt expense, partially offset by the increase in medical costs. 29 Restructuring and Integration Expense (in millions) 2025 2024 Change Restructuring and integration expense $ 19.3  $ 48.6  (60.3%) We are actively pursuing initiatives aimed at aligning our business with our growth strategy and enhancing operational efficiency. As we implement these initiatives, the amount of restructuring and integration expense is expected to fluctuate from period to period. Further information regarding these costs can be found in the Restructuring and Integration Expense section. Asset Impairment Charges (in millions) 2025 2024 Change Asset impairment charges $ 5.7  $ 7.7  (26.0%) During 2025, we recognized an asset impairment charge related to our decision to exit a joint venture that was established to develop and market a business payment distribution technology platform. During 2024, we recorded goodwill impairment charges associated with our exit from the payroll and human resources services business. Additional details regarding these charges can be found under the caption "Note 6: Acquisition and Divestitures" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. Gain on Sale of Businesses and Long-Lived Assets (in millions) 2025 2024 Change Gain on sale of businesses and long-lived assets $ —  $ 31.2  (100.0%) In 2024, the income recognized was primarily associated with our exit from the payroll and human resources services business, a process that was substantially completed during 2024. Further information can be found under the caption "Note 6: Acquisition and Divestitures" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. Interest Expense (in millions) 2025 2024 Change Interest expense $ 122.0  $ 123.3  (1.1%) Weighted-average debt outstanding 1,510.0  1,584.5  (4.7%) Weighted-average interest rate 7.53 % 7.15 % 0.38 pt. Interest expense decreased in 2025 compared to 2024, primarily due to a reduction in average debt outstanding, which outweighed the effect of higher interest rates. Additionally, interest expense in 2024 included a $1.7 million charge related to the retirement of debt as part of our fourth quarter debt refinancing, which did not recur in 2025. Further information regarding the debt refinancing can be found under the caption "Note 12: Debt" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. As of December 31, 2025, our exposure to variable-rate debt remains a key consideration for future interest expense. Based on the amount of variable-rate debt outstanding as of December 31, 2025, a one percentage point change in the weighted-average interest rate would result in a $5.0 million impact on interest expense in 2026. Income Tax Provision (in millions) 2025 2024 Change Income tax provision $ 36.9  $ 23.6  56.4% Effective tax rate 31.0 % 30.8 % 0.2 pt. The effective income tax rate remained consistent in 2025 compared to 2024. In 2025, we experienced lower tax impacts associated with our foreign operations and expense recognized for valuation allowances in 2024. These favorable items were offset by the tax effects related to the surrender of company-owned life insurance policies during 2025, as well as an increase in 30 our effective state income tax rate. Additional details regarding our income tax provision, including a detailed breakdown of the components of our effective income tax rates, can be found under the caption "Note 9: Income Taxes" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. Net Income, Diluted EPS, and Adjusted Diluted EPS (in millions, except per share amounts) 2025 2024 Change Net income $ 82.2  $ 52.9  55.4% Diluted EPS 1.80  1.18  52.5% Adjusted diluted EPS 3.61  3.29  9.7% Net income and diluted EPS increased in 2025 compared to 2024, reflecting the combined impact of the factors discussed above. Adjusted diluted EPS also increased year-over-year, primarily driven by the benefits of our pricing strategies and cost management actions, strong growth in our data-driven marketing business, and a reduction in bad debt expense. These positive impacts were partially offset by softer demand for certain promotional products and the ongoing secular declines in our Print segment, inflationary pressures on our cost structure, and higher medical costs. In addition, business exits drove a $0.03 per share decrease year-over-year. A reconciliation of net income to adjusted net income, as used in the calculation of adjusted diluted EPS, can be found in the following section. Reconciliation of Non-GAAP Financial Measures Free cash flow – We define free cash flow as net cash provided by operating activities minus purchases of capital assets. We believe free cash flow is useful to both management and investors, as it provides a consistent metric for comparing the cash-generating ability of our operations across periods. It also offers insight into the cash available to support dividends, debt reduction (both mandatory and discretionary), acquisitions, other strategic investments, and share repurchases. However, free cash flow has certain limitations. Not all free cash flow is available for discretionary spending, as we may have mandatory debt repayments and other contractual or regulatory cash requirements that must be satisfied. Despite this limitation, we believe free cash flow is a valuable supplemental measure for evaluating our financial flexibility and our ability to pursue growth opportunities and return capital to shareholders. Net cash provided by operating activities for the years ended December 31 reconciles to free cash flow as follows: (in millions) 2025 2024 Net cash provided by operating activities $ 270.6  $ 194.3  Purchases of capital assets (95.3) (94.3) Free cash flow $ 175.3  $ 100.0  Net debt – Net debt is calculated as total debt less cash and cash equivalents. We use net debt to evaluate our financial leverage and overall balance sheet strength. By considering the cash and cash equivalents available to offset outstanding debt, net debt provides a more comprehensive view of our debt burden than total debt alone. However, net debt has certain limitations. Subtracting cash and cash equivalents may imply that these funds are readily available and will be used to reduce debt, which may not reflect management’s actual intentions or liquidity needs. Additionally, net debt may suggest that our debt obligations are lower than the most directly comparable GAAP measure. Total debt reconciles to net debt as follows as of December 31: (in millions) 2025 2024 Total debt $ 1,429.4  $ 1,503.1  Cash and cash equivalents (36.9) (34.4) Net debt $ 1,392.5  $ 1,468.7  Adjusted EBITDA and adjusted EBITDA margin – We believe that adjusted EBITDA and adjusted EBITDA margin are metrics that provide meaningful insight into our operating performance. These measures exclude the impact of interest expense, income taxes, depreciation and amortization, and certain other items that may vary for reasons unrelated to current period operating performance. Management uses these measures to evaluate our results of operations, facilitate period-to-period and peer comparisons, and inform strategic decision-making aimed at enhancing performance. We believe that growth in adjusted EBITDA and adjusted EBITDA margin reflects improvement in our operating efficiency and may be indicative of increased enterprise value. 31 It is important to note that we do not consider adjusted EBITDA to be a measure of liquidity or cash flow. This metric does not reflect cash requirements for interest payments, income taxes, debt service, capital expenditures, or other obligations. Net income for the years ended December 31 reconciles to adjusted EBITDA and adjusted EBITDA margin as follows: (in millions) 2025 2024 Net income $ 82.2  $ 52.9  Net income attributable to non-controlling interest (0.1) (0.1) Depreciation and amortization expense 137.9  165.5  Interest expense 122.0  123.3  Income tax provision 36.9  23.6  Share-based compensation expense 24.9  19.9  Restructuring and integration expense 20.5  50.5  Asset impairment charges 5.7  7.7  Certain legal and environmental expense 1.5  —  Gain on sale of businesses and long-lived assets —  (31.2) Adjusted EBITDA $ 431.5  $ 412.1  Adjusted EBITDA margin 20.2 % 19.4 % Adjusted diluted EPS – We believe that adjusted diluted EPS is a valuable metric that provides insight into our operating performance. Adjusted diluted EPS is calculated by excluding the impact of certain non-cash items and other items that we believe are not indicative of core operating results for the current period. By removing these effects, adjusted diluted EPS offers a perspective on the underlying performance of our business and facilitates more consistent comparisons across reporting periods. Management uses adjusted diluted EPS as a key metric to evaluate our operating results, assess performance trends, and inform strategic decision-making. This measure assists both management and investors in analyzing current period results and in assessing potential future performance by focusing on earnings generated from ongoing operations. It is important to note that while adjusted diluted EPS excludes certain items to enhance comparability, these items may recur in future periods and the amounts recognized may vary significantly. 32 Diluted EPS for the years ended December 31 reconciles to adjusted diluted EPS as follows: (in millions, except per share amounts) 2025 2024 Net income $ 82.2  $ 52.9  Net income attributable to non-controlling interest (0.1) (0.1) Net income attributable to Deluxe 82.1  52.8  Acquisition amortization 46.0  55.5  Accelerated amortization —  16.9  Share-based compensation expense 24.9  19.9  Restructuring and integration expense 20.5  50.5  Asset impairment charges 5.7  7.7  Certain legal and environmental expense 1.5  —  Gain on sale of businesses and long-lived assets —  (31.2) Loss on debt retirement —  1.9  Adjustments, pretax 98.6  121.2  Income tax provision impact of pretax adjustments(1) (16.6) (26.7) Adjustments, net of tax 82.0  94.5  Adjusted income attributable to Deluxe available to common shareholders $ 164.1  $ 147.3  Adjusted weighted-average shares and potential common shares outstanding 45.5  44.7  GAAP diluted EPS $ 1.80  $ 1.18  Adjustments, net of tax 1.81  2.11  Adjusted diluted EPS $ 3.61  $ 3.29  (1) The tax effect of the pretax adjustments reflects the tax treatment and applicable tax rates for each adjustment in the relevant tax jurisdictions. Generally, the resulting tax impact approximates the U.S. effective tax rate applied to each adjustment. However, for certain items, such as share-based compensation expense and gains on sales of businesses, the tax effect is determined by whether the amounts are deductible or taxable in the respective jurisdictions and the applicable effective tax rates in those jurisdictions. RESTRUCTURING AND INTEGRATION EXPENSE Restructuring and integration expense consists of costs related to initiatives aimed at driving earnings and cash flow growth, including costs related to the consolidation and migration of certain applications and processes. These costs consist primarily of consulting, project management services, internal labor, and other items such as facility closure and consolidation costs. Additionally, we have recorded employee severance costs across functional areas. We remain committed to executing initiatives that advance our long-term growth strategy and drive operational efficiency. Over the past three years, a significant portion of our restructuring activities were consolidated under the North Star program, a comprehensive, multi-year initiative designed to enhance shareholder value by accelerating adjusted EBITDA growth, increasing cash flow, reducing debt, and improving our leverage ratio. The program was structured to balance disciplined cost management with targeted investments to support sustainable growth. On the cost side, we undertook a series of actions to optimize our organizational structure and strengthen our operational infrastructure. These actions included consolidating roles, streamlining management layers, expanding spans of control, and scaling back-office functions. We also leveraged technology and automation to digitize and simplify our operations, while global talent helped us scale back-office functions. As of December 31, 2025, the material components of the North Star program were complete. The benefits of these initiatives are reflected in our 2025 financial results, with both adjusted EBITDA and adjusted EBITDA margin increasing year-over-year. We also achieved a $76.3 million year-over-year increase in net cash provided by operating activities and reduced total debt by $73.7 million from the previous year-end. We expect that the North Star initiatives implemented throughout 2025 will continue to deliver incremental benefits to our operating results in 2026. 33 Through December 31, 2025, we incurred approximately $114.0 million in restructuring and integration expense related to the North Star program. These expenses primarily consisted of professional services fees, employee severance, and other restructuring-related costs. The majority of the employee reductions associated with our restructuring and integration accruals as of December 31, 2025, and the related severance payments, are expected to be completed in mid-2026. As a result of these employee reductions, including those under the North Star program, we realized cost savings of approximately $5.0 million in cost of sales and $15.0 million in SG&A expense during 2025, as compared to 2024. Looking ahead, for those employee reductions included in our restructuring and integration accruals through December 31, 2025, we anticipate additional cost savings of approximately $2.0 million in cost of sales and $13.0 million in SG&A expense during 2026, compared to 2025. However, actual cost savings may be partially or fully offset by increases in labor and other operating costs, including inflationary pressures and continued investments in the business. Further information regarding restructuring and integration expense can be found under the caption "Note 8: Restructuring and Integration Expense" in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. SEGMENT RESULTS We operate four reportable segments: Merchant Services, B2B Payments, Data Solutions, and Print. Our segments are generally organized by product and service type and reflect the way we manage the business. The financial information presented below is consistent with that presented under the caption “Note 15: Business Segment Information” in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report, where information regarding revenue for our various product and service offerings can also be found. Merchant Services Results for our Merchant Services segment were as follows: (in millions) 2025 2024 Change Total revenue $ 398.6  $ 384.0  3.8% Adjusted EBITDA 85.9  78.5  9.4% Adjusted EBITDA margin 21.6 % 20.4 % 1.2 pt. Total revenue increased in 2025 compared to 2024, driven by a combination of factors, including higher transaction volumes from government clients and our banking channel and targeted pricing actions. These positive drivers were partially offset by ongoing economic uncertainty, which continued to exert pressure on discretionary spending in certain customer channels. Adjusted EBITDA and adjusted EBITDA margin also improved in 2025 compared to 2024, as the benefits from targeted price increases and cost management initiatives more than compensated for the impact of changes in channel mix. Specifically, while growth in lower-margin channels tempered overall margin expansion, disciplined expense control and operational efficiencies supported profitability. Our portfolio remains well-positioned, encompassing a diversified mix of both traditional discretionary and less discretionary spending categories. This diversification helps mitigate risk associated with shifts in consumer behavior. Nevertheless, we continue to closely monitor consumer spending trends and broader economic indicators, as these factors may influence transaction volumes and channel performance in future periods. B2B Payments Results for our B2B Payments segment were as follows: (in millions) 2025 2024 Change Total revenue $ 290.5  $ 287.9  0.9% Adjusted EBITDA 64.4  57.1  12.8% Adjusted EBITDA margin 22.2 % 19.8 % 2.4 pt. 34 Total revenue increased in 2025 as compared to 2024, driven by the successful onboarding of new clients, the implementation of modest price increases designed to counteract inflationary pressures, and growth in digital payments. The growth in revenue reflects our continued focus on expanding our customer base and optimizing our pricing strategy in response to evolving market dynamics. These impacts were partially offset by lower volumes in lockbox and receivables processing. We continue to evolve our product portfolio by accelerating the transition toward digital solutions, as evidenced by the ongoing rollout of our Deluxe Payment Network capabilities. Adjusted EBITDA and adjusted EBITDA margin also increased in 2025 as compared to 2024, largely attributable to our pricing strategies and ongoing cost management actions. Notably, we realized significant operational efficiencies within our lockbox processing operations through process automation and workforce optimization, which contributed to margin expansion and helped mitigate the effects of volume pressures. Data Solutions Results for our Data Solutions segment were as follows: (in millions) 2025 2024 Change Total revenue $ 307.3  $ 234.0  31.3% Adjusted EBITDA 86.4  60.5  42.8% Adjusted EBITDA margin 28.1 % 25.9 % 2.2 pt. Total revenue increased in 2025 as compared to 2024, driven by strong demand for our customer acquisition marketing activities, particularly from our financial institution partners. In addition, we added new clients in various other industry verticals, further contributing to the revenue growth. Adjusted EBITDA also increased in 2025 as compared to 2024, primarily driven by the increase in data-driven marketing volume and the continued execution of our cost management initiatives. Our participation in volume-based rebate programs in 2025 provided incremental margin benefits. Adjusted EBITDA margin increased in 2025 as compared to 2024, benefitting from a more favorable mix of clients and campaigns, as well as the benefits of our cost management initiatives and the volume-based rebate programs. Looking ahead, while we expect continued benefits from our cost management initiatives and client diversification, we do not anticipate the same level of margin contribution from rebate programs in 2026. We remain focused on sustaining profitable growth through ongoing innovation, expansion into new market segments, and disciplined expense management. Print Results for our Print segment were as follows: (in millions) 2025 2024 Change Total revenue $ 1,136.8  $ 1,205.1  (5.7%) Adjusted EBITDA 366.9  376.6  (2.6%) Adjusted EBITDA margin 32.3 % 31.3 % 1.0 pt. Total revenue decreased in 2025 as compared to 2024, mainly due to reduced demand for promotional products, which reflected broader market softness in this category. Additionally, the ongoing secular decline in order volumes for checks, business forms, and various business accessories contributed to the decrease, although check revenue remained relatively resilient, decreasing 1.8% year-over-year. These revenue declines were partially offset by our pricing strategies implemented to address inflationary pressures. Adjusted EBITDA also decreased in 2025 as compared to 2024, largely attributable to the lower revenue and inflationary pressures affecting material and delivery costs. Despite these pressures, we continued to execute our cost management initiatives, which included disciplined operating expense control and ongoing process efficiency improvements. These actions helped to partially offset the adverse impacts of the revenue pressures. Additionally, bad debt expense improved year-over-year, reflecting enhanced credit management practices. 35 Adjusted EBITDA margin increased in 2025 as compared to 2024, as the positive effects of our pricing actions and cost management initiatives, a shift in revenue mix toward higher-margin check products, and lower bad debt expense more than offset the impact of inflationary cost pressures. CASH FLOWS AND LIQUIDITY As of December 31, 2025, we held cash and cash equivalents of $36.9 million. Additionally, we had restricted cash and restricted cash equivalents, which were included in settlement processing assets and other non-current assets on the consolidated balance sheet, totaling $276.1 million. The following table should be read in conjunction with the consolidated statements of cash flows located in Part II, Item 8 of this report. (in millions) 2025 2024 Change Net cash provided by operating activities $ 270.6  $ 194.3  $ 76.3  Net cash used by investing activities (131.7) (69.8) (61.9) Net cash used by financing activities (136.8) (267.2) 130.4  Effect of exchange rate change on cash, cash equivalents, restricted cash, and restricted cash equivalents 1.7  (6.1) 7.8  Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents $ 3.8  $ (148.8) $ 152.6  Free cash flow(1) $ 175.3  $ 100.0  $ 75.3  (1) See Reconciliation of Non-GAAP Financial Measures within the Consolidated Results of Operations section, which defines and illustrates how we calculate free cash flow. Cash provided by operating activities increased by $76.3 million as compared to 2024. Key contributors included the positive impacts of our pricing and cost management actions, lower income tax payments, mainly from foreign operations, reduced performance-based employee bonus payouts, and lower restructuring and integration expenditures. Additional positive impacts came from growth and volume-based rebates in our data-driven marketing business. These benefits were partially offset by softer demand for certain promotional products, the continuing secular declines in the Print segment, timing variations in accounts receivable and payable, inflationary cost pressures, and the impact of business exits. Included in net cash provided by operating activities were the following operating cash outflows: (in millions) 2025 2024 Change Interest payments $ 111.6  $ 117.8  $ (6.2) Income tax payments, net of refunds received 30.9  46.4  (15.5) Prepaid product discount payments 29.2  29.8  (0.6) Performance-based employee cash bonuses(1) 24.4  39.0  (14.6) Severance payments 10.3  10.3  —  (1) Amounts reflect compensation based on total company and segment performance. Net cash used by investing activities increased by $61.9 million as compared to 2024. The increase was primarily driven by a residual commission buy-out in the fourth quarter of 2025 in our Merchant Services segment, higher proceeds in the prior year from the exit of our payroll and human resources services business, and a payment made in the third quarter of 2025 for the acquisition of certain assets of JPMorgan Chase Bank's CheckMatch electronic check conveyance service business. Net cash used by financing activities decreased by $130.4 million as compared to 2024, driven by changes in settlement processing obligations during each period, including the impact of our exit from the payroll and human resources services business during 2024. Additionally, payments of $15.2 million in 2024 for debt issuance costs related to our debt refinancing contributed to the decrease. 36 Significant investing and financing cash transactions for each period were as follows: (in millions) 2025 2024 Change Purchases of capital assets $ (95.3) $ (94.3) $ (1.0) Net change in debt (77.5) (82.3) 4.8  Cash dividends paid to shareholders (55.2) (54.2) (1.0) Residual commission buy-out (36.0) —  (36.0) Payment for acquisition (12.1) —  (12.1) Payments for debt issuance costs (0.6) (15.2) 14.6  Net change in settlement processing obligations 2.2  (108.0) 110.2  Proceeds from sale of businesses and long-lived assets 2.0  23.3  (21.3) When assessing our liquidity and capital resource requirements, we consider a range of factors, including scheduled debt service, lease obligations, other contractual commitments, and contingent liabilities. Detailed information regarding the maturities of our long-term debt, operating and finance lease obligations, and contingent liabilities can be found in the Notes to Consolidated Financial Statements under the captions "Note 12: Debt," "Note 13: Leases," and "Note 14: Other Commitments and Contingencies," located in Part II, Item 8 of this report. In addition to these obligations, we have entered into multi-year agreements with third-party service providers, primarily for information technology services such as cloud computing and professional services, as well as contracts for outsourced operations, data procurement, and payment acceptance services. These contracts commit us to payments totaling approximately $210.0 million, with approximately $70.0 million due in 2026, $60.0 million due in 2027, and the remainder due through 2030. We anticipate that capital expenditures will be between $90.0 and $100.0 million in 2026, compared to $95.3 million in 2025, as we continue to invest in innovation and scale our product offerings. As of December 31, 2025, we held cash and cash equivalents of $36.9 million and had $379.6 million of available borrowing capacity under our revolving credit facility. We believe that net cash generated by operations, together with our cash and cash equivalents on hand and available credit, will be sufficient to meet our operating needs, contractual obligations, and debt service requirements over the next 12 months. This assessment takes into account our working capital position and anticipated cash flows. We regularly monitor our liquidity position in light of potential risks, including market volatility, interest rate fluctuations, and macroeconomic uncertainty, and we are prepared to adjust our capital allocation strategy as needed. CAPITAL RESOURCES As of December 31, 2025, the principal amount of our debt obligations was $1.44 billion, compared to $1.52 billion as of December 31, 2024. Our capital structure for each period was as follows: December 31, 2025 December 31, 2024 (in millions) Amount Period-end interest rate Amount Period-end interest rate Change Fixed interest rate $ 925.0  8.1 % $ 925.0  8.1 % $ —  Floating interest rate 519.4  5.8 % 596.9  7.2 % (77.5) Total debt principal 1,444.4  7.3 % 1,521.9  7.7 % (77.5) Shareholders’ equity 680.7  620.9  59.8  Total capital $ 2,125.1  $ 2,142.8  $ (17.7) As of December 31, 2025, total commitments under our revolving credit facility were $400.0 million, with $379.6 million available for borrowing. Detailed information regarding our outstanding debt, including our debt service obligations and debt covenants, can be found under the caption "Note 12: Debt” in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. In October 2018, our board of directors authorized the repurchase of up to $500.0 million of our common stock. This authorization does not have an expiration date. We have not repurchased any shares under this authorization since the first 37 quarter of 2020. As of December 31, 2025, $287.5 million remained available for repurchase. Information regarding changes in shareholders' equity can be found in the consolidated statements of shareholders' equity located in Part II, Item 8 of this report. CRITICAL ACCOUNTING ESTIMATES Our critical accounting estimates are those that are most important to accurately portraying our financial condition and results of operations, or that place significant demands on management's judgment regarding the effects of inherently uncertain matters, and different estimates or assumptions could materially impact our financial condition or results of operations. Our MD&A discussion is based on our consolidated financial statements, which have been prepared in accordance with GAAP. Our accounting policies are detailed under the caption “Note 1: Significant Accounting Policies” in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. We regularly review the accounting policies used in reporting our financial results. The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses, as well as the related disclosure of contingent assets and liabilities. These estimates are based on historical experience and various other factors and assumptions that we believe are reasonable under the circumstances. This forms the basis for making judgments about the carrying values of assets and liabilities. In some cases, we could have reasonably used different accounting estimates and in other cases, changes in the accounting estimates are likely to occur from period to period. Therefore, actual results may differ from our estimates. Significant estimates and judgments are reviewed by management on an ongoing basis and by the Audit and Finance Committee of our board of directors at the end of each quarter. Revenue Recognition Revenue recognition is a critical accounting estimate that requires significant management judgment, particularly in the context of complex customer contracts and variable consideration arrangements. We recognize revenue when control of goods or services is transferred to our customers, which generally occurs upon shipment for tangible products or as services are performed. Product revenue is primarily generated by our Print segment. Shipping and handling amounts billed to customers are included in revenue, while the related costs are recorded in cost of products. Sales tax collected from customers is excluded from revenue. Certain financial institution contracts include prepaid product discounts, which are cash payments made to clients and recorded as other non-current assets on the consolidated balance sheets. These amounts, with a balance of $29.8 million as of December 31, 2025, are amortized as reductions of revenue on the straight-line basis over the contract term, requiring management to estimate the appropriate amortization period and monitor contract performance. For arrangements involving third parties, we assess whether we act as principal or agent. When we control the specified good or service before transfer to the customer, we recognize revenue on a gross basis. When another party controls the good or service, we recognize revenue on a net basis, limited to any fee or commission earned. We sell certain products and services through a network of distributors and have determined that we are the principal in these transactions, recording revenue for the gross amount of consideration. Within Merchant Services, we present revenue net of the interchange fees retained by the card issuing financial institutions and the fees charged by the payment networks. The assessment of whether to report revenue on a gross or net basis requires judgment and an evaluation of specific contract terms. Sales commissions and other contract acquisition costs related to check supply, treasury management solutions, and merchant services contracts are capitalized as other non-current assets. These amounts, which totaled $17.1 million as of December 31, 2025, are amortized as SG&A expense on the straight-line basis over the expected period of benefit, generally ranging from two to five years. Contract acquisition costs with an amortization period of one year or less are expensed as incurred. When recording these costs, we must estimate the expected benefit period, which may require reassessment if contract terms or customer relationships change. Revenue recognition for certain data-driven marketing contracts involves estimating variable consideration, such as performance-based fees. We recognize revenue for variable consideration as services are rendered, based on the most likely amount expected to be realized. This estimate is inherently subjective and requires management to make assumptions about future campaign performance and consumer behavior. As of December 31, 2025, the related amount of conditional contract assets was $19.0 million and was included in revenue in excess of billings on the consolidated balance sheet. Typically, the final amount of consideration is determined within three to four months. We regularly review and update our estimates as additional information becomes available. 38 While we believe our estimates and judgments are reasonable and consistently applied, changes in assumptions or actual results could impact the timing and amount of revenue recognized. We do not currently expect that revisions to our estimates will have a material effect on our results of operations, financial position, or cash flows. Goodwill Impairment Goodwill represents a significant portion of our assets, totalling $1.42 billion, or 49.7% of our total assets, as of December 31, 2025. We evaluate goodwill for impairment at least annually, as of July 31, or more frequently if events or changes in circumstances indicate that the carrying value may not be recoverable. Goodwill is assigned to our reporting units, which are determined based on the components of our operating segments that constitute businesses for which discrete financial information is available and regularly reviewed by management. Components of an operating segment are aggregated to form a reporting unit if they have similar economic characteristics. We periodically reassess our reporting units to ensure they reflect the current structure and management of our business. During our annual goodwill impairment analysis, we have the option to first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. This assessment considers a range of factors, including macroeconomic conditions, industry and market trends, cost factors, and the financial performance of each reporting unit. If the qualitative assessment indicates potential impairment, or if we elect to bypass the qualitative step, we proceed with a quantitative analysis. For the 2025 annual impairment test, we performed quantitative analyses for our Merchant Services and Treasury Management reporting units. These analyses indicated that the estimated fair values of these reporting units exceeded their carrying values. Qualitative assessments were completed for the remaining reporting units, considering factors such as current economic and industry conditions, recent financial performance, and the most recent quantitative analyses from prior periods. Based on these assessments, we concluded that no changes in events or circumstances suggested it was more likely than not that the fair value of any reporting unit was less than its carrying amount. Based on these assessments, no goodwill impairment charges were recorded in 2025. When a quantitative analysis is performed, we compare the carrying value of the reporting unit, including goodwill, to its estimated fair value. The carrying value is based on the assets and liabilities associated with the reporting unit's operations, often requiring the allocation of shared and corporate items among reporting units. In estimating the fair value of each reporting unit, we use a discounted cash flow model. This approach involves significant management judgment, including the projection of future revenues, EBITDA margins, and terminal growth rates, as well as the selection of an appropriate discount rate reflecting our weighted-average cost of capital, and the allocation of shared and corporate expenses. We corroborate the aggregate fair values of our reporting units with our consolidated market capitalization to ensure the reasonableness of our estimates. Significant judgment is involved in estimating future cash flows and selecting key assumptions. Changes in these assumptions, such as lower-than-expected revenue growth, margin compression, higher discount rates, or adverse changes in market conditions, could materially impact the estimated fair values and result in future impairment charges. During 2024, we substantially completed our exit from the payroll and human resources services business, which constituted a separate reporting unit. As a result of this strategic shift, we recorded goodwill impairment charges totaling $7.7 million in the third and fourth quarters of 2024, reflecting the diminished cash flow prospects of this business. Given the inherent uncertainty in forecasting future results and market conditions, actual outcomes may differ from our estimates. Factors such as a sustained decline in our stock price, adverse economic trends, changes in business strategy, loss of significant customers, increased competition, or accelerated declines in order volume for checks or business forms could result in additional impairment charges for goodwill or other assets in future periods. New Accounting Pronouncements Information regarding accounting pronouncements not yet adopted can be found under the caption “Note 2: New Accounting Pronouncements” in the Notes to Consolidated Financial Statements located in Part II, Item 8 of this report. 39