--- title: "Deluxe | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 538.1 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/285569635.md" datetime: "2026-05-07T14:16:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/285569635.md) - [en](https://longbridge.com/en/news/285569635.md) - [zh-HK](https://longbridge.com/zh-HK/news/285569635.md) --- # Deluxe | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 538.1 M Revenue: As of FY2026 Q1, the actual value is USD 538.1 M, beating the estimate of USD 534.97 M. EPS: As of FY2026 Q1, the actual value is USD 0.77. EBIT: As of FY2026 Q1, the actual value is USD 74.3 M. #### Consolidated Financial Performance Deluxe Corporation’s total revenue increased by 0.3% to $538.1 million in the first quarter of 2026, up from $536.5 million in the first quarter of 2025, primarily driven by its payments and data businesses, which saw a 12.5% year-over-year revenue increase and a 22.8% increase in adjusted EBITDA for Q1 2026. This growth was partially offset by softness in promotional products, declines in the Print segment, and a $12.6 million revenue reduction from a business exit . Net income significantly increased by 155.7% to $35.8 million in Q1 2026, compared to $14.0 million in Q1 2025, benefiting from cost management, pricing initiatives, a $5.1 million gain from an asset sale, and a $3.6 million decrease in interest expense . Consolidated Adjusted EBITDA grew by 17.7% to $117.9 million, with the Adjusted EBITDA margin improving to 21.9% in Q1 2026 from 18.7% in Q1 2025 . Total cost of revenue increased by 1.3% to $258.7 million in Q1 2026, representing 48.1% of total revenue, up from 47.6% in Q1 2025 . Selling, general and administrative (SG&A) expense decreased by 7.1% to $209.3 million, falling to 38.9% of total revenue from 42.0% in Q1 2025 . Restructuring and integration expense decreased by 55.8% to $3.4 million . Interest expense decreased by 11.5% to $27.7 million, due to a reduction in average debt outstanding and a lower weighted-average interest rate of 7.2% (compared to 7.6% in Q1 2025) . The income tax provision increased by 103.8% to $10.8 million, with the effective income tax rate decreasing to 23.2% from 27.5% in the prior year period . #### Cash Flow Net cash provided by operating activities increased by $2.4 million to $52.7 million in Q1 2026 . Free cash flow increased by $3.0 million to $27.3 million . Net cash provided by investing activities was $11.1 million, a significant increase from - $24.6 million in Q1 2025, driven by proceeds from life insurance policies and asset sales . Net cash used by financing activities increased to - $314.1 million from - $268.6 million . #### Debt and Capital Total debt principal decreased to $1,411.0 million as of March 31, 2026, from $1,444.4 million at December 31, 2025 . Net debt was $1,369.9 million as of March 31, 2026, down from $1,392.5 million at December 31, 2025 . #### Segmented Results ##### Merchant Services - **Revenue**: $104.9 million in Q1 2026, up 7.3% from $97.8 million in Q1 2025 . - **Adjusted EBITDA**: $26.8 million in Q1 2026, up 25.2% from $21.4 million in Q1 2025 . - **Adjusted EBITDA Margin**: 25.5% in Q1 2026, up 3.6 percentage points from 21.9% in Q1 2025 . - **Key Drivers**: Higher transaction volumes from government clients, new banking customer implementations, and targeted pricing actions, partially offset by economic uncertainty . ##### B2B Payments - **Revenue**: $73.5 million in Q1 2026, up 4.7% from $70.2 million in Q1 2025 . - **Adjusted EBITDA**: $17.2 million in Q1 2026, up 29.3% from $13.3 million in Q1 2025 . - **Adjusted EBITDA Margin**: 23.4% in Q1 2026, up 4.5 percentage points from 18.9% in Q1 2025 . - **Key Drivers**: Onboarding of new receivables processing clients, increased lockbox processing volume, and modest price increases, partially offset by pressure on receivables processing volumes . ##### Data Solutions - **Revenue**: $97.5 million in Q1 2026, up 26.3% from $77.2 million in Q1 2025 . - **Adjusted EBITDA**: $22.8 million in Q1 2026, up 15.7% from $19.7 million in Q1 2025 . - **Adjusted EBITDA Margin**: 23.4% in Q1 2026, down 2.1 percentage points from 25.5% in Q1 2025 . - **Key Drivers**: Strong demand for data-driven marketing services, particularly from financial institution partners, leading to higher volume; margin decrease due to an unfavorable mix of clients and campaign activity . ##### Print - **Revenue**: $262.2 million in Q1 2026, down 10.0% from $291.3 million in Q1 2025 . - **Adjusted EBITDA**: $85.7 million in Q1 2026, down 5.6% from $90.8 million in Q1 2025 . - **Adjusted EBITDA Margin**: 32.7% in Q1 2026, up 1.5 percentage points from 31.2% in Q1 2025 . - **Key Drivers**: Soft demand for promotional products, ongoing secular declines in order volumes for checks, business forms, and accessories, and a $12.6 million revenue decrease from the divestiture of the Safeguard small business distributor channel . Pricing strategies and cost management partially offset these declines, improving margin despite lower revenue . #### Strategic Summary and Outlook Deluxe Corporation is focused on accelerating profitable growth, enhancing operational efficiency, and disciplined capital allocation . The divestiture of the Safeguard small business distributor channel, generating $22.8 million in net proceeds, allows for greater focus on core growth businesses and portfolio optimization . The company anticipates capital expenditures for the full year 2026 to be between $90.0 million and $100.0 million, targeting growth investments, debt reduction, and shareholder returns . Restructuring efforts in Q1 2026 are expected to yield annual cost savings of approximately $2.0 million in cost of sales and $20.0 million in SG&A expense compared to 2025 results . The company believes its net cash generated by operations, combined with existing cash and available credit, will be sufficient to meet operational needs and debt service requirements over the next 12 months . ### Related Stocks - [DLX.US](https://longbridge.com/en/quote/DLX.US.md) ## Related News & Research - [Deluxe to Power Payment Solutions for Dollar Bank's Business Customers | DLX Stock News](https://longbridge.com/en/news/286455423.md) - [Assessing Deluxe (DLX) Valuation As New Dollar Bank Partnership Draws Attention](https://longbridge.com/en/news/286662659.md) - [Deluxe Recognized With CIO 100 Award for Third Consecutive Year | DLX Stock News](https://longbridge.com/en/news/284923333.md) - [Deluxe (DLX) Q1 Margins And EPS Growth Challenge Bearish Flat Profitability Narrative](https://longbridge.com/en/news/285471820.md) - [Deluxe Q1 adjusted EPS rises 46%, beats estimates](https://longbridge.com/en/news/285353967.md)