Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 77

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 77
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Note 13: Business Segment Information" in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part I, Item 1 of this report. Our revenue mix by business segment was as follows:

 Quarter EndedMarch 31,20252024Merchant Services18.2 %18.0 %B2B Payments13.1 %13.0 %Data Solutions14.4 %11.2 %Print54.3 %56.7 %All other— 1.1 %Total revenue100.0 %100.0 %

Consolidated Cost of Revenue

 Quarter Ended March 31,(in thousands)20252024ChangeTotal cost of revenue$255,424 $251,418 1.6%Total cost of revenue as a percentage of total revenue47.6 %47.0 %0.6 pts.

Cost of revenue primarily consists of raw materials used to manufacture our products, shipping and handling costs, third-party costs for outsourced products and services, payroll and related expenses, information technology costs, depreciation and amortization of assets used in the production process and in support of digital service offerings, and related overhead.

Total cost of revenue for the first quarter of 2025 increased compared to the first quarter of 2024, driven by several factors, including revenue growth in data-driven marketing and inflationary pressures on hourly wages, materials, and delivery. These increases in total cost of revenue were partially offset by a reduction in revenue volume due to the continuing secular decline in checks, business forms, and various business accessories, as well as softer demand for certain promotional products. Additionally, total cost of revenue benefited from our various cost management actions and the impact of business exits reduced our costs by approximately $6 million, including the impact of accelerated amortization expense in the first quarter of 2024.

Total cost of revenue as a percentage of total revenue increased for the first quarter of 2025 compared to the first quarter of 2024. The benefits of our pricing and cost management actions and the accelerated amortization expense in 2024 were more than offset by the inflationary impacts and the shift in revenue to lower margin business.

Consolidated Selling, General and Administrative (SG&A) Expense

 Quarter Ended March 31,(in thousands)20252024ChangeSG&A expense$225,312 $234,093 (3.8%)SG&A expense as a percentage of total revenue42.0 %43.