Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 110

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 110
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 volumes. These reductions in SG&A expense were partially offset by an increase in medical costs within our Corporate operations, which is attributed to higher-cost claims that are expected to occur periodically as part of our self-insurance program.

SG&A expense as a percentage of total revenue decreased for the second quarter and first half of 2025 compared to the same periods in 2024. The combined effects of price increases, effective cost management actions, and the reductions in amortization and bad debt expense more than compensated for the rise in medical costs.

Restructuring and Integration Expense

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeRestructuring and integration expense$4,047 $11,064 (63.4%)$11,715 $24,868 (52.9%)

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.

Gain on Sale of Businesses and Long-Lived Assets

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeGain on sale of businesses and long-lived assets$— $15,401 (100.0%)$— $23,982 (100.0%)

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In 2024, the income recognized was primarily associated with our strategic exit from the payroll and human resources services business, a process that we substantially completed during 2024. Further information can be found under the caption "Note 6: Acquisition and Divestitures" in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part 1, Item 1 of this report.

Interest Expense

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeInterest expense$30,944 $30,197 2.5%$62,210 $61,006 2.0%Weighted-average debt outstanding1,525,863 1,592,048 (4.2%)1,539,677 1,596,758 (3.6%)Weighted-average interest rate7.6%7.1%0.5 pts.7.6%7.1%