Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 118

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 118
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 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.

Gain on Sale of Businesses and Long-Lived Assets

 Quarter Ended September 30,Nine Months Ended September 30,(in thousands)20252024Change20252024ChangeGain on sale of businesses and long-lived assets$— $5,208 (100.0%)$— $29,190 (100.0%)

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 September 30,Nine Months Ended September 30,(in thousands)20252024Change20252024ChangeInterest expense$30,529 $29,905 2.1%$92,739 $90,910 2.0%Weighted-average debt outstanding1,498,506 1,572,201 (4.7%)1,525,802 1,588,327 (3.9%)Weighted-average interest rate7.6%7.1%0.5 pts.7.6%7.1%0.5 pts.

In the third quarter and first nine months of 2025, interest expense increased compared to the same periods in 2024. This increase was primarily due to the impact of higher interest rates, which outweighed the benefit of a reduction in our average debt 

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outstanding. Based on the amount of variable-rate debt outstanding as of September 30, 2025, a one percentage point change in the weighted-average interest rate would result in a $1 million impact on interest expense for the fourth quarter of 2025.

Income Tax Provision

 Quarter Ended September 30,Nine Months Ended September 30,(in thousands)20252024Change20252024ChangeIncome tax provision$13,445 $4,540 196.1%$27,915 $20,463 36.4%Effective income tax rate28.5%33.6%(5.1) pts.28.4%33.7%(5