Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 107

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 2
Chunk 107
---
 cash flows located in Part I, Item 1 of this report.

 Quarter Ended March 31,(in thousands)20252024ChangeNet cash provided by operating activities$50,281 $26,590 $23,691 Net cash used by investing activities(24,595)(20,558)(4,037)Net cash used by financing activities(268,639)(326,579)57,940 Effect of exchange rate change on cash, cash equivalents, restricted cash, and restricted cash equivalents1,085 (2,642)3,727 Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents$(241,868)$(323,189)$81,321 Free cash flow(1)$24,313 $6,148 $18,165 

(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.

Net cash provided by operating activities increased $24 million for the first quarter of 2025 compared to the first quarter of 2024, reflecting the positive impacts of our pricing and cost management actions, a $15 million reduction in performance-based employee cash bonuses, reduced restructuring and integration spend, and the growth in our data-driven marketing business. These impacts were partially offset by the continuing secular declines in the Print segment, higher income tax payments due to the timing of federal payments, inflationary pressures on our cost structure, and the impact of business exits.

Included in net cash provided by operating activities were the following operating cash outflows:

 Quarter Ended March 31,(in thousands)20252024ChangeInterest payments$24,735 $24,410 $325 Performance-based employee cash bonuses(1)24,445 39,045 (14,600)Income tax payments12,892 4,743 8,149 Prepaid product discount payments8,518 10,503 (1,985)Severance payments1,845 4,225 (2,380)

(1) Amounts reflect compensation based on total company and segment performance.

Net cash used by investing activities for the first quarter of 2025 increased by $4 million compared to the first quarter of 2024. This increase was primarily driven by a $6 million increase in capital expenditures in 2025, partially offset by proceeds from business exit activities of $2 million in 2025.

Net cash used by financing activities