Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 83

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 83
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 costs. For our digital businesses, which include Merchant Services, B2B Payments, and Data Solutions, cost of revenue includes information technology costs, payroll and related expenses, and related overhead. For the Print segment, cost of revenue includes raw materials used to manufacture products, shipping and handling costs, third-party costs for outsourced products, payroll and related expenses, information technology costs, and related overhead. Selling expenses for all segments include costs associated with our sales organization and certain marketing and advertising expenses. They also encompass the costs of our call center operations for the Merchant Services, B2B Payments, and Print segments, as well as external commissions for the B2B Payments and Print segments.The following table presents the reconciliation of total segment adjusted EBITDA to consolidated income before income taxes:Quarter EndedSeptember 30,Nine Months EndedSeptember 30,(in thousands)2025202420252024Total segment adjusted EBITDA$159,830 $148,356 $453,092 $436,962 Corporate operations(40,943)(43,454)(127,573)(128,217)Depreciation and amortization expense(32,252)(44,277)(101,008)(127,716)Interest expense(30,529)(29,905)(92,739)(90,910)Net income attributable to non-controlling interest37 38 109 103 Asset impairment charge— (6,700)— (6,700)Restructuring and integration expense(2,934)(11,265)(15,590)(37,031)Share-based compensation expense(5,960)(4,842)(17,591)(14,972)Certain legal and environmental (expense) benefit(38)350 (550)50 Gain on sale of businesses and long-lived assets— 5,208 — 29,190 Income before income taxes$47,211 $13,509 $98,150 $60,759 The following tables present revenue disaggregated by our product and service offerings:Quarter Ended September 30, 2025(in thousands)Merchant ServicesB2BPaymentsDataSolutionsPrintAllOtherConsolidatedChecks$— $— $— $173,053 $— $173,053 Merchant services98,000 — — — — 98,000 Data-driven marketing— — 84,656 — — 84,656 Treasury management solutions—