Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 113

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 113
---
 to offset our debt obligations.

Total debt reconciles to net debt as follows:

(in thousands)June 30, 2025December 31, 2024Total debt$1,470,648 $1,503,151 Cash and cash equivalents(26,000)(34,399)Net debt$1,444,648 $1,468,752 

Adjusted EBITDA and adjusted EBITDA margin – We believe that adjusted EBITDA and adjusted EBITDA margin are useful metrics for evaluating our operating performance. These measures eliminate the effect of interest expense, income taxes, the accounting effects of capital investments (i.e., depreciation and amortization), and certain other items that may vary for reasons unrelated to current period operating performance. Management uses these measures to assess the operating results and performance of the business, perform analytical comparisons, and identify strategies to improve performance. Additionally, we believe that an increasing adjusted EBITDA and adjusted EBITDA margin indicate an increase in the company's value.

It is important to note that we do not consider adjusted EBITDA to be a measure of cash flow, as it does not account for certain cash requirements such as interest, income taxes, debt service payments, or capital investments.

29

Net income reconciles to adjusted EBITDA and adjusted EBITDA margin as follows:

Quarter EndedJune 30,Six Months EndedJune 30,(in thousands)2025202420252024Net income$22,422 $20,497 $36,469 $31,327 Net income attributable to non-controlling interest(37)(38)(72)(65)Depreciation and amortization expense33,477 41,692 68,756 83,439 Interest expense30,944 30,197 62,210 61,006 Income tax provision9,248 10,401 14,470 15,923 Restructuring and integration expense4,236 11,029 12,656 25,766 Share-based compensation expense6,172 5,009 11,631 10,130 Certain legal and environmental expense— — 512 300 Gain on sale of businesses and long-lived assets— (15,401)— (23,982)Adjusted EBITDA$106,462 $103,386 $206,632 $203,844 Adjusted EBITDA as a percentage of total revenue (adjusted EBITDA margin)