Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 128

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 2
Chunk 128
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 business exits.

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

 Nine Months Ended September 30,(in thousands)20252024ChangeInterest payments$83,647 $82,778 $869 Income tax payments31,833 35,599 (3,766)Performance-based employee cash bonuses(1)24,445 39,045 (14,600)Prepaid product discount payments22,933 22,945 (12)Severance payments7,517 9,212 (1,695)

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

Net cash used by investing activities for the first nine months of 2025 increased $25 million compared to the first nine months of 2024. The increase was driven by higher proceeds in the prior year from the exit of our payroll and human resources services business, along with a payment made in the third quarter of 2025 for the acquisition of certain assets of JPMorgan Chase Bank’s CheckMatch electronic check conveyance service. Net cash used by financing activities for the same periods decreased by $113 million, driven by changes in settlement processing obligations during each period, including the impact of 

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our exit from the payroll and human resources services business during 2024. Additionally, lower net payments on long-term debt in 2025 contributed to the decrease.

Significant investing and financing cash transactions for each period were as follows:

 Nine Months Ended September 30,(in thousands)20252024ChangeNet change in settlement processing obligations$(235,940)$(338,955)$103,015 Purchases of capital assets(72,556)(69,777)(2,779)Net change in debt(56,126)(64,511)8,385 Cash dividends paid to shareholders(41,634)(40,826)(808)Proceeds from sale of businesses and long-lived assets1,968 18,321 (16,353)

When evaluating our cash needs, we must consider our debt service requirements, lease obligations, other contractual commitments, and contingent liabilities. Detailed Information regarding the maturities of our long-term debt and our contingent liabilities can be found under the captions “Note 11: Debt” and "Note 12: Other Commitments and Contingencies," both of which appear in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part I, Item 1 of this report. Information regarding our lease