Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 42

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 42
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 thousands)20252024Change20252024ChangeInterest expense$30,944 $30,197 2.5%$62,210 $61,006 2.0%Weighted-average debt outstanding1,525,863 1,592,048 (4.2%)1,539,677 1,596,758 (3.6%)Weighted-average interest rate7.6%7.1%0.5 pts.7.6%7.1%0.5 pts.

In the second quarter and first half 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 outstanding. Based on the amount of variable-rate debt outstanding as of June 30, 2025, a one percentage point change in the weighted-average interest rate would result in a $3 million impact on interest expense for the remainder of 2025.

Income Tax Provision

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeIncome tax provision$9,248 $10,401 (11.1%)$14,470 $15,923 (9.1%)Effective income tax rate29.2%33.7%(4.5) pts.28.4%33.7%(5.3) pts.

In the second quarter and first half of 2025, our effective income tax rate decreased compared to the same periods in 2024. The 2025 rate benefited from lower tax impacts for our foreign operations, non-deductible compensation, and share-based compensation. These benefits were partially offset by an increase in our effective state income tax rate. Further information regarding our income tax provision can be found under the caption "Note 9: Income Tax Provision" in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part I, Item 1 of this report.

Net Income, Diluted EPS, and Adjusted Diluted EPS

 Quarter Ended June 30,Six Months Ended June 30,(in thousands, except per share amounts)20252024Change20252024ChangeNet  income$22,422 $20,497 9.4%$36,469 $31,327 16.4%Diluted EPS0.50 0.46 8.7%