Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 50

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 50
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,819 (2.0%)Adjusted EBITDA margin32.1%30.4%1.7 pts.31.7%30.2%1.5 pts.

Total revenue for the second quarter and first half of 2025 decreased compared to the same periods in 2024, mainly due to a decline in revenue from promotional products, reflecting softer demand. Additionally, the ongoing secular decline in order volumes for checks, business forms, and various business accessories contributed to the decrease. These revenue declines were partially offset by pricing actions implemented in response to inflation.

Adjusted EBITDA for the second quarter and first half of 2025 decreased compared to the same periods in 2024, driven by the decline in revenue and inflationary pressures on materials and delivery costs. Our cost management actions partially offset these challenges, as we continued to emphasize operating expense discipline and overall efficiency within this segment. Additionally, bad debt expense declined year-over-year.

Adjusted EBITDA margin for the second quarter and first half of 2025 increased compared to the same periods in 2024, as the benefits from our pricing and cost management actions, a shift toward check revenues, and the lower bad debt expense contributed positively. These factors more than offset the inflationary cost pressures.

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CASH FLOWS AND LIQUIDITY

As of June 30, 2025, we held cash and cash equivalents of $26 million. Additionally, we had restricted cash and restricted cash equivalents, which were included in settlement processing assets and other non-current assets on the consolidated balance sheet, totaling $15 million. The following table should be read in conjunction with the consolidated statements of cash flows located in Part I, Item 1 of this report.

 Six Months Ended June 30,(in thousands)20252024ChangeNet cash provided by operating activities$101,374 $66,222 $35,152 Net cash used by investing activities(44,275)(43,938)(337)Net cash used by financing activities(326,257)(398,609)72,352 Effect of exchange rate change on cash, cash equivalents, restricted cash, and restricted cash equivalents1,484 (3,704)5,188 Net change in cash, cash equivalents, restricted cash, and restricted cash equivalents$(267,674)$(380,029)$112,355 Free cash flow(1)$52,114 $17,596 $34,518 

(1) See Reconciliation of