Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 94

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 8
Chunk 94
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 1 of this report, where information regarding revenue from our various product and service offerings can also be found.

Merchant Services

Results for our Merchant Services segment were as follows:

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeTotal revenue$101,404 $98,527 2.9%$199,173 $195,004 2.1%Adjusted EBITDA21,737 19,188 13.3%43,115 40,625 6.1%Adjusted EBITDA margin21.4%19.5%1.9 pts.21.6%20.8%0.8 pts.

Total revenue for the second quarter and first half of 2025 increased compared to the same periods in 2024, due to the positive impact of modest pricing actions implemented in response to inflation. Additionally, there was volume growth for government clients, as well as higher volumes in the banking channel. These gains were partially offset by pressure on processing volumes.

Adjusted EBITDA and adjusted EBITDA margin for the second quarter and first half of 2025 increased compared to the same periods in 2024, as the price increases more than offset the impact of normal channel mix dynamics. While our portfolio remains well-positioned, encompassing a diversified range of both traditional discretionary and less discretionary spending categories, we continue to monitor consumer spending trends, as these trends may impact our volumes going forward.

B2B Payments

 Results for our B2B Payments segment were as follows:

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeTotal revenue$70,982 $70,230 1.1%$141,137 $139,648 1.1%Adjusted EBITDA15,615 14,012 11.4%28,937 27,273 6.1%Adjusted EBITDA margin22.0%20.0%2.0 pts.20.5%19.5%1.0

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Total revenue for the second quarter and first half of 2025 increased compared to the same periods in 2024, primarily driven by the onboarding of new clients and a modest price increase to counteract inflation. These increases in revenue were partially offset by declining trends in lockbox processing volumes.

Adjusted EBITDA and adjusted EBITDA margin for the second quarter