Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 120

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 120
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, particularly in prepaid expenses and other current assets, also contributed to the increase in net cash from operating activities. Also, interest payments decreased $8 million, as the timing of these payments changed in 2025 due to the refinancing of our debt in December 2024, which altered the schedule and structure of our financial obligations. These positive impacts were partially offset by softer demand for certain promotional products and the continuing secular declines within the Print segment, a $9 million increase in income tax payments related to the timing of federal tax payments, inflationary pressures on our cost structure, and the impact of business exits.

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

 Six Months Ended June 30,(in thousands)20252024ChangeInterest payments$54,928 $62,877 $(7,949)Income tax payments28,818 19,827 8,991 Performance-based employee cash bonuses(1)24,445 39,045 (14,600)Prepaid product discount payments16,021 14,497 1,524 Severance payments4,816 7,446 (2,630)

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

Net cash used by investing activities for the first half of 2025 was virtually the same as in the first half of 2024. Net cash used by financing activities for the same periods decreased by $72 million, driven by changes in settlement processing obligations during each period, including the impact of 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.

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

 Six Months Ended June 30,(in thousands)20252024ChangeNet change in settlement processing obligations$(258,372)$(328,376)$70,004 Purchases of capital assets(49,260)(48,626)(634)Net change in debt(34,251)(37,369)3,118 Cash dividends paid to shareholders(28,068)(27,469)(599)

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