Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 69

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 69
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). In this role, he evaluates the performance of each segment and makes resources allocation decisions based on adjusted EBITDA. Adjusted EBITDA for each segment excludes depreciation and amortization expense, interest expense, income tax expense, and certain other amounts that can vary from period to period. These amounts may include asset impairment charges, restructuring and integration expense, share-based compensation expense, certain legal and environmental expenses that fall outside the normal course of business, and gains or losses on the sale of businesses and long-lived assets. The CODM uses adjusted EBITDA in both the annual planning and interim forecasting processes. On a monthly basis, the CODM reviews variances between actual results and plan, forecast, and prior year results, using this analysis to guide resource distribution and strategic adjustments. Additionally, the CODM compares segment adjusted EBITDA margins to those of competitors. This benchmarking is essential for evaluating the relative performance of our segments within the industry, ensuring that we remain competitive, and identifying areas for improvement. Furthermore, adjusted EBITDA plays a significant role in establishing employee performance-based compensation, aligning employee incentives with our financial goals. The CODM does not review segment asset information when making investment or operating decisions regarding our reportable segments.

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DELUXE CORPORATIONCONDENSED NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS(dollars in thousands, except per share amounts)

The following is our segment information for the quarters ended March 31, 2025 and March 31, 2024:Quarter Ended March 31,(in thousands)20252024Merchant Services:Revenue$97,769 $96,477 Other segment items(76,391)(75,040)Adjusted EBITDA21,378 21,437 B2B Payments:Revenue70,155 69,418 Other segment items(56,833)(56,157)Adjusted EBITDA13,322 13,261 Data Solutions:Revenue77,227 59,712 Other segment items(57,534)(44,843)Adjusted EBITDA19,693 14,869 Print:Revenue291,304 303,334 Other segment items(200,470)(212,378)Adjusted EBITDA90,834 90,956 Total reportable segments:Revenue$536,455 $528,941 Other segment items(391,228)(388,418)Adjusted EBITDA145,227 140,523 All other:(1