Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 21

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 1
Chunk 21
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ization (EBITDA) growth, (2) increasing cash flow, (3) reducing debt, and (4) improving our leverage ratio. North Star is a comprehensive, multi-year plan that balances cost reduction and growth opportunities. On the cost side, we are focused on refining our organizational structure and transforming our infrastructure and operations. We have successfully completed the material elements of our organizational redesign, which included consolidating similar roles, reducing hierarchical layers, and expanding spans of control. We are also leveraging technology and process automation to digitize and streamline our operations. Additionally, we are scaling our operations by consolidating back-office functions and tapping into the global labor market. The associated restructuring and integration expense, which consisted primarily of consulting and employee severance costs, was approximately $13,000 during the six months ended June 30, 2025 and approximately $22,000 during the six months ended June 30, 2024. To date, we have incurred expense of approximately $108,000, and we anticipate that we will incur approximately $5,000 of additional North Star restructuring and integration expense in 2025.Restructuring and integration expense is reflected on the consolidated statements of comprehensive income as follows: Quarter EndedJune 30,Six Months EndedJune 30,(in thousands)2025202420252024Total cost of revenue$189 $(35)$941 $898 Operating expenses4,047 11,064 11,715 24,868 Restructuring and integration expense$4,236 $11,029 $12,656 $25,766 

15

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

Restructuring and integration expense for each period was comprised of the following: Quarter EndedJune 30,Six Months EndedJune 30,(in thousands)2025202420252024Employee severance benefits$1,618 $(415)$6,071 $1,557 External consulting and other costs737 9,150 3,260 17,119 Internal labor711 384 1,700 1,222 Other1,170 1,910 1,625 5,868 Restructuring and integration expense$4,236 $11,029 $12,656 $25,766 Our restructuring and integration accruals are included in accrued liabilities on the consolidated balance sheets