Company: DLX
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0000027996-25-000142
Chunk: 105

Company: DELUXE CORP
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 2
Chunk 105
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 Quarter Ended March 31,(in thousands)20252024ChangeTotal revenue$97,769 $96,477 1.3%Adjusted EBITDA21,378 21,437 (0.3%)Adjusted EBITDA margin21.9 %22.2 %(0.3 pts.)

Total revenue for the first quarter of 2025 increased compared to the first quarter of 2024, due to higher volumes from government clients, which were driven by increased property tax remittances. Additionally, there was growth in the banking channel, along with the positive impact of modest pricing actions implemented in response to inflation. These gains were partially offset by pressure on processing volumes within certain discretionary categories.

Adjusted EBITDA and adjusted EBITDA margin for the first quarter of 2025 were virtually flat compared to the first quarter of 2024, as the modest price increase 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.

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B2B Payments

 Results for our B2B Payments segment were as follows:

 Quarter Ended March 31,(in thousands)20252024ChangeTotal revenue$70,155 $69,418 1.1%Adjusted EBITDA13,322 13,261 0.5%Adjusted EBITDA margin19.0 %19.1 %(0.1) pts.

Total revenue for the first quarter of 2025 increased compared to the first quarter of 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 first quarter of 2025 were virtually flat compared to the first quarter of 2024, reflecting our ongoing efforts to transition this business toward a more recurring revenue model centered around software offerings.

Data Solutions

Results for our Data Solutions segment were as follows:

 Quarter Ended March 31,(in thousands)20252024ChangeTotal revenue$77,227 $59,712 29.3%Adjusted EBITDA19,693 14,869 32.4%Adjusted EBITDA margin25.5 %24.9 %0.6 pts.

Total revenue for the first quarter of