Company: DLX
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000027996-25-000163
Chunk: 108

Company: DELUXE CORP
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 2
Chunk 108
---
 $1,072,770 (1.4%)

In the second quarter and first half of 2025, total revenue declined compared to the same periods in 2024, partly due to business exits, which resulted in a $3 million reduction for the second quarter and a $9 million reduction for the first half of the year. Additionally, there was also a noticeable softness in demand for some of our promotional products, and the ongoing secular decline in order volumes for checks, business forms, and various business accessories further contributed to the revenue decline.

These decreases in revenue were partially offset by strategic price increases implemented in response to inflation, particularly within our Print and Merchant Services segments. Additionally, there was strong demand for our data-driven marketing services, especially among financial institutions, which contributed a $10 million increase in revenue for the second quarter and $28 million for the first half of the year.

We do not manage our business based on product versus service revenue. Instead, we analyze our revenue based on the product and service offerings shown under the caption "Note 13: Business Segment Information" in the Condensed Notes to Unaudited Consolidated Financial Statements located in Part I, Item 1 of this report. Our revenue mix by business segment was as follows:

 Quarter EndedJune 30,Six Months EndedJune 30,2025202420252024Merchant Services19.5%18.3%18.9%18.2%B2B Payments13.6%13.1%13.3%13.0%Data Solutions13.0%10.7%13.7%10.9%Print53.9%57.4%54.1%57.1%All other—0.5%—0.8%Total revenue100.0%100.0%100.0%100.0%

Cost of Revenue

 Quarter Ended June 30,Six Months Ended June 30,(in thousands)20252024Change20252024ChangeTotal cost of revenue$241,998 $249,026 (2.8%)$497,422 $500,443 (0.6%)Total cost of revenue as a percentage of total revenue46.4%46.3%0.1 pts.47.0%46.6%0.4 pts.

Cost of revenue primarily consists of raw materials for product manufacturing, shipping and handling costs, third-party costs for outsourced products and services, payroll and related expenses, information technology costs