Company: DLX
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000027996-25-000189
Chunk: 101

Company: DELUXE CORP
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 101
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 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 September 30,Nine Months Ended September 30,(in thousands)20252024Change20252024ChangeTotal revenue$73,078 $75,140 (2.7%)$214,215 $214,788 (0.3%)Adjusted EBITDA16,821 15,264 10.2%45,758 42,537 7.6%Adjusted EBITDA margin23.0%20.3%2.7 pts.21.4%19.8%1.6 pts.

Total revenue for the third quarter and first nine months of 2025 decreased compared to the same periods in 2024, driven by pressure on lockbox and receivables processing volumes, as well as lower software license revenue. These impacts were partially offset by the onboarding of new clients and a modest price increase to counteract inflation.

Adjusted EBITDA and adjusted EBITDA margin for the third quarter and first nine months of 2025 increased compared to the same periods in 2024, reflecting our pricing actions and ongoing cost management efforts, including efficiencies across our lockbox processing operations.

Data Solutions

Results for our Data Solutions segment were as follows:

 Quarter Ended September 30,Nine Months Ended September 30,(in thousands)20252024Change20252024ChangeTotal revenue$89,224 $61,065 46.1%$234,280 $178,169 31.5%Adjusted EBITDA29,073 17,485 66.3%69,134 48,150 43.6%Adjusted EBITDA margin32.6%28.6%4.0 pts.29.5%27.0%2.5 pts.

Total revenue for the third quarter and first nine months of 2025 increased compared to the same periods in 2024, driven by strong demand for customer acquisition marketing activities, particularly from our financial institution partners. Additionally, we added new clients in various other verticals, contributing to the revenue growth. It is important to note that the timing of campaigns within this business can lead to quarter-to-quarter volatility, making specific quarterly growth rates more challenging to predict