Overview

• U.S. payments and data firm's Q1 revenue rose 0.3% yr/yr; comparable adjusted revenue up 2.7%

• Q1 adjusted EPS beat analyst expectations, rising 46% yr/yr

• Company completed Safeguard divestiture, shifting portfolio toward payments and data businesses

Outlook

• Deluxe sees 2026 revenue of $1.985-$2.050 bln, reflecting (1%) to +2% comparable adjusted growth

• Company expects 2026 adjusted EBITDA of $430-$455 mln, up 4%-10% vs 2025

• Deluxe forecasts 2026 adjusted diluted EPS of $3.60-$4.00, up 9%-21% vs 2025

Result Drivers

• DATA SOLUTIONS AND MERCHANT SERVICES - Co said robust growth in Data Solutions and Merchant Services segments drove revenue expansion

• COST REDUCTIONS - Lower SG&A and restructuring expenses contributed to higher operating income

• PORTFOLIO SHIFT - Safeguard divestiture further shifted portfolio toward payments and data businesses

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the commercial printing services peer group is "buy"

• Wall Street's median 12-month price target for Deluxe Corp is $32.00, about 3.7% above its May 5 closing price of $30.85

• The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

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