| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 31.3x | 17.8x | Around median | |
Growth | 30 | 3.0% | 7.1% | Bottom tier | |
Quality | 91 | 21.3% | 4.5% | Top tier | |
Safety | 79 | 0.9x | 2.6x | Top tier | |
Capital Return | 74 | — | 2.12% | Top tier | |
Momentum | 51 | -14.0% | 2.9% | Around median | |
Sentiment | 67 | 2 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Donnelley Financial Solutions provides compliance, disclosure, and financial communications solutions, combining software, tech-enabled services, printing, and distribution. Its portfolio includes ActiveDisclosure for preparing regulatory filings, Venue for data rooms, and Arc Suite and ArcFlex for serving investment companies and private funds; the company is gradually shifting toward higher-margin software revenue as its traditional printing business contracts.
In Q2 FY2026, net sales increased 2.8% year over year to $224.2 million, while net income according to EDGAR data was approximately $36.4 million and earnings per share were $1.44. Software solutions sales grew 7.8% to a quarterly record of $99.4 million, representing 44.3% of total sales, while tech-enabled services increased by approximately 6% and print and distribution declined 15%.
Adjusted earnings before interest, taxes, depreciation, and amortization reached $82.3 million in Q2 FY2026, up 7.9%, while the margin expanded 170 basis points to a record 36.7%. Adjusted gross margin also increased 230 basis points to 66%, and free cash flow reached $61.2 million, up $9.5 million year over year, benefiting from an improved sales mix, cost discipline, and lower cash taxes and capital expenditures.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus on DFIN is "Buy," with an average price target of $61 and a narrow range of $60 to $62. The average target exceeds the 52-week range high of $57.37, compared with a low of $36.11, but the narrow target range reduces the apparent diversity of views within the consensus. No valid price-to-earnings ratio is available in the data, so the stock's valuation here relies on analyst targets and on the ability of software growth and margin expansion to offset the structural contraction in printing and the volatility of transaction revenue.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
ActiveDisclosure is the fastest-growing driver, having grown by approximately 29% in Q2 FY2026, its fourth consecutive quarter of growth exceeding 20%. Growth came from an increase in net customer count, higher average value per customer, and the migration of some traditional filing work to the platform. The platform's use for S-1 documents in certain initial public offerings also contributed approximately one-third of the product's growth during the quarter.
Software solutions sales reached a quarterly record of $99.4 million, growing 7.8% and representing 44.3% of total sales. For the four quarters ended Q2 FY2026, software's share reached 47.9%, up approximately 280 basis points from the comparable period. In contrast, print and distribution declined 15%, while tech-enabled services grew by approximately 6%.
Management expects net sales of between $175 million and $185 million, with the $180 million midpoint representing year-over-year growth of approximately 3%. It expects an adjusted earnings before interest, taxes, depreciation, and amortization margin of between 26% and 28%. The outlook also assumes Capital Markets transaction revenue of between $45 million and $50 million, supported by ActiveDisclosure, Venue, and continued transaction activity.
On July 16, 2026, the SEC proposed making electronic delivery the default method for a broad range of investor communications. Management believes the rule, if adopted, could materially reduce demand for printed products, with its industry impact expected to begin during 2028. In contrast, DFIN has digital delivery capabilities and a flexible operating model, and it has previously developed software offerings in response to regulatory changes such as rules 30e-3 and 498A.
DFIN ended Q2 FY2026 with total debt of $204 million and adjusted net debt of $178.7 million, with a net leverage ratio of 0.7 times as of June 30, 2026. Quarterly free cash flow reached $61.2 million, up $9.5 million year over year. It also repurchased 763 thousand shares for $34.7 million during the quarter, with $125.4 million remaining under the repurchase authorization.
Print and distribution sales declined 15% in Q2 FY2026, while Investment Companies Compliance and Communications segment revenue fell 10.8% to $28.9 million. Arc Suite growth also slowed to approximately 2% after the comparison period benefited from growth of approximately 17% related to the shareholder reporting solution. In addition, Capital Markets transaction revenue remains sensitive to the timing of offerings, mergers, and transaction revenue recognition.
