| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 95 | 10.9x | 17.8x | Top tier | |
Growth | 47 | 0.3% | 7.1% | Around median | |
Quality | 85 | 9.7% | 4.5% | Top tier | |
Safety | 47 | 3.3x | 2.6x | Around median | |
Capital Return | 69 | 5.18% | 2.12% | Top tier | |
Momentum | 45 | 31.8% | 2.9% | Around median | |
Sentiment | 64 | 3 | 3 | Around median |
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.
Deluxe Corporation is listed on the NYSE under the ticker DLX and is transforming its business model from reliance on paper payments and printing to a mix led by digital payments and data solutions. Its operations include merchant services, B2B payments, and data solutions, alongside printing and checks businesses whose cash flows the company uses to fund digital growth and reduce debt. In Q1 fiscal 2026, Payments and Data Solutions together represented 51% of revenue, surpassing Print for the first time in the company’s nearly 112-year history.
In Q2 fiscal 2026, Deluxe reported revenue of $499.3 million and gross profit of $259.6 million, equivalent to a gross margin of approximately 52.0%. Net income was $19.1 million, or $0.41 per share, with a net margin of approximately 3.8%. Compared with Q1 fiscal 2026, revenue declined from $538.1 million and net income fell from $35.8 million, indicating a sequential slowdown after a strong start to the year.
The Q1 fiscal 2026 details reveal a clear divergence among the businesses: Merchant Services revenue was $104.9 million, B2B Payments revenue was approximately $73.5 million, and Data Solutions revenue was $97.5 million, compared with $262.2 million for Print. In that quarter, the company generated GAAP net income of $35.8 million, adjusted earnings of $1.05 per share, and adjusted EBITDA of $117.9 million at a 21.9% margin. Revenue for the twelve months ended Q2 fiscal 2026 was approximately $2.1 billion, with net income of $103.9 million.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus rating is “Buy,” with an average price target of $27 and identical high and low targets of $27, meaning there is no variation among the submitted targets. This target is approximately 15.8% below the 52-week range high of $32.07 and approximately 52.0% above its low of $17.76, while the breadth of the range reflects the market’s balancing of Payments and Data growth against Print contraction and the decline in Q2 fiscal 2026 results compared with the previous quarter.
Figures in the text are as of 2026-09-02; the live price is shown at the top of the page.
Deluxe generates revenue from four primary businesses: Merchant Services, B2B Payments, Data Solutions, and Print and Checks. In Q1 fiscal 2026, revenue from these segments was $104.9 million, $73.5 million, $97.5 million, and $262.2 million, respectively. The company uses cash flows from its traditional paper-based businesses to fund its expansion in digital payments and data and to reduce debt. During the same period, Payments and Data together came to represent 51% of total revenue.
Data Solutions revenue increased 26.3% to $97.5 million in Q1 fiscal 2026, supported by demand from financial institutions and client campaigns in adjacent markets. Deluxe uses a consumer and small-business marketing data lake and tools powered by generative artificial intelligence to target customers with high lifetime value. Management said the company executes thousands of campaigns annually for its clients and that existing clients shifted spending from other marketing programs to its tools. Nevertheless, management expects growth to moderate in the second half of fiscal 2026 and is targeting mid- to high-single-digit growth for the segment over the full year.
Deluxe uses generative artificial intelligence to improve campaign models in Data Solutions, with each campaign contributing to greater accuracy in subsequent models. In B2B Payments, it applies the technology to lockbox transactions that typically require manual intervention to complete payment-posting data. According to management on the May 6, 2026 call, this application reduced manual intervention by approximately two-thirds. This coincided with an improvement of more than 400 basis points in the B2B margin and a 29.3% increase in the segment’s adjusted EBITDA in Q1 fiscal 2026.
Deluxe expects fiscal 2026 revenue of between $1.985 billion and $2.05 billion, equivalent to adjusted comparable growth of negative 1% to positive 2%. It expects adjusted EBITDA of between $430 million and $455 million and adjusted earnings per share of between $3.60 and $4.00, equivalent to growth of 4% to 10% and 9% to 21%, respectively. The company maintained its free cash flow outlook at approximately $200 million, representing expected growth of 14% from fiscal 2025. The revenue and earnings ranges were adjusted to reflect the sale of Safeguard, which closed on March 1, 2026.
Deluxe’s net debt declined to $1.37 billion at the end of Q1 fiscal 2026, compared with $1.39 billion at the end of fiscal 2025. Its net debt-to-adjusted EBITDA ratio reached 3 times, down from 3.6 times a year earlier, achieving the long-term target ahead of management’s schedule. Free cash flow was $27.3 million for the quarter, an increase of $3 million year over year, while available capacity under the revolving credit facility was $381 million. Significant debt maturities remain concentrated in 2029 following the refinancing completed in late 2024.
The clearest operational risk is the continued decline in Print, whose adjusted comparable revenue fell 5.9% in Q1 fiscal 2026, while management expects a low- to mid-single-digit decline for the full year. The company also expects Data Solutions growth to moderate in the second half of fiscal 2026 after growing 26.3% in the first quarter. Q2 fiscal 2026 net income declined to $19.1 million from $35.8 million in the previous quarter, alongside a revenue decline from $538.1 million to $499.3 million. Leverage also remains high in absolute terms at $1.37 billion, with expected interest expense of approximately $110 million during fiscal 2026.
