Deluxe Corporation announced its fourth quarter and full year 2024 financial results on February 5, 2025. For Q4 2024, the company reported net income of $12.6 million and earnings per share (EPS) of 28 cents.
For the full year 2024, consolidated revenue was US$2.12 billion, a 3.2% decrease from fiscal year 2023. Despite this, comparable adjusted EBITDA increased by 3.9% to $406.5 million, with a margin of 19.3%, a 100 basis point improvement from 2023.
The company generated $100 million in free cash flow for the full year 2024. Deluxe also provided its full-year 2025 guidance, projecting comparable adjusted revenue growth of -1% to +2%, Adjusted EBITDA growth of 2% to 7%, and Adjusted EPS growth of flat to 9%.
Free Cash Flow for 2025 is projected to be between $120 million and $140 million, representing 20% to 40% growth. Long-term targets by 2026 include 2-4% year-over-year revenue growth, 4-6% year-over-year EBITDA growth, 3x leverage, and over 30% free cash flow conversion.
The outlook assumes continued sequential improvement in B2B Payments and Merchant Services, high single-digit to low double-digit growth in Data Solutions, and a low to mid-single-digit secular decline in Print. Interest expense is projected at $120 million, with capital expenditures between $90 million and $100 million.
This report highlights the company's progress in improving profit metrics and capital allocation, driven by North Star execution. The strategic debt refinancing completed in late 2024 was also noted as a key achievement.
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