Donnelley Financial Restores Profit After Pension-Driven Loss

The Tip Desk · November 10, 2026 · 3 min read

Third-quarter net sales were $185.0 million as the company swung to $21.3 million of net earnings, or $0.85 a share.

Donnelley Financial Solutions, Inc. (DFIN) reported net earnings of $21.3 million, or $0.85 a share, for the third quarter of 2026, reversing a year-earlier net loss of $40.9 million, or $1.49 a share, that included an $82.8 million pension plan settlement charge.

The global provider of compliance and regulatory software and services said net sales were $185.0 million, up $9.7 million, or 5.5%, from the third quarter of 2025. That year-over-year pace quickened from 2.8% growth in the second quarter and 2.2% in the first quarter.

The company said sales increased primarily because of software solutions and higher capital markets transactional volumes. Software solutions net sales were $95.2 million, up 5.0%, and accounted for 51.5% of total net sales, similar to last year’s third-quarter mix. Tech-enabled services net sales were $72.3 million and print and distribution net sales were $17.5 million.

President and Chief Executive Officer Daniel N. Leib said ActiveDisclosure, a component of compliance offerings, grew approximately 24% as the company expanded client adoption, increased the value of the offering, and migrated certain traditional services onto the platform. That growth rate slowed from approximately 29% in the second quarter.

Leib said capital markets deal volume moderated from first-half levels, especially in priced IPOs, though overall market activity continued to improve compared with the third quarter of last year, resulting in higher capital markets transactional revenue.

Adjusted EBITDA was $54.4 million, up $4.9 million, or 9.9%, from the third quarter of 2025. Adjusted EBITDA margin was 29.4%, up approximately 120 basis points. The company said the increase was primarily due to higher software solutions and tech-enabled services net sales and cost control initiatives, partially offset by higher incentive compensation and selling expense tied to sales volumes.

Adjusted non-GAAP net earnings were $26.8 million, or $1.07 a share. GAAP results included after-tax charges of $5.5 million, or $0.22 a share, primarily related to share-based compensation.

By segment, Capital Markets – Compliance and Communications Management net sales were $61.9 million with Adjusted EBITDA of $25.2 million and a 40.7% margin. Capital Markets – Software Solutions net sales were $64.1 million with Adjusted EBITDA of $19.2 million and a 30.0% margin. Investment Companies – Software Solutions net sales were $31.1 million with Adjusted EBITDA of $11.2 million and a 36.0% margin. Investment Companies – Compliance and Communications Management net sales were $27.9 million with Adjusted EBITDA of $10.8 million and a 38.7% margin. Corporate Adjusted EBITDA was a $12.0 million loss.

Operating cash flow was $98.2 million, up 32.0% from the third quarter of 2025. Free cash flow was $85.8 million, up 44.9%. Leib said improved profitability and disciplined working capital management contributed to the year-over-year cash-flow growth.

Gross leverage was 0.5x and net leverage 0.4x as of September 30, 2026, down from 0.8x and 0.7x at June 30. The company repurchased 146,672 shares for approximately $6.9 million at an average $46.98 a share, leaving $118.5 million remaining on the current $150 million authorization.

For the fourth quarter of 2026, the company guides to total net sales of $175 million to $180 million, Adjusted EBITDA margin of 26% to 27%, and capital markets transactional net sales of $50 million.