Deluxe Raises 2026 Outlook After Celero Mix Shift

The Tip Desk · November 11, 2026 · 3 min read

Comparable adjusted revenue rose 9.1% to $553.9 million as combined Payments and Data businesses expanded more than 21%.

Deluxe (DLX), a payments and data company, reported third-quarter revenue of $553.9 million, up 2.5% from a year earlier, reversing a 4.2% year-over-year decline in the second quarter. Comparable adjusted revenue, which strips out prior-year business-exit effects, rose 9.1% after 2.6% growth in the prior quarter.

The company said the mix shift toward Payments and Data accelerated. Combined Merchant Services, B2B Payments and Data Solutions revenue expanded by more than 21% in the third quarter, after 9.7% growth in the second quarter, as the Celero acquisition closed mid-quarter. President and Chief Executive Barry McCarthy said the addition of Celero further accelerated growth and mix-shift progress.

Merchant Services revenue was $135.1 million, compared with $98.0 million a year earlier. B2B Payments rose to $77.3 million from $73.1 million, and Data Solutions rose to $102.9 million from $89.2 million. Print revenue fell to $238.6 million from $279.9 million.

Comparable adjusted EBITDA increased 9.6% to $127.1 million, accelerating from 5.3% growth in the second quarter. Comparable adjusted EBITDA margin was 22.9%, up 10 basis points from the year-ago quarter after a 60 basis-point year-over-year expansion in the second quarter. Merchant Services adjusted EBITDA was $32.1 million, B2B Payments $22.5 million, Data Solutions $27.6 million and Print $84.3 million.

GAAP net income was $13.0 million, down from $33.7 million a year earlier, as acquisition-related costs and higher interest expense offset incremental operating profits. Diluted earnings were $0.28 a share versus $0.74. Comparable adjusted diluted EPS improved 1.9% to $1.06, slowing from a 6.1% year-over-year increase in the second quarter.

For the nine months ended September 30, 2026, cash from operating activities increased 28.1% to $215.9 million and free cash flow increased 40.7% to $134.9 million. Net debt rose to $1,929.2 million at September 30 from $1,392.5 million at December 31, 2025, after $642.9 million of acquisition payments and a $581.1 million net increase in debt in the first nine months.

The company updated its full-year 2026 outlook to revenue of $2.13 billion to $2.15 billion, adjusted EBITDA of $470 million to $480 million, and adjusted diluted EPS of $3.80 to $4.00, from the August ranges of $2.095 billion to $2.12 billion, $455 million to $475 million, and $3.60 to $4.00. Free cash flow of approximately $200 million was affirmed. Guidance remains subject to macroeconomic conditions, tariffs, labor supply, inflation and other portfolio changes, the company said.

The board approved a regular quarterly dividend of $0.30 a share, payable December 1, 2026, to shareholders of record as of November 17, 2026.