Donnelley Financial Aims for 60% of Revenue from Software Solutions by 2028 Amid Growing SaaS Demand
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 29 2025
0mins
Source: SeekingAlpha
Management Insights: DFIN reported strong growth in SaaS offerings, with Software Solutions accounting for 52% of total sales. The launch of the Venue Virtual Data Room and ArcFlex modules were highlighted as key developments, despite challenges from the U.S. government shutdown affecting capital markets.
Financial Performance: Q3 2025 total net sales were $175.3 million, a slight decline from the previous year, but Software Solutions saw a 10.3% increase. Adjusted EBITDA rose to $49.5 million, reflecting a margin expansion to 28.2%.
Q4 Outlook: Guidance for Q4 2025 anticipates net sales between $150 million and $160 million, with a projected adjusted EBITDA margin of 22% to 24%. The government shutdown is expected to impact capital markets transactional sales, leading to a cautious revenue outlook.
Risks and Strategic Focus: Management identified the government shutdown and ongoing declines in print revenue as key risks. They remain focused on transforming into a software-centric business, aiming for 60% of sales from Software Solutions by 2028, while maintaining confidence in capturing delayed demand.
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Analyst Views on DFIN
Wall Street analysts forecast DFIN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DFIN is 61.50 USD with a low forecast of 57.00 USD and a high forecast of 66.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
2 Analyst Rating
2 Buy
0 Hold
0 Sell
Moderate Buy
Current: 51.730
Low
57.00
Averages
61.50
High
66.00
Current: 51.730
Low
57.00
Averages
61.50
High
66.00
About DFIN
Donnelley Financial Solutions, Inc. is a provider of software and technology-enabled financial regulatory and compliance solutions. The Company provides regulatory filing and deal solutions through its software, technology-enabled services and print and distribution solutions. Its segments include Capital Markets-Software Solutions (CM-SS), Capital Markets-Compliance and Communications Management (CM-CCM), Investment Companies-Software Solutions (IC-SS), and Investment Companies-Compliance and Communications Management (IC-CCM). CM-SS segment provides software solutions to public and private companies. CM-CCM segment provides technology-enabled services and print and distribution solutions to public and private companies. IC-SS segment provides software solutions that enable clients to store and manage compliance and regulatory information. IC-CCM segment provides clients with tech-enabled solutions for creating, filing and distributing regulatory communications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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