Loading...
01/11 05:24
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call presents a mixed outlook. Strong free cash flow and data segment growth are positives, but declines in B2B payments and print revenue are concerning. The lack of guidance for next year and a decline in some segments suggest caution. Overall, the sentiment is neutral, with no clear catalyst for a significant stock price movement.
Revenue $540.2 million for Q3 2025, increasing 2.2% year-over-year on a reported basis and 2.5% on a comparable adjusted basis. Growth was driven by strong performance in the Data segment and Payments segment, offsetting declines in the Print segment.
Adjusted EBITDA $118.9 million for Q3 2025, up 13.8% year-over-year. Margins improved to 22% of revenue, expanding by 220 basis points. Growth was driven by cost efficiencies and revenue expansion.
Adjusted EPS $1.09 per share for Q3 2025, up 29.8% year-over-year from $0.84 in Q3 2024. Growth was driven by improved operating results and lower SG&A expenses.
Net Debt $1.42 billion as of Q3 2025, reduced by $20.5 million sequentially and $44.5 million year-to-date. Reduction was driven by strong free cash flow and debt repayment.
Free Cash Flow $44 million for Q3 2025, reflecting a 37% cash-to-EBITDA conversion rate. Year-to-date free cash flow was $95.9 million, up $31.6 million year-over-year, driven by strong operating results and lower restructuring spend.
Data Segment Revenue $89.2 million for Q3 2025, up 46% year-over-year. Growth was driven by strong demand for marketing campaigns from financial institutions and expansion into other markets.
Merchant Services Revenue $98 million for Q3 2025, up 4.8% year-over-year. Growth was driven by stable core merchant processing volumes, channel partner additions, and pricing actions.
B2B Payments Revenue $73.1 million for Q3 2025, down 2.7% year-over-year. Decline was due to anticipated onboarding and implementation efforts, but EBITDA margins improved by 260 basis points to 23%.
Print Segment Revenue $279.9 million for Q3 2025, down 5.9% year-over-year. Decline was driven by a 14.7% drop in branded promotional products and a 2.1% decline in legacy checks.
Payments and Data Revenue Growth: Blended Payments and Data segment revenue grew nearly 9.5% through Q3, with these segments now accounting for 47% of total company revenue, up nearly 400 basis points year-over-year.
Data Segment Performance: Data segment revenue grew 46% year-over-year in Q3, driven by strong FI demand and expansion of data offerings to other markets.
Merchant Services Expansion: Merchant Services revenue grew by 5% year-over-year in Q3, supported by direct-to-market channels and partnerships.
Market Expansion in Data Solutions: Expansion of data offerings to markets with high lifetime value customers beyond financial institutions.
Merchant Services Partnerships: Expanded relationship with Peoples Bank to include merchant services, leveraging cross-divisional offerings.
Cost Discipline: SG&A expenses reduced by more than $15 million in Q3, reflecting a 7% year-over-year reduction.
Margin Expansion: Adjusted EBITDA margins expanded by 220 basis points to 22% of revenue in Q3.
Debt Reduction: Net debt reduced by more than $20 million in Q3, achieving a leverage ratio of 3.3x ahead of schedule.
Shift to Payments and Data: Payments and Data segments are nearing revenue parity with print businesses, aligning with the strategy to transition towards growth areas.
Focus on Core Print Profitability: Continued focus on high-margin print products while managing declines in lower-margin branded promotional products.
Macroeconomic Uncertainty: Persistent macroeconomic uncertainty is pressuring areas of discretionary spend, particularly affecting Merchant Services and other segments.
B2B Payments Revenue Decline: B2B Payments segment experienced a modest revenue decline of 2.7% year-over-year, with challenges in onboarding and implementation efforts for new wins.
Print Segment Revenue Decline: The Print segment continues to face revenue declines, particularly in branded promotional products, which declined 14.7% year-over-year, and forms and other business products, which declined 7.8%.
Vendor Rebates in Data Segment: The Data segment benefited from volume-related vendor rebates, which are not expected to continue at the same magnitude, potentially impacting future EBITDA margins.
Interest Expense and Debt Levels: Despite progress in debt reduction, the company still faces significant interest expenses of approximately $123 million annually, which could impact financial flexibility.
Seasonal Revenue Moderation: The Data segment anticipates seasonal revenue moderation in Q4 due to lower marketing activity during the holiday period, which could impact overall growth.
Regulatory and Economic Conditions: Guidance and performance remain subject to macroeconomic conditions, including interest rates, labor supply issues, and inflation, which could adversely impact operations.
Revenue: Full year revenue guidance is set at $2.11 billion to $2.13 billion, representing flat to 1% comparable adjusted growth versus 2024.
Adjusted EBITDA: Guidance for adjusted EBITDA is $425 million to $435 million, reflecting 5% to 7% comparable adjusted growth.
Adjusted EPS: The adjusted EPS guidance has been raised to $3.45 to $3.60, representing 6% to 10% comparable adjusted growth.
Free Cash Flow: Full year free cash flow is expected to be between $140 million and $150 million.
Merchant Services: Full year revenue growth is expected in the low single-digit range, with adjusted EBITDA margins in the low 20% range.
B2B Payments: Low single-digit full year revenue growth is expected, with adjusted EBITDA margins in the low to mid-20% range. A return to growth in B2B revenues is anticipated as the company exits 2025.
Data Solutions: Full year revenue growth is expected to be solid double-digit, with EBITDA margins in the mid- to high 20% range. Fourth quarter revenues are expected to remain above long-term mid- to high single-digit growth expectations.
Print Segment: Revenue declines are anticipated in the mid-single-digit range for the full year, with adjusted EBITDA margins remaining in the low 30% range.
Leverage Ratio: The company has achieved its targeted year-end leverage ratio of 3.3x ahead of schedule and aims to reach a leverage ratio of 3x or better by the end of 2026.
Quarterly Dividend: The Board approved a regular quarterly dividend of $0.30 per share on all outstanding shares. The dividend will be payable on December 1, 2025, to all shareholders of record as of market closing on November 17, 2025.
The earnings call presents a mixed outlook. Strong free cash flow and data segment growth are positives, but declines in B2B payments and print revenue are concerning. The lack of guidance for next year and a decline in some segments suggest caution. Overall, the sentiment is neutral, with no clear catalyst for a significant stock price movement.
The earnings call reveals strong financial performance with positive growth in key segments like Data Solutions and Merchant Services. The company's strategic partnerships and acquisitions, such as Check Match, are expected to drive future growth. Despite a decline in the Print segment, overall profitability and cash flow have improved significantly. The Q&A session highlights management's confidence and strategic focus, with no significant negative trends reported. The positive sentiment is reinforced by optimistic guidance and execution on strategic initiatives, suggesting a likely positive stock price movement in the short term.
The earnings call reflects a mixed sentiment: financial performance shows modest improvement with revenue and EBITDA growth, but guidance indicates flat to slight growth, and uncertainties in the economic environment persist. The Q&A highlights potential growth in the Merchant business and partnerships, yet there's concern over legacy product demand. Dividend consistency and debt reduction are positives, but the overall outlook remains cautious, leading to a neutral sentiment.
The earnings call summary indicates stable financial performance with a slight revenue increase and EBITDA improvement. However, guidance shows potential revenue decline, and there are risks in the Print segment and tariff exposure. The Q&A reveals strong growth in the data segment and partnerships, yet concerns over economic disruptions and unclear management responses persist. The dividend remains steady, and debt reduction is progressing. Overall, the mixed signals and moderate financial results suggest a neutral stock price movement in the next two weeks.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
