Deluxe Corp Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Kartik Mehta - Northcoast Research Partners, LLC - Analyst : Hey, good afternoon, gentlemen. Barry, I was hoping maybe get a little bit more detail on the merchant business, just from a fundamental standpoint, what you're seeing in the marketplace? And maybe what segments in the business are doing well and maybe what segments might be lagging a little bit because of where we are in the economy?

Question: Kartik Mehta - Northcoast Research Partners, LLC - Analyst : Sorry, Barry, I was on mute, I apologize. Maybe just your perspective, now you have a new leader in the business. Obviously, your strategy might change a little bit. I'm wondering, Barry, if you can just talk a little bit about now that Brian is on board some of the areas you might focus on or maybe strategic changes you would -- you're planning on in the business?

Question: Kartik Mehta - Northcoast Research Partners, LLC - Analyst : Thank you very much. I really appreciate it.

Question: Charlie Strauzer - CJS Securities - Analyst : Hi, good evening. First of all, thank you for the additional color on Q2. Maybe if you could expand a little bit more on that just in terms of -- from a segment basis, how we should think about modeling that, especially since you may see some decline year-over-year there?

Question: Charlie Strauzer - CJS Securities - Analyst : Great. Thank you. And then, Barry, maybe just if you could talk a little bit about the success of Data the last few quarters. What's kind of the secret sauce that's helping you guys win these campaigns. If you could expand on that a little bit, that would be great.

Question: Charlie Strauzer - CJS Securities - Analyst : That's very helpful. Thank you.

Question: Jonnathan Navarrete - TD Cowen - Analyst : Thank you. Hey, guys. How would you assess the potential impact of recent commentary from the Trump administration regarding phasing out of physical checks by the end of September of this year. What's your exposure to government here? And do you think it could start a chain reaction amongst your larger customers?

Question: Jonnathan Navarrete - TD Cowen - Analyst : Got it. That's super helpful. Thank you. And just my last one is on tariffs. Have you observed any size of spending pull forward in April following the announcement of the tariffs, particularly in consumer or in SMBs facing verticals?

Question: Jonnathan Navarrete - TD Cowen - Analyst : Okay. Thank you.

Question: Marc Riddick - Sidoti & Company, LLC - Analyst : Hi, good evening. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 30, 2025 / 9:00PM, DLX.N - Q1 2025 Deluxe Corp Earnings Call

Question: Marc Riddick - Sidoti & Company, LLC - Analyst : So I wanted to start with -- thank you for sort of already touching on the announcement with the partnership with Town Bank. I was wondering if you could talk a little bit about some of the potential catalysts for driving additional partnerships that you're anticipating in the near term? And maybe as an aside to that, do you anticipate any potential economic disruptions to perhaps create opportunities to accelerate that path?

Question: Marc Riddick - Sidoti & Company, LLC - Analyst : So very encouraging. Thank you for the color there. And then just a quick follow-up. Congratulations on the ratings improvement and the debt reduction that you've been embarked on. I think it was mentioned in the slides or prepared remarks or both free cash flow. And sort of can you talk a little bit about where we are with CapEx for this year, I think it's $90 million to $100 million. Is there anything timing-wise or lumpy is that we should be thinking about? Or how that flows throughout the year? Thanks.

Question: Marc Riddick - Sidoti & Company, LLC - Analyst : Much appreciate. Thank you very much.