Donnelley Financial Solutions (NYSE:DFIN) on Tuesday delivered fourth-quarter results that comfortably beat Wall Street expectations, fueled by solid momentum in its software and technology-driven services businesses.
Despite the earnings beat, DFIN shares were flat in pre-market trading following the release.
The regulatory and financial compliance solutions provider reported adjusted earnings of $0.70 per share for the quarter, well ahead of the $0.41 consensus estimate — a 71% upside surprise.
Revenue reached $172.5 million, topping analyst expectations of $155.24 million and rising 10.4% from the same quarter a year earlier.
Software solutions revenue climbed 11.4% year over year to $90.9 million, while tech-enabled services revenue increased 12.4% to $68.0 million.
By contrast, the print and distribution segment declined 4.2% to $13.6 million, underscoring the company’s continued transition toward higher-margin digital offerings.
“We are pleased with the strong performance in the quarter, including software solutions and tech-enabled services net sales growth of 11.4% and 12.4%, respectively, an increase in Adjusted EBITDA, and Adjusted EBITDA margin expansion,” said Daniel N. Leib, DFIN’s president and chief executive officer.
Adjusted EBITDA surged 44.5% to $45.8 million, with margins expanding 630 basis points to 26.6%. The margin improvement reflected stronger revenue, a richer mix of software sales, and disciplined cost management.
For full-year 2025, DFIN generated adjusted earnings of $4.30 per share on total revenue of $767 million. Software solutions represented 46.7% of total revenue, up from 42% in 2024.
Looking ahead to the first quarter of 2026, the company forecast revenue between $200 million and $210 million, broadly in line with the $207.2 million consensus estimate. Adjusted EBITDA margin for the quarter is expected to range from 33% to 35%.