Slides
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© 2025 Deluxe Corporation Third Quarter 2025 Earnings November 5, 2025
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2 Vice President, Strategy & Investor Relations Brian Anderson
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3 Today’s Presenters Chip Zint Senior Vice President and Chief Financial Officer Barry McCarthy President and Chief Executive Officer Brian Anderson Vice President, Strategy & Investor Relations
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4 Statements made in this presentation regarding Deluxe, the company’s,or management’s intentions, expectations, outlook, or predictions about future results or events are considered “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. These statements reflect management’s current intentions or beliefs and are subject to risks and uncertainties that could cause actual results or events to differ from stated expectations, which variations could be material and adverse. Factors that could lead to such variations include, but are not limited to, the following: changes in local, regional, national, and international economic or political conditions, including those arising from heightened inflation, rising interest rates, a recession, uncertainties surrounding trade policies or tariffs, or intensified international hostilities, and their impact on the company, its data, customers, or demand for the company’s products and services; the effects of proposed and enacted legislative and regulatory actions affecting the company or the financial services industry as a whole; ongoing cost increases and/or declines in the availability of data, materials, and other services; the company’s ability to execute its strategy and to realize the intended benefits; the inherent unreliability of earnings, revenue, and cash flow predictions due to numerous factors, many of which are beyond the company’s control; declining demand for the company’s checks, check-related products and services, and business forms; risks that the company’s strategies intended to drive sustained revenue and earnings growth, despite the continuing decline in checks and forms, are delayed or unsuccessful; intense competition; consolidation of financial institutions and/or bank failures, reducing the number of potential customers and referral sources and increasing downward pressure on the company’s revenue and gross profit; risks related to acquisitions, including integration-related risks and risks that future acquisitions will not be consummated; risks that any such acquisitions do not produce the anticipated results or synergies; risks that the company’s cost reduction initiatives will be delayed or unsuccessful; risks related to any divestitures contemplated or undertaken by the company; performance shortfalls by one or more of the company’s major suppliers, licensors, data or service providers; continuing supply chain and labor supply issues; unanticipated delays, costs, and expenses in the development and marketing of products and services, including financial technology and treasury management solutions; the failure of such products and services to deliver the expected revenues and other financial targets; risks related to security breaches, computer malware, or other cyber-attacks; risks of interruptions to the company’s website operations or information technology systems; and risks of unfavorable outcomes and the costs to defend litigation and other disputes. The company’s forward-looking statements speak only as of the time made, and management assumes no obligation to publicly update any such statements. Additional information concerning these and other factors that could cause actual results and events to differ materially from the company’s current expectations are contained in the company’s Form 10-K for the year ended December 31, 2024 and other filings made with the SEC. The company undertakes no obligation to update or revise any forward-looking statements to reflect subsequent events, new information, or future circumstances. Portions of the financial and statistical information discussed during this call are addressed in more detail in today's press release, which is posted on the company's investor relations website at www.investors.deluxe.com. This information was also furnished to the SEC on the Form 8-K filed by the company this evening. Any references to non-GAAP financial measures are reconciled to the comparable GAAP financial measures in the press release and as part of this presentation. Cautionary Statement
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5 President and Chief Executive Officer Barry McCarthy
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Comparable Adjusted Revenue $527.0 $540.2 Q3 24 Q3 25 Q3'25 Financial Highlights (in millions) Revenue $528.4 $540.2 Q3 24 Q3 25 Adjusted EBITDA $104.9 $118.9 Q3 24 Q3 25 +2.2% +13.3% Net Income - GAAP $8.9 $33.7 Q3 24 Q3 25+2.5% 6 Comparable Adjusted EBITDA $104.5 $118.9 Q3 24 Q3 25 +13.8%
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7 Q3'25 Highlights Organic growth in revenue & earnings; Improved leverage ratio on strong FCF DRIVE PAYMENTS & DATA GROWTH EFFICIENCY FOCUS: PRINT & CORPORATE INCREASE CASH FLOW & IMPROVE LEVERAGE RATIO OPERATING LEVERAGE via NS EXECUTION • Data Solutions Revenue +46.0% vs. Q3'24 • Merchant Services Revenue +4.8% vs. Q3'24 • B2B Payments Revenue (2.7%) vs. Q3'24 • Print Revenue (5.9%); Check Rev (2.1%) vs. Q3'24 • Print margin expansion: Q3 Adj EBITDA 33.4%; +60bps vs. Q3'24 • Corporate operations: $2.6M expense reduction (6.0%) vs. Q3'24 • OpEx efficiency: Q3 total SG&A down $15.4M (6.8%) vs. Q3'24 • Leverage Ratio: 3.3x, reaching YE'25 target early, in Q3'25 • Net Debt reduced by $44.7M vs. YE'24 • Q3'25 FCF to Adj EBITDA conversion of 37% • YTD Cash Flow from Ops; $168.5M, +25.7% vs. YTD Q3'24 • Adj. EBITDA Margin expansion across ALL 4 segments vs. Q3'24 • Comparable adjusted EPS $1.09, +29.8% vs. Q3'24 • Maintained Dividend: returning capital to shareholders Comparable Adjusted EBITDA: $118.9 million // +13.8% vs. Q3'24; 22.0% margin // +220bps YoY
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OUR BUSINESSES Merchant Services PAYMENTS & DATA BUSINESSESLEGACY PRINT BUSINESSES B2B Payments DataChecks Promotional Products Corporate CORPORATE YTD Q3'25 Financial Overview Revenue mix shifting towards Payments and Data 8 Q3'25 YTD REVENUE Rev % of Total DLX YOY % Rev Growth Q3'25 YTD ADJUSTED EBITDA MARGIN % KEY COMPONENTS $852 million $746 million - 53.3% 46.7% - (6.3%) +9.4% - 32.2% 23.9% (8.0%) • Reliable cash flows to pay down debt and re-invest in Payments & Data businesses • Large installed base of FIs and SMBs Secular growth markets • Merchant: Deep vertical expertise • B2B Payments: Software & payments that ease complex customer pain points • Data: Market leader across financial institutions • Drive efficiencies across shared-service functions
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Long-term Value Creation Algorithm 9
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10 Chief Financial Officer Chip Zint
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11 Q3'25 Financial Summary TOTAL REVENUE $540.2M Up 2.2% versus Q3'24; Comparable adjusted revenue up 2.5% NET INCOME $33.7M Or $0.74 per share on a diluted basis; Up from $8.9M, or $0.20 per share in Q3'24, on revenue, lower SG&A and restructuring Adjusted EBITDA $118.9M Increased 13.8% versus Q3'24 Adj. EBITDA margin 22.0% Increased 220 basis points versus Q3'24 Adj. Diluted EPS $1.09 Up 29.8% compared to Q3'24 Comparable Metrics
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12 (in millions) Adjusted EBITDA margin was 20.8%, up 180 basis points year-over- year driven by improving revenue growth & on-going cost efficiencies Merchant Services Payment Processing & Reporting Omnichannel Payments Terminals & Devices Revenue $93.5 $98.0 Q3 24 Q3 25 +4.8% Adjusted EBITDA $17.8 $20.4 Q3 24 Q3 25 +14.6%
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13 B2B/Digital Payments Payables as a Service Treasury Management Receivables as a Service (in millions) Adjusted EBITDA margin was 23.0%, up 260 basis points year-over- year on lockbox operating efficiencies and SG&A optimization efforts B2B Payments Revenue $75.1 $73.1 Q3 24 Q3 25 -2.7% Adjusted EBITDA $15.3 $16.8 Q3 24 Q3 25 Fraud & Security Protection +9.8%
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14 Data Analytics and SMB SaaS Solutions Data Driven Marketing (in millions) Adjusted EBITDA margin was 32.6%, up 400 basis points year-over-year driven by strong revenue growth, coupled with operating expense efficiencies including volume-related vendor rebates Data Solutions Revenue $61.1 $89.2 Q3 24 Q3 25 +46.0% Adjusted EBITDA $17.5 $29.1 Q3 24 Q3 25 +66.3%
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15 Check and Forms & Business Products: blended decline rates in-line with segment guidance Promotional Solutions: YTD outsized declines // lower margin impact vs core Print offerings Print - Revenue by Category Web Storefront Platform for Branded Products Extensive range of Promotional offeringsBusiness Essentials Consumer and Business Checks Q3 $61.3 $52.3 $59.2 $54.6 $176.8 $173.0 Other Promo Solutions Forms & Business Producsts Checks Q3 24 Q3 25 (in millions) YTD $193.3 $161.1 $181.4 $169.3 $534.7 $521.9 Other Promo Solutions Forms & Business Producsts Checks YTD Q3'24 YTD Q3'25 -2.1% -7.8% -14.7% -3.6% -2.4% -6.7% -16.7% -3.5%
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16 (in millions) Adjusted EBITDA margin was 33.4%, expanding 60 basis points year-over-year on segment mix and continuing strong operating efficiency Print Web Storefront Platform for Branded Products Extensive range of Promotional offeringsBusiness Essentials Consumer and Business Checks Revenue $297.3 $279.9 Q3 24 Q3 25 -5.9% Adjusted EBITDA $97.4 $93.5 Q3 24 Q3 25 -4.0%
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17 Free Cash Flow (in millions) Net Debt to Adjusted EBITDA (in millions) Balance Sheet and Cash Flow For the 12 Months Ended 9/30/2025 12/31/2024 Variance Net Debt $1,424.0 $1,468.7 ($44.7) LTM Adjusted EBITDA $428.9 $412.1 $16.8 Net Debt to Adjusted EBITDA 3.3x 3.6x For the Nine Months Ended 9/30/2025 09/30/2024 Variance Cash Provided by Operating Activities $168.5 $134.1 $34.4 Less Capital Expenditures (72.6) (69.8) (2.8) Free Cash Flow $95.9 $64.3 $31.6
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18 2025 Guidance Additional modeling assumptions: • Interest expense of approximately $123 million • Adjusted tax rate of 26% • Depreciation and amortization of $133 million, of which acquisition amortization is approximately $45 million • Average outstanding share count of 45.5 million shares • Capital expenditures between $90 and $100 million All figures are approximate, and remain subject to, among other things, prevailing macroeconomic conditions including potential tariff impacts, labor supply challenges, inflation, and the impact of other potential changes to the company's portfolio. Declared regular dividend of $0.30 per share
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Long-term Value Creation Algorithm 19
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Q & A
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21 Vice President, Strategy & Investor Relations Brian Anderson
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22 Upcoming Conferences/Events
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23 Appendix
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24 Consolidated Condensed Statements of Income in millions, except per share amounts (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $540.2 $528.4 $1,598.0 $1,601.2 Cost of revenue (249.1) (246.5) (746.6) (747.0) Gross profit 291.1 281.9 851.4 854.2 Selling, general and administrative expense (212.4) (227.8) (652.1) (695.7) Restructuring and integration expense (2.9) (11.0) (14.6) (35.9) Asset impairment charge — (6.7) — (6.7) Gain on sale of businesses and long-lived assets — 5.2 — 29.2 Operating income 75.8 41.6 184.7 145.1 Interest expense (30.5) (29.9) (92.8) (90.9) Other income 1.9 1.8 6.2 6.6 Income before income taxes 47.2 13.5 98.1 60.8 Income tax provision (13.5) (4.6) (27.9) (20.5) Net income 33.7 8.9 70.2 40.3 Non-controlling interest — — (0.1) (0.1) Net income attributable to Deluxe $33.7 $8.9 $70.1 $40.2 Weighted-average dilutive shares outstanding 45.6 44.8 45.4 44.7 Diluted earnings per share $0.74 $0.20 $1.54 $0.90 Adjusted diluted earnings per share 1.09 0.84 2.71 2.46 Comparable adjusted diluted earnings per share 1.09 0.84 2.71 2.42 Depreciation and amortization expense 32.3 44.3 101.0 127.7 EBITDA 110.0 87.7 291.8 279.3 Adjusted EBITDA 118.9 104.9 325.5 308.7 Comparable adjusted EBITDA 118.9 104.5 325.5 303.0
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25 Segment Information in millions (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue: Merchant Services $98.0 $93.5 $297.2 $288.5 B2B Payments 73.1 75.1 214.2 214.8 Data Solutions 89.2 61.1 234.3 178.2 Print 279.9 297.3 852.3 909.4 Business exits(1) — 1.4 — 10.3 Total $540.2 $528.4 $1,598.0 $1,601.2 Comparable adjusted revenue $540.2 $527.0 $1,598.0 $1,590.9 Adjusted EBITDA: Merchant Services $20.4 $17.8 $63.5 $58.4 B2B Payments 16.8 15.3 45.8 42.5 Data Solutions 29.1 17.5 69.1 48.1 Print 93.5 97.4 274.7 282.2 Business Exits(1) / Corporate (40.9) (43.1) (127.6) (122.5) Total $118.9 $104.9 $325.5 $308.7 Comparable adjusted EBITDA $118.9 $104.5 $325.5 $303.0 Adjusted EBITDA Margin: Merchant Services 20.8% 19.0% 21.4% 20.2% B2B Payments 23.0% 20.4% 21.4% 19.8% Data Solutions 32.6% 28.6% 29.5% 27.0% Print 33.4% 32.8% 32.2% 31.0% Total 22.0% 19.9% 20.4% 19.3% Comparable adjusted EBITDA 22.0% 19.8% 20.4% 19.0% (1) Includes the payroll and human resources services business, which the company substantially exited during 2024.
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26 Q3'25 Revenue by Category in millions (Unaudited) Quarter Ended September 30, 2025 Merchant Services B2B Payments Data Solutions Print All Other(1) Consolidated Checks $— $— $— $173.0 $— $173.0 Merchant services 98.0 — — — — 98.0 Data-driven marketing — — 84.6 — — 84.6 Forms and other business products — — — 54.6 — 54.6 Promotional solutions — — — 52.3 — 52.3 Treasury management solutions — 56.1 — — — 56.1 Other payment solutions — 17.0 — — — 17.0 Other web-based solutions — — 4.6 — — 4.6 Total revenue $98.0 $73.1 $89.2 $279.9 $— $540.2 Quarter Ended September 30, 2024 Merchant Services B2B Payments Data Solutions Print All Other(1) Consolidated Checks $— $— $— $176.8 $— $176.8 Merchant services 93.5 — — — — 93.5 Data-driven marketing — — 56.5 — — 56.5 Forms and other business products — — — 59.2 — 59.2 Promotional solutions — — — 61.3 — 61.3 Treasury management solutions — 58.6 — — — 58.6 Other payment solutions — 16.5 — — — 16.5 Other web-based solutions — — 4.6 — — 4.6 Other — — — — 1.4 1.4 Total revenue $93.5 $75.1 $61.1 $297.3 $1.4 $528.4 (1) Includes the payroll and human resources services business, which the company substantially exited during 2024.
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27 Reconciliation of GAAP to Non-GAAP Measures EBITDA, Adjusted EBITDA, and Adjusted EBITDA margin in millions (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net income $33.7 $8.9 $70.2 $40.3 Non-controlling interest — — (0.1) (0.1) Interest expense 30.5 29.9 92.8 90.9 Income tax provision 13.5 4.6 27.9 20.5 Depreciation and amortization expense 32.3 44.3 101.0 127.7 EBITDA 110.0 87.7 291.8 279.3 Asset impairment charge — 6.7 — 6.7 Restructuring and integration expense 2.9 11.3 15.6 37.0 Share-based compensation expense 6.0 4.8 17.6 15.0 Certain legal and environmental (benefit) expense — (0.4) 0.5 (0.1) Gain on sale of businesses and long-lived assets — (5.2) — (29.2) Adjusted EBITDA $118.9 $104.9 $325.5 $308.7 Adjusted EBITDA margin 22.0% 19.9% 20.4% 19.3%
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28 Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q3 2025 dollars and shares in millions, except per share amounts (Unaudited) Q3 2025 GAAP Acquisition amortization Restructuring and integration expense Share-based compensation expense Income tax impact of adjustments Q3 2025 Adjusted Revenue $540.2 $— $— $— $— $540.2 Cost of revenue (249.1) 2.2 — 0.2 — (246.7) Gross profit 291.1 2.2 — 0.2 — 293.5 Selling, general and administrative expense (212.4) 8.4 — 5.8 — (198.2) Restructuring and integration expense (2.9) — 2.9 — — — Operating income 75.8 10.6 2.9 6.0 — 95.3 Interest expense (30.5) — — — — (30.5) Other income 1.9 — — — — 1.9 Income before income taxes 47.2 $10.6 $2.9 $6.0 — 66.7 Income tax provision (13.5) ($3.6) (17.1) Net income $33.7 $49.6 Income attributable to Deluxe available to common shareholders $33.7 $49.6 Weighted-average dilutive shares 45.6 45.6 Diluted EPS $0.74 $1.09 Comparable Adjusted Diluted EPS $1.09
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29 Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Q3 2024 dollars and shares in millions, except per share amounts (Unaudited) Q3 2024 GAAP Acquisition and accelerated amortization Restructuring and integration expense Share-based compensation expense Asset impairment charge Certain legal / environmental benefit Gain on sale of businesses/ assets Income tax impact of adjustments Q3 2024 Adjusted Revenue $528.4 $— $— $— $— $— $— $— $528.4 Cost of revenue (246.5) 2.4 0.3 0.2 — — — — (243.6) Gross profit 281.9 2.4 0.3 0.2 — — — — 284.8 Selling, general and administrative (227.8) 18.0 — 4.6 — (0.4) — — (205.6) Restructuring and integration expense (11.0) — 11.0 — — — — — — Asset impairment charge (6.7) — — — 6.7 — — — Gain on sale of businesses and long- lived assets 5.2 — — — — — (5.2) — — Operating income 41.6 20.4 11.3 4.8 6.7 (0.4) (5.2) — 79.2 Interest expense (29.9) — — — — — — — (29.9) Other income 1.8 — — — — — — — 1.8 Income before income taxes 13.5 $20.4 $11.3 $4.8 $6.7 ($0.4) ($5.2) — 51.1 Income tax provision (4.6) ($9.0) (13.6) Net income $8.9 $37.5 Income attributable to Deluxe available to common shareholders $8.9 $37.5 Business exits 0.3 Comparable adjusted income available to common shareholders $37.8 Weighted-average dilutive shares 44.8 44.8 Diluted EPS $0.20 $0.84 Comparable Adjusted Diluted EPS $0.84
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30 Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Sept. YTD 2025 dollars and shares in millions, except per share amounts (Unaudited) Sept. YTD 2025 GAAP Acquisition amortization Restructuring and integration expense Share-based compensation expense Certain legal / environmental expense Income tax impact of adjustments Sept. YTD 2025 Adjusted Revenue $1,598.0 $— $— $— $— $— $1,598.0 Cost of revenue (746.6) 6.6 1.0 0.6 — — (738.4) Gross profit 851.4 6.6 1.0 0.6 — — 859.6 Selling, general and administrative expense (652.1) 27.2 — 17.0 0.5 — (607.4) Restructuring and integration expense (14.6) — 14.6 — — — — Operating income 184.7 33.8 15.6 17.6 0.5 — 252.2 Interest expense (92.8) — — — — — (92.8) Other income 6.2 — — — — — 6.2 Income before income taxes 98.1 $33.8 $15.6 $17.6 $0.5 — 165.6 Income tax provision (27.9) ($14.5) (42.4) Net income 70.2 $123.2 Non-controlling interest (0.1) (0.1) Net income attributable to Deluxe $70.1 $123.1 Income attributable to Deluxe available to common shareholders $70.1 $123.0 Weighted-average dilutive shares 45.4 45.4 Diluted EPS $1.54 $2.71 Comparable Adjusted Diluted EPS $2.71
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31 Reconciliation of GAAP to Non-GAAP Measures Adjusted Diluted EPS - Sept. YTD 2024 dollars and shares in millions, except per share amounts (Unaudited) Sept. YTD 2024 GAAP Acquisition and accelerated amortization Restructuring and integration expense Share-based compensation expense Asset impairment charge Certain legal / environmental benefit Gain on sale of businesses/ assets Income tax impact of adjustments Sept. YTD 2024 Adjusted Revenue $1,601.2 $— $— $— $— $— $— $— $1,601.2 Cost of revenue (747.0) 10.1 1.1 0.6 — — — — (735.2) Gross profit 854.2 10.1 1.1 0.6 — — — — 866.0 Selling, general and administrative expense (695.7) 48.9 — 14.4 — (0.1) — — (632.5) Restructuring and integration expense (35.9) — 35.9 — — — — — — Asset impairment charge (6.7) — — — 6.7 — — — — Gain on sale of businesses and long-lived assets 29.2 — — — — — (29.2) — — Operating income 145.1 59.0 37.0 15.0 6.7 (0.1) (29.2) — 233.5 Interest expense (90.9) — — — — — — — (90.9) Other income 6.6 — — — — — — — 6.6 Income before income taxes 60.8 $59.0 $37.0 $15.0 $6.7 ($0.1) ($29.2) — 149.2 Income tax provision (20.5) ($18.8) (39.3) Net income $40.3 $109.9 Non-controlling interest (0.1) (0.1) Income attributable to Deluxe $40.2 $109.8 Income attributable to Deluxe available to common shareholders $40.1 $109.7 Business exits (1.7) Comparable adjusted income available ot common shareholders $108.0 Weighted-average dilutive shares 44.7 44.7 Diluted EPS $0.90 $2.46 Comparable Adjusted Diluted EPS $2.42
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32 Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EBITDA Margin in millions (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Revenue $540.2 $528.4 $1,598.0 $1,601.2 Business exits — (1.4) — (10.3) Comparable adjusted revenue $540.2 $527.0 $1,598.0 $1,590.9 Adjusted EBITDA $118.9 $104.9 $325.5 $308.7 Business exits — (0.4) — (5.7) Comparable adjusted EBITDA $118.9 $104.5 $325.5 $303.0 Comparable adjusted EBITDA margin 22.0% 19.8% 20.4% 19.0%
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33 Reconciliation of GAAP to Non-GAAP Measures Comparable Adjusted Revenue / Comparable Adjusted EBITDA / Comparable Adjusted EPS Outlook (Unaudited) Total Year 2025 Outlook 2024 Actual (in billions) Revenue $2.11 - $2.13 $2.12 Less: Business exits — (0.01) Comparable adjusted revenue $2.11 - $2.13 $2.11 Comparable adjusted revenue (decline) growth % 0% - 1% (in millions) Adjusted EBITDA $425 - $435 $412 Less: Business exits — (6) Comparable adjusted EBITDA $425 - $435 $406 Comparable adjusted EBITDA growth % 5% - 7% Adjusted diluted EPS $3.45 - $3.60 $3.29 Less: Business exits — (0.03) Comparable adjusted diluted EPS $3.45 - $3.60 $3.26 Comparable adjusted diluted EPS growth 6% - 10% The company has not reconciled the adjusted EBITDA, adjusted diluted EPS, adjusted income tax rate, or free cash flow outlook for 2025 to the directly comparable GAAP financial measures because the company does not provide outlook guidance for the reconciling items between net income, adjusted net income, and adjusted EBITDA, and certain of these reconciling items impact cash flows from operating activities. Due to the substantial uncertainty and variability surrounding certain of these forward- looking reconciling items, including asset impairment charges, restructuring and integration expenses, gains and losses on sales of businesses and long-lived assets, and certain legal and environmental expenses, a reconciliation of the outlook for these non-GAAP financial measures to the corresponding GAAP measures is not available without unreasonable effort. The probable significance of certain of these reconciling items is high and, based on historical experience, could be material.
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34 Reconciliation of GAAP to Non-GAAP Measures Net Debt to Adjusted EBITDA dollars in millions (Unaudited) September 30, 2025 December 31, 2024 Total debt $1,449.8 $1,503.1 Cash and cash equivalents (25.8) (34.4) Net debt $1,424.0 $1,468.7 12 Months Ended September 30, 2025 12 Months Ended December 31, 2024 Net income $82.8 $52.9 Non-controlling interest (0.1) (0.1) Interest expense 125.2 123.3 Income tax provision 31.0 23.6 Depreciation and amortization expense 138.8 165.5 Asset impairment charges 1.0 7.7 Restructuring and integration expense 29.1 50.5 Share-based compensation 22.5 19.9 Certain legal-related expense 0.6 — Gain on sale of businesses and long-lived assets (2.0) (31.2) Adjusted EBITDA $428.9 $412.1 NET DEBT TO ADJUSTED EBITDA 3.3 3.6 TRAILING 12 MONTHS ADJUSTED EBITDA:
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35 Reconciliation of GAAP to Non-GAAP Measures Free Cash Flow in millions (Unaudited) Quarter Ended September 30, Nine Months Ended September 30, 2025 2024 2025 2024 Net cash provided by operating activities $67.1 $67.9 $168.5 $134.1 Purchases of capital assets (23.3) (21.2) (72.6) (69.8) Free cash flow $43.8 $46.7 $95.9 $64.3