Donnelley Financial Q4 profit beats on software solutions growth

Donnelley Financial Solutions

17/02/2026 12:09

Overview

Compliance software provider's Q4 net sales rose 10.4% yr/yr

Adjusted EPS for Q4 beat analyst expectations

Company repurchased shares worth $60.7 mln during Q4

Outlook

Company projects first-quarter net sales between $200 mln and $210 mln

Company expects first-quarter adjusted EBITDA margin of 33% to 35%

Company anticipates capital markets transactional net sales of $45 mln to $50 mln

Result Drivers

SOFTWARE SOLUTIONS GROWTH - Software solutions net sales increased 11.4% in Q4, led by Venue and ActiveDisclosure, each growing about 20% year-over-year

CAPITAL MARKETS TRANSACTIONAL REVENUE - Capital markets transactional revenue rose by approximately $11 mln, or 29%, due to improved market activity

COST CONTROL INITIATIVES - Higher Adjusted EBITDA and margin were driven by favorable sales mix and cost control measures, despite higher incentive compensation and selling expenses

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Adjusted EPS
Beat
$0.70
$0.41 (3 Analysts)
Q4 EPS
$0.23
Q4 Adjusted Net Income
$18.90 mln
Q4 Net Income
$6.20 mln
Q4 Adjusted EBITDA
$45.80 mln
Q4 Adjusted EBITDA Margin
26.60%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the professional information services peer group is "buy"

Wall Street's median 12-month price target for Donnelley Financial Solutions Inc is $66.00, about 68.7% above its February 13 closing price of $39.12

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn9f7h50a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)