DFIN Reports Third-Quarter 2025 Results
Donnelley Financial Solutions, Inc. (DFIN) has released its financial results for the third quarter of 2025. The company, a leading global provider of compliance and regulatory software and services, has highlighted several key financial and operational metrics in its latest SEC 8-K filing.
Financial Highlights
For the third quarter of 2025, DFIN reported:
- Software solutions net sales of $90.7 million, marking a 10.3% increase from the same period in 2024.
- A GAAP net loss of $40.9 million, or $1.49 per diluted share, compared to net earnings of $8.7 million, or $0.29 per diluted share, in the third quarter of 2024.
- Non-GAAP net earnings of $23.7 million, or $0.86 per diluted share, up from $14.3 million, or $0.48 per diluted share, in the third quarter of 2024.
- Adjusted EBITDA of $49.5 million, a 14.6% increase from the third quarter of 2024, with an Adjusted EBITDA margin of 28.2%.
- Gross leverage of 0.7x and net leverage of 0.6x as of September 30, 2025.
- Repurchase of 659,367 shares for approximately $35.5 million at an average price of $53.79 per share.
Business and Operational Highlights
DFIN's software solutions net sales accounted for 51.7% of total net sales in the third quarter, up from 45.8% in the same period last year. The growth was driven by recurring compliance products, ActiveDisclosure and Arc Suite, which grew approximately 16% in aggregate. Venue, the company's virtual data room product, recorded a 3% sales growth.
During the quarter, DFIN launched a new version of Venue following a comprehensive rebuild, receiving positive feedback for its modern features.
Strategic Initiatives and Corporate Developments
DFIN completed the termination and settlement of its primary defined benefit plan, resulting in a non-cash charge of $82.8 million and a $12.5 million cash contribution to fully fund the plan. This move removed a net liability of approximately $10 million from the company's balance sheet.
The company also repurchased 659,367 shares for approximately $35.5 million, with a remaining share repurchase authorization of $114.5 million as of September 30, 2025.
Management's Perspective
Daniel N. Leib, DFIN’s President and CEO, expressed satisfaction with the third-quarter results, highlighting the company's strategic transformation and improved sales mix. He noted the increased momentum in software solutions net sales and the positive reception of the new Venue product.
Leib also commented on the improved capital markets deal activity and the company's strong margin performance, attributing it to a favorable sales mix, cost control initiatives, and operating efficiencies.
Future Outlook
Looking ahead, DFIN provided guidance for the fourth quarter of 2025, projecting total net sales between $150 million and $160 million, an Adjusted EBITDA margin of 22% to 24%, and capital markets transactional net sales between $30 million and $40 million. The company acknowledged the impact of the government shutdown on IPO activity and other capital markets transactions but remains optimistic about its market position and expertise when activity resumes.
Original SEC Filing: Donnelley Financial Solutions, Inc. [ DFIN ] - 8-K - Oct. 29, 2025