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Deluxe DLX Service — Cost of Revenue

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Other financials

Income statement

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Revenue$499.3M-4.2%
Gross profit$259.6M-7.1%
Operating income$55.7M-8.4%
Net income$19.1M-14.7%
EPS (diluted)$0.41-18.0%

Balance sheet

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Cash & equivalents$54.4M+31.1%
Total debt$1.5B-5.8%
Total equity$707.9M+10.8%
Total assets$2.6B+1.1%

Cash flow

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Operating cash flow$81.2M+58.9%
CapEx$22.6M-3.0%
Free cash flow$58.6M+111%

Valuation

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Market cap$1.12B+32.3%
Enterprise value$2.54B+7.2%
P/E11.2×-3.5×
P/S0.5×+0.1×

Profitability

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Gross margin52.5%-0.4pp
Operating margin11.9%+2.5pp
Net margin4.8%+2.0pp
FCF margin9.9%+3.5pp

Returns & leverage

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Return on equity14.9%+5.7pp
Debt / equity2.1×-0.4×
Current ratio1.2×+0.3×

Where this comes from

Reported directly by Deluxe in its filing.

Tagged under the XBRL concept us-gaap:CostOfRevenue.

The source filing: Deluxe’s 10-Q, filed August 6, 2026.

Filed
Aug 6, 2026, 9:28 AM EDT
Fiscal quarter
Q2 FY2026
Calendar quarter
Q2 2026
Accession
0000027996-26-000112
(in millions, except per share amounts)Quarter Ended June 30, 2026Quarter Ended June 30, 2025Six Months Ended June 30, 2026Six Months Ended June 30, 2025
Service revenue$262.3$239.9$539.3$488.0
Product revenue237.0281.4498.1569.7
Total revenue499.3521.31,037.41,057.7
Cost of services(153.6)(137.3)(314.9)(283.0)
Cost of products(86.1)(104.7)(183.5)(214.4)
Total cost of revenue(239.7)(242.0)(498.4)(497.4)
Selling, general and administrative expense(202.1)(214.5)(411.5)(439.8)
Restructuring and integration expense(1.8)(4.0)(5.2)(11.7)

Item 1. Consolidated Balance Sheets

FAQ

What is Deluxe's service — cost of revenue?
Deluxe (DLX) reported service — cost of revenue of $153.6M in Q2 2026.
How has Deluxe's service — cost of revenue changed year-over-year?
Deluxe's service — cost of revenue increased by 11.9% year-over-year, from $137.3M to $153.6M.
What is the long-term trend for Deluxe's service — cost of revenue?
Over 4 years (2021 to 2025), Deluxe's service — cost of revenue has grown at a 7.2% compound annual growth rate (CAGR), from $433.39M to $573.36M.
What does service — cost of revenue mean?
This metric captures the direct costs incurred to deliver the services provided by the specific business segment. It includes expenses such as labor, technology infrastructure, and third-party processing fees directly attributable to generating service revenue. Analyzing this metric allows for the evaluation of operational efficiency and the direct profitability margins of the service offerings.

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