Summary of DFIN Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 2025 Performance:

Consolidated net sales grew 10.4% year-over-year to $172.5 million.

Adjusted EBITDA increased by 44% to $45.8 million, with an adjusted EBITDA margin of 26.6%, up 630 basis points from Q4 2024.

Full-year adjusted EBITDA reached $239.8 million, a 10.4% increase from 2024, with a record adjusted EBITDA margin of 31.3%.

Free cash flow for Q4 was $47.9 million, totaling $107.8 million for the year, an increase of $2.6 million from 2024.

Share repurchases totaled approximately 3.6 million shares in 2025, representing about 12% of outstanding shares.

2Strategic Updates and Business Highlights

DFIN completed its transformation phase (Chapter 2) and is entering Chapter 3, focusing on sustained growth and profitability.

Software Solutions net sales reached a record $358.4 million, comprising 47% of total sales, driven by strong growth in recurring compliance products (ActiveDisclosure and Arc Suite).

Venue saw a 3% increase in net sales for the year, with 20% growth in Q4, aided by new product launches and improved market activity.

DFIN is deploying AI across its offerings and operations, enhancing client solutions and internal processes.

The introduction of ArcFlex for alternative investments is expected to capture new market demand, with strong interest noted from private fund managers.

3Forward Guidance and Outlook

For Q1 2026, DFIN anticipates consolidated net sales between $200 million and $210 million, with adjusted EBITDA margins of 33% to 35%.

The company expects continued growth in software solutions, particularly ActiveDisclosure and Venue, while anticipating a decline in print and distribution sales.

The outlook for capital markets transactional sales is flat compared to Q1 2025, with expectations of improved activity later in the year.

4Bad News, Challenges, or Points of Concern

Transactional revenue has declined for four consecutive years, indicating a potential ongoing challenge in this area.

The print and distribution segment continues to face secular decline, which DFIN expects to persist, impacting traditional compliance offerings.

Regulatory changes are not anticipated to be significant in 2026, which may limit growth opportunities for certain products.

Market volatility could affect the timing of transactions, posing a risk to expected revenue growth.

5Notable Q&A Insights

Management indicated that the outperformance in Q4 was primarily due to volume increases in capital markets transactional revenue rather than price increases.

The strong margin performance was attributed to a favorable sales mix and effective cost control, with expectations for margins to remain above 30% in the long term.

The ArcFlex platform for alternative investment managers can be sold independently or alongside Arc Suite, with significant market interest noted.

DFIN’s strong share in larger IPOs was highlighted, with a 70% share of offerings over $1 billion in 2025, showcasing its competitive positioning in the market. Overall, DFIN's Q4 2025 results reflect a strong performance amid ongoing challenges in transactional revenue and print services, with a strategic focus on software solutions and AI integration driving future growth.