Donnelley Financial Solutions (DFIN) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated net sales rose 2.8% year-over-year to $224.2 million, driven by strong growth in software solutions and tech-enabled services, partially offset by declines in print and distribution.

• Adjusted EBITDA increased 7.9% to $82.3 million, with margin expanding 170 basis points to 36.7%, reflecting favorable sales mix and cost discipline.

• Software solutions, led by ActiveDisclosure, delivered record net sales of $99.4 million, now comprising 44.3% of total revenue.

• Free cash flow improved by $9.5 million year-over-year to $61.2 million.

• Leadership changes included the appointment of Ken Napolitano as Chief Revenue Officer and the launch of AI-powered iXBRL tagging.

Financial highlights

• Software solutions net sales grew 7.8% year-over-year to $99.4 million, accounting for 44.3% of total net sales in Q2.

• Tech-enabled services net sales increased 5.9% to $90.2 million; print and distribution declined 15% to $34.6 million.

• Adjusted EBITDA for Q2 2026 was $82.3 million, up from $76.3 million in Q2 2025.

• Adjusted non-GAAP gross margin was 66%, up 230 basis points from Q2 2025.

• Cash flow from operations for the first half of 2026 was $69.1 million, up from $30.7 million in the prior year period.

Outlook and guidance

• Q3 2026 consolidated net sales expected between $175 million and $185 million, with adjusted EBITDA margin of 26%-28%.

• Capital markets transactional revenue guidance for Q3 is $45 million-$50 million, up $6 million at midpoint year-over-year.

• Long-term projections call for low-single-digit consolidated sales growth and mid-teens software solutions growth.

• Capital expenditures for 2026 are projected at $55M–$60M, focused on software development.

• Management expects continued compliance with debt covenants and sufficient liquidity for ongoing operations and growth investments.