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Sep 30, 2025
Donnelley Financial Solutions Q3 2025 Earnings Report
Donnelley Financial Solutions reported its third-quarter 2025 results, highlighting increased software solutions net sales and improved Adjusted EBITDA.
Key Takeaways
Donnelley Financial Solutions reported a net loss of $40.9 million for the third quarter of 2025, primarily due to an $82.8 million non-cash charge from a pension plan settlement. Despite this, the company saw strong performance in its software solutions, which grew by 10.3% and accounted for over half of total net sales. Adjusted EBITDA increased by 14.6% to $49.5 million, with the Adjusted EBITDA margin expanding to 28.2%, reflecting a favorable sales mix and cost control initiatives.
Software solutions net sales increased by 10.3% to $90.7 million, representing 51.7% of total net sales.
The company reported a GAAP net loss of $40.9 million, or $1.49 per diluted share, largely due to an $82.8 million non-cash pension plan settlement charge.
Non-GAAP net earnings rose to $23.7 million, or $0.86 per diluted share, compared to $14.3 million, or $0.48 per diluted share, in the prior year.
Adjusted EBITDA grew by 14.6% to $49.5 million, with the Adjusted EBITDA margin expanding by 410 basis points to 28.2%.
Revenue by Segment
Forward Guidance
For the fourth quarter of 2025, Donnelley Financial Solutions expects total net sales to be between $150 million and $160 million, with an Adjusted EBITDA margin of 22% to 24%. Capital markets transactional net sales are projected to be $30 million to $40 million.
Positive Outlook
- Continued focus on software solutions growth, which has shown strong momentum.
- Ongoing cost control initiatives and operating efficiencies are expected to support margin performance.
- Strong market position and deep domain expertise are expected to benefit the company when market activity resumes.
- New Venue virtual data room product has received positive feedback, indicating potential for future growth.
- Disciplined capital allocation strategy to support transformation into a market-leading regulatory and compliance solutions provider.
Challenges Ahead
- The government shutdown starting October 1st has substantially curtailed IPO activity and impacted other capital markets transactions.
- Uncertainty regarding the duration of the government shutdown poses a risk to fourth-quarter performance.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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