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1. Company Snapshot

1.a. Company Description

Donnelley Financial Solutions, Inc.operates as a risk and compliance solutions company worldwide.The company operates through four segments: Capital Markets – Software Solutions (CM-SS), Capital Markets – Compliance and Communications Management (CM-CCM), Investment Companies – Software Solutions (IC-SS), and Investment Companies – Compliance and Communications Management (IC-CCM).


The CM-SS segment provides Venue, ActiveDisclosure, eBrevia, and other solutions to public and private companies to manage public and private transaction processes, extract data, and analyze contracts; collaborate; and tag, validate, and file SEC documents.The CM-CCM segment offers tech-enabled services and print and distribution solutions to public and private companies for deal solutions and SEC compliance requirements.The IC-SS segment provides clients with the Arc Suite platform that contains a comprehensive suite of cloud-based solutions and services that enable storage and management of compliance and regulatory information in a self-service and central repository for accessing, assembling, editing, translating, rendering, and submitting documents to regulators.


The IC-CCM segment offers clients with tech-enabled solutions for creating and filing regulatory communications and solutions for investor communications, as well as XBRL-formatted filings pursuant to the Investment Act, through the SEC EDGAR system.This segment also provides turnkey proxy services, including discovery, planning and implementation, print and mail management, solicitation, tabulation services, shareholder meeting review, and expert support.Donnelley Financial Solutions, Inc.


was founded in 1983 and is headquartered in Chicago, Illinois.

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1.b. Last Insights on DFIN

Donnelley Financial Solutions' recent performance was negatively impacted by a decline in its document outsourcing segment, which saw a 12.3% year-over-year decrease in net sales. The company's software solutions segment, however, showed strength with a 10.7% increase in net sales, driven by organic growth and a 52.2% share of total net sales in the fourth quarter. The decline in document outsourcing segment was a significant driver of the company's recent performance, as it continues to face increased competition and decreasing demand for its services.

1.c. Company Highlights

2. DONNELLEY FINANCIAL SOLUTIONS POSTS STRONG Q3 RESULTS

Donnelley Financial Solutions reported a solid third quarter, with Software Solutions sales growing 10.3% year-over-year, representing 52% of total sales. The company's adjusted EBITDA margin expanded to 28.2%, a 410 basis point increase from the third quarter of 2024. Earnings per share (EPS) came in at $0.86, significantly beating estimates of $0.41. Revenue was impacted by an 8% reduction in event-driven transactional revenue, but the company's SaaS offerings drove double-digit growth. The company's strong financial performance is a testament to its successful strategy, with Daniel Leib stating that the results "validated our strategy, with continued shift towards a favorable sales mix driven by double-digit growth in SaaS offerings."

Publication Date: Nov -12

📋 Highlights
  • SaaS Growth & EBITDA Surge: Software Solutions sales grew 10.3% YoY, contributing 52% of total sales, with adjusted EBITDA rising 14.6% to $49.5M.
  • ActiveDisclosure Expansion: ActiveDisclosure sales surged 26% YoY, driven by subscription adoption and hybrid service models, outpacing Arc Suite’s 10% growth.
  • Margin Expansion: Adjusted EBITDA margin jumped 410 bps to 28.2%, with the Software Solutions segment achieving a 34.9% margin (up 1,010 bps YoY).
  • Q4 Guidance: Adjusted EBITDA margin expected to rise 300 bps to 22–24%, supported by $2.8M stop-loss reimbursement and cost control initiatives.
  • Capital Allocation Strategy: Priorities remain unchanged: financial flexibility, strategic buybacks, and organic/inorganic investments to boost SaaS growth and margin stability.

Segment Performance

The Capital Markets - Software Solutions segment grew 10.7% year-over-year, led by ActiveDisclosure's 26% sales growth. The segment's adjusted EBITDA margin was 34.9%, an increase of approximately 1,010 basis points from the third quarter of 2024. The Investment Companies - Software Solutions segment also reported growth, with net sales increasing 9.7% year-over-year, driven by growth in subscription revenue.

Outlook and Guidance

The company expects consolidated fourth quarter net sales in the range of $150 million to $160 million and adjusted EBITDA margin of 22% to 24%. The guidance reflects a stop-loss reimbursement of $2.8 million received this week. The company is closely monitoring the SEC's proposal to reduce the frequency of corporate reporting from quarterly to semiannual and expects to be insulated from the impact due to its subscription model.

Valuation

Using the current P/E Ratio of 40.17 and EV/EBITDA of 12.07, it appears that the market has priced in significant growth expectations for Donnelley Financial Solutions. Analysts estimate next year's revenue growth at 4.2%, which may not be sufficient to justify the current valuation multiples. However, the company's strong ROIC of 13.71% and ROE of 7.6% indicate a solid return on capital.

Government Shutdown Impact

The company expects a temporary softening in capital markets transactional revenue due to the government shutdown, but it will not completely stop. The shutdown has slowed down the IPO market, but the SEC has provided guidance for companies to file a completed statement and wait 20 days, allowing some companies to press ahead. Donnelley Financial Solutions has a robust pipeline of companies and RFPs, and its share of deals is 69%.

3. NewsRoom

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Fisher Asset Management LLC Sells 23,374 Shares of Donnelley Financial Solutions $DFIN

Dec -05

Source: defenseworld.net

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Donnelley Financial Solutions $DFIN Stock Holdings Decreased by Ensign Peak Advisors Inc

Dec -01

Source: defenseworld.net

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Financial Review: Tyler Technologies (NYSE:TYL) & Donnelley Financial Solutions (NYSE:DFIN)

Nov -21

Source: defenseworld.net

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DFIN Launches Active Intelligence™, its AI Suite Driving Smarter Compliance

Nov -19

Source: prnewswire.com

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Connor Clark & Lunn Investment Management Ltd. Cuts Stake in Donnelley Financial Solutions $DFIN

Nov -17

Source: defenseworld.net

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Donnelley Financial Solutions, Inc. (DFIN) Q3 2025 Earnings Call Transcript

Oct -29

Source: seekingalpha.com

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DFIN Reports Third-Quarter 2025 Results

Oct -29

Source: prnewswire.com

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DFIN Successfully Completes Pension Plan Termination

Oct -23

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.95%)

6. Segments

Capital Markets - Compliance and Communications Management

Expected Growth: 2.8%

The 2.8% growth in Capital Markets - Compliance and Communications Management is driven by increasing regulatory requirements, rising demand for cloud-based compliance solutions, and growing need for effective communication management. Additionally, the adoption of digital technologies and the need for cost reduction and efficiency gains also contribute to this growth.

Capital Markets - Software Solutions

Expected Growth: 3.2%

The 3.2% growth in Capital Markets - Software Solutions from Donnelley Financial Solutions, Inc. is driven by increasing demand for cloud-based compliance and regulatory solutions, growing adoption of artificial intelligence and machine learning in financial services, and rising need for data analytics and visualization tools to support informed investment decisions.

Investment Companies - Compliance and Communications Management

Expected Growth: 2.9%

Strong demand for compliance and communications management solutions, driven by increasing regulatory requirements and need for transparency in investment companies. Growing adoption of digital platforms and cloud-based services also fuels growth. Additionally, Donnelley Financial Solutions' expertise in financial reporting and risk management contributes to its 2.9% growth.

Investment Companies - Software Solutions

Expected Growth: 3.1%

The 3.1% growth of Investment Companies - Software Solutions from Donnelley Financial Solutions, Inc. is driven by increasing demand for cloud-based compliance and risk management solutions, expansion into new markets, and strategic partnerships. Additionally, the growing need for digital transformation in the financial sector and the requirement for regulatory compliance are also contributing to this growth.

7. Detailed Products

ActiveDisclosure

A cloud-based disclosure management solution that helps companies to collaborate, author, and review their financial reports and regulatory filings.

ArcDigital

A digital asset management platform that enables companies to manage, distribute, and track their financial reports, regulatory filings, and marketing materials.

Venue

A virtual data room solution that enables companies to securely share sensitive financial information with stakeholders, investors, and regulators.

ActiveDisclosure for SPACs

A specialized disclosure management solution designed specifically for Special Purpose Acquisition Companies (SPACs) to manage their complex regulatory filings.

Compliance Solutions

A suite of compliance solutions that help companies to manage their regulatory compliance, including risk management, audit management, and compliance reporting.

Financial Printing

A comprehensive financial printing solution that enables companies to produce high-quality, compliant financial reports and regulatory filings.

8. Donnelley Financial Solutions, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Donnelley Financial Solutions, Inc. operates in a niche market, providing financial communications and technology-enabled services. While there are some substitutes available, they are not a significant threat to the company's business model.

Bargaining Power Of Customers

Donnelley Financial Solutions, Inc. has a diverse customer base, and no single customer accounts for a significant portion of its revenue. This reduces the bargaining power of customers.

Bargaining Power Of Suppliers

Donnelley Financial Solutions, Inc. relies on a few key suppliers for its operations. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of their products and services.

Threat Of New Entrants

The financial communications and technology-enabled services industry has high barriers to entry, including significant capital requirements and regulatory hurdles. This makes it difficult for new entrants to join the market.

Intensity Of Rivalry

The financial communications and technology-enabled services industry is highly competitive, with several established players competing for market share. Donnelley Financial Solutions, Inc. must continually innovate and improve its services to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 27.24%
Debt Cost 11.41%
Equity Weight 72.76%
Equity Cost 11.41%
WACC 11.41%
Leverage 37.44%

11. Quality Control: Donnelley Financial Solutions, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

1-Year Total Return ->

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Siebert Financial

A-Score: 5.0/10

Value: 7.0

Growth: 6.9

Quality: 7.2

Yield: 0.0

Momentum: 7.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
A-Mark Precious Metals

A-Score: 4.7/10

Value: 6.2

Growth: 5.1

Quality: 3.7

Yield: 8.0

Momentum: 0.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Perella Weinberg

A-Score: 4.7/10

Value: 5.3

Growth: 2.8

Quality: 6.6

Yield: 4.0

Momentum: 4.5

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Bitcoin Depot

A-Score: 3.9/10

Value: 6.3

Growth: 2.1

Quality: 3.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Donnelley Financial Solutions

A-Score: 3.5/10

Value: 4.2

Growth: 4.6

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

45.4$

Current Price

45.4$

Potential

-0.00%

Expected Cash-Flows