Donnelley Financial Solutions, Inc. Q3 FY2025 earnings call

· Strategy validation with sales mix shift towards SaaS, adjusted EBITDA growth, and margin expansion. · Launched Venue Virtual Data Room and ArcFlex. · U.S. government shutdown led to 8% reduction in event-driven transactional revenue. · Completed pension plan settlement: $12.5M cash contribution, $82.8M noncash pretax charge, removed ~$10M net liability from balance sheet.

Software Solutions: Net sales grew 10.3% year-over-year. In the third quarter, Software Solutions sales represented approximately 52% of total sales. Trailing 4-quarters, Software Solutions sales reached ~$350 million, growing 8.5% from Q3 2024 trailing 4-quarters and accounted for 46.5% of trailing 4-quarter sales. Recurring Compliance software products (ActiveDisclosure and Arc Suite) had 16% aggregate sales growth; ActiveDisclosure grew ~26%, Arc Suite had ~10% growth. Venue had ~3% year-over-year sales growth. Capital Markets - Compliance & Communications Management: Net sales decreased $6.3 million (-9.9%). Investment Companies - Software Solutions: Net sales increased $2.8 million (+9.7%), adjusted EBITDA margin 36.6%, up 580 basis points. Investment Companies - Compliance & Communications Management: Net sales decreased $6.4 million (-18.9%), adjusted EBITDA margin 34.7%, up 450 basis points.

· Q4 2025 consolidated net sales guidance: $150M-$160M. · Adjusted EBITDA margin guidance: 22%-24%, midpoint up ~300 basis points y-o-y. · Capital markets transactional revenue expected $30M-$40M, midpoint down from last year. · Venue expected to continue growth due to new product and underlying market activity.

· U.S. government shutdown impacting capital markets transactional activity. · Secular decline in demand for printed products in Investment Companies segment, expected 5%-6% annual decline.

Q: Pick up on the government shutdown discussion and metrics on margin impact in Q4?

A: David Gardella states margin impact of lower transactional revenue is considered in guidance, health care recovery offsets some, expecting ~300 basis points margin expansion at midpoint.

Q: SPAC IPOs, DFIN's participation?

A: Eric Johnson says DFIN is selective in SPAC go-to-market due to quality concerns but winning future contracts from upgraded clients.

Q: Venue momentum, driver of growth?

A: David Gardella and Craig Clay discuss sales execution as key driver, new product to have more impact in future quarters.

Q: Capital allocation, uses of excess cash flow?

A: Daniel Leib says priority is strategy execution, financial flexibility, opportunistic share repurchases.