Financial regulatory software provider Donnelley Financial Solutions (NYSE: DFIN) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 10.4% year on year to $172.5 million. On the other hand, next quarter’s revenue guidance of $205 million was less impressive, coming in 1.1% below analysts’ estimates. Its non-GAAP profit of $0.70 per share was 70.7% above analysts’ consensus estimates.

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Company Overview

Born from the need to navigate increasingly complex financial regulations in the digital age, Donnelley Financial Solutions (NYSE: DFIN) provides software and technology-enabled services that help companies comply with SEC regulations and manage financial transactions and reporting requirements.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Donnelley Financial Solutions’s demand was weak over the last five years as its revenue fell at a 3% annual rate. This wasn’t a great result, but there are still things to like about Donnelley Financial Solutions.

Long-term growth is the most important, but within financials, a half-decade historical view may miss recent interest rate changes and market returns. Donnelley Financial Solutions’s annualized revenue declines of 1.9% over the last two years suggest its demand continued shrinking. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

This quarter, Donnelley Financial Solutions reported year-on-year revenue growth of 10.4%, and its $172.5 million of revenue exceeded Wall Street’s estimates by 11.1%. Company management is currently guiding for a 1.9% year-on-year increase in sales next quarter.

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Key Takeaways from Donnelley Financial Solutions’s Q4 Results

It was good to see Donnelley Financial Solutions beat analysts’ EPS expectations this quarter. We were also excited its revenue outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock remained flat at $39.12 immediately following the results.

Is Donnelley Financial Solutions an attractive investment opportunity at the current price? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).