Revenue growth is mixed, but margin expansion is evident as the efficiency ratio improved to 33.3% in 2026Q2 from 40.1% in Q1, with fee income comprising 100.1% of total revenue.
Donnelley Financial Solutions, Inc. (DFIN) annual income statement — 12-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 |
|---|
| Net Interest Income | -12.3M | -12.9M | -12.9M | -15.8M | -9.2M | -19.2M | -25.5M | -34M | -36.7M | -42.9M | -11.7M | -1.1M | -1.5M |
| NII Growth % | 0.02% | 0% | 18.35% | -71.74% | 52.08% | 24.71% | 25% | 7.36% | 14.45% | -266.67% | -963.64% | 26.67% | - |
| Net Interest Margin % | -1.47% | -1.61% | -1.51% | -1.96% | -1.11% | -2.17% | -2.84% | -3.83% | -4.22% | -4.8% | -1.2% | -0.13% | -0.15% |
| Interest Income | 600K | 1.1M | 2.2M | 2.1M | 800K | 600K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 12.9M | 14M | 15.1M | 17.9M | 10M | 19.8M | 25.5M | 34M | 36.7M | 42.9M | 11.7M | 1.1M | 1.5M |
| Loan Loss Provision | 282.7M | 266.4M | 282.8M | 315.4M | 360.2M | 393.3M | 470.5M | 508.4M | 550.6M | 578.5M | 607.3M | 630.4M | 651.8M |
| Non-Interest Income | 776.9M | 765.9M | 779.7M | 795.1M | 832.8M | 992.7M | 894.5M | 874.7M | 963M | 1B | 983.5M | 1.05B | 1.08B |
| Non-Interest Income % | 101.61% | 101.71% | 101.68% | 102.03% | 101.12% | 101.97% | 102.93% | 104.04% | 103.96% | 104.46% | 101.2% | 100.1% | 100.14% |
| Total Net Revenue | 764.6M | 753M | 766.8M | 779.3M | 823.6M | 973.5M | 869M | 840.7M | 926.3M | 962M | 971.8M | 1.05B | 1.08B |
| Revenue Growth % | 3.17% | -1.8% | -1.6% | -5.38% | -15.4% | 12.03% | 3.37% | -9.24% | -3.71% | -1.01% | -7.31% | -2.8% | - |
| Non-Interest Expense | 327.7M | 335.1M | 340.8M | 344.1M | 310.7M | 360.9M | 394.9M | 253.8M | 254.6M | 287.8M | 259.5M | 245.3M | 336M |
| Efficiency Ratio | 42.86% | 44.5% | 44.44% | 44.16% | 37.72% | 37.07% | 45.44% | 30.19% | 27.49% | 29.92% | 26.7% | 23.4% | 31.15% |
| Operating Income | 154.2M | 151.5M | 143.2M | 119.8M | 152.7M | 219.3M | 3.6M | 78.5M | 121.1M | 95.7M | 105M | 172.7M | 90.8M |
| Operating Margin % | 20.17% | 20.12% | 18.68% | 15.37% | 18.54% | 22.53% | 0.41% | 9.34% | 13.07% | 9.95% | 10.8% | 16.47% | 8.42% |
| Operating Income Growth % | - | 5.8% | 19.53% | -21.55% | -30.37% | 5991.67% | -95.41% | -35.18% | 26.54% | -8.86% | -39.2% | 90.2% | - |
| Pretax Income | 49.7M | 43.1M | 125.1M | 102M | 139.3M | 197.8M | -17.5M | 52.1M | 102.7M | 56.2M | 94.3M | 171.7M | 92.4M |
| Pretax Margin % | 6.5% | 5.72% | 16.31% | 13.09% | 16.91% | 20.32% | -2.01% | 6.2% | 11.09% | 5.84% | 9.7% | 16.38% | 8.57% |
| Income Tax | 14.5M | 10.7M | 32.7M | 19.8M | 36.8M | 51.9M | 8.4M | 14.5M | 29.1M | 46.5M | 35.2M | 67.4M | 35M |
| Effective Tax Rate % | 29.18% | 24.83% | 26.14% | 19.41% | 26.42% | 26.24% | -48% | 27.83% | 28.33% | 82.74% | 37.33% | 39.25% | 37.88% |
| Net Income | 35.2M | 32.4M | 92.4M | 82.2M | 102.5M | 145.9M | -25.9M | 37.6M | 73.6M | 9.7M | 59.1M | 104.3M | 57.4M |
| Net Margin % | 4.6% | 4.3% | 12.05% | 10.55% | 12.45% | 14.99% | -2.98% | 4.47% | 7.95% | 1.01% | 6.08% | 9.95% | 5.32% |
| Net Income Growth % | -57.13% | -64.94% | 12.41% | -19.8% | -29.75% | 663.32% | -168.88% | -48.91% | 658.76% | -83.59% | -43.34% | 81.71% | - |
| Net Income (Continuing) | 35.2M | 32.4M | 92.4M | 82.2M | 102.5M | 145.9M | -25.9M | 37.6M | 73.6M | 9.7M | 59.1M | 104.3M | 57.4M |
| EPS (Diluted) | 1.37 | 1.15 | 3.06 | 2.69 | 3.17 | 4.14 | -0.76 | 1.10 | 2.16 | 0.29 | 1.80 | 3.19 | 1.76 |
| EPS Growth % | -48.76% | -62.42% | 13.75% | -15.14% | -23.43% | 644.74% | -169.09% | -49.07% | 644.83% | -83.89% | -43.57% | 81.25% | - |
| EPS (Basic) | - | 1.18 | 3.16 | 2.81 | 3.33 | 4.36 | -0.76 | 1.10 | 2.18 | 0.29 | 1.81 | 3.22 | 1.77 |
| Diluted Shares Outstanding | 25.7M | 28.2M | 30.2M | 30.6M | 32.3M | 35.2M | 33.9M | 34.3M | 34M | 33.3M | 32.8M | 32.7M | 32.7M |
Quick answers to the most common questions about buying DFIN stock.
For fiscal year 2025, Donnelley Financial Solutions, Inc. (DFIN) reported total revenue of $753.0M. This represents a 30.2% decline compared to $1.08B in 2014.
Donnelley Financial Solutions, Inc. (DFIN) is profitable, generating $32.4M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
Donnelley Financial Solutions, Inc. (DFIN) reported an operating income of $151.5M, resulting in an operating profit margin of 19.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Donnelley Financial Solutions, Inc. (DFIN) generated $486.6M in gross profit for the year, representing a gross profit margin of 63.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Prolonged IPO/M&A stagnation
Metrics are mathematically derived from official filings.
NII Negative but Immaterial
Net interest income is consistently negative, averaging -$3.2M per quarter, but represents less than 2% of total revenue, indicating a negligible impact on earnings. According to the latest quarterly data, NII remained negative at -$3.5M in 2026Q2.
The negative NII likely reflects interest expense on borrowings exceeding interest income on cash and investments, a common situation for non-bank financial firms. However, its magnitude is trivial relative to the $224M quarterly revenue, so it does not materially affect profitability. Investors should focus on fee income and operational efficiency rather than NII trends.
Margin Expansion on Software Mix
Efficiency ratio improved to 33.3% in 2026Q2 from 40.1% in the prior quarter, reflecting strong operating leverage. As reported in the latest financials, this is the lowest efficiency ratio in the past ten quarters, indicating improved cost management.
The efficiency ratio drop suggests that revenue growth, albeit modest, is outpacing expense growth, likely due to the shift toward higher-margin software and recurring services. The 2026Q2 efficiency ratio of 33.3% is significantly better than the 52.0% seen in 2025Q4, highlighting the company's ability to scale its software offerings. However, the sustainability of this margin expansion depends on continued revenue mix improvement and disciplined cost control.
Provision Expense Signals Caution
Provision for loan losses surged to $90.2M in 2026Q2, up from $70.9M in the prior quarter, representing 40% of total revenue. Based on the income statement data, this is the highest provision level in the observed period, suggesting heightened credit risk concerns.
The sharp increase in provision expense is unusual for a software company and may indicate that DFIN holds a loan portfolio or has exposure to credit losses through its services. This provision level could be tied to potential bad debts on receivables or financing arrangements. The elevated provisioning is a drag on net income, which was $36.4M in 2026Q2, and warrants close monitoring to assess whether this is a one-time event or a trend.
Fee Income Dominates Revenue
Non-interest income constitutes essentially 100% of total revenue, with fee income of $224.4M in 2026Q2. As per the latest quarterly report, this reliance on fee-based revenue underscores the company's service-oriented model.
DFIN's revenue is almost entirely derived from fees for software subscriptions, compliance services, and transactional services, with no meaningful interest income. This structure aligns with its positioning as a tech-enabled service provider. The quality of these fees varies: recurring software fees are more stable, while transactional fees from M&A and IPO activity are volatile. The 100.1% fee percentage indicates that any disruption in fee-generating activities could directly impact revenue.
2026Q2 Marks Operational Turn
The second quarter of 2026 stands out as a period of significant operational improvement, with EPS of $1.44 beating estimates and efficiency ratio at a ten-quarter low. According to the income statement data, this quarter reflects the benefits of the software transition.
2026Q2 shows a notable inflection point: revenue grew 7.9% YoY, the highest growth in recent quarters, while EPS surged 12.5% YoY. The efficiency ratio improved to 33.3%, indicating that the company is achieving better cost leverage. However, the provision expense spike and continued negative NII temper the positive narrative. This quarter may signal that the strategic pivot is gaining traction, but the sustainability of these metrics is uncertain given the flat revenue guidance.
Earnings Quality Under Scrutiny
Despite the EPS beat, the $90.2M provision expense in 2026Q2 raises questions about earnings quality, as it represents a significant non-operating charge. Based on the reported figures, this provision is unusually high for a software company.
The large provision expense, which is more typical of a bank, suggests that DFIN may have credit exposures that are not fully transparent. This could be related to financing receivables or guarantees. Additionally, the negative NII indicates that the company is paying more on its debt than it earns on cash, which is a drag on profitability. Investors should scrutinize the nature of these provisions and the company's debt levels to assess the true underlying earnings power.