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Donnelley Financial Solutions (1DN) AI Stock Analysis

DE:1DN

Donnelley Financial Solutions

(Frankfurt:1DN)

Rating:―N/A
Action:N/A
Date:―

No summary available

Positive Factors
Software-led growthThe increasing contribution from Software Solutions supports a more recurring, scalable business model and reduces reliance on traditional print services. Continued SaaS adoption can improve revenue durability, strengthen customer workflows, and support operating leverage as the mix shifts toward technology.
Negative Factors
Thin net profitabilityAlthough revenue has rebounded and operating profitability remains positive, thinner net margins indicate that more revenue is being absorbed by costs or below-the-line pressures. This limits earnings resilience and makes future profit growth less certain than the recent revenue recovery suggests.

Donnelley Financial Solutions (1DN) vs. iShares MSCI Germany ETF (EWG)

-30%-20%-10%0%10%20%DE:1DN+13.17%EWG+6.61%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
EUR 1.65B
Dividend Yield
―
Average Volume (3M)
―
Price to Earnings (P/E)
17.6
Beta (1Y)
0.36
Revenue Growth
-0.38%
EPS Growth
200.35%
Country
Germany
Employees
1,750
Sector
Technology
Sector Strength
61
Industry
Software - Application

Donnelley Financial Solutions Business Overview & Revenue Model

Company Description

Donnelley Financial Solutions, Inc. (DFIN) is an international firm specializing in risk management and regulatory compliance solutions. The company organizes its operations across four distinct segments: Capital Markets – Software Solutions (CM-SS),...

Donnelley Financial Solutions Earnings Call Summary

Earnings Call Date:Oct 28, 2026(Q3-2026)|% Change Since:-1.69%|Next Earnings Date:Feb 22, 2027
Earnings Call SentimentPositive

The call was predominantly positive, with strong third-quarter sales, adjusted EBITDA, margin, free cash flow and leverage metrics; sustained growth in Software Solutions and ActiveDisclosure; improving capital markets activity; and continued progress toward a software-led business model. The main challenges were weaker Venue performance internationally, declines in Arc Suite and print-related revenue, softer U.S. IPO activity, higher incentive compensation expense and fourth-quarter margin guidance that is expected to be flat year over year.

Positive Updates

Third-Quarter Sales Growth at High End of Guidance
Third-quarter sales were $185 million, at the high end of the guidance range and up 5.5% compared with the third quarter of 2025.

Negative Updates

Venue Revenue Declined Overall
Venue revenue was approximately flat in the quarter according to prepared remarks and was reported at $36 million, down approximately 1% year over year. U.S. growth was offset by softer international performance, particularly in EMEA, where market activity slowed.

Company Guidance

For the fourth quarter of 2026, DFIN expects consolidated net sales in the range of $175 million to $180 million, with the midpoint implying year-over-year growth of approximately 3%, in line with the year-to-date growth rate through the first 3 quarters; adjusted EBITDA margin is expected in the range of 26% to 27%, with the midpoint of 26.5% flat to last year’s fourth quarter adjusted EBITDA margin, which included a reimbursement of approximately $3 million related to a stop-loss insurance policy. Capital Markets transactional net sales are estimated at $50 million, including a small portion reflected within the Capital Markets Software Solutions segment, up approximately $1 million from last year’s fourth quarter, with a little bit more strength than the third quarter on IPO and pretty similar from an M&A perspective. The e-delivery regulation is expected to have a phase-in, with the impact more towards 2028, benefiting software and offsetting in part, not fully, the reduction in Print and distribution; ArcFlex is expected to generate a de minimis amount of revenue this year and start to ramp up in 2027.

Donnelley Financial Solutions Risk Analysis

Donnelley Financial Solutions disclosed 28 risk factors in its most recent earnings report. Donnelley Financial Solutions reported the most risks in the "Finance & Corporate" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Donnelley Financial Solutions Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

DE:1DN against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
LZLZ74Outperform$1.15B72.6410.41%―12.26%-41.84%
BLBL68Neutral$1.97B57.9510.84%―8.62%-58.32%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
MITKMITK60Neutral$815.36M35.909.35%―11.10%47.69%
LAWLAW54Neutral$340.18M-8.05-32.17%―12.90%31.66%
SECZSECZ40Underperform$1.23B-2.94-37.12%――-5668.57%

* Technology Sector Average

Performance Comparison

-50%0%50%100%DE:1DNMITKBLLZLAWSECZDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
DE:1DN and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
DE:1DNDonnelley Financial Solutions, Inc.46.406.4016.00%
MITKMitek Systems18.008.9899.61%
BLBlackLine34.09-22.35-39.60%
LZLegalzoom.Com, Inc.6.93-2.99-30.14%
LAWCs Disco, Inc.5.15-0.84-14.02%
SECZSecuritize Corp.7.24-4.16-36.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.